The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-12-13
INSURANCE MEN
DECRY NEW PLAN
Cooperative System Is Called
Heresy-Aghast at Exposure
of Profits on Policies.

Chicago, Dec. Ian experiment
,rIed here in cooperative insurance,
The antithcSiS of the close control un-
oorthed by the New York investiga-
can TO completely dominate a half bill
lion dollars contributed by policy hold,
us. is said TO be giving insurance men
m end of trouble. The Chicago heresy
nj offering everybody the way 10 ex-
rioit their own chances of getting
hprI instead of dedicating that priyi.
leee To a few astute men, as was conf
monIy done prior TO the Hughes inves.
,;cation, has developed on trial pain
hllly strong symptoms, II Is said, OF
rubliC endorsement OF the heresy.
While mutual life insurance OF
the Hyde variety has been remodelej
and renovated to truly mutual basis
lie cooperative invasion into the field
Of accident underwriting by a corpora
ZION has been an innovation, for the
public as stockholder has been shown
that there are profits, big profits. in
inc rates regularly charged for casual
tyty insurance, and has been taken In
pn it. "Realy, 1t never should be per
nitted, the deacons of the orthodox
underwriters creed are sputtering We
hcmenJly For the hereSy of exposing
10 every body these sacred corporate
iacis Las brought into the limelight
soInc 0GureS which most people never
see. figures which appear in annual re-
uoglS 10 stockholders of accident in
sursIce companies Of actual profits
which make the dividend hopes of
Wildcat mine promoter look tame and
coNmonplacc. That every body hasn't
steam yachts and automobiles seems
ia be due 10 failure OF an ancestor 10
.et stock OF an orthodox insurance
corporation,
The ;otal assets Of the Prudential
Insurance company during its first
Year. were $11.S36; today the assets
of this company amount to $l45,224.
G77. The amount of money each stock
holder invested in this company TWEEN
ty.iiye years ago has been paid back
L., him fifty three times, and he has
received n yearly dividend of 215 per
cent OH his original capital. For every
$40 invested IT has paid every year
S..2n 90 Since its organization it has
vaid its stockholders the original cap
ital hfty-three times. The 18th annual
ropCrt If the Insurance Commissioner
uf the Commonwealth of MaSsachu-
se,ts dated Janualy 1st. 1903. said:
The amount paid into the Prudential
company in cash for stock was S91,.
900 All the rest Of It's $2,000.000 OF
capital stock has come from stock div
ilendg annually since 1893. In other
wbrlg. fer every $1,000 paid in these
stockholders hold $4,000 of stock
upon which they received $1,000 an
nually that is, each year for ten years
they have received in cash dividends
more than twice the original invest
meat"
TO follow the money paid TO inSur-
s1cc companies Of the orthodox. close
lold profit rocking variety, actuaries
taVe confessed that the insurance for
which YOU pay one dollar really rep
IoSents IN &ctUal service 10 You about
30 cents. including what is paid out to
policy holders for losses. OF this dol
ar the Insurance agent gets IL cents
tos his cor mission. Eight cents on
;he average goes TO run the general
expenses aud pay the officers their
salaries Furty-scven cents goes to
-" pockets of the stockholders them
selves, actually given away by YOU In
other words, you make the insurance
companies a present Of about AZ cents
en- every dollar.