The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-18
Tho Blackmail OF Insurance.


Nothing, not even the Equitable scan.
dial itself, furnishes so strong an argu-
ment in favor of the Federal regulation
Of life insurance as does the general
relation OF the insurance companies to
the insurance departments Of the several
States. In general 1t may be rudely
stated that the insurance officers black
mail the insurance companies or that
the insurance companies own the in
surance officers. Here in this State the
best opinion is that the latter practise
has prevailed, and that the whole legis-
lative relation of the State to insurance
has been practically controlled by the
companies. The law has been framed
at their dctation and has been admin
istered at their discretion.
The State Superintendent Of lnsur-
ance has been only a quiescent and COM
PLEASANT factor in their affairs, and his
functions have been relatively nil. Only
when convulsion like that in the affairs
Of the Equitable has supervened has it
been unavoidable that he should take
upon himself the discharge Of his well
defined duties, and even then his per-
Torrance has been delusive and has
been controlled by his private political
and individual obligations. In other
words, it has been fragrant mockery
Of the State and defiance of justice.
Look at the nature OF the Hendricks
report. Note its suppressions, its eva
sions and its concealments. Note, too,
the manner of its publication. When it
seemed desirable as a vehicle of black
mail directed by HARTMAN and ODELI.
against the new control of the Equitable,
then and then only was it produced.
Produced by one GRAHAM, a creature of
CDELL's, whose wages, formerly paid
by the Associated Press. are now paid
by the State Of New York, and through
whose agency it was ventilated in the
World, a newspaper whose proprietor
would do we'll to inform himself respect
ing its esoteric relations with the most
eminent blackmailer Of his time.
Framed with wise and provident in
tent, the insurance laws OF a majority
OF the States have been perverted and
debauched in the interests of blackmail
or graft. There is no shame, no con-
cealment about it, The candidate for
the Office of Superintendent or Commits
sioner of Insurance knows perfectly well
what the Office implies when he seeks it.
Its prerogatives and perquisites are fully
understood. 1t means so much per an
mum, and in the hands of an active, en-
terprising man it may mean SO much
more. If the insurance companies want
to do certain things they can do them by
paying for it. Immunity is commodity,
and the price is as we'll known as the
price of wheat.
A well regulated instinct and a sensi-
tive perceptivity will never fail an effect
i've State officer. He knows just when
the best interests of his State require
that he should make trip East and ex-
anime for himself on the spot in the home
office in New York the actual conditions
Of any company that inspires his official
concern. There are no more profita-
bic excursions. New York officialdom
makes it entertaining and attractive to
him, and he goes home and justifies him.
self by making contribution to his po-
litical fund.
z Are savings ban& subject to political
biackmail? If they are not, why should
life insurance companies be victims :?
Life insurance companies are victims
Of such ease that only the consciousness
Of guilt can admit. The saloon keeper
pays through the nose to the vampire
in his ward, and the toll exacted from
him differs in no particle from the toll
exacted from the insurance company in
its time of periodical stress. Can any
sane man hold that a life insurance COM
pany, a great moral and fduciary trust,
sacred in its very nature, would yield to
the political blackmailer il 1t were not
pnnerved by its feelings Of inward and
accusing guilt?
Would ODELL like The Sun to explain
Why his earnest exhortation by the Hon.
CORNELIUS y BLISS led him to make
such frantic efforts to prevent Governor
HfGdINs from laying the Equitable be-
fore legislative committee? Why was
he knook-kneed with panic when he
found his Matchmaking bluff of an in
vestigation had been called by Governor
HIooINs? Was it solely because the
Governor OF the State of New York had
courage and conscience?
Nevertheless, we do not believe in the
Federal regulation Of insurance. We
do not think it is necessary. We think
that there is greater power even than
the power Of the Government, and we
know that that power has never been
invoked in vain. We mean the power Of
cSs~s|alin opinion. Public opinion la just now
deeply concerned with certain persons
and certain abuses, and the near future
win be largely occupied with retribution
end redress.
&hem Ham and Ianbott