Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-07-05
INSURANCE.
THE VALUE OF A HUMAN LIFE.
HOWTO ESTIMATE
Its Value Fixed by Basis no More Uncer-
tain than That by Which the Worth
of the Business Block is Determined.

SCISSOR. and perhaps 10 others by reason OF
| anectlon, paramount and unreasonable
value. That it may have also a money
value has been acknowledged in various
ways, notably in the institution of slavery
| From early times the ownership of the ser.
VICE OF human being has had u worth il
accordance with the excess of earnings OBJ
| talnab-e above the necessary cost of syn
slstence. This value has not usually been
computed with accuracy in each individual
case; put IN general way i price has been
| hSed for slave, taking into consideration
his age. physical Condition and capacity for
the kind OF service required of him.
| -. l. Is cie'..f, however, that certain impor-
tantelements are either wholly lacking or
out partially developed. III the case of the
| life of person held in bondage. which may
be present if the possessor OF the life is free
and independent. Self-interest, ambition,
| and family ties are needed to develop the
highest value of a human life, and such Il
life has qualities which may impart TO it a
| worth as real and as aScertainable as that
| of other property
| In the markets of the world, that which
| IS commonly known as property depends
| for It's value upon what can be obtained
from it over and above the cost entailed By
| its possession. Sometimes this surplus is
sure and constant; sometimes it is uncer-
tain and tiuctuating, and sometimes it is
| wholly prospective. In fixing the price, all
| these qualities will be considered, and the
| result Will rest upon a combination of prob
abilities. The purchaser of business
| block for example, Will calculate the rent
! ais on the one hand and the taxes, repairs,
| and necessary expenditures on the other.
| The remainder will show upon what sum
rs principal this will offer a fair return as
| compared with other investments But
| this is not all. nor indeed, is it the most
| important consideration. If the building
| is composed of, or surrounded by, inf1am-
mable materials, so that the hazard of its
| destructian by fire is great, its value viii
| be seriously and unfavorably affected. 1t
| IS true that institutions have been organ
| lied to distribute such losses, but as the
| propertY-Owuer must pay for protection his
| full share OF the risk, which will be accu-
| rately and intelligently est mated. the value
| which his building would have. We're it not
| for this hazard, will be diminished by Just
| the cnance of that contingency. The pres
| ent condition of the structure. viewed in
| the light of natural decay and its adapta-
| 0lilty to the needs of the location and times,
| will demand intelligent discrimination.
The amount. therefore, which an investor
Will pay for the block will be determined by
his knowledge of what it now produces and
his estimate both of what it will yield him
in the future and the time when, either BY
gradual deterioration or by sudden accident.
II VIII become unable to afford an income.
Ii there can be obtained from it more than
viii suffice to meet necessary expenditures,
then the property has an actual value which
viii vary according to the estimate that
may be made OF its future. That neighbor-
hood which to-day attracts business by the
elegance of It's buildings or its nearness to
lines OF travel or transportation may to-
morrow be swept by fire OF damaged by
changes in modes of conveyance No human
foresight can provide with certainty for
these contingencies, but the general future
of section is estimated by the careful
student Of the laws underlying commercial
transactions, with an accuracy which, on
the whole. enables him to reap the profits
that legitimately belong TO high intelli-
gence. In the change of ownership the pur-
chaser thinks he is receiving more than an
equivalent for his money; else he would not
buy. The seller differs as to the probable
future, and believes that what he
now receives will be of greater value;
otherwise he would retain his posses
sion. The result. in almost any particular
transaction, will show that one or the other
mas materially erred in his estimate, but, as
whole, real estate, or any other property
which IS valued for its income, will be
found to conform to the general law which
governs the value of money.
Can human lives possess attributes which
will give to them real values? 1t would not
be difficult to enumerate many lives which
cannot be considered of any pecuniary
worth because, for various reasons they
produce nothing. Such are those of the
very old, the imbeciles, and the confirmed
invalids.
Every man who earns or produces more
than suffices for his actual personal ey-
penses is of pecuniary value to some one
besides himself. 1t may be that family
is dependent upon him for support or he
may accumulate his surplus income for the
benefit of heirs or charity. No matter what
the purpose is, there is Il value to some one
in his services. Suppose he has earned
$1,000 during the year, and his food, cloth
ing, shelter, and other strictly personal ey-
penditureS have amounted to $500. Then
clearly he mas been of the value of $500 to
some one during that time. We can meas
ure the value of the years which have
passed. Can we estimate with accuracy
those which are to come!
Careful observations, extending over
many years, in widely-separated countries
and among various nations, have demon
strated that the mortality of the human
family is governed by a law which is con-
slant in its operation. That inevitable
power, death, working through its number
less agencies, by disease, accident, and VIC
lence, and seeming to seek its victims by
chance, is ruled by an intelligence which
preserves the balance of population. directs
the laws OF supply and demand. and renders
possible the various calculations upon which
the commerce of the world is based.
The most extensive compilation of statis-
tics, and the most precise calculations which
have been made in search of the law of
mortality, are those derived from investi-
CATION amor what are known as selected
lives. or those which are unimpaired by
hereditary faint and are found by the en-
animation of physicians to be practically
free from diseases. A mortality table was
constructed in 1913 from careful Observa-
tons among large number of such lives
whose course could be accurately traced.
and numerous more recent investigations
have served to confirm the substantial cor
rectness of the death rate which was then
shown to exist
Let US suppose that the man whose sur
plus earnings are $500 year is thirty
years of age and in good health, and that
money is worth per cent per annum By
the mortality table, TO which allusion has
been made, the present value of the future
surplus earnings of this life is s25, $50.
1t is true that this value is based on aver
ages, and that the assumption that he will,
through his life. receive and spend lust the
amounts here set down will not probably be
realized. It is well-nigh certain that his
death will occur either before or after the
date here fixed. Disease or accident NAV
rob him permanently of his productive
power Circumstances which no skill
guided by research can calculate. and no
judgment foretell, may change the current
OF his life, and enhance or diminish the
the value of his efforts. And vet this value
rests upon foundation composed of ele- |
ments no more uncertain than those which |
determine the worth of the business block. |
Both the building and the life are con- !
Stantly exposed to the danger of destruc-
ton, but that chance can be measured even |