Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1909-07-24
PENALlZlNG SUCCESS.

PENALIZlNG SUCCESS.
The pendulum of reform frequent
ly swings too far. This is natural
The people are slow to wrath but
when once aroused the public pulse
beats rapidly. Mismanagement of
public affairs and evils of all kinds
will be tolerated for a long time
but when the tide turns and the
people stop to contemplate they are
apt to go to the extreme before stop
ping to contemplate some more. A
striking example is found in the his
tory of recent legislation affecting
insurance corporations. 1t was dis
covered that these gigantic institu-
tutions were being extravagantly
and grossly mismanaged. The New
York legislature got busy and the
result is the passage of acts impos-
ing unnecessary hardships and re-
strictions on the management Of
these great mutual and beneficial in
situations
Editor Streeter of the Emmons
County Record writes entertaining
ly on this subject. One of the acts
of the New York legislature was to
limit the amount or volume of bus
iness-new insurance by any COM
pany in one year. OF this feature
the Record says: 1t seems almost
unbelievable that the legislature Of
a great state like New York would
be led by the clamor of interested
parties to do such a rank injustice
to the great life companies of the
nation, and to the people who want
to insure in strong, safe companies.
that fact is now almost universally
admitted-it is still more desirable
that insurance be obtained in the
strongest company in which an ap-
plicant can procure a policy. Again,
If life-insurance be good thing,
why limit its scope? Why say that
just such a total-which means just
so many policies-shall be issued by
any one company, in any one year?
The law referred to does not reach
the smaller and weaker companies;
it strikes only at the big, solid, re-
liable organizations that are abso-
lutely safe, and in which the great
majority of applicants wish to in
sure. The New York law provides
that no company can write more
than one hundred and fifty millions
of new business each year. One of
the three leading companies, the
New York Life, has just about reach
ed that limit, and, as it is SUBJ
stantial and entirely safe company
a company such as people desiring
insurance wish to patronize-it is
certain that, were it not limited by
the silly and. absurd statute, it
would soon double its business. In
other words, it has a safe life-i in
surance to sell, under conditions ac-
ceptable to the public. Therefore,
the public hastens to buy its policies,
Now, any reasonable esbeing would
suppose that this would be perfectly
satisfactory to everyone, as it is GER
tainly satisfactory to the seller and
to the buyer. The seller wants to
'tdo business" and the buyer be-
|lieves that company that docs
business" Is just that much stronger
and safer than a company that does
lesser business. But here. the law,
| ignoring the mutual satisfaction of
the parties :. to the insurance con-
tract, steps in and says that the COM
panies that have succeeded in build
ing up a great business-which
means still firmer financial founda-
tion-must cease their activity when
they shall have reached certain ar:
bitrary limit. 81 The result Of this
most outrageous law is that the New
York Life company Is taking steps !
| to curtafl it's business, in order TO
comply with the statute. It will be
compelled to withdraw from the |
newer states, where there is less
population, and confine it's activities
to such territory. only as is neces-
sary to enable it to reach the statu-
tory limit, and of course the popu-
lous regions are a better and cheap
Ter field for the procurement or life
&y@p~asAr-~~-->- 81