Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-12-13
LIFE ASSOCIATION HEADS TOLD
THERE ls DANGER IN wis.
coNs,N PLAN.
lNsuRANcE MEN GEE GROWTH
OF OPPOSITION MOVEMENT
New York Commissioners Argues That
System Has Proved Failure in Now
ACKNOWLEDGEMENTS Of Present
Conduct Of Companies Pointed Out
1t National Meeting. "

New York, Dec. 13.-With the trus-
tee s OF nearly all the twenty million
life insurance policy holders OF tho
United States and Canada in attend
alice, the Association Of Life Insurance
Presidents began Its fifth annual con-
vention here this morning. Problems
dealing with the prolonging Of human
life in this country and with the gef-
eral conservation of the life insurance
business are to be discussed during the
two-day session. The speakers in
clude Hon. William H. Hotchkiss. New
York Superintendent of Insurance:
President Oscar Bowling OF the Louis
lana State Board Of Health: DR.. J. A.
Macdonald of the Toronto. (OntD
Globe; DR.. Luther H. Gulick director
sf the department of child hygiene OF
the Russell Sage foundation, New York,
and others.
State Insurance Opposed.
State Insurance was vigorously OPP
posed by Insurance Superintendent
Hotchkiss. Of New York, who is chair
man Of the executive committee of the
National Convention of Insurance
Commissioners. Are we Americans
ready-will we ever be -eady-for it,
he said. "Emphaticaliy, no. Wiscon-
sin, next month, inaugurates system
whereby the state itself will grant life
insurance and annuities to residents,
YES, even to strangers within her gates
without. however, the obligation as
sumed to see that the indemnity is paid.
Commissions are at work In other
states with, doubtless similar statutes
in view. The growth of political so
cialism suggests more experiments or
the same kind. The present drift is
unmistakable.
What is needed by our people Is
not the submergence of this great In
stitution in sovereignty, but the proper
coordination Of insurance and govern
ment Each should do for the other
only what each can do better than the
other. IN some things-underwr1tin
and adjustment. for instance-insur-
ance by private corporations has been
eminently successful. The very nature
Of these things makes impossible their
economic accomplishment thru the Or
binary process Of government. These.
the state. school. save for helpful SUI
ervision, let alone. But where corpor-
ate Initiative has failed the state
should should coordinate with lis
creatures In come felds-in your now
less than IN any other-competit1ve
practices prevent rate making that IS
level with economic cost. The tempta-
ton to withhold too much for salary or
overhead charge, or to pay. too much-
often far too much-for business. -
ever present. Hence, home office dis
bursements, generally. and commission
payments are, in some quarters. higher
than can be justified by the service
performed, AS results. 50 called gentle
mems agreements to maintain rates
thus swollen are branded as trusts,
and despite their existence, rate wars
are waged. which profit the few. but
postpone that adjustment Of premium
I,charee to economic cost which IL es-
sential to public satisfaction.
Has Not Stood Test.
"Save, perhaps, in the life field
and here the state has already acted
insurance by private corporations has
not in these particulars stood the test.
Here. therefore, government has duty:
LIT must lend hand. Indeed. whie
leaving to Its insurance corporations
Fan technical and specialized func-
Ftions and making no effort, save thru
proper wstchfulness, to interfere VIII. q,
these factors in the rate charged. VIII
NOT the state in the far distant iaeafe
coordinate with corporate insurance
and regulate or limit expenses Of an
kinds? II it does not, the present drift
towards state insurance seems likely
to continue For, whatever De the
field. the people will not long pay Tor
the insurance OF the future more than
such service. is rightly worth.
How many insurance men even
know that, while state life insurance
no. he.n In force in New Zealand
more than forty years, its early success
| has not been maintained. its present
situation, Is unsatisfactory. Its alleged
reduced expense ration IL due more 70
hts inertia than its efficiency. and that.
while Il has the prestige Of govern
nnent institution. the proportion OF
stateinsurance to total insurance IN
force IN that dominion Is less ana lesf
each year?