The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1905-10-14
THE SoUNDNEss OF INSURANCE.

Insurance plays so important a part
in modern life that every one is inter-
ested in the revelations now being
made by the investigation in New
York. Right here in Memphis it is
indeed a local question; for there are
thousands OF persons here who are in
sured in the Equitable, the New York
Life and other large concerns. Some
OF the policy holders have ever become
alarmed because of the transactions
revealed in the present investigation,
and doubtless business has been part
tally arrested. But there is no occa-
sion whatever for alarm. Some Of the
syndicate transactionS-notably those
in which Hyde has been interested
have been indefensible; but Hyde was
merely a carbuncle on the body of the
Equitable and he has been lanced.
The subscription to the republican
campaign fund made by President Nc
Call in so devious a way for the New
York Life was entirely unjustifiable.
None can disapprove of such transac-
tionS more than we do, but when linen
gets dirty, it is better to wash it than
to leave it dirty. Hyde was a COM
mon pandhandler, who was compelled
to diSgorge the profits he made in
buying stocks and selling them at Il
profit to himself and to the company
OF which he was vice-president. The
Equitable is we'll rid of him. 1t is
vpalI rid Of that nnctnO1c n1J ~roftor
Chauncey NJ. Depew.
The investigation now going on viii
certainly clear the atmosphere. In
Surance will be placed upon a better
basis than it has eve been before.
There will be no more syndicate trans
actions, no more $40, 600 salaries to
United States Senators for their I'm
flOoence, no more diversion of the
money Of the policy holders to political
campaign chests. Indeed, the chances
are that statutes VIII be passed max
ing it a fraudulent breach Of trust to
use any Of the funds of an insurance
company for political purposes.
But timid policy holders should not
be blind to the other side of the ac-
count. No mans insurance is in the
! least jeOpardiZed; even If a few hun
dred thousand dollars of the policy
holders money has been injudiciouSly
expended or Squandered. The insur-
ance companies are compelled. of
course, to invest a large amount of
this money. Any n who will take
the trouble to inyestigate these invest
ments will find that most of them
have paid handsomely, and that only
an insignificant percentage Of them
have resulted in a loss. OF course
there is an element Of risk ia any in
veStment, but the loss sustained by
the New York Life and Equitable is
as nothing compared with the profit.
The investments OF the large COM
panieS are as a rule safe and profit
| able.
From this time on, we believe the
insurance companies will be on a bet
ter basis and more deserving Of pub
lie confidence than eyer before. IT.
regular transactions will be elimi-
mated, and the companies will be held
to a strict business accountability.
The policy holders will be amply
protected from questionable tranSac-
lions hereafter. The insurance COM
panies ia the main are wisely and
honestly conducted, and insurance has
become one of the necessities Of life,
as we'll as of business. Extracts from
an Editorial in the Memphis Com
merical Appeal, October 2, 1909