The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-10-09
COVE EMINENT IN
LIFE INSURANCE
Italy to Try Out Scheme Be.
ginning Jan. 1.-Seeks
State Monopoly.

ROME, Oct 9.-Regulations under
which the new governmental institute
OF insurance, provided for in bill
recently passed by the Italian parlia-
ment, will begin work on January l
of next year have just been made pub
lie by the government.
The experiment, which practically
is the establishment Of a government
monopoly of all life insurance in Italy,
through the absorption of the Italian
companies and by gradually taking
over the business of foreign concerns
now operating in this country, will be
most interesting, as the profits will
be used to augment the workingmen's
old age pension fund and because it
is the intention of the government to
make life insurance compulsory for
many classes of the people.
State Life Insurance.
A sensation was caused both in
Italy and abroad in April of 1911 by
the announcement that Signor Nitti,
minister of agriculture, industry and
commerce in the newly formed Clio
litti cabinet, intended to introduce in
to parliment a bill for the formation
of a state monopoly of all life in
surance. The measure contained pro-
visions for the absorption of the Ital-
ian companies then in operation and
for the curtailment of foreign COM
gpanies doing business in the kingdom.
The scheme as outlined affected
powerful and established interests and
called forth intense and widespread
protests. A party, nicknamed the
Young Turks" was formed in the
chamber of deputies, and it waged
strenuous war against the project,
while the companies organized, in the
press and through public meetings,
propaganda in favor of the mainte-
nance of insurance companies as they
then existed.
Diplomats Take Action.
Meanwhile, John G. A. Leishman,
the United States ambassador at that
time accredited to the Quirinal, head
ed a movement, supported by the
diplomatists representing the count
ries where companies doing business
in Italy had their head offices, which
produced, perhaps, greater effect
than the combined agitation of the
deputies and Of the people.
The representatives of the United
States, Great Britain, France, Ger
many, Switzerland and Austria Hun
gary maintained that the sudden ex-
pulsion of the foreign companies,
which for years had operated in Italy
where they employed enormous
amounts of capital and where they
had established important permanent
Italian parliment, might almost be
considered breach of good faith.
Modify the Measure.
AS result of these protests the
insurance bill had not received the
approval of parliment when the sum-
mer recess was taken, and during the
vacation period Signor Nitti and Pre-
mier Giolitti took the opportunity to
study the question more fully and to
add to the bill certain provisions by
which the foreign countries could con-
tinue, for the time being, to work in
Italy, though in an inferior position
compared to that of the government
institute of insurance. The measure,
then with a few additional amend
ments, was again presented to parli-
ment, which passed it by a large ma
jority.
The scheme will be an experiment
in socialism under a monarchical gov
ternment. From the wages of all mil
litary and civil servants in Italy the
government deducts each month a
tax corresponding practically to an
Income tax. A percentage of the sum
lcollected goes toward the working.
mems pension fund, which entities the
.pensioner or his family in case he vol.
UNFAIRLY leaves the service or dies
Ibefore the expiration of % years, to
one months salary for each year the
Imam has served.
Pension Rate Increase.
After % years the pensioner re-
,ceives one-third of the salary earned,
land the amount of the benefits grad
Iually grows until after 40 years of
Iservice the employe is entitled to a
full pension.
The governments idea is to ex-
tend this system to all individuals
who even indirectly have dealings
with the governmental. provincial or
municipal authorities, and also to
Ithose workers for whom insurance
against accident already is compul-
ssory on the part of the employees. The
Hnstitute of insurance in employing
Ehelp will give preference to the cler-
heal force of the present companies.