The news-democrat. (Providence, R.I.) 1906-1909, 1907-01-05
LIFE INSURANCE
COMPARED WITH
SAVINGS BANKS

The second dinner discussion" OF the
Economic club was held last evening at
the Trocadero on the subject, industrial
Ton and Frederick l.. Hoffman, Newark
agent and statistician OF the Prudential
Insurance company, took the principal
parts.
MT Brandeis was counsel for a large
number OF Massachusetts, polieyholders In
the recent investigation OF affairs OF the
Insurance companies in New York.
A banquet and business meeting pre-
ceded the addresses. and tho officers for
the coming year were elected. The presi-
dent Of the club. John G. Pegram, pre-
sided and introduced the speakers, nrst
presenting Hon. Joseph Walker OF Brook
line. Mass. who spoke In regard TO the
paper OF MIR. Brandeis. which he had read
previously 10 its delivery, and commented
upon II favorably. lie said in part:
Massachusetts tries TO conserve the
wages OF it's worlSingmen. OF the $780,
100000 deposited by the people In the saw
ings banks I'm Massachusetts, the coat OF
management Is about li5 per cent, while
I'm the industrial insurance companies 40
per cent is used IN the maintenance or
The policies, and I'm the ordinary insur-
ance companies about % per cent Is used
Louis D. Brandes then spoke against the
insurance companies and advocated new
form of insurance banks which ne
said would do away with the excess s
charges now prevalent in insurance aud
81 tho same time give as good results. lie
said in part
For the greatest Of life insurance
Wrongs--so-called industrial insurance
the Armstrong committee failed 10 offer
any remedy Industrial insurance -
simply life insurance In small amounts;
on which the premiums are coilec.eo
weekly. The regular premium charge tor
such insurance has been about double
that charged by the Equitable. the New
York Life or the Mutual Life OF New
York for ordinary life Insurance. the
premium rate has risen as high as eight
Times that paid for ordinary Insurance..
How disastrous the results of this form
of insurance are Ia MsssSehuse,ts IS -
ending with December, 1906, while the
workingmen OF that state had paid tor
Industrial insurance an aggregate OF
ssi %. .S8r, there had been paid back 10
Them only s21.sl96 600. In Rhode Island the
situation has been even worse.
'"rhe main cause of waste lies I'm the
huge expense OF soliciting Insurance.
taken IN connection with the large per
centage of lapses, and in the heavy sA-
penses incident TO a weekly collection.
The savings banks established on the
plan prevailing in Rhode Island ana gen
are managed upon principles ana under
conditions upon which alone satstac-
tory system of life insurance Tor. work
ingmen can be established. These saw
inSs hanks have no stockholders. being
operated solely for the benefit OF the de-
positors. a., l.a
Frederick l.. Hoffman spoke bneny
upon the address OF Mr. Brandeis. and
then moro particularly about the proposed
new scheme OF insurance banks. IN
part, he said:
''The plan OF Mr.. Brandeis proposes not
only radical innovation in the Held OF
Insurance. but an equally radical change
i'm the methods and purposes or savings
institutions Either for savings banks 10
transact insurance or for insurance com
panies TO assume the function OF @Vlhss
banks is therefore, "A suggestion OF the
most radical kind. -.
"The wage Garner knows fun well, thst,
considering his occupation. or his state pI
health or his circumstances generally no
ordinary insurance company would 90
1icit him in the first case, or in any prop
ability accept him as risk In the sec
oud." " -.
Mr.. Hoffman was convinced that the
plan of converting savings banks into IN
surance companies would not prove sue
cessful and would be soon abandoneo
The nominating committee reported tre
same list Of officials that had been IN OF
nrc the past year. This list was unanl-
1nously elected. as follows: president
.Iohn C. Pegram: vice-president, Horatlo
A Hunt. directors committee, jon X.
Freeman. Prof. ]. q. Dealey Prof. Henry
u Gardner, Frederick "a. Jackson ana
Henry d sharpe Following the meet
ing. this latter committee met ana eleci-
ed the treasurer and secretary, az loi-
lows: Secretary, Edward a. StockWeli'
and treasurer, w. O. Brown