New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-06
DEFENCE AGAINST B1AcKnA1L.

| It is probably true as Mr. Mccall said to the
Armstrong committee, that three-fourths of the
| bills relating to insurance introduced into state
| legislatures are instruments of blackmail The
/ enormous sums fntrusted to Mr.. Hamilton and
! others by the insurance companies to defeat
| injurious legislation may have been considered
| by the managers q necessary expenditure.
| Doubtless they did not want to bride law
makers to treat them fairly. They would have
preferred to be let alone. They were not to
blame, they might say, Il the people elected cor
| rupt lawmakers; they had vast interests in
trust, and If the people were incapable of secur-
| ing honest government for the insurance com
panies to deal with, then the insurance compa-
MES must perforce face actual conditions and
protect themselves as best they could.
| 1t is q plausible argument, and we are not
disposed to call the person an abandoned
wretch who makes it. Probably some men of
| excellent intentions honestly believe that they
are doing their duty in following such a pro-
granlme.. Indeed, if in a moment Of weakness
| they have embarked upon 1t, 1t may appear al
| most impossible to stop. They are in the hands
Of the blackmailers, and every strike bill bought
| off is an invitation for a new eXtortiOn under
| penalty of exposure. If the first misstep had
never been made, however, the insurance COM
| panies could have safely defied strike bills.
! Their business is one which, If properly con-
/
| course, If they wish license for speculative in
| vestment and for activities not clearly Incl
dent to conservative insurance, they are sub
| ject to attack But a company with a clean
record need have no fear. A bill interfering
with sound business would only need to be
openly denounced and explained, and it would
almost surely fail If by chance it went
through and proved harmful, it would be
quickly repealed at the demand of the policy
holders.
Insurance companies which are actually con-
cerned only to serve their policyholders have
not, like the railroads, complicated business
interests in rivalry with popular interests or
prejudces. A strike bill against them cannot
so easily hide its character. a company with
, no skeletons in its closet would be almost
invulnerable to such attack But when the
business becomes speculative, when syndicates
share the profits of insurance fund investments,
when books are doctored by wash" sales when
one ilIegitlmate payment has been made in
fear, then the lobbyist and the blackmaier are
masters Suppose the Stock Exchange had fol
lowed the example of the insurance companies
last winter when the stock tax was threatened.
Doubtless some brokers thought it a strike If
they had put up money to defeat #, whether
they won lost their millions would have
been at the lobby's command thereafter. AS it
was, the bill went through. yet Exchange seats
at high water mark, business has not suf-
fered, and the Exchange is in better position
than ever before to fight legislation which
really is OF a blackmaling character
SO it might have been with insurance So 1t
may be even now. The exposures so far made
have taught the public to be surprised at no
revelation of abuses. 1t is a time for confes-
sion and reform. The companies now have an
opportunity to clean house reorganize their
business a basis which is beyond criticism.
put themselves in a position TO expose any at
tempt at Matchmaking. and lay their transac-
tons before the public in full confidence that
the character of strike bill will he evident
Then they can defy the blackmailers and the
sums now devoted to the mysterious uses of the
and the orphan.