The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1907-08-15


lthi. time had to establish their position
as necessary part OF the financial
world, aud rs civic centers comparable
with the school and the church in the IN
euleation OF the standard virtues Now
however, il is proposed to see II the
original idea OF the founders OF the In
stitution cannot he successfully execu.
ted, first in Massachusetts and after
ward elsewhere.
The act enabling the experiment to
he tried was passed by decisive MAORI.
ties in both branches OF the Legislature
on Beacon HILL Public opinion In sup
port OF the measure was aroused through
the energetic campaign conducted by
the Massachusetts, Savings Insurance
l.eague--an association formed last No.
,ember for the purpose OF promoting the
idea of savings insurance, an outgrowth
OF the Investigations made by Louis ID,
Brandeis, a Boston lawyer into the pre-.
sent excessive cost Of industrial life in
suranee
Practical direction OF the affairs OF
the League was taken by Representative
Norman II. White, young Boston pub
Usher, serving his first term II the Legis.
lature, Mr.. White organized the ae.
tivities Of the League much as cam
ipaign for new business would be or
ganized, The argument for savings in.
surance was presented In every impor'
tant center Of the state by flying squa.
dron OF speakers. Citizens were urged
to enroll themselves until at the present
time membership OF more than 100000
stands ON the books at the headquar.
ters, No, . Park street, this city. ES-
Gov, William l.. Douglas, wealthy
shoe manufacturer OF Brockton who ear.
ly became interested in the plan, eonsen-
ted to become the Leagues president.
Among the vice presidents Is EN,Gov.
John l.. Bates The present Governor
OF the State, Curtis Guild. Jr.. was 30
strongly impressed with the project that
he Included a strong Recommendation of
il in his 1907 inaugural. large proper.
tion OF the labor unions OF the state,
one after another, have expressed their
approval of the scheme. almost always
by unanimous vote. When the measure
in the form OF carefully drafted bill,
finally came before the Legislature. bear
ing the approval both OF the recess com.
mittee, the insurance commissioner,
Pierre Jay, what else was there for the
the legislators to do but to pass iii The
people wanted it. II was merely a
permissive act. No bank was obliged
to try it. Accordingly ii went through
amidst plaudits from a well laden band
wagon.
By the law an insurance trust may ut
any time after next November be estab.
lished by any one OF the $50 savings
bank OF Massachusetts. This must be
kept, however, entirely separate from
the ordinary savings trust; and before
any step can he taken in this direction,
a majority vote of the incorporators and
a two.thirds vote OF the trustees at a
meeting specially called for the purpose
must express sense OF the wisdom OF
the action. 4 license by the state will
not be granted until special guaranty
fund has been provided from sources
outside the bank to cover any possible
Deficiencies in the expenses OF the depart
ment, and a special insurance guaranty
fund has been secured to make good
any death losses exceeding the expecta.
tions OF the ordinary or special NOR.
tality tables. A stable and uniform sys.
tenn throughout the state is to be assur-
ed by the existence OF a general guar.
anty fund maintained by small per.
centage on all premiums and annuity re.
ceipts of banks establishing life insu-
rance departments. If any savings and
insurance bank needs help, It may get
ii from the fund. the amount advanced
being returnable with interest as soon
as the banks surplus permits. When
the general fund is of sufficient size, its
trustees may loan from it the special
guaranty fund which is required when
a savings bank intends to establish an
insurance department.
In the employ of the trustees of the
state fund there will be an actuary, in
charge of the work of preparing all the
standard forms, and empowered If nee.
cessary to construct special mortality
tables. He will have as assistant a
state medical examiner. Many pro.
visions safeguard depositors and the
general public.