River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1877-06-07
THE LIFE INSURANCE QUESTION
tcoMMusIcArED.)

world, the columns Of Il 2 newspapers and
magazines of the county were freighted with
good deal of hop-hoY and literature ON the
subject of life insurance.
The regular profession OF the press has,
with few exceptions, had comparatively little
to say in the matter under discussion. But
as you are aware Mr.. Editor, every newspa-
per Office is blessed with supply of volun-
teer talent, always at the chiefs elbow, and
ready to contribute their brains and pencils
for the cheap notoriety of''getting into print. >
These scribblers, added to the members of
the s'National Paragraph Association" have
had almost all the "heavy wrestle''
with the lie insurance mountain to them
selves. While their productions have been
by no means instructive, they can at least,
in many instances. claim the merit OF being
entertaining and ludicrous.
Like a certain ex-U. s. Senator, who after
weeks casual devotion to the great and
intricate question of finance, proclaimed to
the world ne had thoroughly mastered his
subject, this volunteer brigade OF life insu-
rance writers, after glancing at some maya
zine article or turning the leaves Of state
| insurance report, imagined themselves bet
| ter posted than Wright or Winston, when
in truth they knew nothing more OF the
real merits of their subject than Crazy Horse
does about the science of mathematics.
| Now it is an old axiom that Figures won't
lie" Be that as it may. figures are at least
plain, and argue in a way easily comprehend
ed by every one possessed of ordinary intel
M. I Ca -. oh
your numerous readers what life insurance
companies actually have done and are now
doing. A brief summary of the annual re-
ports OF forty-six leading companies, for the
year ending Dec. slst, 1876, shows as fol-
| lows:
Total income QS76) ss9,Os9,l43.
Paid to Policy-holders, including death
losses, matured endowments, divi-
/ dends &c. o5,ll9o1o.
| Gross Assets, 42l,5ol 80.
Reserve, az per cent? $40, 2s3,s7l.
/ Expenses OF management, H,So',glo.
Ratio Of expense to income, Il per cent
Now let us compare the life insurance tail
ures of the past tour years with the losses sus-
tanned in other branches of commercial BUSH
ness.
Number. Amount
1 Business Failures in U. S.,
| years and Cnths, 3O,7l4 SSSO,454,oI5.
| Railroad Foreclosures or de- .
| faults in l year, 80 9lzoO9,OoO.
| Shrinkage in stocks Of cOrpo- ..
| ratiOns in year, ID l40,f<o,fol'
| Losses by Life Insurance Fall -.
1 ures in years, IsUOO,OVV'
1 Iwould like to produce other facts and fig-
ures to show the emptiness OF the late attacks
on life insurance, but have no right to in
| fringe further on your valuable space.
The magnificent record of life insurance is
shown in the simple facts that while billions
of dollars have been sunk and lost in other
commercial enterprises during the past gen.
Grafton, the managers of our lite insurance
companies have handled hundreds of millions
with total loss of less than the present in
come for one month of the combined compa-
MES. Five millions Of dollars will cover the
actual loss to policy holders for the past thir-
ty years. Ifany other business can present
such record, the statistics are not attainable.
In refutation of the threadbare song that
enormous salaries and expenses are permitted
in the management of life insurance, and
that the managers are prone to dispute the
| payment of death losses and other legitimate
liabilities, it is only necessary to again APP
peal to facts and figures. | challenge any
one to produce correct statistics Of any
other commercial business of magnitude
which can show a ratio OF expense to income
so small as in the case of life insurance. The
Legislative investigation at Albany, N. Y,
last winter uncovered only two cases OF what
can in any sense be termed high salaries, and
for the money handled and work done by
these two officials, they received less re-
Enumeration than would have been earned at
any other vocation. Nor, except in the cas-
es of the Continental and Security companies.
was any dishonest practices shown, although
the examination was of the most rigid char
acter. On the same general principle that
some bad people will join the church Of
Christ to serve the devil, few base meI
, have crept into and abused the profession o.
life insurance, but these cases are strictly
exceptions to the general rule of integrity.
which seayching enquiry has shown to per
. wade the management of this great business
interest.
That life companies do not wrangle and
: "higgle''over the payment of the death losses
is proven by the record. Out of the forty
millions paid last year for death and endow
ment claims not one-half million was contest
ed. Millions of dollars have been paid TO thu
people of Wisconsin ON account of dealt
claims during the past score of years and
invite any one to produce two dozen authen
: ticated cases of contest.
q Many scribblers on the life insurance ques
ton have asked with much gustO, "what be
D comes of the large difference between the an
, nual receipts and disbursements of life insu
rance companies" | dislike TO refer to such
, an absurd query, for any one at all conversan
: with the theory OF the business knows tina
| a life company to remain solvent must re
S ceive annually sum considerably in excess
| ofits disbursements. A reserve fund tor tn
| discharge of contracts already assumed mus
: be invested and laid away at interest
| Whence comes the millions of dollars Loaned
!, to the citizens of Wisconsin and other state
i every year by the various lie insurance com
| paniesl IL IS the surplus income Git it can b
SO desiguated) of these comprehensive an
: nual reserve laid aside-and represents tn
f difference between income and outgo.
There are, Mr.. Editor, some encouraging
facts to the intelligent and reasoning publ
relative to the life insurance business. Fo
in spite of all the wanton and desperate az
| saHlts made upon the system through tn
:. press IN spite of the odium set OF ignoran
l and corrupt Legislators have attempted to cas-
+ | on the general management of the business
in spite OF the nunberless devices 9
/ adventures to blackmail and extort none,
f from the managers accompanies BY threats
8 sham suits, &C.; IN spite OF the fact that som
bad men have obtained the management G
l. and wrecked a few companies; in the face G
8 all this, life insurance Is growing and lncreas
u ing in popular favor daily. The system ha
s been tried and found wanting not. II stand
:, firmer to day than ever before All the small
u and weak companies have been weeded GU
D and closed up with little or no less to the in
sured.
The new business done last year showed q
D increase ever that of 1875. and nearly all com
q panies are doing now twice the business the
q were for the corresponding months {
T. 1876. Croakers may howl as they may, bu
an intelligent public heeds them not and goe
e on patronixing life insurance frser than ever
IS Forty millions of dollars distributed annual
l. to needy beneficiaries tells mighty story.