Evening journal., 1908-11-16
Monday, November l6, 1908
SAVINGS BANK INSURANCE.

a S A result Of the law enacted by the last
session OF the Massachusetts, Legislature,
some of the savings banks of that State have al
ready begun the interesting experiment OF con-
Quoting life insurance business. The law per-
mits savings banks to issue life insurance up to
$780, and annuities up to $500 yearly, the design
being to enable workngmen and others of limited
means to provide themselves with old age annui-
ties and life insurance at the least possible cost
1t has long been felt in Massachusetts, as we'll
as elsewhere, that the rates of the old line indus
trial insurance companies were too high and that
the workingmen were forced to pay more in pro-
portion for their insurance than the persons OF
moderate means or the rich
The banks will not employ solicitors or other
means for drumming up trade, but large number
of agencies throughout the State will be appoint
ed where the applications for the insurance may
be made Under this scheme it will take longer
for the insurance plan to become known, but
when known and found to work well, the saw
ings bank insurance departments should do
very large business
Former Governor Douglass, the shoe manufac-
turer is one of the most prominent advocates OF
the new insurance scheme, and the Peoples Bank
Of Brockton Mass, of which he is president, was
one of the first TO engage in the new business, the
start being made the other day. Mr.. Douglass
himself provided the large guarantee fund re-
quired for the opening of insurance business IN
the bank.
Tn letter sent to the trustees of the bank on
the day of opening. the former governor said that
the system of savings bank annuities and insur-
ance was made possible in Massachusetts, by the
hearty cooperation of public spirited citizens and
manufacturers, together with the Massachusetts
branch of the American Federation of Labor and
hundreds of labor unions Mr.. Douglass said in
his letter:
This movement will prove of national sig
nihcance 1t aims TO complete the ndepend
ence Of the American wage-earner by secur-
ing him. besides cheaper life insurance, an
adequate provision for his old age. Every
industrious wage-earner is entitled to look
forward to an old age of financial independ-
ence lust as much as the business man a. the
professional man. The cost of making such
a provision is a part of the daily cost OF liv-
ing as much as rent food or clothing. No
wage is ''living wage which does not per-
NIT the workingman to make this necessary
provision for the future and any working
man who having wages sufficient fails to
make this provision. is not supporting HIM
self, but is shifting part of the burden to his
family or 10 the community.
With wages properly high, the Massachu-
sets wage-earner has now the ability to sup
ply himself with old-age annuity as well
as with the life insurance, because he can get
both at the lowest cost at which It is possible
TO furnish them, and I believe he will avail
himself Of the opportunity.
The experiment in Massachusetts will be
watched with much interest elsewhere, for if sue
cessful It will lead to the establishing of similar
insurance by savings banks in other States And
It will be closely observed by the regular insur
ance companies because If successful, the busi
ness Of these companies will be interfered with
Yale again defeated Princeton in the great foot