The Barre daily times. (Barre, Vt.) 1897-1959, 1917-12-06
" AR DEM4NDING
INSURANCE MONEY
Financial Needs of the Government
Are Diverting Investment Funds
From Many Activities.

! New York, Dee, 6.-Financal needs
of the government for war purposes
are largely diverting current investment
funds of life insurance companies from
the farmers, railroads, municipalities
public service corporations and other
channels that rely on this source OF
capital to a considerable extent. ac-
cording to original statistics presented
by William A. Hutcheson, second vice
president of the Mutual Life Insurance
company, before the annual convention
of life insurance presidents here to-day.
The figures showed that allotment
to the companies OF the first liberty
loan and their subscriptions to the
second liberty loan amounted TO over
Sl3l 100000 in less than six months
"As the increase in the invested funds
of all the life insurance companies,
said Mr.. Hutcheson, "for the year 1916
amounted to about 1886. 900 900. or to
about s6s,000,000 in period of six
months, the $2l 100000 OF first liberty
bonds purchased, plus the $l09,50o,0G0
of the second series applied for, if al
lotted in full, would have amounted to
nearly so per cent of the increase
in the invested funds of the companies
within the period of six months during
which these issues of liberty bonds
were made. This will show what
very substantial contribution the com
panies were prepared TO make to the
governments funds in applying for
these large amounts of liberty bonds.
The amount applied to the purchase of
these liberty bonds would in peace
times have gone to help the farmers,
the railroads and other corporations,
and the municipalities of the country, |
so that, to the extent of the purchase |
IF liberty bonds, the companies must |
ease to help in these lines
Turning to the subject of prospective |
increases in death losses because of /
American participation in the war, Mr.
dutcheson said:
"All premium rates of life insurance
are, of course, based upon
mortality tables which do not pro
'ide for the casualties of war, much
ess of war such as the present. Born
If our confidence in the continuance
# peace, we had come to regard war
S next to impossible for this country.
Is a result the practice had grown up
f issuing policies which permitted war
ervice without any restrictions and
Without requiring payment of any ex-
ra premium for participation therein
nd these contracts, when issued, bound
he companies of course for all times
the older contracts as issued
ntitled the companies to charge an
xtra premium, the companies very gen
rally removed all war restrictions from
hese old contracts either prior to or
{ the commencement of the war. Since
ne war started, there has, of course.
cen very general return to the old
raetice of issuing new policies with
ar clauses therein, under which claus
payment of an extra premium is
,qured in the event of the insured
king an active part in any war dur
e the first few policy years.
$50 far, except in the European bust
,ss of certain companies, we have
I'd few war death claims TO meet, but
e must steel ourselves to meet them.
be British weekly casualty lists may
We us some idea of what may be ex
,cted when we have an army as large
theirs. The Canadian and British
.rcentages Of war claims to ordinary
aims were, respectively. b per cent
ID about 20 per cent. per annum in
is If the American companies war
ath claims should amount TO even 10
r cent per annum they would amount
no less than S3O.OO0,000 a year. II
IT war death claims should amount
any time 10 any sppreciable part Of
e assumed 10 per cent. of our normal
ath claims, either the contingency re-
rves or the dividends Of the American
mpanies Tor both viii be called upon
make very considerable contributions
the cost Of the war. for it must be re-
,mbered that in hardly any cases can
E companies charge any extra pre-
ums as an Offset to such war claims
BRITISH CHEERS FOR WILSON.