The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-09-27
UNINTENTTONAL IRREGULAIiI-
TIES.

When the misuse and virtual steal
ing of the policy-holders' money in
the Equitable Life Assurance Com
pany became public the Indignation
was so great that the Wall Street
manipulators saw that something
radical must be done or they might
lose control of that 100000 of
surplus and reserve. In their resolve
to hold on to the money so it could
help them place securities. ETC.. it
was arranged that Mr.. Ryan should
pay a fabulous sum for a majority of
the stock. That did not satisfy the
public. He then announced that he
would diveSt himself of control and
put it in the hands of Grover Cleve-
land and two other trustees who
would name the directors. About the
same time. Mr.. Paul Morton. whose
guilt in violating the law in giving re-
bates had been virtually established,
was put at the head of the company,
and Roosevelt administered a big coat
of whitewash to the rebate-g giving Off
cial as he went forth to. reform" the
Equitable The Wall street crowd ar
gued thus: Here We have eX-Presi-
dent Cleveland and President Roose-
welt vouching for the new president
and the new trustees. The public
will swallow most any capsule they
will prepare" But the public re-
scented the Roosevelt white-wash Of
Morton and saw the cloven-hoof of
Wall street influence in most Of the
new directors appointed. When
three Southern men We're named this
paper said they ought not to lend their
names to the dummy reform Some
of our contemporaries criticized this
paper because it didn't enthuse over
the new dlrectors-(all of whom had
bolted the Democratic ticket when
Cleveland didl-and said the criti-
cism of this paper was ungracious
and not proper. Events have proved
that the criticisms were too mild.
Within a few weeks after his APP
pointment. the new director from
North Carolina, Mr.. ID. A. Tomp-
kins. owner of the Charlotte Observer.
went to New York to attend a meet
ing Of the new crowd. and upon his
return assured the people through
his paper that many of the criticisms
against the Equitable were not de-
served, and characterized the finan
cial wrongs as "unimentional irregu-
II a
not know the million dollar Turner
loans" and other scandals that have
since developed, and it is evident that
from his interview he had accepted
statements of officials Just like the
directors he had succeeded had been
doing for years. But this fact justi-
fed the statement that the new direc-
tors named by Cleveland could not be
relied upon to bring about such re-
forms as would help the policy
holders. They are busy men and none
of them will take the time necessary,
and as for President Morton his record
as rebate-giver shows that he is not
the sort of man to be depended upon
TO prevent many of the evils that have
crept into the insurance business. He
will end any dishonesty and crime. but
wouldn't he give rebates to get in
surance business as he did to get rail-
road business? Would he regard it
as wrong to turn the money over to
subsidiary trust companies when he
himself had no personal profit. or
wrong intent? Does he feel that
taking the money of policy holders
and giving it to campaign committees
is wrong, per Sc. or does he announce
it will be stopped because of the pub
lie sentiment that condemns it? The
public judgment is that but for the
vigorous investigation by Attorney
Hughes In the investigation ordered by
the Legislature of New York nearly
all the evils and misappropriation Of
funds would have been regarded by
the officers as 'unintentional irregu-
larities" and the directors would have
accepted such statements and believed
that there was nothing worse. All
of which makes us say that the pres
ent management OF the Equitable is
no improvement over the Alexander
policy, and as far as knowledge of in
surance 5 concerned. Mr.. Alexander
knows more about i. IN day than
Mr.. Morton ard all the new directors
in a whole year. He is in fact the
ablest man in the knowledge of in
surance in America.
Can any better administration of
big companies be expected from men
who regard illegal rebate taking as
all right, because others did it, or the
scandalous transactions recently dis
closed as 'unintentional irregularities"