The sun. [volume] (New York [N.Y.]) 1833-1916, 1875-12-12
SUNDAY, DECEMBER II, 1879.
where tho Only way TO Mako Money
IN to Die.

thereby directly tending to prevent pnu-
pc,ism aud cOns, qUUnt ignO, nnce and
crime" THIS - true, il the companies
which writo the policies are SO managed
that the savings of the provident are not
wasted In extravaganza prTctlscd because
of competition in the business, and be
cause the officers wish TO i've handsomely.
IT ~ true, III Elib-tonguCd soliciting agents
do not induce people to take out policies
by false representations 1sto " dividends"
which when exposed Ivy subsequent ex-
perience lead tie victims to forfeit their
policies and the money they have paid OH
them.
1t Il n sterling fact that only about
seven and IA half per cent. OF policies
terminating in given year do SO
by death or expiry, as it y called
In insurance phrnsc; that Is, only that
small percentage Of policies IL paid In fun
The rest nro surrendered or lapse. In sur
render, the company pays back a small
portion OF tho money paid In and the pol
lev Is cancelled In lapse. the company
connscatcs all that the holJer has paid in.
How this cvll has grown, tho fact that the
proportion Of policies which terminated
through death or expiry fell from fifteen
per cGUIs III lNOt W etNtu uuu " HulA pei
cent. In 1871, sufficiently proves. The latter
was one OF the most succession years in the
hfo iusuInncc business. when tho New
York companies alone issued nearly two
hundred and ten thousand policies, and
tho Income OF the hfe insurance societies
of the country was in the ncishborhood OF
SIS, 0OO,0O0.
Other facts show that while the life iu-
mrance business has grown with astouiSh-
Ing rapldity, the lasting benefits secured
by the policy holders have been in slight
proportion TO their numbers and the
money they paid into the companies treas
uries. In 1SGi twelve per cent. Of the ter
minated policies were surrendered-sold
10 the companies for slight consideration,
and seventy-threg per cent. lapsed-were
blotted out by the companies and the
money paid on them pocketcd. In 1871
twenty-one ana Il third per cent. were
surrendered, and seventy -one aud Il third
per cent. lnp.ed. Thus, in the latter year,
Denrly niVctB-troe per cent. OF the terml-
mated policies failed 10 accom- lish their
purposes. Instead of encouraging fru-
gahty, they aroused feelings of disgust
against the system of he Insurance. and
tho embttcred niuety-three per cent.
thereafter looked at the gorgeous Offices
OF the compares and the spanking teams
of the officers with discourentei eyes.
or every ten policies which cease,
but one VIII do so by death and ex-
phation, while ono ana half VAL be
gwen up for slight com pen-ation, and
sercI aud atln VIII b. absolutely thrown
swny by the hol lers. Surely there is
l.,...
resent the transfer OF millions from the
pockets OF the public to those of the com-
panIcs. The companies roll up colossal
bank accounts with mouey thus obtained.
The reason for this astonishing state OF
thugs is largely to be found i'm the lies OF
the solictihG agents, the fnlse promises
they hold out to allure men into ln-uriug
their lives. A man takes out policy, paws
one or two premiums, cote disgusted at the
snallness OF the dividends" pays no
more. aud the company gobbles up what
he has pad and his policy lapses. The
man does not know, the agent has prob
ably taken care that he shall not know.
that life Insurance company Is not II
dividend paying concern. What are de-
ceptivey called "div idends" are nothing
but the excess Of money paid in by the
policy holders after what il called the
reserve-the sum set aside which yields
enough at four and half per cent.
interest to meet the averaged obligations
OF TIE company a. the insured-hns been
allied up, and the expenses OF the COM
pany have been pad. A man who gets
dividend simply gets back the money
which he and his associate policy holders
have paid in over aud above what was ne
cessary TO the soundness OF his policy and
what was eaten up in commissions "a
agents, salarirs of officers, advertis ng, aud
the other expenses. The only way to make
money Is TO die.
The commissions paid to agents range
from twenty to thirty per cent. on tho
amount Of the first premium, and from FIVE
10 ten per cent. of them If paid TO the agent
DO long as the premiums are paid. There
are lie insurance agents still in the bust
ness or retired who get a handsome yearly
Income from commissions on their old poll
o.e- The companies in nearly every case,
In order 10 encourage agents, refuse TO
take policies unless they come through
one OF their agents If man wishes to
sscape the proverbul bore of the insur-
Rnce agent, and goes TO the office o. one of
hhNNNN'li lltHltN W tllttl nlh OMIl insurance.
the ObliginG officers will turn him over to
favored AGENT rs certainly as to the cx-
Rmining doctor. So. whether he Will or
no, he contributes TO the fattening Of the
agent. lie might Us well do II. for the pre-
MUM he will have to pay will be just the
same, and he may be aiding a deserving
fellow creature.
The mystery thrown about life Insurance
"a very simple matter easily made clear
the agency evil, the great salaries of the
officers, and the cOnflscatiOn OF policies,
lay The business open to severe censure.
One thing is certajn--the inside managers
of n successful company are pretty likely
TO get rich, whatever may be the case with
the policy holders.
The Boston BeIfry Horror.
We give large space this morning to the
details OF tho trial Of THOMAS w. PIPER,
at f,r 10, sIr 1t