Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-27
MAYCHANGE METHODS
Possible Result of Recent Agi-
tation Over Insurance.
A NEW YORK IMPRESSION
Stock Companies May Conduct the
Business for Profit.
SYMPATHY FOR MIR. MCCALL
Regarded as Personally Honest-Af-
fiictions of Other Heads of
Companies.
SYMPATHY FOR MIR. MCCALL
BY WILLIAM E. CURTIS.

1nefe Is d prevailing iDpItSSion hSlc Ia
New York that one result of the present
insurance agitation is likely to be the build
ing up of stock companies. organized like
banks and other business corporations, with
fixed capital and boards OF directors. who
will conduct affairs for their own profit
and for no other reason, and sell life insur-
ance as fire insurance is sold. as an invest
ment and protection on a strictly business
basis rather than on sentimental or De-
nevolent basis, at prices which. will be low
enough to induce buyers and pay the STOCK
holders big profit. Cold-blooded business
men contemplate the exposures that have
been made of the management of the big
mutual companies. and the dummy direct
ors, whose names have been used as adver-
tisements to inspire public confidence, with
a good deal of cynical distrust. They are
convinced that while so-called mutually
may be ideal in theory, II is a farce In prac-
tice, and will always be used to greater or
less extent to shield the selfish operations
of grafters and SPECTATORS No insurance
company can be managed by Its pollcyhold-
ers any more than a railroad can be oper-
ated by it's stockholders, and the mutual
plan can always be used by manipulators
to accomplish tteir purposes.
1t has also been demonstrated that fam
lily control Is as absolute stock control,
and lacks the responsibility that can be
made effective in a stock company. BY the
collection of proxies the agents of a mutual
insurance company, scattered, they are,
throughout the entire country, and In con-
tinual contact with the policyholders. can
easily dominate It's affairs and secure for
themselves regulation privileges, guaran-
tees, commissions and other emoluments
which would be impossible in well-man-
aged stock company.
The Former Presidents
There is a good deal of sympathy
pressed for John A. Mccall, a big-hearted
Irishman. with most generous disposition
and a true heart. Whatever extravagan-
cies and errors of judgment he committed,
one believes that he was personally dis
honest.
The McCurdy family have disappeared
from public view Mr.. Richard A. McCurdy.
late president of the Mutual Life, has
broken down entirely and while his fam
lily are making unusual efforts to prevent
his physical condition from being known,
it is understood that he is suffering from
paresis and has not long to live. His
memory is said to be entirely gone.
Mr.. James w. Alexander. recently presi-
dent of the Equitable, whose quarrel with
young Mr.. Hyde started the avalanche is
in an asylum at Deerfeld. Mass, a mental
and physical wreck, and will never come
out. Mr.. Hyde has gone to France to live
He is entirely French in his sympathies
habits and tastes. He has sold his horses
and carriages. his furniture and other per-
sonal belongings at auction, and does not
expect to return to this country. His
mother and Mrs Sidney Dillon Ripley, his
! sister. who shared with him the ownership
| of the Equitable Life, are still living in the
| old house, No. East 10th street. The
| mother is in poor health; the daughter has
recently sailed for the Riviera They have
| been seen driving together in Central Park
| every pleasant afternoon until few days
| ago. Both are immensely wealthy. and
| were well paid for their stock in the Equit
| able Company.
| 1t is expected that several suits win be
brought against Mr. Hyde for restitution.
He has frequently proclaimed his willing
| ness to refund every dollar he has received
| from the company, directly or indirectly
| that he Is not entitled to. but there Is
| decided difference of opinion as to his
| rights Mr.. Morton and other members of
| the new management, claim that he was
| entitled to nothing but the large salary he
| drew. and that every dollar of profit he de-
| rived from the use of the funds of the COM
| pany must be restored. The report of the
| chartered accountants who have investi-
| gated the books and records shows that
| he and others received considerable sums
that have not yet been accounted for. Other
| members of the several syndicates that
| operated with the funds of the society will
| also be invited to disgorge.
| Growth Of Life Insurance.
| Very few people realize the enormous
| growth of life insurance. There are now
| 7e2 companies doing business in the United
| States with more than $4,000 coo, 000 of in
| surance acknowledgements than the total re-
| sources OF all the national. state and private
| savings banks and loan and trust COM
panies in the United States; more than the
| combined assets of all the railways in the
| country and more than one-fifth of all the
| material wealth of the people OF this coun-
| try.
| Since 1S43 American life insurance com
| panies, exclusive of benefit societies. fra
| terIiaI orders and Industrial concerns have
| issued 6S,s3G,7G5 policies. They have paid
! to benefeiares and policyholders S3577-
| 0il, 40 and now hold total OF 50 SIS COL TS2
| IN gross assets, constituting the combined re-
| serve fund for the payment of policies now in
| force, and making a total of Sc 095 1873, 2o4
| in benefits to pollcyholders. The companies
| have received S6,o65. 673, 2S3 In premiums
| Hence, as the actuaries calculate 1t shows
| a profit of SIS. 459 S21 TO the policyhoders
| The premium receipts last year were $4G9-
| 542,922. as compared with $2S3, OBS, 1862 in
| 1879.
| In 1889 all of the companies reporting
| to the New York insurance department had
| outstanding insurance amounting to Sf41 :,
| 1917. The insurance In force on January
| /, 1905, In all American companies and So
| cleties was follows:
| Number Insurance in force.
Regular companies $50. 9s $l2, 547, 937 All
Assessment societies. d 4Se, 1871 9s4
frnternal orders .s-.- 6Io 1928, 069 ,32S