The Washington times., 1914-06-03
MANY BORROWING
ON LIFE INSURANCE
Annual Report Shows an In
crease in Loan Account of
S63,725,O0O.

Distributions by the life insurance
organizations of the United States and
Canada amounted in 1915 TO s6i6,550, oe1.
The most unfavcrable feature of the
review of the years work, which has
sust been made by The Insurance Press,
as the increase i'm the policy loan ac-
count. The amount or the increase of
the outstanding loan account at the
close of the year was Sc, ,725, 600. as COM
pared with an increase of S4S.2ii,OO0 in
1917
Applications for loans on insurance
have for years been regarded as indi-
cations of the fluctuations of business
conditions. During 19T7, a year Of fl
nsncial and industrial disturbance the
policy loan account increased 81, ,590 =
900. This destruction of insurance was
attributed primarily 10 the adverse con-
ditions of general business and a SINH
lar view has been taken this year by
the students of the insurance business
In the interim between 1SsS-1912 the
amount Of policy loans increased each
year, and in only one of these years
,lsS2) was there a decrease in the ra-
Iio of loans to reserves noted. In COM
mentng on this situation last year the
association of Life Insurance Presi-
dents in its report said:
Under present policy provisions,
times OF financial stringency lead to
he destruction OF a vast amount OF
insurance by placing loan encumbrances
on policies which are never removed"
Cne of the favorable indications
found in insurance statistics is the in
crease in applications for small poll cieS
5 ,0gO to 5000. This is attributed IN
.arge measure to the success with which
The postal authorities have met n their
otiorts to suppress the promotion Of
gSt-rich-Quick" schemes in oil, mines
snc real estate. The authorities esti-
mate that the promoters forced out Of
business last year had obtained Sn.-
J'lOOo from the public.
or the grand total of disbursements
made by the companies, the largest
aim paid was that on the policies held
~ Albert +. Holden, of Bratenahl,
ohio. a suburb of Cleveland, for Sis, ,SSs.
The largest claim raid in the District
o. Columbia was on policies taken OUT
ny the late Alvin NJ. Lothrop, for years
d member of the firm of Woodward &
Lothrop. MIR. Lothrop's estate received
sii5,0o0 from the insurance companies.
Other claims of mvre than $4,000 paid
in this city were on policies hela by w.
W. Einley, 1856; Richard T. n. Ball.
Ssi.si1: Homer n. Lockwood, sl5, Or;
louise Mushleisen, 100; James II.
NcKenney. Sl1,9I9. and two unrecordcd
claims of 10000 ana slO.59S, respectively.
The First National Fire Insurance
ompany. a local organization, yester-
Gay received from the insurance de-
psrtTncnt Of Massachusetts q license 70
do business in that State. The general
agent for Massachusetts is William Gill
mour.
Though trading in Washington Gas
stock Was light today on the Wash
lngton Stock Exchange, as was the
dealing in the other issues listed. that
stock continued to show weakness,
Jhroe odd lots Of five shares each cell
ing down from G5ik 20 75M.
The other stocks sales included fifty
FIVE shares OF Washington Railway and
.lectric preferred at 81 and Sls; two
shares, of Capital Traction at lG9a4; one
share OF Lanston Monotype at S1I2: one
share of American security and Trust
1T 80, and three shares of District Ma
uoHal Bank at 1i2.
Bond sales consisted of one s1,CJ0
Washington Railway and Electric As
81 8: two $500 Capital Traction SIS at
IS. and one $50 Washington Gas SIS