Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-09-04
BRITISH LIFE INSURANCE
Cost of Management e. Higher in
Great BritaiB Than in
Germany.

LONDON. Sep. Especial CEbleErsm 10
Tht Bee l-The serious discussion throUg J.
cut Great Britain ana the continent u
Europe which has followed the pubIica tion
Of reports concerning the Equitable Life
Assurance society OF America has again
started a discussion in London as to
whether after al life insurance does lOt
cost toe much and whether, economically
considered. tie people and the nation would
not Be better on u the life insurance busi-
ness OF the country were carried On by The
government 49,. 80 gee
Labouchese iz the London Truth has
ngureo out that II the life insurance COM
pauies continue 10 Increase during the next
twenty-five years as rapidly as during the
last tWenty-fve years that they Wcuii
own an G7ea. Br1tain-fhe real estate.
farm lands. ss weH as London realty. the
railroads. an Of the banking interests ali
q tas great maugfscrurinE interests 70
fact all thai goes 10 MIKE up complex
modern civilization However. there is lit
lie likelihood that life Insurance viii con-
tinue 70 increase proportiOnately IN ;hs
future as in the past. though the extent 10
which cheap Efe insurance Is earned On
among tire lowsr- classes Of scciety-the
manner IN which workingnlen insure their
wives and their children for few pennies
peT week. csn hardly Be- understood in any
country outside - England.
Cpon the subject of whether the life in
suranoe of G-ea.. Britain costs too much.
, T ?. Manning. an expert. in an interview
said:
Owing, perhaps more % the pushln 2
methods q the cum panies than 10 the fore
thought ~ the pubic, life assurance has
Tspidly increased.
frern TIE lates, returns published 1y
lives are insured or rather that this num-
her of assurances are in force, for E good
many lives are covered by several insur-
ANYHOW. ne may take n for granted ths;
aaH Gre oi ne Pseepls oi the e al. nileo hinEaom
TIE best way. IN fact the only wsV 70
ascertain whether a comTany Is doing its
of management with the premiums paid
But this gives results which cannot always
b. Feaea unon- such as q i We may apply
Al present elghty-four companies DO an
.ordinsry hfe INSURANCE business and
twentg-one an Industrial business Thee
overlap. as there are only ninety-siN Brit
iEh Cornpanies IN ah-seventy dong ordina -
only ard nine companies doing insUranCs
Of both kinds.
Last year the sIEhty-four ordinary com.
paniss received nearly sleou10.01 in prerul.
uns and they speut Nseaeoo on courlis-
sious and the expense OF management that
uE paid By the public vent IN salaries. CON,
mission. rent ano other eNpenses- We may
ElQ 10 ALar me AlNlleflle dnl Don uses Ia "a
% starehnlderH amounting 10 s So nQ-s
seemingly sran amount. but the capital ls
also suiah, 81 .bo.0l With this addition ths
companies spent on themselves nearly II
uer cent 81 the premiums received
The total of premiums received BY ths
tWenty-one Industrial companies last yezl
was Approximately 81 0Jln1n And thef-
eXpensfs of management and cournI ssionl
amounted 20 the NeFH large sum of - 90
u0 No less than - Der cent o. the pre
miurls was therefore speu; in getting an
rnanEEfnE them
N Ne add the dividends 20 the share
holders "a 20 Qfl 10 the expenditures ant
the Interest secured ga So nn1l 70 the re-
cfipts, the percentage Cf expenses Is ever
higher, namely. & per cent
They manage the businrss better in Ger
many The cost Of administrator of a.
government Industrial ASSURANCE In rhal
country vas Culy per cent of the incom,
In lS1-one-siEth q what il Is With Us
How The Germans manage - ecruuu1 ica Ia
e not obEioCs- Our own Industrial com
panies. in spite q the high ratio shown
sNpend only = a0d an round. and corsid
eTinE the labor involved Il does not seer
possible 70 cut expenses below that nEure