Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-06-05
$4,000 INSURANCE Is
PLANNED FOR EACH
u. S. SOLDIER, FREE
National Defense Council Has
Plan Under Amusement and
Action May Follow During
Current Week,

WASHINGTON. June PLANS for
issuing $4,000 free government insur-
ance on the life of every American SOL
der and sailor during the war in lieu
Of pension arrangements will be taken
up next week by the council of national
defense. a report prepared by Assist
ant Secretary Sweet. OF the commerce
department. ready to be submitted,
urges that the insurance DE provided
through legislation before American
troops are sent TO France.
The defense council took up the Ques-
ton some weeks ago and turned the
whole subject over to the department
OF commerce for investigation. The re-
port now ready offers a long list Of ar
guments showing the advantage of
working out a compensation system be-
fore American lives are lost in the war.
The plans as prepared provide a fiat
insurance OF $4,000 on the life of every
officer and private in the military and
naval service, 10 be paid TO his bene-
fciaries without premiums. A govern
ment insurance bureau would handle
the whole subject and there would be
provision for a system of insurance by
which officers and men desiring to do
so could take out amounts higher than
the $4,000 free policy by paying pre-
miums at peace rates.
Insurance companies, il is said, are
ready 10 approve the scheme if assur-
ed the government will not continue in
the insurance business after the war.
War hazards are so great that few COM
panies are anxious to insure soldiers
and sailors except at high premiums.
but officials have been told many COM
1rafA -hn h.ar- hafw F-F- an,
now in the military and naval service
have not advanced their premium rates.
At the end of the war the govern
ment. 1t is suggested, could turn over
to insurance companies its premium
war business. dropping the flat $4,000
policies on all who leave the se5gice.
but continuing il on men who remain
in the army or navy.
One argument advanced for the in
surance plan is that il would improve
the morale of the troops, since many
would go into battle much more willing
ly if assured their dependents would be
cared for if they were killed. The plan
would provide also insurance for par
tial or total disability. In case OF
death the insurance would be paid in
installments which amount would be
determined by a government board.
Government officials are convinced
the best way to dispose of the pension
problem is 10 meet il beforehand. The
history of the pension system since the
Civil war has shown many abuses which
il is hoped to avoid by providing in
surance before men are killed.
Many officials hold that since many
men who will be drafted will be drawn
from occupations i'm which government
and state laws compel compensation for
injury or death, the government cannot
subject a man TO more risk than he en-
counters in his usual occupation and
not make compensation if he is wound
ed or killed.
The success of the government war
risk insurance bureau. which has paid
out large sums for ship losses, is point
ed TO as an argument that the govern
ment itself can bear the risk. The gov
eminent, free of enormous overhead
charges. can carry extra insurance ON
soldiers and sailors at a much smaller
cost than can corporations. OF course
the 1000 insurance given free would be
a direct loss. but pensions. il is argued.
would be much more costly in the long
run
Mr.. Sweet will see heads of insurance
companies in New York within the next
few days TO discuss the plans.