Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-02-19
Insurance Men See No Cheaper
ing of Life Rates as Result
of Agitation
EXPECT LARGER DIVIDENDS
Present Rates Charged Arc About the
Same in All Countries, Being Tri-
file Higher in Europe-Greater Econ
omy, However, Will Result in Lars-
err Dividends to PoIicyhoIders.

Chicago, Feb. 19-A special to the
tbs, says
In talking with the managers Of the
great insurance companies l do not
tird any indication that premiums will
be reduced or that the commissions
paid to agents are to be cut down.
President Morton Of the Equitable
talks very frankly on this subject.
When l asked him If there was any
prospect Of cheaper life insurance, he
said:
I'VE are certain to increase dividends
in time, thereby decreasing the cost of
insurance. l have not yet been able to
discover that premiums are higher
than they ought to be. Premiums are
about the same in all companies, and
in all countries. In Germany, France
and Great Britain policyholders are
obliged to pay a trifle more than Amer
leans pay, and the charges for insur-
ance everywhere are based upon long
experience and actuarial calculations.
Premiums could not be changed with
out disturbing all insurance. The cost
will be reduced indirectly by increased
dividends. The policyholder will re-
ceive a portion of his money in the
form of dividends. Dividends have not
been realized as promised because the
rate of interest has gone down from
6 and Z per cent to less than 4, and
or, +hA FROM, frunCt
ments have been much less than was
anticipated. In addition to this there
has been extravaganza In manage
ment. Nevertheless, insurance is
cheaper at the same price today than
it was twenty years ago, because there
have been a great many notifications
in the policy that you buy. A policy
now has surrender value after three
years; formerly If you surrendered it
you lost all you had paid in. You
have more privileges in travelling in
tropical countries, etc. Under good
many policies you have the right to
borrow money at 5 per cent, etc. In
other words, while there has been no
great concession in the cash prerni-
ums, the policy holder is getting mora
options for his money.
France is considering the passage Of
law fixing minimum premium. The
essence of insurance is safety, and it
seems to be the policy in France that
the insurance companies shall not be
allowed to sell insurance at a lower
rate than i, ought to be sold to carry
out the contract. Several states now
tax premiums. which amounts to a tax
on the savings of the people who buy
insurance The dividends paid by the
Equitable last year would have been
larger if it had not been for the state
taxes If federal supervision could be
achieved and at the same time state
control eliminated I would be in favor
Of it. do not care for both.
MANY people think that the commits
siolls paid to agents for securing bust
ness are too high. This matter is re-
ceiving careful consideration at the
hands of the large companies, and If
the new policy of mo rebates can be
successfully carried out the first years
commissions can undoubtedly be re-
duced Selling insurance is like selling
anything else, and the man who does
it successfully is entitled to fair COM
pensation for his talents and his la
Dor. Life insurance is very similar
to salvation; everybody ought to have
it, but few go after it. They have to
be exhorted to take it,"