Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-07-26
HOT CRITICISM
By Massachusetts Insur-
ance Commissioner
|Of Methods and Course Of
Big Insurance Companies.
Deplores Condition and Calls Attention 10
His Previous Warnings.

Boston, July ---Scathing criticism,
pointed condemnation ami fierce d.
nunciatiun Of TIL methods and course
Of the big insur,l.ce companies char
act"rize the aunu.i report vi Frederick
l.. Cummings. commissioner Of insur-
ancc for MasSa chuS.trs. issued. today.
The report is exhaustive i'll its review
Of methods tlaIin$"I by high fnsur-
ance officials during The last several
years, to whom l..- illui"s. in some in
stances as .JuddS"S." and to one COM
pany' a5 the DIR. .I"kyl and Mr.. Hyde"
company, and ,ul., ,ins r..umIncnla-
ton that the LEGISLATURE at its next
session take up lii" matter of deferred
dividends and tn relation between in
sJrancc compau.,1 and their allied
trust companies ana other questions
with a view Of compelling reform.
The report C"r~itcrs insurance in
connection with ill.,: gambling instinct
II the age" ana t.ls Of the influence
uron the ofTici:!s of Insurance COM
panics from the dubious schemes"
schemes for getting enormously
lich.' the graf ~ rity officials. stat.
| officials, national oiiIcIals. petty l"Eis-
l1jors. congressm"n. United States
senators and courts subScryient to the
great MoloCh. money" that they have
seen all about them and they also saw
tainted money eagerly sought By col
+ Z" and pulpit
at the Equitable Life. the Mutual
Life ana the NON York Life. termed
til, Big Three" ana the "Raccrs." the
Iclort says ,hat they have been large
IL Ia F,,r
I,-uSe,s Of til" business. 1t" swell TIL.
v"iumc Of which ana be"on." the big
g,>t has led each to pour out money
liz" water" ana il recommends An inn
mediate. ana comrIote reform Of these
| Ill respect to the extraordinary deposits
Md" by them with i few favored
banks and trust companies.
], .erring to the Equitable Life AS
sur; lcc Society tn. report SAYS:
40 AL outward appearances. life in
sulance has been booming along Sc
1-nely and beautifully during the past
- years. with money rolling into the
t.caSuri"s in broad streams.
hit a rude awakening came. \
| chasn opened, showing the hidden So
crets Of great DR.. Jekyl and Nj.
Hyde insurance company. il had sud-
denly daW1Ied that during these -
years Of peaceful conquest Of millions
Of public money there had been Judascs
at work betraying their trusts for H.
nancial gain
Fraternal insurance and thn case of
III" Royal Arcanum prn d.alt with Il
similar length, expressing his oIrion
that The hc" rates recently adopted by
that Order and causing such stir
within it, ranks Irc net too high.
After dealing ~ length with tie sub
jet OF life Insurance. of the enormous
amount Of money involved and Of the
close relations Of the companies and
the subsidiary trust companies. the
| commissioner says. referring to last
years report:
1T must pe said that tn" situation
constantly presents tn" temptation to
directors. VINO also have stock in the
trust company to give tn" latter AL the
advantages they possibly can in the.
Way If deposits and loans Th., inter-
| ests Of thfir pockets are in perpetual
conflict with their duties as fduciary
agents Of III" policyholders.
I'll" MtsSIs husctts department called
attention (" th"s" conditions q var ago
and Of this ComniSsio n"r Cummings
says:
- ne department lad hnycs that thc
daily press would put matters Of such
importance before the publi,.. but in
most ctSes, their columns were practI-
! cally closed against the revelations
he majority continued TO c3t drinl,
and mad" money. But rude awaken
ing has come