Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-12-30
The New Life Insurance Society.

Our readers have already noticed in our COZ
umns an account of the organization of the Dis
trict Society of Augusta in connection with the
New York Life Insurance Company Of New York
The names Of our citizens connected with the
movement are guarantee Of its reliable charac-
ter. The plan of the Association i, two-fold,
first TO create q local board that will represent
the interests Of those who insure 10 this commu-
nifty In anything that relates to their life policies
second 10 carry into effect in this locality plan
recently introduced by the Life Insurance Com
pany of New York, for bringing the mechanic
and laboring classes of our people within the
range of its business. An article in the Eastern
Argus Of Portland where a similar society has
recently been established, sets forth the impor-
lance of these objects as follows:
The first, il successfully alta ned, and we see
no r, ason why il should not be, will do much to
remedy the only serious defect in our American
81 stem OF mutual life insurance. There are few
OF us who do not understand and appreciate this
defect. Every policy holder in great mutual
company feels the disadvantage at which he Is
placed, ris.d-Uis the company; how unequal in
strength and knowledge OF the business, the two
parties to the contract are He realizes fully the
gative character of his power in influencing the
direction of his company or the management OF
its vast assets, of which he Is part owner. On
the one side is the administration of the COM
pany, compact, Intelligent, and with an admirable
corps of agents spread over every State, and en-
trely dependent upon its will on the other, forty
or fifty thousand policy holders, absolutely un-
known to each other such, scattered all over the
continent, from the Atlantic to the Pacific, and
without cohesion or organization OF any kind.
The facilities for "ring" management are alum
dant, and there are ample means of perpetuating
it through proxy-voting, which is under the con-
troll of the agents Ii is creditable to the officers
of the great companies that these facilities have
not been oftener availed Of, or the powers they
confer more frequently abused. But they present
. serious defect in the organization of mutual
companies, and if the plan introduced by the New
York Life succeeds in remedying 1t, the reform
will be important and valuable. One effect OF
this plan will be to organize the forty or fifty
thousand policy holders of which we have spoken,
into q few hundred local societies, with a Board
Of Trustees composed of leading members to rep
resent the interests of each. Ii is easy to that
this will open communication between the policy
holders, bring their power into an available form,
and make it capable of being used to direct, mod
ify or If need be change the administration OF the
company. The introduction of such a reform by
an old and wealthy corporation like the New
York Life is honorable TO It's officers, and may be
taken AS evidence that they have nothing to con-
ceal or fear from their policy holders.
The second object of the present movement Is
no less important than the first, and indeed, the
one may be regarded as an apt corollary OF the
other. As life insurance is carried on our work
ing people can have htle if any interest in it.
The practice Of collecting premiums yearly, half
yearly or even quarterly, is not adapted to their
circumstances, aud virtually puts it out of their
power to obtain policies. This Is great hardship
and has been SO recognized by some Of the most
eminent insurance men in the country, with whom
the extension Of life insurance to the industrial
classes has been subject of solicitude for num-
Der of years. BY the new plan the local board of
trustees is made the depository of premiums on
workingmens policies, which are pay able weekly,
fortnightly or monthly in such small sums as me-
chanics or laborng men can spare out of their
wages. We see by the scale OF premiums with
which we have been furnished that