The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-14
People Are Satisfied with the
Soundness Of the Companies
and Are Not Worrying Over
the Safety Of Their Investments.
PREP NDERANCE OF THE
SMALL POLICYHOLDERs
Control Of the Companies, After
ALI, Rests with the Assured,
and It Is Always Within Their
Power to Take Charge.
BY HERBERT vANpERHIo,,oF.

BY HERBERT vANDERHooF.
It is one Of the most gratifying experi-
ences that the managers OF the great life
insurance companies Of the United States
have to record, during the present period
of investigation and sensationalism con-
corning their management. that the pub
TIC has at no time shown the slightest
disposition to be stampeded- The public
has digested great many columns of
print that. with more excitable people,
might have produced a panic. But, at the
same time, the public has carefully di-
gested the annual reports of the various
companies in which they are interested.
and the financial showing there made has
convinced them Of the soundness of their
Investments. Figures don't lie and the
people that every contract entered
into by the insurance companies Is GER
tain to be fulfilled
This is not only tribute to the able
and astute management that has built I'm
the Ire insurance companies Of the coun-
try to their present magnificent position.
Out II Is at the same time tribute to
the sound, discriminating good sense of
the American people. In the first place,
las I have remarked once before in the
discussion of life insurance, there is no
other single interest in the country which
appeals SO directly to as many people as
neene NE Mha insurance haEa &C. are many
only appeals to the rich or those moder-
ately well to do, and that the poor man
has only an indirect interest in the sub
Ject; They occasionally read that this
fhQf iI1af ~,
ion dollar policy on the life Of some capt.
taIst, but never stop to- think of the
thousands and thousands Of policies that
are written for smaller amounts
Small Policies the Rule.
And yet it is the small policies that
make up the business of all the life insl1r-
ance companies and assure their profta-
pie. continuance. In the three greatest
companies Of the country the average size
Of the policies held will only amount to a
little over $4,000, while In the industrial
companies, which make a speciality Of in
only $780, It can be readily seen from
these figures, therefore, that In spite of
the large policies held by few individ-
uals the life Insurance. of this country Is
in the main held by what we term 1.-THE
people," that large class which is in the
most need Of protection.
The talk Of high salaries, Of the al
legged manipulation of funds by certain
officials and all the, other sensational de-
tails which have recently been hashed up
shake their trust. High salaries are pure-
~ matter of comparison It would
be criminal, for instance, to pay AMMAN
Seaf to h the i h q Of
sets, but it. becorp es, quite another thing
when the man has u guide, the destinies
OF corporation whose assets mount up
the highest quality of brains to direct
successfully the affairs Of such a corpora
ton, and brains Of. high quality COM
mand, and deserve, high remuneration.
When Grover Cleveland, George West
inghouse and Morgan J. O'Brien recently
were called in to assume charge of the
| affairs of certain great insurance com.
| pany they did not consider that $500, 900
| year was too much to pay it's president
for moment tolerate the idea that the
three gentlemen named are not absolute
" honest. clear-headed men of business.
What What did did they do? The very first act Of
cy Of the company who. had never been
connected with life Insurance in any ca
pacity, and offer him 100000 a year. sal
man is considered deserving Of such a
salary, how much more so should be the
man who has devoted his entire life to
this great and intricate business?
Policyholders Control.
Evidently the policyholders are not in
accord with the sensation mongers on
! this point and do not consider that their
funds are being dissipated and wasted by
must be clearly understood that in the
policyholders, after all, Is vested the con-
troll Of the life insurance. It is their
power that has created is always potent
| to destroy And yet the polfcyholders
have voiced no protest. In fact, Mr..
| Cleveland is the authority for the state
ment that out Of the half million policy
! holders in the company with which he is
| connected, it has only been possible with
| the utmost effort to. secure AN expression
about $4,000, or about S per cent Of the
| whole number. f.
In view Of this statement by Mr.. Cleve-
land, what becomes Of the frantic bowls
that have been made that the officers
hold thousands Of proxies" the purpose,
these proxies for. some nefarious purpose,
the nature of which has not been speci-
fed. but to which everybody is invited to
give the darkest constructions But why
{. Shouldn't the officers hold these proxies
No man when he is insured is asked to
/ give q proxy. He is asked. as a rule,
whether he is DESTROYS of doing so. The
new policyholder must have had conf
dence In the company and it's officers, or
he would not have taken the insurance,
and possessing this confidence he Is will
| ing and DESTROYS that the responsible OIL
| Gals shall represent him.
Duty Of the Managers.
It Is well understood that the majority
| Of the policyholders Of any company
reside outside the state in which it has its
corporate existence, and cannot. there her
4 fore, be expected to visit the home office
and vote. Without their proxies however,
the safety Of the government Of a com
pany could not be assured. All policy
holders are not saints; II only votes In
4 for a CLIQUE of conspirators in the city
where the home office is located to &C
!, quire the control to the great injury Of
every interest 1t becomes just as much
! q duty for the managers to protect them
selves in office as 1t is to protect the as
sets If they are honest and able mer
| thew Ire ma RI of the very best assets the