Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-25
BIG POLICIES CARRIED
Confidence in insurance Com
panieS Not Greatly Shaken.
REC EMIT INVESTIGATIONS
Shocking Revelations of Disregard of
Obligations.
THE SUITS FOR RESTITUTION
Few Policyholders Frightened and
Those Who Have Been Were the
Smaller Ones
TE SUITS FOR RESTITUTION
Ply WILLIAM +. CURTIS.
Special Cores pondence Of The Star Chicago
Record Herald


1t IS doubtful whether in all the history
of business industry there was ever such
turnng-Oyer and searching as that TO
which the life insurance companies of New
York have been subjected during the year
Just passed. And seldom if ever, have
there been such shocking revelations of
the disregard of the rights and interests
OF the people. such peryersion of trusts.
such extravaganza such svariCe and dis
honesty. Never was there such a destruc-
tlon OF regulations II was not partisan
investigation 1t was not made by the
enemies of life Insurance, but by its friends.
and II has been fearless. impartial and
thorough Each of the three giant COM
panies, as they are called. has been sub
Jected to three searching Investigations
l. BY the Armstrong committee of the
New York Legislature.
2 BY the committees of business men
appointed by the directors.
3. BY professional audi tors and account
ants employed at the expense Of the policy
holders.
The first investigation was public and
was reported daily in the newspapers for
months The evidence mas since been
printed in book form by order OF the New
York Legislature. The other Investigations
were confidential. and the findings will
never be fully known. only such portions
as may be disclosed in the courts.
There has been a great deal of impa-
tenCe because the district attorney has
not brought a lot of the offenders before
or not Is a question We read every day
In the newspapers Of his intentions, but
nothing seems to happen District At
torney Jerome is a great reformer. and, like
other great reformers. he fills a large space
In the newspapers. He is always adver-
Using what he is going to do, but If you
Will review the achievements of profess
siondl reformers from the days of Noah till
now YOU will observe that those who have
promised the most have usuaily done the
least l do not want to impeach the hon
esty Org ueston the ability of District
Attorney Jerome. who is a popular idol
here, but it seems to me that he is a good
deal Of poser. He comes out strong when
there is dramatic situation, but / do not
think he acCOmplishes much when he is in
his closet or otherwise beyond the vision
of the public eye If he would talk less
and do more perhaps 1t would be better for
the public welfare.
Suits for Restitution.
There are going to be more suits for
restitution of moneys belonging to the IN
surance companies that were unlawfully
acquired. and there are to be further i'm
portant changes In the management of
some of the companies which disclosures
have made necessary. The public knows a
great deal already. but it does not know
everything about the rottenness, dishon-
esty and extravaganza Of the previous
management of the three big companies
and il probably never will know. The Of
hCials treated the money Of the policy
ltldeIS AS il IL were inGlr own. and In
the most reckless manner. They used II
10 speculate with for their own profit, to
pay big salaries for sinecures and for
brides and biackmail, and they have COM
mi;ted almost every crime against public
confidence. 1t is lucky that the quarrel
caused 10y the vanity of young Mr. Hyde
and the stlhshness Of President Alexander
developed as 500 mas ii did. 1t came none
too soon but soon enough TO prevent the
assets of the three companies from being
impaired They are not as large they
would have been if the business had been
honestly and prudently managed, but all
OF the Investigations, each in turn. have
demonstrated that the companies are not
only solvent. but on most conservative
estimate are as safe and sound as the
Bank OF England.
Few Policyholders Frightened.
Another remarkable fact is that in ali
this typhoou of scandal the faith of the
public in life insurance as an economic
principle has not been destroyed or shaken,
but has been confirmed and that so few
pOlicyhOlders have become frightened and
forfeited their policies Thousands of hys-
tericai, threatening and vituperative letters
have been received at the headquarters OF
the different companies but no serious legal
action has been commenced and almost
without exception, the policies that have
been forfeited 10y rcfuSals to pay further
premiums have been Of small amounts and
have been held by poor people, who need
insurance protection the most. There has
been great deal Of twisting - as they cali
it-that Is agents OF other companies have
frightened policyhOlders into refusing TO
pay thc.r premiums when due and have
CoaXed them 20 take out new policies iu
rival companies But. almost without ex-
Coption. the forfeited policies were less than
5000.
one OF the big companies admits that :
per cent OF its polICyholders sor time re-
fused To continue To pay premiums, but
that since the new management has come
to- 81
other company reports a loss of nearly per
cent while The third insists that less than
2 per cent OF its policyholders have proved
uufaithfuI
The men who carry the largest amounts OF
insurance seem to have shown the least
concern doubtless because they had means
Of securing inside information and were
able 20 convince themselves promptly that
there was no danger of losing their money.
There are At least twenty-five men In the
United states who are each insured for
million dollars or more. and at least two
who are insured for 81 800 coo and more
John Wauamaker. the Philadelphia mer-
chant. carried the largest amount OF life
insurance OF any man In the world until
recently, bat now his son RoGman has taken
cut nearly twice as much, and James T.
Colgate a New York banker, stands second
on the list. Mr. ROdman Wanamaker's
premiums amount TO more than 500 600 dol
lars q year ana Mr.. Colgate's are nearly as
much. The premium on twenty-payment
Of thirty years IS S34.7O0 per annum. At the
The age of thirty-hve the premium is $50 $50
ON the tweuty-year endowment plan at the
age OF thirty-fvs Years a policy for 81 900
COO would cost $50 100 per annum for twenty
y.r.s, ard at the age Of forty il would cost
S54.8lO year.
The men who carry the big policies are alt
prudent. successful business men, and the
fact that their confidence has not been
shaken ought TO be a consolation to people
Of smaller means, who have a greater need
Of insurance.
Big Policyholders.
have not been able to obtain the names
Of all the big policyholders. but can give
you some OF them:
Rodman Wannamaker, Philadelphia ~ So 200 600
James e. Colgate. New York .-.-....--.. .. SEQ 90
John Wannamaker. Philadelphia ....... / .525 600
]. ;. Carr. Durham. $. C-.............. j. 5000
II. H. kohlsaat, Chicago. ............ ,O32. 900
Kaufman Bros. Pittsburg .............. ! 600. goo
". X Bi0bv. ST. Louis -............ 600 600
George W. Vanderbilt. New York .,..-... 600. 600
William r. Harrtty. Phlladelph ...... O01. 900
Helen Gould. New York ................ ! coo 900
G. T. DeVlin, Topeka .................. 900 O0O
John VI. Mack, New York ...-.......... 900 900
Thomas ". Lawson, Boston. ............ !. 600 600
Robert c. Hall ................ coo 600
Atkinson n0.l neo