The sun., 1901-10-09
INDUSTRIAL INSURANCE.
A Business Enterprise Established
~ Years Ago Hns Grown to Great
Proportions In n short Time.
BY JOHN F. DRYDEN

What is true progress and what are the
evidences of prosperity, are questions to
which the answer will vary according to
different standards of economic theory,
but in a free democracy there is neither
hope nor life save in the people" and
progress which is not general and pros
perity which is not widespread among all
the elements Of society is not, in the true
fense, an advance. but rather the reverse.
Progress and poverty was a shiboleth
which has long since been reegated to
the limbo of exploded economic theories,
and progress and prosperity has become
a political axiom for which no man has
made a more valant fight and devoted
n larger portion of his life than our mar
tyr President Mr. Mckinley could say
with perfect truth. resting his argument
ON observed facts. that this country is
in u state of unexampled prosperity" and
with equal truth that the prosperity Of
to-day is in the nature Of true progress,
bringing comfort and happiness to the
homes ana making il possible to lay by
savings for old age and disability" Per
haps in no direction are the immediate
results of an Improvement in the material
condition Of the masses so readily dis
ccrncd as in the rapid growth of life in
surance companies, but in particular OF
the institutions transacting what is known
as industrial business, or insurance pro-
lection for the whole family at weekly
premiums collected from the house of
the insured.
Established in this country in 1919 in
the organization of the Prudential In
Sttp nf 4 mn
insurance has in quarter of century
reached il commanding position. so much
so that il may claim TO have solved the
problem Of life insurance. which, in tho
words of Prof. falkncr, rs to increase
its social efficiency: to bring its benefits
to wider range of people and that
'unlcSS the advantages Of life insurance
can be brought to the great masses of
our population il cannot properly Justify
its claim to be- Il social institution of the
first ORDER With more than twelve
million polcyholders, the industrial
companies can rightly claim to have Gle
waited life insurance to "a social insti-
tuition of the first order" and to no bust
ness institution making for social prog
ress and economic freedom are the plain
people more strongly attached than to
ours. Whatever. therefore. affects the
the masses Of our population are making
progress. the most convincing proof OF
such progress is supplied by the contin-
ued growth Of industrial insurance.
Our records Of business operations for
the first eight months of 1901 warrant
the conclusion chat our wage carners are
more than ever participating in the gem
eral progress and prosperity of the ma
ton In all the essentials of our buSi-
ness transactions meet with evidence
that the present year will bc one of eN-
ceptional activity in Ill the branches of
our varied industries and trades. In both
industrial and ordinary policy issue our
records for the first eight months of the
present year show a very considerable
and gratifying increase in business or
erations over the corresponding period
of 1900
But d still further evidence is furnished
by the statement that while in 1000 the
average amount of our ordinary policies
issued was $l,GJi, during the first eight
months of the present year the average
was 81, 1G7. The increase in amount of
Insurance per policy is without question
most convincing evidence that the pres
ent year Is ntrinsically one of more wide
~ diffused prosperity than the last. Still
another proof remains. In our industrial
collections we have standard Of 9S per
cent, which we have been able 10 main
tain for a period of years; but during
1900 we We're able to collect 9S.2 per
cent. while during the present year wc
have collected $50 per cent. Small as
this percentage appears, relatively it is
n fact of much Importance since better
collections mean increased pcrsistency
of new business and increased earnings
of the company. No factor in our buSi-
ness is more sensitive to even slight
changes in the material well-being of our
millions of policyholdcrs than the per-
centage of actual to possible weekly col
lectiOns, and while decreased wages and
lack of employment mean a low collection
percentage. increased wages and abund-
ancc of work are indicated almost at
once in an Improvement in our financial
returns for The current period Hence
We feel assured that in the light OF ollr
own experience with more than four mil
lion Of the industrial population, the con
clusion is warranted that the present
period is not only one of eXccptional nrns