Durango semi-weekly herald., 1906-01-01
LIFE INSURANCE ECONOMIES.

In the letter just sent out to policy
holders by President Morton of the
stated that, since he became the head
of the organization last June, econo'
mics representing a saving of 5000,
600 year have been introduced,
These figures serve to show the extent
of the previous mismanagement. for.
as Mr.. Morton remarks. the sum Of
$600,OO0 year is equivalent to an ad-
ditional investment OF sl5000.000 at
per cent. Policy holders In one
company are thus officially shown 10
have been wastefully deprived oi
100000 year that was justly their
due, and Mr.. Morton says he expects
to institute still further economies
of radical nature After an examln
alton by expert accountants the as
sets OF the Equitable have been mark
ed down. but Mr.. Morton states that
the surplus above the liabilities still
eNNSeus svtiUuu,uh", anouN stNtu-
eighths of which is fund for divi-
sion among existing deferred policies
at the end of their accumulation peri
DDS" Admittedly wrong methods in
the past be says, have included large
expenditures carried through without
proper authority from the board OF
a
keeping records that certain transac
tions of the last ten years. some OF
which have involved losses, have not
been satisfactorily explained.
Mr.. Morton Is undoubtedly right
when he advises policy holders
against letting their contracts lapse.
occurred the agents of the society will
cheerfully assist in restoring them.
All death claims have been prompt
ly paid, and over 9s per cent are set
tied within ~ hours after proof Is
received. Payments on death claims
and other benefits average sliS,00O
graduates policy holders on the re-
formatory agitation of the present
year, during which time his company
alone has undergone four separate in.
vestigations. He is Justified In as
serting that while individual reputa-
tions have suffered, The utility of life
Ftfl do
onstrated than before. He promises
that the society viii make no more
contributions TO political campaigns,
and that reserves hereafter will he
Invested In real estate mortgages or
the securities of railroads aud other
well-establtshed corporations In the |
sections that produce the premiums. |
In the last ten years the society has |
loaned 100000 000 on real estate |
mortgages, chiefly In large cities, and |
In the six instances whore foreclos- |
ures were necessary the returns net |
ted a profit
AS 10 prospective Insurance legisla !
tion. Mr.. Morton calls upon policy |
holders TO exert their influence In the |
state legislatures soon to convene
against any unfair law or tax that In. |
jures persons Insured and reduces the |
dividend earnings of policies. in the |
opinion of Mr. Morton. the dividends |
for policy holders would now be near |
ly 10 per cent larger but for state
taxes and license fees. But It Is i'm |
probable that state legislatures Will
impose upon policy holders by ex |
cessive taxation In any form. The |
money spent by insurance managers
in Legislative lobbying has prevented
the passage Of laws that would bene |
6t policy holders. Measures OF that
sort will now get hearing Mr.. Nor. |
ton argues that what is called cheap
insurance is lacking in safety. But
insurance ought 10 be as cheap as |
possible under absolutely honest and |
economical management 1
Il may well be asked IL Mr.. Morton's |
salary OF $4,000 a year, though re-
iuction from the amount that went to
lis predecessor. is not excessive. II
9 so per cent more than the president
II the United States receives aud nf
cen times the pay OF a congressman.
-Globe-Democrat. '