The Petroleum Centre daily record. [volume] (Petroleum Center, Pa.) 1868-1873, 1873-02-27
Barnaeles on Life Insuranc q.

| B0fn8Olee on L1I0 lnouf6mCes
We showed the other day that in the five
years from 1867 to 1871 the agents Of the
life insurance companies doing business 10
New York received for commissions alone
over $40, ,O00, 900, while the widows and Or
pbsns of those who died assured during that
time got but $4,000, 900. 1. must bsv
struck everybody, not trained In life assur-
ance circles, that the proportion Of more
than halfis rather q large one for the
agent. When, however, we come to add TO
this great total paid 10 agents for commie/
sion, the other sums which they charge the
companies 10 the way OF expenses, extra
allowances, salaries, fees, rent Of offices
stationary and whas not-which amount IL.
of course, carefully concealed in the annual
fuausiai exhibit-we must raise the "hand-
some" figure Of forty millions, how much
higher we cannot say, but certainly appre/
ciably higher. live add to this the fees Of
medical examiners, and the ealaries and
comm issions Of the Office We should reach
q total which would probably stand much
nearer comparison with the seventy-lve
million paid the widows and orphans, for
whose welfare the self sacrificing agents are
90 solicit tous.
The life assurance business has, 10 fact.
during the last twelve or afteen years, bel
come &c actual aud profitable business, like
stock speculation or wheat cornering, for
those who have been lucky enough to learn
1t. First, we have the officers usually, and
In the most eminently successful instances
slways, graduates from the agency noyitk
ate; then the medical examiners; then the
attorneys; then the agents. These people
''run" ''mutusl" company, and all, II may
be safely taken for granted, take good care
to secure themselves from starvation. Back
Of these are the directors-respectable and
trustworthy men, representatives of the
wealth and honor OF the City-but who, not
being versed iu the intricate (or purposelY
made intricsts) subject Of life sssuTaccs,
can only watch over the general characte,
OF the investments of their company, aud
see to IL that what seems in'their view to
bs fair economy shall prevail in lie man.
ag emcnt. As matter of fact, the officers
have nearly fully their own way. and II il
often wsy that lsads 10 fortrns-iorj,hem.
selves.
But anosaer great evil attending lite as.
surance is involved In what are known %
Elapsed" policies. This IS intimately mix
ed up with the agency evil, for q lspsed
policy means one which Ass been confscs/
ted by the company with all that has been
paid on it in the way OF pIeminm; and the
unhappy result for The policy holder is very
frequently brought sbout by the fact tho,
bis eyes have been opened TO the lying reps
him, aud be prefers to lose what be has ex
pended to being the..victim OF pussib's fur
ther deceit. Now, in 1864, OF terminated
policies, twelve per cent. were surrendered
Chat is, given up to the companies, tor o
small proportion of the money paid on
them, seventy three per cent. lapsed, (tbst
is, were wholly conhscated,) and she ere
mainder, bare fifteen per cent. were Ter.
minated by the death OF their holders. Ii
1871, twenty. one and third per cent. were
surrendered, seventy .one and third PEI
cent. iapsed, leaving but abont seven per
cent. for those which ceased through destt
and expiry. To give the actual number o
policies: In 1871, there were terminated il
companies Of New York l24,275 policies.
OF these, ll5,2l2 lapssd and were surren.
dered, (ss,7O0 being by lapse aloue,) and
but 9,063 were BY death or ''expiry." Nov
these lspssd aod surr endered policies, 10.
volving conlscatsd, in whole in part, OF th'
premiums paid upon them, must have yield.
ed an income to the companies reaching to
millions Of dollars. What becomes OF thii
money? Does 1t go to swell the 'reserve'
or to meet the enormous expenses Of officers
and agents, granite buildings, and canvas
} back and Roederer suppers? Wherever Il
goes, there 10 an evil In it which demand,
legislative inquiry and sction.-CNew York
Times.