The St. Louis Republic., 1905-08-27
WRlTTEN ron rHE nEI,CB1ac.


Tho resent dlsc3osures oe uismauaee.
1leot o. one q the great LIE Insurance
eompaEics Of this country have bcOught
ne subject o. NE insurance prominently
0cfore tho people. and have resulted in =
zoe disconf0n u the problems involved
~ the geRrai management Of life In
f.nse eomp:nie.: and and spscylaticn as to
hiie the discussion has Increased the
Eeneral nnowledse Of the public regard
ia;.,,,s ing NE insurance M % there Is proh.biy no
ance that Is 70 little understood BY the
masses This is largely due to the fact
that most people hav. looked upon life
Insurance. as q complex and mysterious
probleIn that could not be mastered sr
Understood except By long AID careful
sSay f,S ysh snd q, o,,;a ss sonssaueree beyond
quires a technical kDowieige Of the 6usi-
ness 70 understand the scientific side Of
NE '.sr insurance; general knoHledse can
teiIiSence in . comparatively short time
IS not the purpose OF this article.
However. TO give an exposition Of the
discuss the methods In the past and the
9r0oaOse changes as result Of the recent
d!selosures. Life insurance has become
ent-day civilization. and. therefore, bears
2 close Relation to the public veal. While
ne Insurance has been in vogue in the
tie great progress has been accomplished
during the last quarter of a century.
TWENTY-FIVE yea:s ago the largest COM
Iany i.' the United States was possessed
OF 81 s.s.GI 0: assets: to-day that COM
Dany has assets of $+ss.s.s.3.i. That COM
I2ny has been in bu mess siXty-two years
Grd ,: viii be seer, that its increase in as
s-ets cCr.aE the last twenty-five yeaHs has
been !norc than ;i,ree times greater than
:or tn'. previous thjrty-scren years. The
I.tpi! gr.gtl q! this particular company
8 index OF the business IA a whole
:.,e percentage Of growth not being great
er than OF scvera! other companies. The
!'ie i:.suroncc companies reporting TO the
New YORK Insurance Department. IN 1Ss1
Yer: $;!>.li..i.2: tCtal insurance in force
.S.s-'"n. is' "a compares VIII: Ai.sse's-
- ia assets and $;9.Gs. .s9y..sl insurance
J.. force IN .la,5.
: VIII rlt.s Lc secn that ni;;i.:- strides
Lar. Lc.n made by tie companies dur
80: the period msIi,lr:is:- H. this ror;iec-
'5v-. Il MY iict be ansiss To- show the
I'.-s,..t mag .de .f the business by Civ
::s The agSreSates - all tho corcpaI.ies
tiiIcty three legal reserve companies.
.,,mlined assets. s-.lss ::-',.sss:: surplus.
-. a. 81; flsuraIc. ii force. $1:."a..9S..-
81. iisu:ing % sse..sS policies The total
s.sc!"si 80.
CHANGES IN RULES.
IN :he carly days or the business t!Is
Policy Contracts OF ala the companies were
'iii@j viii restrictive ciarscs and granted
but few privileges to III. insured. FOR
,ulI,y years the only settlement provided
81 event OF lapse was that of pa:d-up in
:.-.aiGcc. Cash AID loan values were I;i-
Known for. many years. a!i.! besides the
insured aa3 restricted ia both occupation
aud travel Al the companies prevented
i:.-. Insured from travelling south of Mason
stII DiXon's line from Juiy 20 November
,. That WAS cUrinl, the formative period Ok
-.ia business. and the companies them
teives w.cc cropping somewhat :r the dark.
= The business Increased ia volume. COIN
g,tt;1Oa lec;ln. sharper. and. as Il Conse-
si2snce. the loiicy contracts We're made
fnorc liberal. until st the iresen: limo the
;s"ticies u. nia.iy OF fnc companies ar:
practically w lll.ogt restrictions. cave tho
payment ~ premiums.
~ IL. onward march * any great movs-
Gs.s4t there arc certain errors and evils
thai fss:..n themselves. anu Will: small
an tie beginning. IN time. By the process OF
evolution. h.co.n more or less of
Jl-nacs. 10 :ae business. Life insurance
vas no exception TO this rule. and hence
eLe present scandals with which tho pub
3ic has been suTfeiteG. la the earlier days
g. was tho practice - most companies 10
Snake yearly distribution ~ the surplus
or dividend. AZ !, is USUALLY called. At
f!I.t .iin. thc inaiC- ;'ar1 ~ :h'. business
va: Oh tl,-. ordinary life plan: that is. pre-
sni;:,r,s were payable during the lifetime
81 tho insured. During tins period the
growth OF companies y - not 80 rapid as