Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1911-12-15

The very nature OF these things makes
impossible their economic accomplish
n.cnt through the ordinary processes
OF government. These the state SHOULD.
save for helpful supervision. let alone.
hut where corporate Initiative has
failed. the state should co-opcrate
with It's creatures. IN some folds
in yours now less than In any other
competitive practices prevent rate
making that Il level with economic
cost. The temptation 10 withhold too
much for salary or overhead charge,
or to pay too much-often Tar too
much--for Juslnesr, 10 ever present.
Hence. home Office disbursem snts
generality, and commission payments
are In some quarters. higher than can
b. Justified BY the service performed
As results. so-calisd sentlemen's
agreements 10 maintain rates thus
swollen are branded ne trusts. ana.
despite their existence, rate wars are
waged which proht the few but post
ptnc that adjustment OF premium
charge to economic cost which IA 81.
pantiai 20 public satisfaction.
save. perhaps, IN the life neld--
and here the state has already ac.nd
insurance by private corporations
has not In thcsr particulars stood the
test. Here. therefore. government has
n duty. II must lend hand. Indeed,
wi lie leaving to it, insurance corpur-
atlons all technical and specialized
functions and making no effort. save
through proper waschfuineae, TO Inter-
fera with these factors In the rate
charged, will not the state In the not
distant future co-erdinate with cor-
porate insurance and regulate or limit
expenses OF all kinds3 II II does not,
the present drift toward state insur-
ance seems likely 20 continue. For.
whatever be the Geld. the people will
not long pay Tor the insurance OF the
future more than such service II right
IN worth.
How many insurance men even
know that. while state life insurance
has been In force IN New Zealand
more than forty years, It's early sue
cess has not been maintained. its pres
cnt situation II unsatisfactory, its al
legged reduced expense ratio n due
more TO its inertia than S.
efficiency, and that. while u has
the prestige of n governmental
institution. the proportion Of state In
purance TO total insurance In force IN
that dominion n less and less each
year,
HAS insurance done anything "a
make Il plain that the boosted state
Insurance system In Germany IN de-
IA. -
line between compensation and char
ny. or sought 90 emphasize the dan
gers that Turk In an insurance proposal
where. as In Germany, either the en-.
ployers' contributions TO the fund OF
the employees claims for nickneEs. nc
cislent ~ cid ago are fxcd by board
of non-experts subject TO local or po-
iltlcal clamor.
HAS insurance yet pointed out that
a flat rate state Insurance law would
remove the Incentive 20 works OF pre-
ysntion, and leave this kind Of con-
servation to pure philanthropy and
pugitc spirit. anstimalsted by self
| interest?
HAS Insurance done auEht 60 re.
veal the many failures of government
where thu state has taken over OF
sought 60 compete with Individual In.
itiative In even a auesl-publIe bust
nessg
Illus insurance directed attention q
the probable drain upon tho money!
or credit OF government N, at first q
few. then more. and finally. all tbs
insurance hazards al All the people n
all the states are assumed by gov
| ernment?
"fIas Insurance directed public At
tentlon 10 the quite unbearable strait
which would be pms upon cxistinl
governmental functions ana depart
ments--say, In q state like New Yori
should there be added thereto evei
one of the important Insurance lanes
| ABOVE all. what hss Insurance dom
10 biaxon the absurdlty OF social ser