The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-03-26
A tCONSTRU CIV Il
STATESMAN WHO WILL STOP A
STEADY AND GROWING SEND
ING OUT OF THE STATE THE
CAPITAL THAT SHOULD STAY
AT HOME.

Insurance has come to be regarded
as a necessity of modern civilization.
Its cost to individuals is all out of
proportion to what it should be. This
| is seen in the Immense and unneces-
sary surplus piled up by the old COM
panies, in the tremendous expense in
conducting the business of insurance
companies. and in the heavy increase
of money paid in premiums over what
| is returned to policy holders
| Let US look at the figures in North
Carolina. At the close of the fiscal
year ending Dec. 81, 1908, there We're
l131,16S life policies in force in this
State upon $9S,374,228.44 of insurance.
The premiums raid aggregated So
| 25G,388.60. The losses paid were
1858, $3.50 Deducting the policies
paid from the premiums paid, we find
that in the year 1908. the people OF
North Carolina paid to life insurance
companies $2,402,4O4.80 more than
was paid back to the people OF the
State. And that drain goes on every
year. nearly all the premiums being
paid to companies doing business IN
other states where the money IS car
ried for nvestment-carted away from
North Carolina, most of it never to re-
turn to the State. Can North Caro-
lima stand that steady and ever IN
creasing blood-letting of it's resources
If it can stand it, OUGHT its people
to be content to stand it? There are
several home companies that are do
ing we'll that keep some of this money
in the State, but the outgoing stream
grows larger every year. and 1t de-
prived North Carolina in one year OF
two and a half million dollars of cap
ital that should be kept at home to
develop the resources of North Caro-
lima. 1t is of course, much better
that home companies should do
larger portion of the business. but
better still: There ought to be states
manship and business sense enough in
North Carolina to devise a system that
will furnish safe insurance to the peo-
pie of North Carolina at a cost that
puts protection in the reach of every
Carolina pays in one year $3,256,3S
and gets back only $3.50, 9S3.S0. does
it not prove that its people are paying
much more for life insurance than
they should pay, and does it not point
the way for North Carolina to devise
plan that will give it's people insur-
ance sums not extortionate as are the
present rates. If this means that the
State must add insurance as a gov
ernmental function, has not the time
come to enter upon it and do as great
thing in this decade as was done in
the decade before the war when the
State undertook to build the North
Carolina Railroad?
Heretofore insurance has been
largely confined to men of means or
large salaries. farmers with good in
comes and mechanics who get the
largest wage. But now it is more
general 1t would be universal if the
workingmen could obtain insurance AT
something like cost. The success of
workingmen insurance in Germany
ought to show what North Carolina
could do. In the April number of
scribner's Frank A, Vanderlip, Assist
ant Secretary of the Treasury, con.
tributes an article on Political Prob
lens of Europe as They Interest
Americans. in which he discusses
workingmen's insurance in Germany.
Upon that subject he says:
ut is in Germany that there is to
be found, by all odds. the highest evo-
luton of workingmen's insurance. In
that country social experiment has
been conducted on a vast scale, ana /
think the movement may fairly be said
to mark the most interesting recent
social legislation that is to be found
anywhere in tho world.
THE significance of the movement
in Germany will be better understood
when it is noted that 100000 Ger
man workmen are contributing to and
enjoying the benefits of the pension
system. That significance is empha-
sized when we learn that since the
| inception of the system, in 1885, the
total receipts have reached $1,750,0O0,-
| 900. At the present time the annual
receipts are in excess of $3.50, 100000.
an amount sufficient to make us con-
| slider with much interest the economic
| consequences of the plan.
Especially is IL noteworthy to find
| that this vast sum has been admin
| istered with absolute integrity. The
administration of the insurance funds
| Of Germany offers one of the best IN
dications in the world today OF the
possibility of a successful state control
of important institutions even when
| enormous sums of money are involved.
The demonstration, however. has
more than integrity to it's credit. The
| collection and disbursement of these
great funds have been carried on with
an economy which is admirable. In
| considering the cost of administration
| of the German insurance funds 1t
| should be remembered that collections
are made from II, 900, 600 individuals.
as we'll as from the employers of those
| individuals, and that in making dis
| bursements, particularly of the sick
and accident funds there is a care and
| intelligent supervision exercised which
must make the cost of disbursement
quite as great as the cost of collec-
| ton. There are, therefore, reasons for
| a much higher ratio of expenses than
would be essential in such system Of
| life insurance as We have in America.
| But as a matter of fact the cost of adj