Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1915-03-19
ADVERTISING VS.. AGENTS.

4
mess. commerce. manufactures AM
{ lives Of citizens arc protected IN every
civilized country throughout the globe
Although the insurance business u
the United States has assumed enorm-
Gus proportions, covering ~ Il does
every phase OF human cndeavor, and
protecting not only the property and
occupations Of mankind but life it.
self. its power Is constrained, its
growth checked. because the business
is burdened BY the heavy expense Of
agents, interstate taxes. licenses, fees,
and various exactions from which II
should be freed.
/ To support IT'S agents. pay the taxes
and iicense-fcos, the insurance COM
pany must have money, and this is
naturally supplied BY poIicyholders. In
other words the public is obliged to pay
larger sum for protection than it
should pay. or than it is necessary to
pay
Until ten years ago all the "old-line"
legal reserve companies conducted
their business through agents, paid the
necessary commissions. taxes, licenses
and office expenses. and charged their
policyholders accordingly. 1t that
time (shortly after the Hughes Insur-
ance investigation an institution was
chartered in the state of Mex York TO
transact the business Of life insurance
In the same manner as certain Inn
portant European companies, amons
which were the Equitable Of London.
organized in 1862. the Metropolitan Of
London. chartered in 1896 and the
London Life. founded 1906, all Of
which operate wholly without agents
and eliminate the heavy expenses at
tendant upon the agency system.
That institution was the Postal Life /
Insurance company of New York, the /
only non-agency company in America I
! reaches the public by means of adj :
in the periodicals Of gen
eral circulation through circulariznG
ana use of mails. The Postal pays no +
TO agents, no taxes or
licenses to state insurance commits
sioners, since the company does not
enter the several states but simply
receives such business as comes to it
rom them. 1t is therefore able to save
less q moderate advertising charge)
hat other insurance companies pay
heir agents. These savings are COW
red by guaranteed annual dividends
which Postal policyholdcrs receive in
addition to the contingent dividends
depending on the companys earnings.
AT the outset the method employed
" The Postal Life ruuy have seemed
but il can no longer be
o considered; it is now an acInow-
edged success.
Naturally the growth of the company
ias aroused org rnized opposition on
he part of life-insurance agents and
gency companies; on the part of GER 1
ain insurance periodicals published
or agents. and also on the part of Il
ew state insurance commissioners !
,ho are anxious to subject this COM ,
any TO taxes, licenses and other eN- 2
ctions to secure additional revenue
asst year more thln S12,0O0.00O was
aid AS assessments taxes. cite, by !
Insurance companies in this country.
lot penny of this amount was paid
y the Postal; its share went to the
cuple. not to the states In addition
, other opposition, q bin was last >,
ear introduced to prohibit life in :
1rance by mail. but ii called forth in
ignant protest from thoughtful people
: every state and il is also interesting
, note that while the measure was
efore Congress the rostd received
Iore requests for insurance nforma-
on than ever before
However. the bin referred to is now
Fad. and piece of legislation SO UNI
lst and harmful viii hardly bc again
Itroduced.
TO date. the company's advertising
rs been conducted along extremely
lines periodicals of gem
al circulation throughout the conn
y being the principal medium in
hich it's announcements have appear
l. tsut now the company's efforts
axe passed beyond the experimental
age. The ADVERTISING policy there
ne IS "a be brnadened ana will short
include farm and country ncwspap-
-. industrial aud trade Journals. as
ell as class publications. The COM
,ny's publicity efforts have hecn con-
rsative. well planned ana carefully
llowed; il has. indeed. opincd up
Nv field in advertising which should
Vclope q large volume OF business FOR