Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1911-02-11
For the Common Good.

just what one earnest and philosophical
citizen may do in the way of promoting need
ed reform and educating the people to its neces-
sity is shown by the experience of Louis d
Brandeis, the noted Louisville attorney in the
development of system of state insurance IN
Massachusetts that would give the poorer classes
the same chance OF protection of this kind tI;lt
those in better circumstances enjoyed
In the investigation into the Equitable so
clety IN 1908 Brandeis was unpaid counsel for
the protective committee of policy holders There
he was impressed with the woeful extravaganza
OF the existing system of life insurance In the
ninety companies, he found there were ont
standing over q 100000 policies affecting di-
rectly or indirectly about 3000000O men, women
and children. And through the waste and
abuses inherent in the system the cost of insur-
ance terribly high This was doubly true
OF industrial insurance" purchased mainly by
the poor, the policies being for small amounts
and the premiums collected monthly or weekly
from house to house. Mainly through this ex-
travagant method about two-ffths of the policy.
holders money went into running expenses
What Brandeis did is told in an interesting
article in the current American Magazine by
Ernest Poole. He undertook to work out some
plan by which the wage-earners of the country
might get cheaper insurance, and by which in
the course OF time the business might be taken
out of the hands of few and placed in social
institutions all over the land In Massachu
setts such institutions already existed There
were IN that state 1S9 savings banks managed
by about 5000 men who regarded them as quasi
public trusts and so gave their services The
cost OF management was less than one-tenth OF
that III insurance companies. Why not add in
surance departments to these banks? He drew
up tentative plan, for months he lectured and
wrote on the subject, the Savings Insurance
League was formed, and bill which he drafted
was introduced empowering savings banks Of
the state to establish
This bill was bitterly opposed by the old in
dustrlal companies. But the league was hard at
work Volunteer speakers stumped the entire
state; for six months Brandes spoke from two
to SIX nights every week; petition of 100000
names was presented and tens of thousands of
letters poured in on the legislature. In 1907 the
bill passed. And by the end Of 1908 in two
banks the system was established.
Thelr reports now show aggregate IN
surance OF 81, 100000, in 3400 policies averaging
about $500 each. From their earnings, after
paying all charges and setting aside all possible
reserves, they declared at the end of the first
year an l-3 per cent dividend to the policy.
holders "a equal to one month 5 premium.
And even so the policy-holders got rate CT %
per cent less than that given by the old indus
trial companies
This reduction resulted from radical changes
In place OF the old wastefu method of house
toulouse solicitation, the league began can,-
p1iSh " IISuIdHce edlcdJlOn. v Olunteef speak
ers, together with paid insurance instruct RS
spoke in factory towns, and the manufacturers
gave cordial support. Through their aid meet
ings were held, literature was distributed. an,!
finally the instructor went through the factory
talking in person to each employee. In this way
the business was secured with little expense
And the old method of house toulouse col! elton
was also done away with Premiums w4ra paid
either at the bank through the employer
Today the system is pronounced success.
and the idea is spreading to other states The
story is iuminative showing what u Iurcclul
tlreess worker-a man of ideals--can accomplish
well-nigh sngle-handed in this world