The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-09
INSURANCE INQUIRY RESULTS.
HUGHES AND SETH LOW TALK OF
THE MORAL EFFECT.

Charles f. Hughes and Seth Low made
addresses at Carnegie Hall yesterday on
the insurance investigation and it's results.
So many OF Felix Adler's ethical culture
flock and the friends of the flock wanted to
hear them that the vast hall was packed.
Mr.. Low, who spoke first, said that three
aspects of the situation were important.
He took up first the subject of campaign
contributions.
] shall speak, not from political expert
ence. but merely to show why such corpora
tions should be forbidden to make such con-
tfibution5. First, In almost every case
corporations which contribute TO political
Z parties are taking money intrlsted TO them
for a far different purpose: sometimes, even,
money given to heir care as a safeguard
against want and protection against death.
, Second, the stockholders OF every corpora
ton represent many political faiths. 1t Is
wrong and unfair to take the money of a
Democrat to give to aid the success OF a Re-
publican candidate. or vice versa. Third.
II the argument il true that such contributions
are necessary TO insure the safety of Imam
cial interests and II public policy is to be
determined on tine basis of money alone,
then the palmy days of the Republic are
past. This last, / take it. IS the essence Of
immortality.
The incomplete and misleading book
keeping which the Insurance investigation
showed was a feature that the people should
reflect on, Mr.. Low said.
SIN the counting house Of my father"
said he, "to keep books that were not COM
plete and not honest was the most I'M
pardonable sin. To keep books that in
tentionally misIead is worse. When a
public corporation fails to make its ac-
counting full and accurate it fails in funda-
mental honesty
The curious conception of trusteeship
on the part Of men in high places formed
a third feature of interest, Mr.. Low said:
There is a popular impression in Wall
Street, l believe. that a trustee OF a corpora
ton is not under moral obligations, that
he is a man on the inside in a position
and entitled to use his special information
for personal gain. This conception leads
easily to putting personal gain above the
welfare Of the persons to whom the trustee
is responsible, and eventually TO absolute
breaches OF trust
Mr.. Low said he knew a gentleman who
had been president Of a large corporation
for forty years, and yet had never bought
or sold a share of stock Of his company,
feeling that the use Of his W knowledge
of the inside affairs of the company would
be an injustice to his stockholders.
sThat mans attitude shines like the sun in
Illustrating the proper conception of trus-
teeship," said Mr.. Low, will have to
learn more and more in this country that a
man mustn't become a trustee TO serve HIM
self-only that he may serve others"
Did you ever stop to think that the very
things which shocked us 50 In the Insurance
Investigation are done every day In politics
the name Of graft. and that an attempt
4 IL -.ul. q. ln,u that tIara is l1tph a
thing as honest graft? Have we ever asked
what it means to keep In control in this city
an organization which is based on that sort
of thing? When the Vile,t men are exalted
wickedness walks on every side. Just SO
long as the American people permit dis
honest men to hold power, just so long Will
we be tempting responsible men to do wrong.
Even for the trustees of Me Insurance COM
panies this may be said.
Mr.. Hughes was introduced as a man
who had peri ormed a great public service
without recourse to histrionics or claptrap,
who has reesta blished old, clean ideals.
Part Of his speech follows.
The most striking result Of the insurance
inquiry, In my opinion. Is the vindication OF
the sound moral sense of the people. IL
was public sentiment which demanded the
investigation. supported the in
trying times and makes reforms imperative.
Inc people ueIllHhu lhul NIOoNci paths hAull
be made straight. They are relentless in
their demands that men who have been faith
less to their trust shall be exposed and
branded.
The sentiment was not created by dema-
goguery or indiscTimluate abuse. but by
the response of the common sense OF Justice
70 the presentation Of facts. Let the people
once be sure that a great wrong exists and
that wrong will be righted.
There has come to the ordinary man in
the street out of the Investigation a truer
sense of values. or late the man who earns
his bread by honest toll walks with a new
sense of dignity II he has nothing to conceal.
nothing TO fear. The uncertainty OF the
of dishouor stand out IN bold relief.
We have seen the president Of a little in
suranoe COMPANY. Il man lately obscnred
and made insignificant by the strength and
wealth of presidents OF the big companies,
emerge IL man among the weak. lie who
was lost among his "sucye --Iul' associates
now stands out AS the truly successful man.
Sad mas been the fall Of many during the
past year. but powerful IS the warning to the
young men of the country II turns ones
to Il career like that of Marshall
Field as one worthy of emulation. We
talk of education. but education develops
\ baleful ingenuity if the rewards oil it are
10 go to those that conduct corporation and
public affairs in d dishonest manner. The
remedy is to strip from these men the garb
responsibility aud replace it with the
stripes of disrepute.
There is just one way TO achieve this end
Withhold judgment until the facts
are presented. Then let us have u patient
impartial enforcement Of the law. Ohio
1uy won't do, nor will sweeping and hysteri-
,al condemnation, because the guilty will
hen escape because Of the broadness OF the
Indictment.
Not only has n proper sense OF hduciary
been brought home 70 us. but the
ethics of corporate management have been
A corporation, though a legal
person, is made up OF responsible individuals.
Most of the problems can be solved by dealing
With the individuals who are behind the hc-
,itious legal person.
How many directors OF life insurance COM
oanies knew anything about the company
hey were associated with? How many knew
What was good for the policyholders? How
many read the annual statement or knew
What expense accounts really stood for?
OF them did nothing except to ATTEND
stated meetings and give advice when they
happened to be asked for it. Men went on
he boards Of companies which took the
money of the peculiarly helpless as If they
we're receiving degrees from a commercial
University. We are learning not only what
hese directors didn't do but what they co uld
have done.
Long ago a conscientious man following