The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1911-12-13
81 e.
STATE ms sS
Is the Opinion Expressed by
New York State Super
intendent.
SOCIALISM CAUSES
Some of the States to Try the
Experiment, Hotchkiss
Points Out.

NEW YORK. Dec 1s.-Americans
are not ready and will never be ready
for state insurance in the cp ,nion ex-
pressed by the Hon. w. Fl, Tfotchllss.
superintendent OF insurance for New
York state, and Chairman OF the Ma
ttionaI Convention Of Insurance Com
missioners, who addressed the As
sociation OF Life Insurance Presidents
in New York today.
wisconsin, next month, inaugul
rates a system whereby the state IT
self will grant life insurance and an
Inuities to residents. yes. even to
strangers within her gates, without,
however. as yet the obligation as
sumed to see that the indemnity is
paid" said Superintendent Hotch-
kiss. Commissions are at work in.
other states with, doubtless, similar
statutes In view. The growth of po-
liticaI socialism suggests. more ex-
periments OF the same kind. The
present drift is unmistakable.
What is needed by our people IS
not the submergence of this great
institution Of sovereignty, but the
proper coordination Of Insurance
and government Each should do for
the other only what each can do
better than the other. In some
Misunderstanding and adjustment,
for instance-insurance by private
corporations has been eminently sue
Icessful. The very nature OF these
things makes impossible their econ
omic accomplishment through the
ordinary processes Of GogeEp1R enf,,,
These the atate should, save for.
helpful supervision, let alone. But
where corporate Initiative has failed.
the state should coordinate with its
creatures In some felds-in yours
now less than in any other-compa-
titive practices prevent rate-malSiDs
that is level with economic cost. The
temptation to withhold too much for
salary or overhead charge, or to pay
too much-often far too much-for
business, is ever present. Hence,
home Office disbursements, generally
and commission payments are In
some quarters, higher than can be
justified by the service performed
AS results, so-caIlcd gentleman
agreements to maintain rates thus
swollen are branded as trusts, and
despite their existence. rate warstarc
waged which profit the few. but post
none that adjustment of premium
charge to economic cost which is cs-
sontial 10 public satisfaction.
Y Save. perhaps in the life ffeld-and
here the state has already acted
insurance by private corporations
has not in these particulars stood the
test. Here. therefore, government
has duty 1t must lend a hand
/ Indeed, while leaving to It's insur-
ancc corporations ali technical and
speciaIized functions and making no
effort, save through proper watchful-
ness. to Interfere with these factor"
IN the rate charged, will not tho state
/ in the not distant future co-ordinate
with corporate insurance and reEu.
! late or limit expenses of all kindly
! If it does not, the present drift to-
ward state insurance seems likely to
continue. For, whatever be the field,
the people will not long pay for the
Insurance of the. future more than
such service is rightly worth.
How many insurance men even
know that. while state life Insurance
has been in force in New Zealand
/ more than forty years, its early sue
! cess has not been maintained. It's
present situation is unsatisfactory,
I It's alleged reduced expense ratio ls
ldue more to It's inertia than it's efIi-
cheney, and that, while it has the
prestige of governmental institn-
tion. the proportion of state insur-
ancc 20 total insurance In force in
that dominion is less and less each
year?
HAS insurance done anything to
make 1T plain that the boosted state
insurance system of Germany is de-
feating its object by CELEBRATING the
! line between compensation and char
ity, or sought to emphasize the dan
( gers that lurk in an insurance pro-
posaI where as In Germany, either
the employers contributions to the
fund or the employers claims for
sickness, accident or old age are
\ CONTINUED on page nine.)