The herald., 1897-09-10
OFFICE OF THE HERALD,

OFFICE OF THE HERALD,
Los Angeles, Sept. Q. 1897.
Until recently too many prospective in
vestors have confined their investigation
of Mexico almost exclusively to the possi-
blities of coffee growing. Now. however,
the raising of rubber, tobacco. henequen,
VANILLA cocoanuts. chocolate and tropical
fruits for the northern markets are re-
ceiving their proper share of attention.
Modern Mexico says that the opportunities
for money making on both large and small
scales by supplying the home markets of
Mexico are also being more generally in
vestigated Corn always brings good
price everywhere in the republic. and flour
and grains as well as all kinds of feed for
cattle, sell at high rate. The possibilities
Of raising cattle, sheep and hogs oHer
many inducements at present. MOST Oh
the large cities are very poorly supplied
with first-cass meat; hides find ready sale
and the increasing number of wooden mills
insures a market for homegrown WOOL
Cotton sufficient to supply the Mexican
mills will sooner or later all be grown on
Mexican SOIL But even more enticing than
the agricultural possibilities of the re-
public lust now are the Industrial openings
that have been augmented by the further
decline of silver. Local well as foreign
capital will take advantage of the situa-
ton and prepare to furnish Mexico with
such products of home manufacture as
cannot with the present rate of exchange
be imported.
The question of what proportion of a
mans salary should be applied to the pur-
pose of life insurance is as difficult to
answer as it is interesting to discuss. One
thing is certain the same proportion cam
not hold good for all men, not even for
those whose salaries are exactly the same.
Over-insurance is almost as poor and
short-sighted a policy as no insurance at
ALL The idea of securing an, amount of
insurance the income of which at his death
would bring into his family an amount
equal to his salary is not only absurd, but
mischievous as well. A man owes it to
himself as we'll as to his family to carry
a good and liberal amount of insurance, but
he does not owe it to anyone to go along
through life financially cramped and un-
able to buy those comforts or luXuries
which by giving him recreation and pleas
ure and making life worth living tend to
increase it. Nor has any man the right to
rob his family of the position and advan-
tages which his salary ought to carry with
1t while he lives. A policy of excess is
generally followed by a reaction as COM
plete in the other direction. The expert
ence of almost every company teaches that
the men who over-insure generally allow
hai po1iriaS n 1apSG LATER and
1t is harder to get back one lapsed policy
holder than TO secure half dozen new
ones.
A large policy is good If a man is able to
carry it, otherwise not. No salaried man
with a family of children ought to use
more than 20 per cent of his salary in the
payment of premiums, and even this propo-
sition is somewhat too liberal From 10
to Is per cent is a safe and reasonable
figure and all that a man should use for
this purpose unless he happens to have a
fair income over and above his salary.
According to the Travellers Record the
man of $4,000 year will be able to pay a
larger proportion than the $4,000 man, how
much more it would be difficult to esti-
mate but 21a per cent would seem reason
able proportion. A $4,000 salary man should
be able to carry without any serious in
convenience at the age of so an ordinary
life policy of $40, 900, or if he prefer a twenty
five-year endowment policy of about s2S, 600,
the cost of which would be nearly equal
s730 for the first, s725.42 for the latter At
the age of 40 he could carry $50, 900 ordi-
nary life for $76O. so, or a twenty-five-year
endowment of GOO for s751.52.
There are, of course, other forms of poll
cies for man to choose from, such for
instance as limited payment policies
whereby he could pay up all his premiums
in space of ten or twenty years and be
free thereafter from paying anything
more, the payments having been completed
during the years when his health would
naturally be at it's best. At the age of 80
twenty-premium life for 100000 would
cost $72720. At the age of 40 a $25, 900 twenty
premium life would cost $7S0.90. A man
also could take part endowment and part
ordinary life, or whatever combination
pleased or suited him best.
A s250O man could afford to procure at the
age of 80 an ordinary life policy for SIG, ,oOO
costing $292, or a $4,000 policy at the age
of 40 for s3O4.2O.
A twenty-five-year endowment for s1O,-
"A
twenty-five-year endowment for $4,000
would cost at the age of 40, s3O744
AT a salary of from $1,000 to $1,000 not over
8 per cent should be used for insurance for
which ordinary life policies of from $4,000
to $4,000 can be secured. A man who is earn
ing these salaries will probably be able to
secure other insurance in time, but $4,000
or $1,000 straight life is all he can reasonably
afford to pay for.
If men went into insurance with some
knowledge Of how much they could readily
afford. and not haphazardly or recklessly
there would be very few dissatisfied policy
holders, and the companies would be spared
much of the sorrow that comes from early
lapses
4 + 4
The advance sheets Of "Poor's Manual"
for 1897 shows that the total length of
track in the United States laid up to De-
cember 31st last was 1S26OO21, of which
l7S.5zS3S miles reported operations. The
net increase In mileage of the United States
during the year was 1,6S7.75, while the net
increase of