The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-02
Az Both Ends Of tho Equitable.

At Both Ends Of the Equitable.
The sun is receiving letters from
Equitable policyholders in New York
and in other States, asking whether in
our opinion their policies are good for
face value in case of death; whether it
a prudent TO risk further investment in
the shape Of premiums; whether II would
not be better to sacrifice past payments
and allow the insurance TO lapse; and
90 forth, in various forms Of more or less
anxious inquiry We beg leave TO make
here one reply to all these correspond
ents.
II is not strange that the struggle Of
factions within the management OF this
great company, and the resulting expo
sure Of methods, should tend TO weaken
confidence and inspire distrust Never
theless, such extreme apprehensions as
would suggest the deliberate abandon
ment Of policy in the Equitable seems
TO us to proceed from a misunderstand-
ing Of the situation.
There is no doubt Of the society's abil-
llN 10 meet llH NNdlll lOGeNb dH AhNg ONNhA e
Policyholders need not worry at present
about that. The very vastness Of the
acclmulations for the control Of which
rival interests are contending is the safe
guard Of the individual polcyholder, for
some time to come.
The policyholder may be paying too
much for his insurance.
He may be paying too much in the
way Of commission TO the gentleman who
secured his participation and wrote
his policy.
The business in which he has stake
may be extravagantly conducted
The portion which he contributes TO
the reserve and surplus for the common
protection of all the policyholders may
be inequitable, on account Of Clandestine
rebate arrangements with agents by
which other premium payers benefit
while he does not
The accumulated funds to which he is
contributing may be shaved and clipped
and variously despoiled in violation of
the law by those who are his trustees.
These funds may be perverted to
speculative purposes to the profit Of
those who are his trustees. .......
All this might be shown to be true
either in the course Of one Of the different
processes OF investigation which have
been instituted already, or by the search
ing and radical inquiry bound to come
sooner or later in some efficient form,
now that life insurance financiering in
general is the subject Of public scrutiny
all this might be true without affecting
the Equitables solvency, or justifying
alarm as to its power to meet contract
obligations, or making it wise for any
policyholder to quit the concern for that
reason, sacrificing what he has paid into
It's treasury.
The present question for the policy
holder, in behalf of whom alone THE
Suns interest is enlisted in the con-
trovesy, is whether this and other great
establishments for insgring human life
are 80 conducted as to give him the fullest
honest return for his premium payments
compatible with conservative manage
msnt and the proper margin Of safety in
the matter Of reserve.
The revelations which the Hartman
Hyde faction may make about agency
practises, excessive commissions and
discriminating rebates on premiums con-
Germ the policyholder no less than the
facts which the AleXander-Tarbell fac
ton has permitted TO transpire about
syndicates and speculative operations
and the absorption, within the board Of
direction, Of profits on the sale Of securi-
ties. Does the policyholder suffer at
both ends Of the Equitable?
The time has come said Mr.. JAMES
j. HILL, in declining for reasons suf-
hoient TO himself 70 serve on the Prick
committee, when the whole business Of
life insurance must be more carefully
managed
-----