Emmons County record. [volume] (Williamsport, D.T. [i.e. N.D.]) 1884-current, 1909-07-22

Office Az second C. ~ vnatt.-
The writer believes in life insur-
ance. He carries a policy, and has
carried it for nearly twenty years.
He believes. also, that the states
should demand the utmost publicity
in the doing Of business by life in
surance companies. But what, in
the name Of the seven sleepers, it is
hoped to accomplish by the passage
of such laws as that limiting the
volume of new insurance by any
company in one year is something
we cannot understand 1t seems al
most unbelievable that the legisla-
ture of a great state like New York
would be led by the clamor of in
terested parties TO do such a rank
injustice to the great life companies
of the nation, and to the people who
want to insure in strong, safe COM
panies Ii life-insurance is desira-
bic and that fact is now almost
universally admitted it is still more
desirable that insurance be obtained
in the strongest company in which
an applicant can procure a policy.
Again, if life-insurance be good
thing, why limit its scope? Why
say that just such total which
means just SO many policies shall
be issued by any one company in any
one year? The law referred to does
not reach the smaller and weaker
companies. it strikes only at the
big, solid, reliable organizations that
are absolutely safe, and in which the
great majority of applicants wish to
insure. The New York law pro-
vides that no company can write
more than one hundred and fifty
millions of new business each year.
One of the three leading companies.
the New York Life, has just about
reached that limit, and, as it is a
substantial and entirely safe COM
pany company such as people
desiring insurance wish to patronize
it is certain that, were it not limit
ed by the silly and absurd statute. il
would soon double its business. In
other words, it has safe life-insur.
ance to sell, under conditions ac-
ceptable to the public. Therefore.
the public hastens to buy its policies.
Now, any reasonable being would
suppose that this would be perfectly
satisfactory to every one. as it is GER
tainly satisfactory to the seller and
to the buyer. The seller wants to
do business, and the buyer be-
lieves that company that docs
business" is just that much stronger
and safer than a company that does
lesser business. But here the law.
ignoring the mutual satisfaction of
the parties to the insurance con-
tract, steps in and says that the COM
panies that have succeeded i'm build
ing up a great business which
means a still firmer financial founda-
ton must cease their activity when
they shall have reached certain ar
bltrary limit. The result of this
most outrageous law is that the New
York Life company is taking steps
to curtail its business, in order to
comply with the statute. 1t will be
compelled to withdraw from the
newer states. where there is less
population. and conlite its activities
to such territory only as is neces-
sary to enable it to reach the statu-
tory limit, and of course the popu-
lous regions are a better and cheap-
er field for the procurement of life
insurance premiums. Therefore.
thls attempt to penalze success will
first be felt in the northwest and in
the other newer states. where there
is more expense in procuring policy
holders than in the populous east:
and, when all of the big, strong and
consequently safe companies shall
have reached the maximum of bust
ness. which will happen before long,
a person wanting insurance with
which TO safeguard those near and
dear to him must perforce take a
policy in one of the minor and weak
er companies. This New York life
insurance law is certainly AN object
lesson as to the evils of paternal
legislation.
There have been more good rains