The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-10-12
Good Out 81 Evil.

LIame car dispense viii him. Z
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Good Out Of Evil.
In tho course Of his examination before
the Investigating Committee iii New
York. President McCurdy,g OF the New
York Mutual, surprised his hearers BY
declaring that tho main purpose9of the
life insurance companies Is not to make
money for The pollcyholders, but tint
Ill such companies are eloel,1osynary and
that when man lnsures lie should take
into consideration tho fact that lie has
entered great philnnthropic concern,
which is In duty bound TO spread it,
self, even though Its gro WITH prevents him
frcm realizing as much as lie expected,
Granting this to be- true, the policy
holders have the right to expect that tho
money will be used In true philanthropy
snd not in onriching a fow officers who
use its funds for private gain.
Z 1t comes In bad grace b surely from
The president Of company, who has
been receiving salary OF $50 900 a year
for his services and who 1ns put various
,'enbcrs Of his family Into fnt company
offices, to talk to the spolicylolders about
philanthropy on their part. IF life In
surnnce companies are to DO philan-
troplc surely the example should be set
by those who manage their affairs. Tho
burden of it should not full entirely upon
the policyholdcrs.
Mr.. McCurdy will not easily convert the
policyholders to his View. In spite Of
his altruistic peroration,&th the policy
holders cling to their more sordid view
that the money which TINY pay in pre-
miums, should go to the credit Of the
policies and enhance their value. At any
rate they do not fancy the kind Of
philanthropy which Mr.. McCurdy and his
brother philanthropists in other big conf
panies have bcen practlcing, and there
are those who believe that the days of.
tho big companies, us SUCH are num-
3bered. They will not go to pieces, for
they hhvo such vast Accommodations that
tons. Indeed, they have doubtless pros
fitted, in one sense, 3by the exposure
OF their. methods, for 1t must be that
there have been mhsl1ess9 cancellations
or policies upon which considerable sums
had been paid IN the way OF premiums.
They will continue to do business. but by
more conservative methods. They will
not pay out of the Accommodations b as
habit Of paying to get new business, and
their operations will be much curtailed.
But there Is another condition to be
recloned with. Several days ago We.
spoke Of thee ,follY,of sepdng money to
the North}to enrich insurance companies
whose managers have so falsely betrayed
their trusts. when Insurance can be rur-
chased from substantial, honestly con>
Quoted companies ut home. Many men
in the South and in other sections have
been comlnuning seriously with them
selves on this subject and have doubt
less determined to pursue hereafter a
different policy 80 Ito: speak.
If So the home companies already in
existence will,5Fet II mucl, more liberal
support. and new home companies will
spring up IN various states.s Sensible men
are not going to abandon insurance be-
cause these few companies at the North
have been dishonesty managed. In spite
O., their dlsgracefum methods and proflgacy
they have demonstrated that life
insurance Is practicable. and that even
a loosely conducted company can meet Its
obligations as fast as policies mature.
and carry a goodly sum to surplus every
year. They hnvc demonstrated that tho
principle Of lire insurance IS scientifically
sound The only thing needrul to sue
cess. If sufficient patronage can be Sc
cured Is honest and discreet management.
1t is an Ill wind that blows good to no
body, and we believe that good will
eventually come out Of the insurance
scandals in New York.
There is reasonable prospect, certain
~. TINT one OF the results will be the
upbullding OF southern insurance COM
panes.
4 4 . s s---- 81 T.. 4