Arizona republican., 1906-05-14
PHoENIx. ARIZONA, MAY II. 1906
THE INSURANCE BUSINESS.

We print elsewhere this morning ex- tracts from a statement by Chairman Paul Morton of the board of directors of the Equitable Life Assurance society regarding the reorganized affairs of his company and it's future aims. It may be presumed that a similar state ment may be applied to the other large companies which have been involved in the recent investigation.
 It is stated by MT. Morton that the new policy of his company would be the same as though it were not en- forced by the new laws which have been enacted by the New York legis- lature. That is undoubtedly so for the most part. for the companies have been brought to their senses by the fierce agitation of the last year and have been recalled from the wild ca reer upon which they entered fifteen years ago.
 The more sober view taken of the insurance business is expressed in the declaration, "There will be no effort by the new administration to have the biggest company in the world; the eff fort will be to make it the best and safest" Right here is where the troubles of the big insurance cOmpa- nies began, in the effort to be the big gest, at the expense of sound business methods. which. when long disregarded, are certain to be crowded out alto-
 
 methods. For years prospective policy holders were allured by advertisements containing comparative tables with long and misleading figures, the design being to induce the public to believe that the company with the largest fig ures was the best. cheapest and safest.
 James Creelman, in Tragedies of the System" in the current Pearson's. aI- ludes to this matter. MT. CreeIman Is distinguished generally for his vivid imagination, his sensational tenden- cies rather than his attention to facts and detail, yet in his article he touches upon this beginning of corruption in the insurance business which would have ultimately led to it's ruin Tn this bitter competition for business, policy holders were not benefited On the contrary, they were worsted by the waste in which the companies in dulged in order to become the biggest rather than the best
 The statement offers guaranty that none of the wasteful practices of the old regime will be continued. Ther. Is one thing in the statement which. to those lacking a full Knowledge of the details of the insurance business, might be more clearly explained. MT. Morton, while generally endorsing the new legislation of New York, is in clined to criticism of the law restrict ing the investments of the companies which he believes will curtail the in come of the companies and will react upon the policy holders by necessitat- ing higher rate for insurance.
 To the layman it will appear that q rate which was sufficiently high to pro- duce those tremendous reserves which led to the former extravaganza and Wild speculation need not be increased. Nor was 1t shown by the Armstrong Investigation. nor was it directly con- tended by any of the investigated that the policy holders profted by those in vestments.
 But it.is sufficient, perhaps, for the policy holders and those who may be come policy holders. to know that the solvency of the insurance business amid all the turmoil was never dis turbed. Whatever might have hap pened. no policy holder could have suf- fered. We recall that at the beginning of the agitation. when the insurance business was falling off, we assured our readers that the danger lay not in the financial weakness of the companies. but in their abnormal financial Gtrpnptb