The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1905-11-16
FRENz|ED INSURANCE
How the Metropolitan Company,
insuring the Poor, Receives Rates
Twice as Large as Those Paid
by the Rich to Other Companies
Nearly Halt of Policies Lapse and
Many Of the Insured are Mere
Babies. -
From the New York American.

49, ~ 49, wv - iiAS ~ A.HnBaETHEg
Among the insurance mysteries being
developed by the legislative Investigate
Eng committee, is the disappearance OF
a billion dollars of insurance from the
books of the Metropolitan company.
John r. Hegeman, president of the
Metropolitan, was on the stand during
!the greater part of Saturday afternoon,
land was subjected to a constant fire OF
questions as to the business OF his onl
pany by Charles e. Hughes, counsel OF
the committee. Mr.. Hegeman admitted,
that he had but a slight knowledge OF
the matters on which ne was being
questioned as he left all such details td
his actuary.
The statistics called forth by Mr.
Hughes showed that the insurance.
written by the Metropolitan company
during 1901-l9O4 amounted to 81, 500, 0O0,I
900, which, added to the 1928, SIT ,917 mi
force in 1900, aggregated 81. 523, S77,917.
In 1904 the official figures Of the CONF
pany showed only $1,470,00O,0 900 insur-
ance.
So said Mr.. Hughes, about S 1,Ooo,-
600, 900 Of insurance has gone off your
books in some way"
Much Insurance Lapses.
Yes" said MI. Hegeman, .but al
great deal of it has come back
That which has come back %undoubt-t
eddy has been set off by other insur-
ance going off" said Mr.. Hughes. sAI
great deal must have come to maturity,
but q good deal must have lapsed.'
Investigation along this line showed
that industrial insurance in the Metro-l
lpolitan, paid for in pennies in weekly
linstalments, costs twice as much as in-l
surance in the ordinary life in%suranceI
companies where payments are madel
quarterly. 1t was shown thai a mani
Of % years can take out an ordinary
lille insurance policy for 81, 900 for $16,55I
a year, while a policy for 1884 in theE
Metropolitan costs $31.2O a year, or col
cents a week.
1t also was admitted that children of
TENDER years are taken as insurance.
risks by the Metropolitan without med
Eical examination, being merely subj
Fjected to an examination BY a physi-
clan. who receives only 90 or so cents
for each risk inspected or examined.
Pennies Of the Poor.
The great profits of the Metropolitan
were merely indicated yesterday. butt
ESuf11clent was developed to show thatI
inns company, existing on the penniesl
OF the poor, is by far the richest insur-
ance mine yet brought to light by the
insurance investigation. With itsl
10000 0 capital and $500. 900 paid up,
the majority of the stock owned byl
President Hegeman, the Newfoundland
had added millions to it's income yearly,
and has paid out an infinitely SMALL
sum in comparison.
The returns made by the ctuary of,
he Metropolitan Life for his own use
showed that Of policies written In onei
week in 1903 35.40 per cent. lapsed inl
three months; 43. 81 per cent, In six
months; 1925 per cent. in nine months,
and 51.46 per cent. in twelve months.
At the end of a year less than half,
the. policies written in that week We're
IN force. More than SO per cent. OF
those insured had made presents to the
Metropolitan of the pennies, dimes and
quarters they had paid in.
Insurers Give Up Policies.
OF all the policies issued in 1901 80. 16
per cent. lapsed in the first year and
1888 per cent. in the second year. OF
chose issued in 1902 1890 per cent.
.apsed in the first year and 19. SO per
cent. in the second year. OF the pol
icies issued in 1903 SO .95 per cent. lapsed
in the first year n 1892 per cent. in
the second year. OF those issued in
1904 1875 per cent. lapsed in the first
year.
+ These statements n figures are add
ed 70 the record by Mr.. Hughes with
out In it's way this was as
sensational a development as anything
that has been brought out with regard
10 the other companies, with the differ
ience that While the companies of tha
big three combination wrote large
policies on yearly premiums, paid quar-
terly. and made their profits out of
deals engineered with the great mass Of
money coming into their hands. the
METROPOLITAN received a constant sup
ply of millions of dollars, paid in pen
MES weekly, so per cent. of which entail
no obligation, as they lapse at the end