The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-16
BRAINS ARE "A FACTOR,
BUT CASH ALWAYS COUNTS
Because Of His Life Insurance He
Was Enabled to Raise Money at
a Critical Time and Won a Part.
nership.
BY HERBERT vANDERHboF.

! party of friends the other day, when the
turned upon the subject Of
Several Of the gentlemen present had
given their, own experience, and finally |
this gentleman was asked to give his. |
Life insurance gave me my start, ne |
was because Of the life insurance that I |
carried that, when the opportunity came |
to me, as it will to almost every man at |
some time during his life, did not have |
to let 1t get away from me. Instead, 1 |
was able to grasp It, and you all know |
how have prospered in my business.
II frequently hear 1t said that industry, |
good habits and ability are |
bound to push a man to the front. That !
may be true In a few cases. but have
always found that the man who can
command a few thousands OF dollars, |
everything else being equal, will be the
individual selected for preferment.
That was my. case exactly. had been
a large concern. had a thorough knowl-
edge OF the business, and my habits were
good. But there were a dozen or more
men in the business with just as good
edge Of Its operation. There was no
reason in the world why should have
been preferred to any one Of them, but
why? Because had 100000 in cash,
and they had not. How did get the
$4,000? Through life insurance.
t~,S "A Factor In Advancement
II had observed early in my business
career that a. few thousands Of dollars
We're a very potent factor in mans
advancement, and I made up my mind
rich relations to assist me, and therefore
had to save. My salary was a fair
one, and I figured that could put away
just so much a year without inconveni-
ence. -
"A friend of mine had called my atten-
tion to life insurance, and after investi-
eating the subject decided that I would
put my savings In a policy. I was then
81: AS my salary kept increasing I
in the course Of dozen years, was
carrying over $4,000 in various policies.
I had figured it out that / was simply
saving SO much money and was getting a.
much higher interest return than I could
from a bank or any conservative invest
>ment., ~ s:ssa
Chen came the opportunity that was
enabled to avail myself1of. My concern
{ a period Of business depression. Many
lof our best customers had gone under
and those who had not3cWere not meet
ing their bills very promptly The firm
had been q heavy borrower at the banks
The time came when draft for $4,000
had to be met and they did not know
where on earth they were to raise the
Fmoney.a Not to meet the draft meant
their ruin. s%5..s5>
"All these things were known to me be-
tcause, Of my intimate acquaintance with
the firms affairs. A day or two before
this draft was to be presented, I went
to the head of the concern and had a
short private conversation with him. The
result of this conversation was that ]
went to the life insurance company III
which carried my policies and borrowed
T$lO, 900 from it. turned this money over
to the firm and saved It.
.7 Step to Partnership.
In doing this did not consider tina,
i took any risk, because I knew the
firm was good. And my judgment was
not at fault. Business almost imme.
Idiately afterward took a turn TOR tn,
better, and we made lots Of money. The
/ first of the next year I was taken int
partnership, and IN the course Of few
years gradually bought out my partner:
until am now the sole owner Of tn.
raise that $4,000 at the time I did, tn
chances are that 7 would be working OF
a salary today.
The merchants story was, voted {
} drifted into discussion OF life Insurance
in general, especially with reference t,
the details published by the press con
corning the Investigation of the grea
chant If these had not In a measure
weakened his faith in life insurance.
why should .they?'arhe asked. 'Di
you ever know one Of these companic
= lar they contract themselves to pay the
have the money. There is no element @
chance about it, either: The conpanie
have the business REDUCED to an exac
science, and no matter whether times ar
d good OF: times. are bad their bushes
: moves along with the regularity of a ma
. chine. What other business is there o
the face Of the earth where such mag
nif1cent results have been attained an
: maintained as in the life insurance bust
|. ness?
: These investigations, in my opinion
r are a serious source Of harm to tn
: cause of life insurance, as they have
Q tendency to make men skeptical of tn
. good faith of the companies. It is pa
raded as a prima facie evidence Of cor
ruption that some Of the officials receiv
large salaries. What of it7 There al
railroad presidents and corporation head
4 in this country who are receiving jus
as large salaries as are paid by the in
surance companies, but no one intimate
n that they are corrupt In consequence
). Men who conduct affairs of such magn
4 ance companies have a. right to expet
y and receive an adequate compensation
' The final record on which they should (
t judged is this alone: Have they mar
(. that the latter have prospered? Hay
q their Investments Of the funds intruste
y to them been sound? Have they live
] ) up to the letter Of their contracts wit
). the policyholders? ION these three saliel
questions there has not been partic
OF evidence to the contrary. nor ca
there be.
e WIsest Of All Investments.
IT believe that all men should carr
insurance and consider it the wisest /,
O. vestment that can be made. It is IN
lie possible for all men to carry large sur
IS and would not recommed the taking
l. a policy that is going to cramp them
:.e meet the yearly payments. The latt
y course is likely to discourage them, al
y some times to cause them loss.
:. And yet there are very few young me
y who cannot afford to take out an Ell
le dowment policy for a small amount
! the age of 81. AT that age the rates a.
low, and the yearly payments are n
burdensome. At the expiration OF tt
or fifteen years these men have han,
some little sum OF ready cash at the
# icommand, and are enabled either to tai
advantage Of a business proposal or
invest their money where 1t win be avail
ia able at any time. Aside from this far
r. however, the habits of prudence al
a frugality which have been acquired du
r, ing these years Of saYing---for saving
e; what it really amounts tohave hi
t their effect In the formation OF cha