Arizona republican., 1905-04-23

of them in ,Arizona-should remember
 that their policies are absolutely good,
 and will remain so. Should the Equit-
 able retire from business-which is
 very improbable-its 600, ,0OO policies
 would be rewritten in the other lead
 ing insurance companies. If it contin-
 ues in business the policy-hoIders will
 be equally safe, regardless of the mag
 nitude of new business. Indeed. should
 no new policies be written. 1t would
 make no practical difference to the
 present holders of policies. They should
 remember that in the Equitable and in
 what they themselves pay for. The
 premiums paid are returned in death
 losses, and the premiums are fixed at
 a rate which greatly exceeds the re-
 quirements to meet death claims. To
 use a homely illustration, the policy
 holder is betting that he will die be- fore the total amount of the premiums
 paid by him together with the profits made on investments of the premiums, equals the face of his policy or that he will die before the stipulated num- Der of payments has been made. The schedule of premiums is arranged on the basis that he is mistaken in his bet In other words, the premiums paid, with compound interest, are about twice what is necessary to meet the daath losses and tba axoaSS oOar to tb. accumulation of reserve and surplus, to salaries and to the expense of get ting new business. In fact, the life in- surance business, as worked out by the Old-line companies is one of the great est and most perfect financial systems in the world. It is automatic. and can not fail unless there is such wholesale on the part of the managers of these big companies that the assets. to hundreds of millions. are stolen.
 It is not charged in the case of the Equitable that the company has been weakened to any material degree by the peculiar financial operations of Mir Hyde. MT. Hartman and their associ- ates. The most that can be claimed is their positions as directors to reap large profits which should have gone into the treasury of the company. and that to the extent of these profits the profits on certain forms of investment policies have been approximately less ened- It is not charged, indeed, that there has been any intentional viola tion of the trust imposed upon the di- rectors. Their attorneys have advised them that it was proper and legal for them to do as they have done.
 But publicity and public opinion are the strongest forces in the United States, and 1t is safe to say that after the Equitable trouble shall have been settled there will be greater care on the part of the directors of all life-in- surance companies to act with strict ! fidelity to the interests of the policy 1 holders.
 And the developments in the Equit- l able scandal merely emphasize the | wisdom of the recommendation sew | eral times made by President Roose- ! selt that the federal government, and l not the states. should be given super l vision over the life insurance com l panies. Scarcely any other business l SO closely touches the welfare of the | people. The 6OO,OOO Equitable policies now in force directly concern 3.OOO.OOO | future widows and orphans.
 The state of New York is the home | of the leading life insurance societies, | and the New York superintendent of insurance is usually a professional | politician, appointed by the governor to pay a political debt. Even ordinary care by the New York superintendent | of insurance should have made 1t i'm pOssible for the questionable trans actions of the Equitable to take place | without the knowledge of the people.