The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-06
0ne-Half the Population of the
United States vitality Inter
ested in the Subject of Life In
surance and Its Management.
CONFIDENCE BESTOWED
ON THIS GREAT BUSINESS
Sums That Are Bewildering Be
cause of Their Vastness Paid
Out to the Poicy-Holders OF
I Held in Trust for Their Benefit.
BY HERBERT vANpERHooF.

u AAASA SiLdAl SSllS d Jill Oh SOOQS ana gives
the buyer time in which to pay it, 1T is
because he has confidence in the mans
ability to sell them at a profit and faith
In his honesty. The buyer may not have
much money, but he has credit, which
means that he has inspired confidence In
himself.
In no other business in the world is
confidence such a factor as in the busf-
ness Of life insurance. It's very exL
istence is dependent upon the confidence
that In the remote, indefinite future, the
present sacrifice of the policy holder will
bring protection to widow and children.
Today it is estimated that one-half OF
the population of the United States, or
4o.000,0oo people. are directly interested
In the conduct Of the life insurance COM
panies of the country.
How are these figures arrived at? some
one asks. From the annual statements
OF the principal companies of the coun-
try 1t is found that on January i, 1906.
there were 21,OS2,352 policies outstanding.
Allowing for the cases where one policy
holder has two or more policies, 1t is a
conservative estimate to say that they
represent the lives of 100000 people
insured AS these policies were taken
out largely on the lives of husbands In
tending to provide for widow and chill
dren, 1t Is estimated that on the average
more than four people are interested in
each life insured. >, p -
These figures indicate, that the life
insurance companies command and hold
the confidence Of the people of the coun
try to greater extent than any other
institution outside Of the national gov
eminent How has this confidence been
aeaHired by by the ,is companies? By square
obligations; by .promptness in meeting and
| paying every demand.
Protection to Policy Holders
A few more figures will illustrate how
holders have been conserved, and what
absolute protection Is afforded them
These figures are taken from the state
companies in the country, and therefore
in the world. From the organization OF
these, companies up to January /. 1905,
NOUS sum. Of 1857, $50, 2ss. In addition
to this sum they held at that time for
future payments the sum of 81, PSI, 1874, $40,
H1 total o Of II sss bnrns
THAT same period the policy holders had
/ paid their companies the sum of s2.725,-
255,768 The difference between these
two grand totals is $123. 800, and this.
of policy holders.
It Is Of the greatest Importance at this
less inf1amed by the sensational reports
Of insurance investigation, that the peo-
pie should understand that life insur-
nnes yas tbsy sG ~ or ably
lpower and occasional Encouragement are
! inseparable from the conduct of all great
enterprises, and will be as long as human
nature is constituted as it now is. But
it must be remembered that such
abuses as have been shown have in no
manner jeopardized the soundness of any
company nor impaired the validity of any
contract upon which they have entered.
/ In many respects this investigation has
been beneficial. If only in awakening the
But 1t will do more than that. It will
show where abuses have insidfously crept
in, and will have the tendency to pre-
vent them in the future.
Praiseworthy Features Ignored.
The peril of all such investigations is,
however. that they have a tendency to
is reprehensible in the. conduct of the
insurance companies while praiseworthy
features are completely, ignored. The re-
p pa bot oh is Of e he
t the policy holders. 1t instills the element
l Of doubt and distrust in their minds.
i They read of enormous salaries paid
. officials of the compa MES, and acquire the
mistaken idea that they are being rob-
bed in order that a few favored men may
live in luxury at their expense. They
forget, however that these are excep-
: tons to the rule, and that while a few
! life insurance officials have been receiv-
ing what at fst glance appear
!. of officers and managers Of life insurance
companies who have received small COM
Y pensation for their services; that they
i have invested money wisely and profit
t ably; that their companies are in Al con-
dition at the present time and are CIV
t Ing Ing, comparatively everybody ''sauars
The timid and unthinking policy holder
reads all these things and decides that
s he is being. wronged. He .discontinues
t money nor himself. He does this at a great
loss. to himself, while, the sensational
from I ali inae gRi prevents s oshe
thousands. of men from considering :
method of protection which is the bes
and stays, however, who receives tn
benefit in life insurance. The man whit
t, drops out loses; In that case he doe
= in, and there is no good reason why h,
{ both Sides should keep it.
has been fo the last half Of eenury
8 that people need and must have LII
insurance. Nothing win take its place
v little money as by life insurance. AMI
2 therefore it is to be hoped that good me,
1T everywhere win favor the business goint
le on, commencing those who manage 4
IL WELL do what is right by the polio.
~ holders, as we'll as by their companies
= and condemn mismanagement wheneve
u 1t Is exposed.
P The Matter Of Salaries.
r A great deal Of stress has been place,
.e upon the big salaries that some of tn
+; Insurance officials have been receiving
- It has been pointed out, that some o
~ them receive twice as much as the Presi
q dent of the United States, and commente,
Ia upon as il this was heinous offense
20 It is the opinion Of a great many peopl
Il that the President is most inadequatel
q paid, and it is doubtful II there would b
= many protests against proposition t
y double his salary.
e.. But any comparison fthis nature
= absurd. There are plenty of men in. tn
United States. directing the affairs O
great corporations, who receive more thal
the President does and few who receiv
twice as much. without exciting any com
s ment that they are overpaid. or that tn
or stockholders in their corporations are be
ing robbed in order that they may enio
fat salaries. Experience has shown that
J.. cheap man at the head of a great in
re stitution is the most expensive perso
n that can be employed. Especially
y y this true Of life insurance where it woul
n, Eooc FOR N nc NM IN ~