The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-07-27
MR.. DONE ON INSURANCE.

from the insurance Press OF New 1ork
the figures OF payments 10 the year
: 1911 on life insurance account. These
carried the total payments and in de
tail the payments made in the State
of Utah. We suggested Al the same
time that the statement was incom
plete. inssmuch as il did not give the
receipts by the insurance companies on
insurance premiums paid in this State.
our idea being that 20 make the ac-
count really worth while. both the in
come and the outgo should be pre-.
sented.
IL appears. however. that Mr.. vii.
lard Done. while appreciating our pub.
heaiion. does not altogether agree as
to the desirsbility of having the 6g-
ures of receipts printed His letter on
the subject is as follows:
| Edi,or Tribune read with cra,t
J pleasure 'he editorial IN your issu. os
| Suhoh}. July II. IN relation To NE iusur-
f,,. 49, payments; and am slsd 10 sec the
| ,,st taken ny YOUR paper In this i'm
po!tant subpect OF finance and economies
re htatsucs YOU give. covering lie In
su.hhce payments Ia the State OF Utah.
! are most timely ana instructive and
VII! assist very materially in tho cam
psisn OF publicity which number OF
N sie trying to push forward
YOU say. While the amounts OF paw
nenis are given in full detail. We do not
mo lhe accounts of the amounts OF
none m paid by policyhoiders or received
IA '"e aggregate from the Stat, OF from
nnE part OF H. on this account, Un,n
tfhs defect Is remcdied. n VIII bc I'm
posstoie 10 strike any balance as bctpeen
.~'elpts and disbursements IN Utah 10
hh"" whether The people here are paw
lng more for ne Insurance than tlav
slouId DO. one thing j. sure that the
a,,.ounts ,t.', m OF money handled by TIA, insur-
nc companies are enormous N-ces- {
safiE. tue people who insure nav these
"nounts; but just how they paw them
aMu iMi,u now me receipts P-e turned IN as
towns; is not explained"
rs ! did not see the editorial uutI I |
was ABOUT TO leave for the North | have |
not The exact figures at hand to tis. i'm !
answering your aeusticn, ana thcrerore
am under the necessity Of giving an
pro%lmaie data 10 show that our citizens
surange, also that the State Of Utah is |
ho' deprived even temporarily OF tho
money paid for this protection
s,hia tne hLst place; II would not ne pos |
s'ole 10 judge OF this matter bv striking !
oaienCe between the amount paid IN
po'iGyholders and the amount returned |
70 mem III any one wear OF even a num-
pcr ol years, any more than we could es-
timale the profits OF banking by srlb-
llactIng total Withdrawals from total de-
posts. Both bank and a NE insur-
on hand and Invested TO funI their con-
tracts; but these funds belong 10 tho
oeposltors In the one case and TO tho
polGyholders In the other, with the ex-
.epuoh OF a relatively small working capi-
tai ana surplus, 10 meet contingencies
oiumately the people who put money Into |
a IRE insurance company (or their bene-
nciarles) Will get Il back II they com
plete their contracts with the comnany,
me cost Of this insurance. Including COST
ot management. being almost entirely
ssSen care OF by the interest on tho re-
series held and invested by the com
pahy. o' course. I refer to legal re-
serve companies. On some forms of noII-
olss: : more money is actually returned on
twenty years than the pollcyholder paid
In' and protection furnished too
:, smai portion Of each years premium
technically called the loading. FOR ey-
oenses.) is Immediately distributed In the
'orTn or agents commissions local office
expenses. examination fees. etc. The bulk
u ,. me premiums. which We may roughly |
sail the reserve. Is added TO the reserves ,
accumulated from other sections. and
ms is used in paving death losses. ma = /
ureo contracts. etc. the surplusage be-
allied dividends. But as these rarious I
'ayments come due gradually the re-
efNes held 10 meet them are subject TO
by the comnauv &
The article from which You quote Vivcs :
ne information that in the group Of
states Including Utah, the life companies
ave invested about e per cent more I
money than the citizens OF those States |
,sve deposited with the companies To | |
nature their policies
The required amount OF these reserves
calculated with scientific exsctness |
N that no ono is paving ultimat tciv either |
more OF less than enough for his insur- |
nee. Loss occurs only when lapscs oc- | |
'ur ~ premium payments are completed
fra
'Nactiy what he pays for. no more. no
From the foregoing it viii be seen that
II Utah tho money paid for nfr Insur- |
nee is based about as follows: \ small |
'art is distributed mostly locally for i'm | |
mediate expenses; the remainder is i'm
sst being ultimately retuyned to the |
In the form o. death losses
IiViSends. and metured contracts In the |
neantme some - per cent more than the
otal amount or reserves paid hv Utah | |
iuzens is kept Invested In Utah sccuri-
II YOU care 10 use ali or par, of this
communication II will probably assist In ! |
citing the people know wha, disposi- |
ion is made of their lie Insurance pre- |
WILLARD DONE.
COMMISSIONS of Insurance
We are always glad TO receive and
'rint information on matters of public 1
interest. and so we carry the above.
{ gives some valuable data, especially
q 10 the investments OF the life com.
anics OF Utah, and tells how the
loading Is made up and presents
ne claim that "no one is paying ulti-
lstely more or less than enough
or his insurance, II is certain, how
yer, that the insurance companies
ave bad enormous quantities of
1oney, far more than any of their
sgitimate needs required. IL was be.
ausc OF the enormous SURPRISES shown
q their reports that The Tribune,
Ihen the great stigations came on
q the raid on the insurance companies.
ssured all OF It's readers that 1t was
ne true policy for them 20 continue
aeir insurance and not throw il up, 1
: so many showed dispositiop 70 do II