The St. Louis Republic., 1905-08-27
FUTURE OF LIFE INSURANCE:
ITS COST AND METHODS
~ wM 4 REED saesr & the lasr,sce le,dee,

later On. About thirty years aeo the de-
sene9 o!v1oend. o. touttne system Of
treaong 0videnda. was adopted BY one Of
by osher c0mpanies. and from that time
dates tie trsneudous growth Of the busi-
ness A goodly number Of companies. how
and stiii sdhere 70 To- that metnod OF dlssTi:
button Of susplus. Both plans have their
edherents. and the rivalry between the
osents Of the two systems Is SHARP. The
holders are proportionally less than they
were years ago. for the reason that tho
sGrnins power Of the dollar has dilniu-
FUTURE PROSPECTS.
Thus Tar this article has dealt with tho
past history OF the business. In order thai
a foundation miSht be laid for what fol-
lows. There IS Q moral wave sweeping
over the country at the present time. and
every financial institution and every posi-
t"n Of trust Is being pushed out into the
!ight Of public gaze. and and the nfe insur-
.gement In general are passing In view.
Since the 6panish-American var specula-
ton has become epidemic. and the officers
have not escaped the coniasion. As = con-
sequence they have abused the trusts i'm
posed. and BY their mismanaGcsnent have
practically put life insurance companies
and HE insurance management on trial ae
the bar Of public opinion Fortunately for
the business: as well As for the policy.
holders. q fair trial will convince the pub
lie OF the sorndness and solvency Of the
companies. ard at the same time prove
that the Management Of nearly all the com.
pan:es in ard has been 10th honest and
Sear good iru:t. Ineh Sshs soss s'iiGa WiiI come
from II. and when the clouds have rolled
away the public VIII not only have q bet
ter knonletse of the business. but tho
companies themselves will have been
brought 20 n realization OF the fact that
the public expects ard demands not only
that the affairs Of the Companies DO hon.
es:!y conducted. br: that greater publicity
b. given ,heis transactions: that the pol
Icy EoIcers rights are paramount, and that
the Offices ere ffduc.Iry positions and not
private snaps. Ss has been considered by q
few OF til. recIe2lt officials
The charge has been made that life IN
siir;iHce managers are eXtravasa,l,. and
that the policy holders money has Leen
and Is being s1uandered In excessive COM
missions to agents and In ex.roitant s2i.
aries paid the executive officers and field
managers. There Is muc., truth in the
when applied to oil the companies the
facts do not seem 70 substantia.e tho
Charge. There Is probably no line Of hu-
ana s assrss af men sni aai.s
than Goes the management Of a life tn.
eurAnce company. The president Of great
life-insuran;e company must be one Of
vice aud varied experience. He must 10
an able financier and thOrouchly familiar
with the securities tina. liie-insuraEce
companies usually invest IN. He must DO
a keen judge of men. for It Is to his subOr.
d!nates t;.at he must look for the carry.
ing forward Of his plans, and much oS
the success OF q company depends on tho
ability OF the subordinate ofiicials- Like
the General OF q great army. tho preSi:
dent can only map out tho camYaign. and
must then rely On those under him 70 put
t:.e plans iato execution. And
right here II where the necessity
fof keen Judgment Of men IL re:
Gl.ired. He must also have = general
KNOW ledge. az least. Of the business OF life
Insurance. II ne las tina actual kn0wi-
edge Of the business. he IL all the better
equipped. Hs must. Ia other words be
what IS termed aa all-around man. To
acquire an this knowledge and experience
takes years. and when acquired the man
IS in demand. not only in the field OF life
Insurance. Tut In other lines ~ business.
His services arc sought by large banks
ard other institutions Of u kindred char.
actcr Therefore. such men IL the head OF
4 great life-iasurance company must he
paid a salary commensurate with their
ability. At the pres s::,t time. At least two
presidents receive salaries OF Si0.HC0 per
an:ium, and q Third Is paid $so"@ This
was recently brought Ous
through joint inquiries made by tfre Conn
missiOners Of Insurance Of Tennessee and
Kentucky. As 70 whether any man can
earn a salary Of $l5eOOO. IS 4 mooted Ques-
ton. Many contend. and among them the