The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-09-28
(ChicaEo Tribune.)

II you we're told to figure out the
problem Of human life and determine
the average 6 at which men die you
would probably declare It. impossible
to do SO with any degree of accuracy.
But there's where you are mistaken,
for on the solution Of that very prob
lem the great life insurance COM
panies base all their financial strength.
ty Just how long the average man Will
live they are able to Ak an equitable
rate Of insurance and maintain suffi-
cient funds to meet all just claims. and
what il vitality important-earn In
terest meantime.
Contrary to the general belief life
insurance companies are not taking
any great chances. for all their calcu-
lations and rates are based on ascer.
tanned facts, as revealed by millions OF
carefully collated cases. showing the
average number Of deaths per 1000
among various classes. Quoting he
rate for a policy is no blind. haphaz-
ard operation, but n having a sound
acturial basis. For, while individual
life Is ever an uncertain quantity. col
lective life Ia subject to a mysterious
law Of average. which enables the
companies to transform into a practic-
al scientific certainty what would 9TH
erwise remain a perfect lottery.
These vital statistics are called NOR
tally tables. Of which there are sever
al. Lives differ in quality as in length,
and there is a great difference be-
saloon keeper. There IL also a big
difference in the quality and length Of
the lives Of grocers and coal miners.
servant girls and wives Of wealthy
men.
The calculation of your life is SIM
pie. Let us suppose you are 30 years
Of age. Deduct that from 80; then de-
duct a third from the result. That
makes your expectation Of life approx
innately 80 years, although you should
live to be Sc. OF course. you may live
longer or die sooner But this is your
average. the basis of any life insur-
ance contract.
Insurance companies. dealing with
colossal sums, must obviously make
their money work-yield the maxi
mum Of interest. And they command
some Of the finest financial talent
available-keen, experienced men,
knowing all the markets. always on
the alert for a financial bargain"
Controlling vast sums in liquid cash.
constantly augmented by current re-
ceipts. they are in the best position to
deal at the closest prices and at the
psychological moment Of depression
or panic. Moreover. they are doubly
strong, because they car always select
their W time. both for buying and
selling. What the power Of interest
means may be gathered from two
striking facts-one OF two companies
can meet all their liabilities out Of
their interest fund alone:.a certain big
company earns over $50, 1000, 900 a year
In interest alone.
During the last twenty-five years
the public have paid about 2.000,0 00.-
900 In insurance premiums. while the
companies have paid their policy
holders about $4,000. 900, 900. Whence
these surplus millions? They have
resulted from the accumulative poten-
tialities of compound interest.
The colossal power Of that process
is humorously illustrated by a state
ment made by an insurance expert:
Had my ancestors in A. d. / invested
for me 2 cents at s per cent COM
pound interest. I should have received
in 1910 a little check for $75,762,626,-
1925, 100000, 100000, 100000. 000."
Obviously I leave to him the RESPONSE
bility of these figures. which. I have
not checked. Although 1t may be exc
aggerated. this sample fairly demon
strates the potentialities Of compound
interest W long periods.
The essence Of insurance is fore
sight, the adequate provision for con.
tingencies and even possible disaster.
That Is why the companies usually