The Birmingham age-herald., 1905-07-26
Says the "JudalsS'' Have Been Bstraying Their Trust for
 Financial Gain
.F|ERCELY DENOUNCES THE
 POLICY OF ENORMOUS GRAFT
Calls Names of Companies and lnci- dentally Pays Ills Respects to Present System of Fra
 ternal Insurance.

Boston, July 25.-scathing criticism. pointed condemnation. and fierce denunel- alton of the methods and course of the big insurance companies characterized the annual report of Frederick L. Cutting. commissioner of insurance for Massachu- setts, issued today. The report is exhaus- tive in it's review of methods employed by high insurance officials dlflLg the past several years, to whom he alludes in soma instances as "Judases,.' and one company as the 'Dr Jekyl and Mi Hyde com pany, and contains recommendation that the legislature at its next session take up the matter of deferred dividends. and the relation between insurance companies and their allied trust companies. and other questions with view of completing re- form.
 Calls Them Dubious Schemes"
 The report considers insurance in com necton with the gambling instinct of the age," and tells of the influence upon the officials of the insurance companies from the dubious schemes" schemes for get ting enormously rich" the graft by city officials, state officials, national officials, petit legislators, congressman United States senators and courts subservant to the great moloch money;n that they have seen all about them and that they also saw tainted money eagerly sought by college and pulpit"
 Commissioner Cutting names several companies. or the Equitable Life, the Mutual Life and the New York Life. termed 'the big three' and the racers" the report says they have been largely re- sponsible for the excessive expenses of the business Ito swell the volume of which and become the biggest" has led each to pour out money like water. It recommends an immediate and complete reform of these in respect to the extraordinary de- posits made by them with a few favored banks and trust companies. Referring to the Equitable Life Assurance society, the report says:
 Money Has Poured In.
 ITO all outward appearances life insur- ance has been booming along serenely and beautifully during the past twenty five years, with money rolling into the treasuries In broad streams.
 But rude awakening came chasm opened showing the hidden secrets of a great 'Dr. Jekyl and MT Hyde Insurance company. It had suddenly dawned that during these twenty-five years of peace ful conquest of millions of public money there had been Judases' at work betray- ing their trusts for financial gain"
 Refers to Royal Arcanum.
 Fraternal insurance and the case of the Royal Arcanum are dealt with at some length in the report, the commis- sioner expressing his opinion that the new rates recently adopted by that order, and which caused such a stir within it's ranks, are not too high, and continues:
 "The fraternal order does not exist, nor In view of the memorable law of na- ture will 1t or any other kind of insur- tinue to pay death claims indefinitely if Il merely collects the cost of insurance for age of entry"
 After dealing at length with the sub ject of life insurance of the enormous amount of money involved, and of the close relations between the companies and the subsidiary trust companies. the commissioner says:
 'It must be said that the situation con- stantly presents the temptation to direc- tors who also have stock in the trust company to give the latter all the ad- vantages they possibly can in the way Of positions and loans. Interests of their pockets are in perpetual conflict with their duties as fiduciary agents of the policy holders. and stockholders of the ir rsurance companies, most unfortunate state of affaiars, from which sooner or later in some instances, the insurance companies are coming out second best. :"