New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-25
Bankers to Save
Millions a Year by
Mutual Insurance
American AssociationVotes
to Form Company of
Its Own
stan CorespMdencel

ATLANTIC tllf, sept - '""'
cia institutions that constitute the
membership of the American Bankers
Association have voted by an over
whelming majority to escape high IN
surance rates through the organization
of mutual company that Will take
annual premiums OF approximately
$4,000, 900 from the Golfers Of the COM
panies in which they now carry poll
cies. The association opened its an
nual convention here to-day.
The mutual insurance plan, as ten
tatiyely outlined, would include deposit
tory, fidelity and burglary insurance
upon which banks throughout the coun-
try last year paid an estimated total
Of 50, 775,05O in premiums. Since they
recovered but slightly more than $780,
coo of this sum in losses made good
by the insurers, the bankers insist
that the rate is eXorbitant.
As yet the mutual insurance plan
has not been passed upon by the asso-
citation as a whole, which will hold the
first business session of its annual con-
vention tomorrow. But the referen-
dunn vote Of the members, recently
completed, shows such large maior
ity in favor Of the project that def
mite action is expected as one OF the
first acts of the convention.
The complete vote showed 5,O68
hanks favoring the plan and 6l3
against it. Those favoring the project
were divided upon the question OF
whether the new institution should be
mutual or n stock company, with the
mutual advocates leading by three hun
Gred votes.
Will Help Agriculturists
The vote ordered by the executive
council at its last meeting at Briar-
cliff Lodge is the result OF long con-
tinued complaint of what the bankers
call exorbitant insurance rates. Re
ductions have been made, but not
enough, the bankers insist, TO justify
the rates now being charged.
is paying a detective agency to make
the country an unwholesome place for
criminals who have the temerity to at
tempt fraud upon any of it's members.
Moreover, it has adopted practically
every new safeguard against safe
blowers, burglars and sneak thieves as
rapidly as they have come out. But
the insurance companies, they argue,
have failed TO recognize this fact by
reducing rates. Therefore the pro
posed embarkstion in an insurance
plan that will have a marked effect
upon the insurance business through
out the country.
The bankers went on record as ia
voring every plan that may be worked
out for stimulating the agricultural
production of the country at meet
ing of the Agricultural Commission Of
the organization in the afternoon. G.
II. Powell, representing Mr.. Hoover,
said that the National Food Admins
tration already had alleviated the food
shortage by the three methods of sub
stitution, conservation and increased
production. II was generally agreed,
however, that the government alone
could not stimulate food production
sufficiently to meet the present de-
msnd Of the United States and its al
lies. II would be necessary TO obtain
assistance from other sources, said
Mr.. Powell, or the American people
would face hunger.
As an example of conservation Mr..
Powell explained that while the
United States is at present the only
available source of sugar for the Al
lies, and will produce this year only
enough sugar for domestic needs. the
people of France must have 100000
tons of sugar in order to sustain life
Food Problems Still Unsolyed
That the people Of this nation can
easily supply this deficiency by reduc-
ing the amount Of sugar dsed at meal
times from an eXtravagant surplus to
an adequate amount was shown as one
example of the conservation which
every family can and must practise.
He advocated the use of perishable
foods instead of cereals and poultry
instead of red meats, as the tonnage
available for carrying food abroad is
available for the intensive foods only,
which therefore must be largely re-
placed at home by perishable products.
'''AN'' No''A'NS W iaiAo pbi AtN ONtl StdS.
but are produced practically at the
doors of the consumer.
Food problems abroad" said Mr.
Powell, have not been satisfactorily
solved where the governments have un-
dertaken the solution of them. The
and the business men must
act together to sufficiently stimulate
production, enable efficient distribution
and provide satisfactory beneficial con-
troll"
p. ". Goebel, president of the as
ISOLATION, strongly urged the bankers
TO make war their business, as it had
become the business of the nation, and
to exert every educational influence and
financial aid for wartime needs in the
OF the nation, which the
various bankers associations cover like
a blanket.
Frank Pierson, Assistant Secretary of
Agriculture, said that while our allies
are largely dependent on US for wheat
TO maintain their armies and their in
dustries and must have from US 800
100000 bushels. our wheat production
for the year will be but little more
than our consumption.
From an estimated yield of 100000 ,
BOO bushels our indicative consumption
Of 640,000,000 bushels will not permit
Of our meeting an obligation to feed our