The herald., 1898-06-03
OFFICE OF THE HERALD,
LOS ANGELES, June 9, 1898.
Temperance and labor are the two best
physicians of man."

physicians of man.
The Massachusetts bureau of statistics
OF labor takes up In the last issue the ac-
cumulation of wealth through life insur-
ance. Its investigation covers the period
from 1890 to 1895, inclusive. II observes
that Saving through life insurance is in
modern times one of the most important
manifestations of thrift. Its fun import
ance as an aocuinulator of capital is hard
ty seen, however, until the figures are
massed and carefully studied" The ques-
uon is looked at as means whereby a
mans savings for his family or himself
may be larger than would be possible un-
DER ordinary circumstances. Life insur-
ance is, therefore, an important
index of the economic welfare of the COM
munity." The report takes up the Massa-
chusetts companies as one class, all other
United States life companies as another
class, ana all companies whatever in the
business dis a total. it gives some sugges-
tive statistics. and says: 1.-THE number of
policies in all the companies aggregated
rose from 1,2l34 4d3 in 1890 to SG5, $50 in 1895.
In the Massachusetts companies only, the
number during this period rose from so 961
to 122,60O, and in the other United States
companies doing business within the COM
monwealth from ,4s2 to /, $3.50. \ gain
Is shown each year, as compared with the
previous year, in the number of policies,
but in the later compared with the ear
Her years there is a decrease in the aver
age amount per policy. For example, TAX
Ing all the companies, the average amount
per policy in 1890 was $2S29, declining to
S2oIO in 1895. In the Massachusetts COM
panies the average per policy declined from
S2l21 to S26S4 in the period, and in the other
United States companies the decline was
from $2S36 to $685."
In other United States life companies the
number of whole life policies was 191 per
cent larger than the number of endow-
ment policies in 1890, and PIG per cent larg
er in 1895. The average amour: per policy
of the endowment class in the Massachu-
sets companies was 2721 in $780, and S2669
In 1885, while the average in the other
United States companies was s253S in 1890
and S2351 in 1895. Other figures are given,
showing a decline in the endowment poll
cies. 1t should be added to the report that
the great crash in assessment insurance,
whereby the Massachusetts Benefit and
the Bay State Beneficiary went down, oc-
Cured after the period covered by this in
vestigation. Insurance generally suffered
n check during the business depression,
but, as a whole, made, even then, a sur
prising gain, considering business in gen.
eral.
Discussing the securities held by Massa-
chusetts companies, the bulletin says
Excluding the municipal and government
bonds, 1t appears that the total value of
the securities of Industrial and commercial
enterprises held by these companies In
1895, including under that term transport
tation companies, banks companies for
the transmission of intelligence, manu-
featuring and trade companies and asso-
Citations, gas, electric light and coal COM
panies, and real estate, land, mining and
Improvement companies, was $3I4 4,3i5 ,527 In
the final analysis, this large amount of
capital, employed in industry and trade
is really owned by those who are accumu-
lating through life insurance. Those who
directly manage the various enterprises
simply use 1t as trustees. The concentra-
tion of capital is frequently discussed.
These industrial and commercial compan-
les may be limited in number, and within
them capital may be concentrated, but it's
real ownership is distributed among the
holders of the 1866, $50 policies that were
outstanding in 1895. To the extent of s374.-
345 527, these policy holders. each policy on
the average not greatly exceeding s2500
are the real capitalists in the case. What
ever affects values or interferes with tha
development of manufacturing and COM
merce affects these persons, and not merely
the individuals, firms or corporations in
whose hands the ownership is nominally
vested"
The New York Times says that friends
of Pullman company interests are author
ity for the statement that there is con-
templated a division of the property's S
profits in some such way as was made by
the Adams Express company not long ago.
These stories come from Chicago and from
evidently reliable sources. Many hints are
also in circulation regarding the establish
ment of closer relations between the Pull
man and Wagner car companies.