The Providence news. (Providence [R.I.]) 1891-1906, 1906-01-06


The FIRST speaker Of the evening was
Mr. McLenaan and in part he said
Mr. Holcombe has said that life in
surance is on trial but hardly agree
with him. / think II Is the methods Of
life insurance companies that are on trial
There IS. believe. no thinking man who
does not believe that insurance is neces-
sity. However Young Mr. Hyde let the
cat out OF the bag. and now Pandora can
not compare with him " Mr. McLenn4n
reviewed the financial status Of the 80
principal old line insurance comuan nies
stating that about one-half of the entire
population is directly interested in insur-
ance.
I'm the investment Of tho money" he
said. there has not been the scrupulous
honesty that we would like to see IN the
handling Of trust funds The bookkeeping
OF these companies has been designed only
for expert accountants. with careful
turn OF mind. AT the end Of 1904 the
New York Life held some 81 600 600 worth
Of IniatHat4a44 MeFea
ties. That wasn't stock that. al that
time. II was well to advertise as a colat-
eral for the funds Of widows and or
phans
lie told of transaction in which j. r
Morgan & Co bought OF the New York
Life a large block Of stock I'm this com
pany at par and three days later the New
York Life purchased large block OF
stock. probably the same stock at par,
bur with three days interest
The speaker compared the returns upon
the investment Of the insurance COM
psnies with those OF the savings banks,
showing that the returns which the lat
ter receive are much larger. About rs
Per cent" he said. "of the monew put
into life insurance companies is spent I'm
salaries and other expenses. about 10 per
cent going 70 the agents who get the new
business"
He said that the companies point out
the need Of sending out solicitors 10 get
new business. but he stated that he for
one had no desire TO contribute 20 the
economic waste resulting from solicitation
president McCalls Idea OF success I'm life
insurance" he said us to outstrip the
competing companies In new business, but
the real success IN life insurance com
panies les in giving the depositor as much
income as is possible on the money that
ne has invested"
The speaker stated that the men whose
policies are paid up generally get their
money back. but the companies make
their money on the lapses and surrenders
Mr.. McLennan said that having men
toned some y the evils. he would sug-
gest some remedies. He did not think
that the companies would right affairs OF
their own accord. even in view OF the pub
Iicity given 10 the situation. He said that
unless the vast army OF policyholders CO.
operate and have the assistance Of the
government, and he advocated state rather
than federal supervision. as being more
effective. THE first and most important
means OF correcting abuses IN life insur-
ance companies" he said "is TO bring
them more nearly 20 the standard OF the
savings banks.
SoTTcfrTng new BUsIness should be dis
continued. he thought. and he expressed
the opinion that the size Of the companies
should also be limited.
Mr. HoLCoMRE SAID:
Following this speaker came Mr. Hol.
dent Pegram and who spoke In part
as follows:
Insurance Is contract whereby one for
n consideration undertakes 10 compensate
another. ~ he shall suffer loss. All that
is requisite 10 constitute such contract
Is the payment Of considerations by the
one, and the promise OF the other 10 pay
the amount of loss agreed upon IN the
contract to the person entitled TO claim II.
upon the happening OF Tho contingency
contemplated IN the contract.
IN had its origin IN the necessities of
commerce. II has kept pace with It's pro-
gress expanded TO meet its rising wants
and 10 cover its ever widening fields. and
under the guidance of the spirit OF mod
ern enterprise tempered by prudent
forecast. II has from time 20 time with
wonderful facility adapted Itself 20 the
new interests ot an advancing civniza-
tion.
II Is applicable 10 every form of pos
sible loss, Wherever danger Is appre-
hended or protection required. Il holds
out its fostering hand and promises in
demnity. This principle underlies the
contract. and n can never without vio-
ience 10 its essence and spirit be made
by the assured q source % proft ns
sole purpose being 10 guarantee against
loss or danger.
HUMAN LIFES WORTH.
It can now be inquired whether human
life can have definite worth which can
be measured with any degree OF accuracy
II would NOT he difficult TO cnumerate
many lives which can not BE- considered
~ any pecuniary value because for vari-
Gus reasons. they produce nothing such
are those ~ the very old. r1V 1TTUTT11Js
end the confirmed invalids hut the lifa
81 every man who earns more than sur
nces for his actual personal expenses n
~ pecuniary value 10 some ono beside
himself
This he's been recognized from early
times In the institution ~ slavery. which
was based on the principle that the
ownership OF the services ~ n hhnran
b<ina had a value Ia accordance With the