The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-01-09

For Whose Beneiit il itt
There il more humbug and clap-trap
resorted To in the life insurance business
than in any other of similar prcten-
sons To hear the soliciting agents talk,
and to read the stun put out by the
| companies. one would suppose that life
insurance was purely benevolent, philan-
thropic, and religious institution, conduct
ed FOR the sole purpose of amcliorating the
condition OF mankind.
Now, II ~ true that rightly managed IL
might be valuable adjunct OF civiliza-
ton. IL affords TO men who otherwise
might leave nothing TO their families,
the opportunity and the stimulus to insure
for their widows and orphans fixed sum
OF money. But in order to do this they
must pay just what that insurance is worth.
Unless they chance TO die soon after taking
the policy or commit suicide to make
| money for their hers-as men have been
known to do-they can make no profit
out OF life company. They as whole
can get only what they pay for, and not
cent more. IT, however, the company is
run extravagantly, they must contribute
| 'f'iN 'h"h 70 hNN'Se'Aig w AhNhAV WIZ Bhy
ment Of the stipulated sum, TO cover these
large expenses; or If they do not, their in-
surance IL not safe.
Though these facts are almost self-evi-
dent, yet writers on life insurance use
such arguments as these, which we find in
the World:
Ok, "And NJ toll9ws-as was shown b{ aeCrrsspondent
OF the NOih the other daY -that thcte auurefs the
soliciting SCENTS must be PAID. otherwise the number
Of policy hoidcgs Sou be no larger Than Tue number
and phanthropic enterprise. II men would without
Insurance anceded protection for families
tne 1peses VI he basc woud p mNch ess
and policy holder. would get much argcr returne 10
experience Of two huuorsd ycars proves that they
soliciting agents"
The fact is, a life insurance company Is
organized to make money, and for no other
reason. There is nothing benevolent or
philanthropic about it, A number OF men
get together, subscribe rs capital say
hundred thousand dollars, on which they
are to receive legal interest, form life
insurance company, and then proceed TO
elect officers 10 conduct the business.
There is n President, who must have
salary bigger than that of IA Cabinet officer;
there IL n Nice-Presdent, who needs large
stipend TO support his dignity; there is n
Secretary, who must be exceedingly well
| paid for his arduous labors: there IL an
Actuary, who is an expert, and without
whom the concern could not get on, and
he takes handsome pay; there is II doctor
10 examine applicants. and he either draws
II fine salary or gets n round fee for sound
ing the lungs of each aspirant for insur-
fhae.4 a -. M x~a 10, II
essential; and usually there are others.
Then there must DE great crowd of general
agents aud ordinary agents 10 solicit bust
ness. These get from twenty-five to thirty
three, even to fifty per cent. I'm some cases,
on the premiums OF the people they induce
TO insure their lives; and ne long Us the
| premium is thereafter paid, the agent takes
his five or seven and u half per cent. of II.
| There does not seem much philanthropy
so far, unless IL be TO the officers and
agents-in fact, to those inside the COM
| pany.
Is there not something radically wrong
| about an institution which, in order 10
secure business, TO give people the benefit
| of ITS privileges, has to keep a small army
OF men drumming up business for it, and
TO pay them large commissions for their
| work. VIII life insurance ever he q sound
and really benehcent institution until its
business comes to it, and il does not have
to send out highly paid missionaries to
travel from house TO house and shop TO
shop 10 preach its benptcence ana induce
or seduce men TO avail themselves Of the
advantages IL Offers? II, as the Wodd
says, after an experience OF two hundred
| years, il Is found that men will not insure
their lives as they pnt money in savings
| banks or insure their houses and goods
but must be talked and wheedled into do
| ing II by itnerant agents, then life insur-
ance has taken very little real hold of the
people in those two centuries. When II
| becomes necessary for an institution to
| pay largely and regularly to get its bust
ness, there is something wrong about it,
| So long ms the life insurance companies
live only by the efforts Of host Of agents
through whose glibness Of tongue and
plausibilty OF argument they must get
their support, it will continue to excite
doubt and suspicion in thoughtful men.
Certain facts, shown by Prof. VAN
AsRINGE, of Columbia College, reveal for
whom the life companies are conducted:
| For the Ave years from 1867 to 1871 the
agents received from authorized COM
panies OF New York, for commissions
alone, forty millions Of dollars During
the same period the companies paid for
losses and claims but seventy-nve millions
The agents therefore took more than half
as much as the widows and orphans got
Meantime, besidcs their commissions they
| had allowances for expenses, salaries and
| fees, which, with the official salaries, raised
the percentage paid TO those inside to II
still higher figure. For whom is this bonev-
olcnt and philanthropic enterprise devised ;
for the officers and agents, OF Tor the pco-
pie they induce to insure
| The New Sect of Miracle- Workers in