The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-01-08


sary to insure the payment Of a lump
sum or an annuity to his dependents
upon his death. 1t would do all these
things which life insurance companies
do and with great deal more GER
tainty at less cost, and, at the same
time, keep right within the State the
life blood of the State-its cash capt.
tai.
Life insurance companies give this
as the fundamental essence of their
being. Their claim for existence is
that they relieve the State Of this bur-
den. But at what cost. During the
last 40 years in which life insurance
has developed in this country, it has
taken out of South Carolina probably
some tens Of millions Of dollars over
and above what has beenspaid to the
widows and the orphans.
Can South Carolina do this work?
IL there be applied to it the same fidel-
ity that has been applied to her
scheme OF fire insurance on her pub
lie buildings, devised by Assistant At
torney General DeBruhl, and per-
fected and managed by Secretary d.
III. Means of the sinking fund, that
question is answered,
EVERY one who knows anything
about the business understands that
the marvellous growth of life insur-
ance companies has not been due to
the returns to the policyholdeIs but
rather, putting 1t in a blunt but truth
full, though seemingly absurd way, to
expense Of management-the amount
paid for putting the business on the
books principally. The gold and gilt
ter of managements. master in the
art stir agents to do their utmost for
the widow and the orphan-and the
company. This language may seem
little high pitched. but 1t hardly
sounds the fulness of the note to
which the busines has marched in
its larger corps.
THE waste OF it all has been fear
full.
The greatest cost, proportionate to
returns, IL not the greatest waste, has
been in what Is known as industrial
life insurance, the kind where weekly
nf five A.,
made. To cure this evil and. at the
same time, to care for the widow and
the orphan. and do all else that insur-
ance companies do. Massachusetts eJ-
tablished her savings bank insurance
a quasi public institution. Germany,
France and England and other Euro
pean countries have established va
rious forms Of industrial, old age, non .
employment and workmen's insur-
ance. The New Zealand government
has a life insurance department, Wis
consin has just established its own
life insurance department in the state
government. and Michigan is propos-
, ing to do likewise. Italy and Uruguay
have established government monop-
oily in life insurance. AS recently ex-
pressed by a prominent superinter.-
dent OF insurance. there is a ground
swell toward State insurance.
I'm its origin the movement to-
ward state insurance seems to have
been due To desire to provide for the
unfortunat" by means of insurance 1t
being believed that the state could 40
this more economically than was be
ing done by insurance companies.
Lattcrly, there appears To have awak-
enormous volume Of assets piled up by
the insurance companies the property
of the public but in the control of a
few individuals. The inability Of the
policyholdcrs. the real owners. to have
a voice In the management of these
vast properties, except through the
| Germ.
The fact that first Thomas f.. Ryan
and then J: Jierpont Morgan were
willing To- pay $500. 900 or more for
$5l 900 of I per cent stock which
gave control Of over S500,000.00O of
assets must give any thoughtful man
pause. With other hnancicrs through
out the COunry struggling To get con-
troll Of life insurance companies be-
cause of the enormous power the as
sets OF such institutions give. the ques-