The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-05-03
Trust Funds.

55# Trust Funds.
There are those who saS that the re-
cent slump in the stock market was Que
ii, no small part to the disduietude arts
ing over the disclosures made II, con-
nection with the Equitable Life Assurance
scandal and the Bigelow dcfalcation at
4 milwaukee.
whether or not that be true public
faith has been shaken by these two Incl
dents especially by the confessions OF
& Mr. HYDE. OF the Equitable. Funds heid
by life insurance companies are more thsn
mere trust funds: they are In q sense
sacred funds. They. epresent money pa illt
in by husbands and fathers to be used al
s their death in providing for their loved
ones left behind 1t is the most unseifish
form OF investment. With rare exceptions
men who take out life insurance do not
expect in their life time to receive an
material benefit thcrefrom They deny
themselves and pay their premiums from
year to year for the benefit OF those VINO
viii be left behind when they are gone.
,rhe only benefit in straight life insurance
to the man who pays the premiums IS
the comfort which he feels in believing
hat he is laying up treasure for his loved
ones. and his comfort comes from ms
confidence in the company. But IL ms
confidence be shaken he is cruelty wrong
ed and robbed.
L.ifo insurance has made great progress
within the past ten or twenty years r,s ! ne g
number of policy holders has enormously
Increased. Every prudent man who ca:
afrcrd The outlay has some form OF in-
s,,rnne and when man has been able ~
~ procure I: policy in one of the great IN
# srrnnce companies of the United States
4 he has felt confident that II he shouid
be able to pay his premiums from year
to year his family would get at lea ST
the face value of the policy at his death.
~ rho great army of policy holders nave
been greatly shocked, therefore, TO iearn
that these sacred funds have been used
for all sorts of stock jobbng purposes ana
for tho promotion Of doubtful schemes
the interest Of those whose duty 1t was
10 guard the fund. Granting that thcse
transactions were not illegal, granting
tint the company sustained no losses, tis
fact that such funds could be used by
the trustees for such purposes shows a
low standard of business morality, to say
the least" Hence many have asked them
selves If insurance funds are not TO be
held sacred what sort of investments are
safe?
These questions are natural, but 1T i
10 be hoped that men Will not so TO the
other extreme and take pessimistit
view. business conditions in the Unitct
States are sound, and In spite of thes'
disclosures, VIC believe that the standart
OF business morality is higher to-day II
the country at large than ever before
There never was time when credit wa
more valuable. and, as matter OF goo
business our captains of finance and IN
d,lstry must be careful and as II rul
are careful, 10 preserve their credit an
the credit OF the institutions which the
represent There Is at least this niue
of encouragement: This is an age Of pub
lefty. 1t is very hard for the captain
of finance and industry who trifle wit
their trusts to keep their transaction
from the public. They may cover thei
up for a time, but sooner or later tn
searchllght will be turned on and whe
the disclosures are made the newspaper
will let the people know the worst.
AS for the Equitable Life Assurant
Society no one disputes that 1t Is a pei
fectly solvent concern, and VIC have \
idea that any policy holder will sufft
loss The tangles will be straightent
out, and the company will go on With j
business The disclosures are shockin
hut we believe that the worst is no
known and we believe also that Jesse
has been learned not only by the Off
GERS of that company, but also othc
which, Will not sobn be forgotten. III
atmosphere is made clearer by the storl
gJ lNEs =-==S---=i--===
'.Dunning" Through the Mails
Judge Taylor, of the United Stat
Court for one of the Ohio districts. la
week rendered an Interesting decision
case brought before him. wherein
injured gentleman claimed that he Ii
been damaged III characler hHu cree
by the reprehensible conduct of ere
tor, who dunned him by means Of
postal card.
The honorable Judge declared that
courteously written statement of ncco,
upon a postal card was permissible, a
he added that that was not q new
depreciation, but simply the administ
ton of well understood law.
# Judge Taylor also took occasion %
Innate that should any thoushtless =