Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-11-26
NO NATIONAL rIGiLANcE COMMITTEE

NO VA TIONAL VIGILANCE COMMITTEE.
Commenting upon the folly of policy
holders who have allowed their life in
surance policies to lapse for fear of inn
pending insolvency and the insane folly
of policy holders who are sending their
proxies to Tom Lawson with a view to
securing restitution of absorbed divi-
dends, Harpers Weekly declares that IF
it be possibly true that insurance Off
Gals have become so discredited as TO be
impotent in withstanding this force of
the wave of insanity, It is high time for
the formation of a national vigilance
committee in the interest of the whole
people"
The suggestion Of national vigilance
committee is, If anything, more insane
than Tom Lawson's hfeboat relief ex-
petition for insane policy holders that
are jumping overheard. A much more
rational remedy offers itself in enforced
publicity and rigid supervision. The
scandalous nepotism, reckless eNtrava-
gance, speculation in securities and di-
version of trust funds into corrupt chan
nels could readily have been averted by
publicity and strict supervision. A ma
tional vigilance committee could have
inflicted summary punishment upon in
surance embezzlers and spectators in
insurance company funds, but vigilance
committees could not prevent a recur-
renee of the abuses Of the system.
There is no question and there can be
no question of the solvency of the stan
dard life insurance companies. Nobody
who has given the subject serious
thought doubts the ability Of each of
these companies to meet every obliga-
| ton, in other words, to pay every dol
lar of insurance outstanding, even
though not another new policy shall ever
be written. There is, however, serious
doubt whether popular confidence in life
| insurance will ever be restored until q
| complete revolution in the methods of
life insurance management shall be eff
fected.
Under the old system, heads Of insur-
ance companies and other executive Off
GERS have made purchases and sale of
millions of securities at their own OPP
ton. Trust funds in the hands of in
surance companies thus become a source
| for syndicate speculation and downright
stock gambling. What the patrons Of in
surance companies have a right to de-
mand and expect is that all financial
| transactions of life insurance companies
be carried on in broad daylight and in
the public view.
| Whenever an insurance company has
any considerable amount of money to
invest proposals should be invited for
the class of securities the company
deems most sound and safe. and after
the proposals have been opened in the
presence of the board of directors and
representatives of the bidders, the
awards should be made to the best bid
the same as is done by the secretary
of the treasury in the sale or redemp
ton of United States bonds, and by
treasurers of the various states in the
investment of permanent school funds
The same process should be pursued in
the sale OF securities which insurance
companies are compelled to dispose OF
in order to meet demands for the pay
ment of policies. or for the liquidation
of any other obligation.
Under the present system, darkness
prevails in many OF the inner recesses
OF insurance companies that should be
kept constantly Illuminated by the lime
light of publicity, so that every policy
holder may at all times feel that the az
fairs Of the company are managed eff
ciently and honestly and that his invest
mcnt is properly safeguarded.
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