St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-02-10
CHEAP LIFE INSURANCE.

The retirement of President BEERS.
of the New York Life Insurance COM
papy, on an annual pension of S37 500
suggests two things. One is the high
price ability can command in the mar
ket at this time, and the other Is the
magnitude of modern insurance COM
palies. An institution which can af
ford to pay its chief executive officer
$4,000 year, or half of that sum when
in subordinate position. must have
tremendous interests to protect and an
enormous volume of business to trans
act. The contemporary American life
insurance companies have achieved a
size and position which are beyond the
powers of the human mind to grasp.
They not only are active in every state
and territory of the Union. but they
maintain successful branches in South
America and Europe, and almost every
quarter of the civilized world. They
employ myriad of agents. possess Pc
cuniary resources greater than the
wealth of nations, and perform func
tons the Importance of which it is, not
possible TO overestimate, Every year
their power increases and their sphere
of effort broadens. There is a never
ceasing flood of capital making towards
their treasures, and proportionate
demand for available securities in which
it may be invested. The structure reared
OIL these foundations has become as high
as heaven and as broad as the face of
the earth. ItstaIds up against the shock
of the most serious losses, and its own
strength breeds spirit of recklessness
and extravaganza which only the closest
governmental supervision can hold in
check. They must be counted among
the wonders of modern society. partly
to be admired and partly to be feared.
The average policy holder who reads
about these things is inclined to crti-
else the present condition of affairs.
Insurance has become necessity. The
existence Of these institutions has called
into life race of men who rely upon
them. Instead of boarding against the
chances of death, people count on their
families being protected by the fruit Of
their annual premiums. There would
be much suffering in the world
should distrust of the wisdom
of this course become prevalent now.
So generally has the capacity to save
been eliminated by the popularity of
life insurance that many would save
nothing at all unless they did so in this
way. This would mean so many more
helpless widows and dependent young
children. 1t is everybody's duty to
make some sort of provision for those
for whose existence he is responsible.
and it would be. sorry condition of
affairs it there were a general failure to
do SO. People will not take out poll
cieS, however, in companies which seem
to be needlessly prOdigal i'll their out
lays. They argue that they are being
taxed to maintain some one else in lux
ury. On the other hand, they are afraid
of the smaller concerns because they so
often fail to carry out their promises.
1t is better to pay somewhat more for
what one gets and be sure that one will
get it than to economiZe little and ey-
perience a total loss at the end. The
only solution of this difficulty is for the
authorities to insist on the utmost pub
licity in the management of such insti-
buttons and to hold them within bounds
by giving the interested an opportunity
TO know and criticise what thew are
doing. What seems like prodigality is
often only a judicious expenditure. A
NEUTRALITY-SUSPICIOUS. salary may be
measure of economy. But this will
not be believed unless it is clearly and
constantly explained. All this trouble
about the New York company will be a
good thing if it leads to closer inspec-
ton and greater fraukness of method.
What the public wants is protection at
the minimum of cost. 1t does not be-
lieve that it is getting it at present.