Middletown transcript., 1910-01-15
FIFTEEN MILLIONS SAVED
Savings Bank Life Insurance IN
Massachusetts,

n Massachusetts
q Just how the Massachusetts, movement
for inexpensive wage earner's insurancs
has in very short time affected reforms
and reductions that will within = few
: Eyears be saving the whole American peo.
pie between $4,000, 900 and sl5, ,oOO, 600
annually has been carefully figured out
oy experts from 3 statement of what has
been accomplished in she FIRST full years
operations Of the two Bay State Savings
Banks that have opened departments Of
lie Insurance. in accordance with the au.
GhoFization Of the Savings Insurance Act
Of 1863 Taking into account the amour,
Of industrial insurance now in force in
the United States and the results of the
sWeeping reductions in cost which the
CREST companies have made recently this
extraordinary saving OF money for the
beueds Of the plain people has been esti.
mated.
Tbs hguree Of the business Of the in
aurAncs departments Of the Whitman Sav.
ings Bank and the Peoples Savings Bank
OF Brockton, which have iust been given
ous By theStats Actuary, are impressive
IN shemselVes, even without regard to the
vast indirect beuefte that have been
caused to ell American working people,
They show that on November Let, 1909,
the two banks had outstanding insurance
Of about q, ,0OO, 600, the policies number.
ing 2.52l. The percentage of Isp.es in
the year vas email for this kind OF busi.
ness. All the requirements of adequate
reserves 10 safeguard the scheme hav.
ing been fulfilled, 3 surplus was at
hand sufficient to pay to tie policy
holders 9 dividend Of 81 per cent,
the equivalent of one mouths premium.
This represented OILY ons-fourIh OF the
actual profits, for IS per cent. of
them we're applied TO q special surplus
fund which may be used later toward the
retirement Of the guaranty funds that
Eere required to be raised before the
banks could open Insurance departments,
Many Massachusetts people have al.
ready bad, and many more will have, tie
advantage OF remarkably favorable terms.
Since She savings banks began their com.
petition the great industrial life insurance
companies have aiready made two great
reductions, aggreGating nearly 20 per
cent. in thsir rates aud have Mangurated
new arrangements as regards She amount
payable in case Of Ghe death of the insured
within one year after the issue OF the
policy. Despite these concessions the
present monthly premium rates OF the
savings banks are 10 per cent. less than
the present industrial rates, Savings bank
policies, however, being participating
policies, the policy holders, even with the
present dividend OF 81 per cent, get
rate which is 2S3 per csut. less than that
Of she industrial companies. Putting it in
the other Way-ihe present industrial
is about 80 per cent higher
than the nes savings bank rate based on
sbis years dividend.
Regarding the conditions under which
Bay State saving institutions will hsnce-
forth compete with the insurance com.
paniee, Louis d. Braideis, author OF the
savings insurance plan, has recently
written In . personal communication:
The industrial insurance companies
Slain now 20 have accepted the principle
N which sayinga bank insurance rests
namely, that the working people should
be served in Fespecs TO life insurance by
} social institution rather than by an
exploiting buainess-and lave given sou
evidence OF an intention to act upon it.
There are those, however, Nkc still be-
ieve shat even il the industrial c6R.--
oanies we're conducted wish sincere de.
ire TO serve the people, that could not
'e the sole purpose of their organization;
has necessary incident, If not the pur.
'ose OF she business, is the control by Q
ON capitalists Of vast aggregation of
avings drained from the working peo.
lie Of the whole conntry-a program
Fhich presents dangers and develops
buses that cannot safely be ignored. No
ysten Of woFkingmen's insurance based
pom such a foundation can secure the
oDHdencs Of the working people. It 10
be aim Of the savings bank insurance
to counteract such danger by
be necessary localiEation of the reserves
q altruistic institutions az much as to
educs the burden of insurance premiums.
"FaE more has been accomplished by
he saving bank insurance movements
Tishin the Ihree years than even its most
rdsht Supporters had dared hope for"