The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-01-09

u 1uSuISu WHO ever =CfOuDle themselves
to interfere in the management A very
small percentage send in their proxies to
the men who are intrusted with the man
agement, and thus perpetuate them in
power. And yet it is quite within the
power of the policy holders, if they so !
desire, to GUST the responsible officials !
from power at any time. if the affairs |
of the company are not managed to
their satisfaction. That there have not
been any such upheavals is Indicative of
the trust that is generally reposed in
the management of the companies.
Wise Business Management.
There is no other business in the
United States today, and that is equiva-
lent to saying in the world, which can
show better results as a whole than can
the life insurance business. The money
of the policy holders has been invested
safely and judiciously as rule, and the
claims because of death or the maturity
of policies have been met with scrupu-
lous promptness. Because of these facts
the great mass Of policy holders have
never considered it necessary to inter-
fere in the management, although the
officials Of the companies have made
every effort toiinduce them, to- do So :
There is d more Hor} less general i'm
preston, however, that the supervision
exercised by the various states of the
Union over the insurance com panies
is sufficient to keep them in the paths of
safety, and that therefore the policy
holders have no need to concern them
selves as individuals. Judging by. the
reports that have come from the recent
investigation in New York, state super.
| y{Cin tn In f111 1nfo ri Cr,6
full of imperfections. How can it be
otherwise as long as the officials of the
state insurance departments are men
placed in position solely for political rea-
sons, and without any reference to their
! fitness for the responsible places they
hold, or the expert knowledge they should
possess? - --..E -...-
It has been estimated that the cost of
to the companies amounts to about $1O,
100000 a year In other words, every
ten years the companies pay $100,000,000
state supervision. If this supervision was
effective-if it did really result in greater
efficiency on the part of the companies
the expenditure of this money might be
viewed with complacency, but when it
does not assure anything then it ap-
pears unnecessary. s-
Arguments for Federal Control.
It Is this condition that has led to the
agitation for federal supervision of the
life insurance companies, Its advocates
believe that it will greatly reduce the cost
to the companies each year. and this re-
duction in cost would lead to- cheaper
insurance: 1t would abolish the costly
examinations that are imposed pos by the
one examination by federal officials an
swer for the whole country.
But there is another consideration that
vital one to the insurance companies
and that means the. people who hole
, policies. A very large item in their an.
nual expense accounts is that for lega
bagging'' measures aimed at them by
nearly every State Legislature. These
measures have to be fought, hecaus'
they are inimical to the interest of thu
policy holders, and the companies il
fighting these measures are hghtlng tn!
: battle Of the policy-holders. The policy
holders are the companies and the Off
Gals Of the latter would not be true t
! their trust unless they did fight with al
q their energy. -. ,-.- ri. r-.z. ..--. r.
Has Educated the People ~
. But the insurance investigation, what
! ever may be the outcome of it, has ac
!. complshed one great good 1t has Sc
n the people thinking. and has educate
7. olicy- holders. It has also demonstrate
IS that no matter what the. extravaganza
W in the management of few companies
~ ~ on the part Of few officials, the com
), their funds safely and judiciously In
g vested and their financial Responsibility
il for every dollar Of their obligations
unimpaired.
If The investigation has already. born
"a fruit in the elimination of certain Off
= Gals, and the introduction Of a MOI
economical management in some Of til
/ companies that were especially undt
:, fire. These changes should be reassul
"a "a ing to the policyholders. and undoubtedl
at have been so. Not that that there IN, mas =
lie policy holders have been apprehensive'
the safety of their Investments or ar
lie rush on their part to cancel their 20
he icies. Such a course would have resulte
IS, in a serious loss to them. because
To- 20: year. who in the end gains from life Il
o surance. A man does not have to d
to profit from his investment in the II
ia insurance, but he always has the satisfa
ton Of knowing that If he does die viii
IN his policy is in force his wife and Chi
~ dren are provided for
he Best Of All investments.
er Now that the investigation is over, tt
Ill fact looms up with the same proninen
G. that it always did that life Insurance
is, the best Investment that man c,
make-the best and safest. The your
man who starts in with small polio
Ia the premiums on which are commensura
on with his earning capacity, is buildi
- - up a capital that in future years nj
nd him in habits Of saving and frugal
that are certain to have their effect
his future life. The man of middle a
It is assuring the future care and prote
ke ton of his family, and his mind is ca
gu may befall him they will not have
suffer.