Arizona republican., 1909-02-24
SAVINGS BANK
 LIFE INSURANCE HOW THE NEW PLAN IN MASSACHUSETTS, IS
 WORKING OUT
Every Man May Provide For His Own Old Age With a Pension.

Boston, Feb 1S.--(Special corre- spondence of The Republican.)-T Massachusetts plan of savings bank life Insurance and old age pensions, issued to wage earners at actual cost, is working itself out to the great satisfaction of its enthusiastic advocates. Although the acceptance of a new principle of insurance can not be universal all at once so many savings bank policies and annuity contracts have already been written that there is now no question re- garding the success of the scheme, which has been commended for na- tlonal adoption by the American Federation of Labor in its Denver convention and by President Roose- welt in his annual message to con- gress.
 That the legislature of the Bay state in 1907 passed a measure per mittlng savings banks to establish in surance departments and to issue in dustrial life insurance policies not to exceed $500 and old age annuities not to exceed S200 on the life of a single citizen is generally known. The law went into effect Nov. l, 1907, but because of the newness of the idea and the many details that had to be administered, the states part of the work was not in readiness until the summer of 1908. By that time stan dard forms of policies with rates based upon the bare cost of the in surance and with provisions for re- turn of any profits accruing hat been carefully worked out by the state actuary, Robertson c. Hunter Two savings banks stood ready to try the experiment. These were the Whitman Savings bank and the Peo- ple's Savings Bank of Brockton, Of which former Governor William L. Douglas. the well known shoe manu- facturer, is president. Several other savings banks, although unwilling for the present to raise the s25,0OO guar anty fund required by law, agreed to act as agents of these two banks: Applications for appointment as agencies were also received last fall and early this winter from many welfare institutions, department stores, manufacturing concerns ant labor unions. More than 50 agencies at the present time are offering the new facilities to the public in various parts of the state.
 There has been no rush among workers for the savings bank policies. for certain amount of education is required to accustom people to look out for their own protection instead or being leased into it by life insur- ance agents.
 Yet the total result has been high ly encouraging to the judgment of those who have believed that indus trious and thrifty workers would re- spond to the advantages of insurance that costs very much less than that of a similar kind sold by the in surance companies doing an indus trial business, and to opportunities for old age annuities on an easy payment plan which have never be- fore been presented in this country. In some of the leading shoe factories of the state from 25 to 50 per cent of all the employees have taken out some form of savings bank insurance Excellent results are also being reached in Boston department stores. The chance by personal initiative to secure an old age pension of s2OO a year is appealing to many salaried people so that annuities are being bought extensively.
 That the need of adopting any sO- cialistic system of old age pensions will be removed by the operation of the voluntary pension scheme in Massachusetts is one of the hopes of the leaders of the movement who be- lieve that the more American way to solve such difficulties as England IS attempting to solve by pensions supported out of taxation is for each individual to charge the cost of pro- Vlding for his own support in old age against the living wage"
 The reports of business written, as turned in at the office of the state acutary, 161 DevOnshire street, this city, indicated a steady normal growth from week to week.
 On the principle that every kind of sound insurance helps every oth- | CT kind of sound insurance the life insurance companies doing business | on an economical basis are not be- | ing injured by the competition which | the savings banks have started. It |