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A large elderly man labeled “Life Insurance” holds a cornucopia filled with documents labeled “For the Beneficiaries.” Next to him sits a large dog with collar labeled “Supt. Insurance,” and in front is a group of diminutive figures, a woman in mourning, an elderly man holding the hand of a young child, and a nurse holding an infant. In the background are a group of businessmen labeled “Corruption.”

comments and context

Comments and Context

The indiscretions and reports of corruption common to most large American businesses in 1905, in the midst of the Muckraking Era, reached the insurance industry as well. Public concern was accelerated by the well-publicized orgiastic ball thrown by the heir to the Equitable Life Insurance fortune, the putative next director, James Hazen Hyde. In addition to the public’s reaction to conspicuous consumption and loose moral atmosphere at the ball were rumors that its extravagant expense was charged to the Equitable.

But dissatisfaction with insurance companies’ practices were emerging anyway. The practice of the tontine was under suspicion. Despite reforms over the subsequent century, it is still employed by some companies — basically a system of paying moneys and receiving annuities, but the company’s profits, and unpaid deposit accounts, re-invested into the company’s fund. Many people considered a variety of what became known as a Ponzi scheme.

The many questions raised by insurance company practices led to the creation of the Joint Commission of the Senate and Assembly of the State of New York to Investigate and Examine Into the Business and Affairs of Life Insurance Companies Doing Business In the State of New York. Its name was mercifully shortened to the Armstrong Commission, after its lead investigator, William Armstrong. The public face soon became the attorney Charles Evans Hughes, and his hard-nosed investigation and courtroom grilling propelled his political career (New York governor, two stints on the Supreme Court, 1916 presidential candidate, and Secretary of State).

Ehrhart’s cartoon in Puck, an uncharacteristically dramatic political theme, represented several he drew for the magazine that also appeared in the short-lived radical newsprint weekly The Square Deal. The figures are iconic, almost cliched, down to the beatific three-fingered Christian blessing of the bearded figure labelled “Life Insurance.”

Setting the scene in Ehrhart’s cartoon, behind the swarm of corpulent, corrupt swarm of moguls in middle-ground is the cavern of Wall Street, with Trinity Church at its terminus. On the right-hand horizon is the headquarters of New York Life Insurance on Lower Broadway, at one time the tallest building in the world.

Collection

Library of Congress Prints and Photographs

Creation Date

1905-10-04

Creator(s)

Ehrhart, S. D. (Samuel D.), approximately 1862-1937

Period

U.S. President – 2nd Term (March 1905-February 1909)

Repository

Library of Congress Prints and Photographs Division

Page Count

1

Record Type

Image

Resource Type

Cartoon

Rights

These images are presented through a cooperative effort between the Library of Congress and Dickinson State University. No known restrictions on publication.

Citation