El Paso herald. (El Paso, Tex.) 1901-1931, 1913-08-01
OTHER PEOPLES TROUBLES.


vention in Mexico, but I hope before
they do anything rash they will look
at what we have had to overcome in
New Mexico and other states in the
last % years. and while there was no
war going on.
It has not been that long ago since
/, myself, was making saddles for a
bunch of horse thieves and helping
them as best could to steal New Mex
leo and everything in it. I also re-
member that when any of the gang
got Waylafd and surrounded by a gang
that we considered less polite about
their stealing than ourselves we did not
"hOller" for Intervention by some for
eign power; we just used the county
officers and anyone else We could get
to help US out
Why not give Mexico the same
chance? If corporations want to steal
Mexico let them steal it, if the Mexi-
cans are willing to let them. but don't
let them play the baby act and get
other people into a fuss. I would not
allow q battle on the border if I could
prevent it, but I would not go across
it to get into trouble over some other
thieves troubles. S. L Hughes
THE LIFE INSURANCE GRAFT
Editor Ell Paso Herald:
Under recent date you published
full and very interesting article on
the amount of money disbursed b.
the different insurance companies to
policy holders and benificiaries in the
United States and Canada, amounting
to a grand total Of S626.35O,0O0.
I believe you owe it to your read
ers to publish the figures, if obtain
able. showing what this nice little
wad cost the dear people in premiums.
Figuring from data at hand. with con-
siderable allowance. /. e., an official
statement from one state, I find the
good people paid into the Golfers Of
the life insurance companies, S1,565,-
$4,000 or 1888, 600 more than the
said companies paid to the policy
holders, etc.
On further scratching the pad I dis
cover that this differ eHce of nearly
billion that our friend the enemy
failed to disburse would build a mod
ern five or six room bungalow and
equip with comfortable furniture for
469. 1852 families, further discover that
the saving of this one item alone
would in "a years build such a home
for every working class family in the
United states. Mr.. Editor, don't you
think a well bred monkey from the
jUngles of Yucatan would be inclined
to smile at this particular brand OF
protection?
Ny observation is that a very large
percentage of this insurance money
would otherwise. go to build homes
Does it occur to you that our insti-
tutions are breaking up the home and
building skyscrapers2
Methinks an investigation would dis
scraper in FL PasO is being paid for
by the ever handy policy holder and
many of their names will not be found
on the tax list at all.
Fire insurance is in no way differ
ent. Yes, / am policy holder both
fire and life, but Mr.. Editor, please
publish that little article of yours
again about the insignificance of the
trust question, the tariff, and the
money question. 1t did seem good to
me. I c. Ruby.
death is one thing in this world that
is absolutely certain to occur. Life
insurance companies in the long run,
on most forms of policy, always re-
from policy holders and m a large pro-
portion of cases they repay q
good deal more than they receive in
premiums from the insured, the excess
from the earnings OF the companies on
their investments, or TO the necessity Of
paying death losses after only a few
premiums have been paid Undoubtedly
the immense funds of life insurance
companies might in many cases be used
to the greater advantage of the mass
of the people. Some companies recog-
nize this, and conduct more profitable
business because they do distribute their
funds more widely, and give more people
and the districts remote from financial
centerS, the benefit of lOanable funds.
AS to fire and life insurance, on the av-
erage, the costs of operation and ad-
are higher than they
should be. But the correspondent will
readily see with a little thought, that
the death rate of both policy holders
and companies would be something aw-
full if the companies were repaying
each year as much as they take in for
premiums. If a $1,000 policy costs SO
a year, a man has to pay steadily for 40
years to make up the principal of the
insurance his estate collects in case of
MS death. Even with all allowances for
interest and compound interest, 1t Is
readily seen that it takes many years
to accumulate in the treasury of an in
surance company an amount adequate
to meet death losses. These cOns1dera-
tons do not apply in the same degree
to fire insurance, for fire contract OBJ
legations expire with the year, and
there is no further contingent liability.
In fire insurance, there should be a
more direct and immediate relation
between premium income and loss pay
nentS, than in life insurance, but even
n life insurance, over a long term OF
years (Say the average term of human
ife) it is not hard to establish the re-
ation, with sufficient data at hand. !
Generally speaking, life insurance may
be defined as the investing, at exceed
ngly low rate of interest or without !
interest, of funds with the expectation |
IF receiving a return at least equal to |
he total amount paid in, and in case Of |
Early death, a return very much in eX-
cess of the amount paid in. A savings ]
bank pays a higher rate of interest,
out the savings bank does not carry |
he contingent liability of paying a
arge sum in case of early death. A
considerable part OF the excess billion !
he correspondent refers to, is of course |
invested by the insurance companies a |
: reserve against the future death |