Year: 1877




tives on the 9TH day of April, 1877, in sup
port of his bill-"To protect the holders
of Life Insurance, Policies by compelling
the companies to deposit with the State
Treasurer security"-the question being
on the engrossment of the bill will be
found to be instructive reading;


Mr.. SPEAKER AS the author of this
Bill, desire to say to the members OF this
House that l introduced it for purpose.
If succeed in accomplishing that purpose
l shall feel highly gratifed. If | fail,
shall content myself with the satisfaction |
that did all in my power to secure that |
which l conceive TO be right. My purpose
is plain and it is to secure policy holders
in Life Insurance Companies some pro-
lection. My plan is to compel the com
panies to deposit with the State Treasur-
er collateral security, assigned to the
State of Ohio, for the benefit of the policy
holders, in case the companies fail to make
good their promises.


This plan think is feasible one. |
can conceive of no other which would
secure the desired result. / know of no
way except to compel them to give Sc
curity. 1t is the only way, and the on
ly means in our powerto protect our peo-
pie.


The evidence of the necessity of this
measure must be apparent to every mem
ber. The sad experience of many who
have sought to save the little surplus OF
their hard earned means through the
mediums of insurance stares us in the
face.


The thousands of policies that have be-
come worthless and the many more that
are becoming worthless every day add
testimony to the necessity for this law.


The recent developments of the mis-
managed companies, and the dishonesty
of their officials, which has caused the
loss of so many millions of dollars to the
citizens of Ohio, is another reason why
law of this kind is demanded by our peo-
pie. Why, sirs, when at home in the city
in which l live, l can scarcely turn a
street rnerunless meet some one ofmy
constituents who has in his pocket


worthless life insurance policy, and he


will ask me, "Can't the Legislature afford


us some protection2" "Can't they com


pei the companies to give some kind of
security for the money we give them 2" or
"Can't they al least compel them to give
security for the money they will get from
our people in the fltureW When |
meet those parties after we shall have
adjourned sine die, how humiliating it
will be for me to answer, "They might
have done something but they would
not" But I trust | can answer other


wise.


1t is thought by some that this bill
would compel the companies to deposit
so much of their capital that they would


withdraw their agents from this State. l
do not think SO. At least | do not think
that the responsible companies, or those
which have a good foundation to dc busi
ness on, would cease to do business in
thisState under the provisions Of this bill,
But l should much prefer that every for
eign company would be driven out Of the
State than to allow this system Of legaiz-
ed robbery to continue. Personally | am
opposed to the whole system of life in
surance. | look upon that system as
being an evil among us. | look upon it
as a scheme altogether in the interest of
its officers who organize it, and from
which no general good ever will or can
result. ] would advise no one to invest
in any life policy, especially in a State
where no protection is afforded and where
all policy holders are at the mercy of such
designing men as generally have the
management of those companies.


There are other and safer ways to in
vest our surplus revenues, and within our
own control, for the creation of fund to
assist us in our declining days, To invest
in savings bank is more safe and far
more profitable to the investor. To loan
money on mortgaged security and allow
the interest to accumulate is much safer
better and wiser plan than to give any
insurance company thousand dollars
and take the risk of getting five hundred |
back, with greater probability ofgetting |
nothing, and perhaps pay a hundred or
two in hopeless case of litigation in ad-
dition.


How often the case, that after man
has lived the natural term allotted to our |
race, who has spent the best part of a long |
life in toll, striving by the Sweat Of his
brow" to keep his policy alive, and who |
has Crossed that river of time from
whence no traveller returneth," that the
aged widow is compelled to enter the
courts to get her honest dues and through
some little technicality is bafled from
year to year until sick at heart and for
want Of means she is compelled to retire
from the contest and lose all the long and
hard earned means with a lawyers fee,
and the court expenses in addition.


The cruel monsters who are parties to
such frauds, and who have their agents
like so many wolves prowling over this
State, seeking whom they may devour,
will enter the inner sanctum of their
palatial edifce in the next hour and there
vote salary of fifty thousand dollars a
year to some fgure-head president, forty
thousand to the vice-president thirty
thousand to the assistant Vice-president,
thirty thousand TO an ctuary, twenty-five
thousand to an examining physician and
30 on, until all the profits have been vot-
ed to the ring, and the policy holders
who are led to believe that the company
g mutual and that they will have
lhare in the profits will find themselves
'ooled.


When a man takes out a policy with
he agreement that he is TO participate in
he profits and thus have his premiums
it would he we'll for him to re- {
member that he does not come in on the I
round floor; that the first divide is made I
,efore his claims are considered. If the
salaries which the officers get a
10 not absorb the profits, then an extra I
is voted them, ranging from /
We to fifty thousand dollars, in order q
bat the entire profits may be consumed C
y tie managers, and the policy holder b
Tho was promised share will be told 8
nat there is no fund in the treasury C
eyond that necessary to pay all expen- e
's. lr