The Lexington intelligencer. [volume] (Lexington, Mo.) 1901-1949, 1905-10-21
THE INSURANCE INVESTIGATION.

advanced far enough to disclose some
-scaudalous courses OF behavior upon
the part of managing officials. They
have provided themselves with
salaries in some cases two or three
times as great as that Of the president
Of the United States; they have con-
tributed heavily for many years to
national and congressional campaign
funds Of the party which gave most
promise Of serving their interests
they have maintained Hobbies in state
capitals to defeat Objectionable legis-
lation and to secure improper exemp-
tlons aud privileges; they have
souandered trust funds in a mad race
after new business; they have iuggled
their books to deceive the inspectors
of the insurance departments and the
policy holders whose funds they hold
10 trust; they have provided sinecures
for the members of their families even
to distant connections; they have
organized themselves into incorpor-
ated companies to purchase securities
in the market and sell them to their
own companies at a profit. The list
of Infamous things which have been
done by these greatest managers OF
trust funds in the world will doubt
less be increased by further investl-
CATION, and the remedies which will
be sought will be various and some OF
them dangerous. The demagogue
Aourishes on scandal. And the dema-
gogue in many of our states is likely
to have his inning now. The state
prison is the place for the officers who
have betrayed their trusts and If
there is any law to send them there, IL
should be done. II there are no such
laws, then it is the criminal statutes
that need most OF all to be amended
to cover such cases.
But the result Of these investiga'
tions is likely to be legislation hostile
to the cause Of insurance rather than
to company managers. The loud
mouthed demagogue is likely to devise
punitive legislation aimed at the
companies themselves, as If they had
an objective existence independent Of
the policyholders. No other legisla-
tion should be scanned so closely as
insurance legislation, for no other
possible legislation could affect so
large and widely difused business
interests. Missouri is a Western state
where industry rapidly produces
wealth and where insurance is less
resorted to than farther East as a
means Of laying up a present estate.
But there are more insurance policies
in Missouri than there are farms.
The value Of the straight life
policies held In this state, exclusive
Of endowment policies, assessment
and fraternal pOlicies-counting Moth
ing but straight old line life policies
is greater than the assessed valuation
Of all the farms in the state. The
annual premiums paid on these poll
cies in Missouri, aggregate more
than half the value OF the wheat
crop raised and equal one-tenth Of
the total production Of the soil.
These comparisons are not fanciful
but are taken from the Official state
reports Of 1904. In that year there
were 2S4,S66 farms assessed at a
valuation Of 1851, 1873, 1888. In the
same year there were in force 7O6, COL
straight life old line policies with an
aggregate face value Of S404, 142, 1856.
The aggregate Of the premiums paid
by p~olicyholders 10 this state in that
year was sl4, 084, 945, while the total
value Of the agricultural products
Of the state, both what was consumed
on the farms and what was shipped
away, was only ten times as mu3h.
1t will be seen then what wide
spread disaster a little foolish legisla-
tion might produce. Life insurance
is a necessity Of modern civilization.
There is no other way by which a
poor mar can provide a present estate,
insuring the future care OF his family,
Insurance is an infinitely greater pro-
-, tection than homestead and exemp-
, ton laws. And both the Importance
and the nature Of insurance ought to
!, command a higher grade Of business
+ integrity on the part of the officials
9 charged with the care Of these funds
! than any other great business what.
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