Ogden Sun | 1905-09-19 | Page 4 | Insurance Dishonesty

INSURANCE dishonesty tho denver news sees a total ab senco of business honesty in tho manner in which the big insurance companies are being conducted that paper says As an exhibit of corporate honesty the caso of tho new york afo ufo insurance company is monumental and glaring it should breed results the legislative investigation of the life insurance business has already brought to light considerable information to which the public which relies on these great fiduciary institutions is fully entitled charles E hughus the counsel of the committee has shown himself keen and tearless ho drew damaging admissions from edmund D randolph treasurer of the new york lite ono of ltv circulars announces there is no insurance law requirement regulation or provision in the world with which this company Is not now complying no other insurance company in the world is in so impregnable a position as the new york lite another reassuring declaration Is the company docs not invest in stocks of any kind now look at the difference between promise and performance it the testimony of treasurer randolph Is to be credited and it has not thus far been weakened by counsel for the company corporation managers deliberately evaded their promise to get rid ot stocks as a portion of their assets A few years ago the prussian government insisted that the company it it were to do business in prussia must not have any stocks in its schedule of assets the method by which the new york lite fully compiled with this requirement was to make a fictitious sale of certain stocks two or three employed emp loyes one on an annual salary ot assisted by giving their notes sn suma aggregating over thus the stocks were in the of randolph taken oft the books the details may bo a bit complicated for a layman but the purpose of the transaction is so plain that every man can draw his own conclusion and it will not be in favor of corporate honesty an individual guilty of such conduct would be classed as a skin as a person utterly unworthy of trust how to cat your cake and keep it has been fairly solved by life insurance managers