Centre Democrat. [volume] (Bellefonte, Pa.) 1848-1989, 1881-06-09
Speculative Life Insurance.
oourASrTs THAT srENT so rrE cESr. OF
EECruIs ~ CURRENT IHrESsEs.

courASGTs THAT srENT so rrR CENT. or
RECEIPTS ~ CURRENT TNrENsIs.
Some interesting statements concern.
ing the growth Of tho speculative life
insurance mania IN this State have been
submitted TO the Legislature in the
eighth annual report Of insurancc Com.
missioner ! VI. Foster. He shows that
during the last year l5l companies have
been incorporated. of this number
twcnty.ninc are located in Dauphin
county, including fourteen in Harris.
burg, eighteen in Snyder county. thir.
teen in Northumberland county. eleven
in Schuylkill county, eight in Lebanon
county. eight in Bcrks county, six In
York county, seven in Perry county.
five in Union county, three in each OF
the counties Of Columbia, Juniata. Ad.
ans and Philsdelphia. two in Mercer
county, two in Bradford county. two in
Clinton county and one in each Of the
counties Of Montour, Cumberland, Lack.
awanna, Luzerne, Huntingdon. Mont.
eomery, Centre and Wyoming. out Of
the large number of these companies
in the State only forty.two reported 10
the department their business for the
year. These reports show that the forty.
two companies had a total income from
applications, assessments and miscella.
neous sources amounting TO 81, 1853, ,ass..
"a, which was all expended excepting
the sum OF S3,2ls74 The sum Of $500,
s6I67, or G. per cent of the entire in.
come, was used in the payment Of death
claims or returned TO members: the
sum Of 500, ,69S G., or per cent. Of the
income. was paid 10 officers the sum
of $2i2. ss993. or Is per cent. of the
income. was paid to agents, and the
sum Of sl0l ,3l37G. or u per cent, was
paid for general expenses. Thus it ap.
pears that in the aggregate more than
81 per cent. Of the money collected by
these companies was absorbed by the
expenses of Management.
Twenty three companies organized in
1850, and so per cent. of the money
collected was expended in giving the
concerns fair start. The Commission.
or arrives at the conclusion that "the
main purpose Of these companies is not
the selection Of good lives. but the selec.
ton Of bad lives. The nearer the grave
the better the risk. Those having rea-
sonable prospects Of an early demise
are alone wanted. This is worse than
lotteries. faro tables and other forms Of
gambling denounced as immoral and
punished by fine and imprisonment.
IL is gambling in human life. and fur.
nishes the strongest incentive 10 worse
crimes. 1t is using the name OF life in.
surance IS the convenient cloak for lot.
teries in which greedy gamblers cheat
one another with stakes upon the lives
Of venerable paupers.
"There Is no expectation OF writing
these companies down. The most ab.
solute demonstration of their fallacy IL
powerless to convince those whose in
terest IL Is not to be convinced, or those
infected by the gambling mania. The
delusion must have its day. Nothing
but sad experience will bring convic.
ton. Like the OF! excitement, the fever
must run its course until the victims Of
this delusion regain their senses with
the return of empty pockets, and won.
der how they could have beer 30 easily
cheated. The multitudes who main
tain these companies by their contFibu.
tons must ultimately discover the de-
lusion."
The point IL brought out that, al
though the act OF 1876 requires the co.
operative life companies TO pay 10 the
State IS license fee for each Of their
soliciting agents, the requirement i
very generally disregarded.