The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1905-10-16
WELD A BILLION.

Evil IN insurance companies.
NEW YORK, Oct. 16.-John w.
Pyckman, owner and editor of the
Era Magazine, in a review of the life
insurance exposures, paints in graphic
and concrete form the tremendous
force for good or evil which the over
flowing treasures Of these big COM
panies represent.
At the investigation, he says, George
w. Perkins said in an offhand way
that in ten years, if it did not write
another dollar of insurance the New
York Life Insurance company could
control more than billion dollars.
Mr.. Ryckman maintains that the Mu-
tual Life and the Equitable will be
equally strong. He says ne can con-
ceive no greater danger to the repub-
lie than that of these three big COM
panies bound in an indissoluble al
lance controlling sum greater than
the whole money supply in actual
dollars of the So,0O0,O0O population of
the United States.
Temptations Results.
He says the temptation of handl-
ing countless millions had already led
the officers and trustees into devious
speculations on individual accounts
which built up colossal private fort
unes for them while the dividends
and results to policyholders were con-
stantly diminishing; finally, through
the recklessness that always comes
from a feeling of security after long
misconduct, enabled them to create
special channels of speculation to de-
feat laws, bride legislatures and sub
sidize the press to carry on the most
high-handed menacing scheme of fl
nancial buccan eering.
He points out that the big Three"
disbursed in 1904 over s4O,OOO,OO0 for
management and expenses, whereas
the expense of the whole consular and
diplomatic corps of the United States
for the same period amounted to less
than $2,OOO,0OO. He says:
ITO conduct the business which paid
to the partnership policyholders-
$102,O00,00O, in 1903, the big three
spent $49,0OO,OOO nearly 50 per cent.
rs this not a significant fact?
Included in this amount is $4,000,
which their reports itemize for legal
expenses
During the same time the combine
made an outlay of $1,322,0O0 which is
described in the reports under the
head Of Printing, stationery supplies
In these two items I am confident
Mr.. Hughes will unfold some of the
most startling and scandalous dis
closures of the present investigation.
1T is principally in these two ac-
counts that most of the corruption
funds are ingeniously hidden.
with insurance contracts made in
contestable, with their indisposition
to fight out disputes in the courts,
with no litigation in particular dur
ing the year, the big three tell the
public that for legal expenses they
spent more than three-quarters of a
million dollars.
"The item known as surplus and
undivided profits, belonging to and
withheld from the policyholders,
amounts in the three big companies
to $1S2,00000O, and this large sum,
instead of being given to the policy
holders, to whom it belongs, is used
along with other assets of the COM
bine in stock jobbing, syndicate Jug
Cling and private deals.
I'm all the transactions in years
past in connection with watered
stocks, dishonest flotations, railroad,
mining and other schemes there has
been abundant graft for the men who
managed the giant big three life in
surance combine. They have been in
all deals.
$50 the leading officials of the big
three life insurance companies come
to possess vast wealth. By secret and in
many instances of illegal and despic-
able methods these men have become
rich. They have accumulated private
fortunes which could not be saved in
a century from salaries