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THE GREEN BAG

THE INSURANCE INVESTIGATIONS "What shall the harvest be." By CHARLES BULKLEY HUBBELL THE investigations that have been under no longer rely upon their labors for their daily way in connection with the conduct bread, by entrusting their savings to these of the Life Insurance Companies in this city trustees; or was it strange that millions of during the last few months have done more dollars, so many that we can scarcely com to break down confidence, not only in this prehend their number, flowed into the particular kind of business, but in the con coffers of these supposedly beneficent insti duct of all corporations in this country, tutions? The more millions that a given than anything that has occurred since we company accumulated, the more certain was reached any considerable commercial impor it that still more would follow. It was like tance. This shattering ' of confidence pre the snow-balls that, as boys, we started vails to quite as great an extent in Europe, rolling down some gentle slope. Many of these companies have ingen where our securities. have been so largely held, as at home. The protests that have iously and industriously advertised that been registered in the various states where their business methods in caring for the elections have recently been held, were savings of the poor are more profitable and emphasized, I have little doubt, by the safer than those of savings-banks, and that outraged feelings of thousands of men who their bonds and policies are "as good as desired to rebuke the genteel grafters who Government bonds, " while at the same time had so shamefully abused the positions of providing sustenance for the widow and the trust they held in these corporations. The orphan, when the bread-winner has passed extension of the same lack of confidence, it away. What a mockery there is in these is believed by many, has largely contributed words in the light of the hideous revelations to the nervous condition that prevails at that have, during the last few months, been the present time in the financial world. made familiar to the world. The three The trustees of a life insurance company great companies that have, thus far had sustain the most delicate fiduciary relation their methods and true inwardness revealed to those supposed to be benefited by such to the public, have in effect held themselves institutions that it is possible to create. out to be mutual companies, that is, if that For this reason men who have been sup word has any legal significance, that they posed to be above temptation, of estab are operated for the exclusive benefit of the lished and tried character, and with an insured and the beneficiaries of such. The abundance of this world's goods, have been business of such companies has been man placed in the boards of trustees of these aged by the officers and directors, much as institutions. Their names have been set the business of the savings-banks has been forth in the daily press for years as a guar managed by similar officers, with little anty of the absolute good faith and business- knowledge on the part of the insured as to standing and methods of such companies. how the funds were handled which became so These men had' the unlimited confidence of vast, by reason of their tremendous aggre their fellow-men. And it is only fair to say gate, as to quiet any desire for information, that most of them deserted it. Was it strange, if such ever existed. In other words, there then, that it was easy to persuade men to was a condition established of absolute trust In March of the present year a committee make all manner of sacrifices to provide against the day when their loved ones could of policy-holders of the Equitable Life Assur