The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1905-11-16
From the Sow York AmerIcnn.

Among the insurance mysteries being
developed by the legislative INVESTIGATES
inE committee. Is the disappearance oc
n billion dollaru OF Insurance rom the
books OF the Metropolitan company.
John u. Hegcman. president OF the
Metropolitan. was on the stand during
dhc greater part OF Saturday afternoon.
land was subjected TO n constant fire oc
questions as TO the business OF his com-
lpany by Charles T.. Hughes. counsel of
the committee. Mr.. Hcgcman admitted
Fhat he had but n slight knowledge of
the matters on which ne was being
questioned Ms he left all such details To
his ac;uary.
: The statistics called forth by Mr..
Hughes showed hat the Insurance.
written by the Metropolitan company
during i90i-i904 amounted TO 81. SOC. 000,-
600. which. added Ia the S923. S77, 9i7 I'm,
force In 1900. aggregated ta.523. S17.9i7. ]
In 1904 the official figures OF the COM,
pany showed only si.t7o. 0oo.O 600 insur--
ancc.
so" aid Mr.. Hughes. about 3 i.OO0.-
100000 OF insurance has gone or your
books In some way"
Much Insurance Lapses.
Yes" said Mr.. Hegemnn. but al
great deal Of II has come back
That which has come back undoubt-l
eddy has been set OF by other insur1
nnce going on" said Mr.. Hughes. al
great deal must have come To maturity.
but a rood deal must have lapsed.f /
investigation along this line showed
that industrial insurance In the Metro-
politan. paid for In pennies In weekly
instalmcnts. costs twice as much as in-l
surnnce In the ordinary life Insurance,
companies where payments are madcl
quarterly. II was shown that n man
of - years can take out an ordinary
life Insurance policy for 1000 for SIC. IS.
n year. while n policy for 1884 I'm the
metropolitan costs s3i.20 a year. or col
cents \ week.
II also was admitted that children OF
tendcr years are taken as insurance.
risks by the Metropolitan without med-
ical examination. being merely SUBJ
jected To m examination by n physi-l
clan. who receives only % or 80 cents
for each risk inspected or examined.
Pennies Of the Poor.
The great profits OF the Metropolitan
were merely indicated yesterday, but
sufficient was developed 20 show that
this company, existing ON the penniesl
OF the poor. II 10y FAR the richest insur-
ance mine yet brought To light by the
insurance investigation. With it's
$500 N4NNhhA HAANA NhNfENNV HAlu III.
the majority OF the stock owned by
President Hcgeman. the Metropolitan
had added millions To its income yearly.
and has paid out an infinitely small
sum In comparison. J
The returns made by the actuary OF,
the Metropolitan Life for his own use
showed that OF policies written In one
week In 1908 %. 40 per cent. lapsed in
three months: $50 per cent. In SIX
months. is.2S per cent. In nine months,
and 81 &c per cent. I'm twelve months.
NJ the end OF a year less than half
the policies written In that week WERE
In force. More h so per cent. OF
those insured had made presents Ia the
Metropolitan OF the pennies. dimes and
quarters they had paid in. :
Insurers Give Up Policies. =,
or all the policies issued In 1901 q. Is
per cent. lapscd In the first year and
1888 per cent. Ia the second year. or
those issued In 1902 30 90 per cent.
.apsed In the first year and 10. 20 per
cent. In the sccoEd year. OF the pol
icics issued IN 1903 30 95 per cent. lapsed
In the first year and 10. 80 per cent. in
the second year. or those issued in
1904 1855 per cent. lapsed In the first
year.
These statements and figures are add
ed tn the record by Mr.. Hughes with
out comment. Ia It's way this was IN
sensational q development as anything
that has been brought out with regard
In the other companies. with the differ
euCc that while the companies OF the
big three combination wrote large
policies on yearly premiums. paid quar-
tcrly. and made their profits out OF
deals engineered with the great mass OF
money coming into their hands. the
Metropolitan received n constant sup
ply of millions OF dollars. paid In pen
MES weekly. 50 per cent. OF which entail
40 obligation. as they lapse at the end
OF the second yea