New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-03-13
and In few years every vestse Of our troubles will be
elaborated.
KyOWLEDGE NEEDED.

Incf0 uTc bOme Lnluso hO'OA "o""'''"
quito clear to the mind of the average legisla-
tor. 1t would take up moro space than we
can we'll spare to review all the subjects on
which lawmakers have only indefinite ideas;
We propose here briefly to glance at one OF
them. few years ago, gentleman who had
been somewhat prominently engaged In the
management of life insurance companies In
this city, turned for while into tho stormy
whirlpool of State politics and was elected 10
the Legislature. Very naturally he made IL
business to look into the legislation then pend
ing at Albany on insurance matters, and to
inquire as to the views Of his fcllow-legisla-
tors thereon. They were not wanting In
views, and very pronounced ones 10 him.
the measures proposed seemed mostly need-
less, annoying in their tendency to obstruct
insurance, and generally conceived in nero
hostility to tho companies. TO the other legls-
lators these measures seemed wise and neces-
sary, for they regarded the companies simply
as soulless corporations, by which few men
were making money out Of the many and werc
striving to take every advantage of the com
munity. From such point OF view 1t was
obviously the proper business of legislator
to curb and restrict these grasping concerns,
and to compel them, so far as law could go,
to diminish or disgorge their gains. Very few
of the legislators seemed to be aware that the
sums that go into the Golfers of the companies
arc simply held in trust for the survivors OF the
persons who pay in tho money. Very few
were aware that the so-called "divdends" OF
q life insurance company are not profits made
by carrying on business. Very few, in short,
recognized the peculiar character OF the sys-
TEN, which may multiply It's transactions into
hundreds of millions of dollars without en-
riching company by q single cent. ms
class of facts was news at Albany.
We need not however, suppose that our
legislators are more ignorant than tho people
whom they represent. Such misconceptions as
those above referred to give occupation to
life insurance agents, and compel the COM
panies to employ largo number OF these
gentlemen, who, from the necessities of the
case, must be intelligent, Industrious, and of
agreeable, or mt lclst persistent manners. VI
course tho employment of such class adds
very greatly to the cost of conducting the
business. This expense. which is anticipated
In the calculations of the actuary, increases
the premium. 1t is the cost to those who IN
insure of being enlightened on the subject.
They have been convinced at the time of in
suring of their need in that respect, and their
various prejudices on the subject have
been dispelled. Perhaps at some future day
tho newspapers may sufficiently spread this
kind of intelligence; may analyze and meet
the objections of ignorance and error may
strive to impress the indifferent and turn the
unwilling. When that time comes companies
NAV frequently witness-what now would cause
every clerk in a life insurance Office to stretch
his neck to view the phcnomenon-the specta-
Gle of an applicant coming unsolicited to ask
for policy. At present there seems to be no
more effective way. despite the cost to propa-
gate the gospel of life insurance than through
its missionaries, the "agents."
Means of this sort will not, however, servo
60 remove the ignorance of legislators. They
must be reached indirectly through the sentl-
ments of their constituents. There are many
States in the Union where tho legislation on
life insurance is so outrageous that it would
be q disgrace to the Ottoman Empire.
Arkansas, Indiana, Michigan. North Carolina,
PENNSYLVANIA, and West Virginia impose
a tax of three per cent upon all
life insurance, each State exempting
only its own insurance companies, which
form an inconsiderable percentage. This tax
is levied on gross premiums. which include all
losses and expenses. In several other States
there are taxes almost as heavy. Now, tho
system of life insurance is merely the carrying
out of agreements by which people who are
in need receive the funds which other people
have deposited for them. 1t is not in any
sense money making business its surplus
being returned to its customers. 1t is more
similar to simple benevolent association than
to anything else. A tax upon Its funds can
only be q consequence of Grass ignorance.
CONVERTS ~ THE CRADLE.