New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-15

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and stable enough to insure all men regard
less of their thrift and wealth. Moreover,
rot even a national government as rich ana
great as our own can do more than insure
for very small percentage Of his normal
earning power the soldier whom it calls into
service
But insurance costs vastly more than 1t
needs to cost because it is seleetive to so
great an extent. So long as risks must be
selected there are four great items OF ex-
pense to the companies:
1. Medical examination, to determine VINO
shall be admitted to fellowship.
Q. Actuarial departments, to calculate NOR
tally tables and interest increments.
8. General officers of high business ability,
tc handle the extensive properties OF the
companies.
4. Large numbers of agents, TO whom high
commissions are paid to persuade people TO
be nsured for, strangely enough, they need
persuasion.
How to Lessen Costs
Now there has been devised modern form
of insurance which eliminates most OF these
clements of cost, namely, group insurance.
II large enough group is taken and every
one in it is compelled to pay premium the
no medical examinations, since all are &C
cepted; there is little actuarial work, because
the general statistics Of society are accepted;
the commissions to agents are greatly re-
duced. The premiums for such insurance are
usually paid by employers as free gift to
their employees, so that there can be no ques-
ton of injustice as between the thrifty and
the careless The point is that insurance can
h. for all OF low coSt-aDOut
Gne-third of the cost under ordinary individ-
ual commercial conditions.
My proposal is that the government Of the
United States, with its enormous resources,
should underwrite group insurance for its
soldiers and other defenders. II alone has
the resources to pay the premiums, il pre-
miums are to be paid; but since premiums
are not to be paid, since premiums payable
to ordinary life companies would cost so
much, and in addition would work hardship
and wrong to present policyholders, let the
state boldly assume the total risk, not set
ting actuaries to work to find the probable
cost but assuming the greatest possible loss
and paying ultimately the actual loss.
To illustrate: If 100000 soldiers were to
be insured for an average amount of $1,000,
and if every one Of them were 60 be killed,
the tOrdl loss WOulQ De one DllllOH
a great amount, truly but Insignificant in
these days and in view of what would be
accomplished By means of it. II we have
2 100000 soldiers ultimately exposed, the
greatest possible loss would be $4,000, 1000 900.
And so on The figures will vary with the
numbers engaged and amounts of insurance.
My point is that, on the basis of the great
est possible loss, the government, which is to
IS apd ha
ment alone can.
There would be no estimate of premiums,
no elaborate bookkeeping, no collections.
Whatever amount was determined upon for
those having dependents and those with none,
in the event of their death that amount
would be payable to the heirs in such way as
a committee Of experts should after deter
mine.
Pensions Another Story
The amounts involved would wreck the
three greatest life insurance companies in
the world. They would leave Uncle Sam I'M
scathed. All questions of possible pensions
are, as Kipling says, another story" Life
Insurance for soldiers should not be compli-
Gated with it at this stage.
We all know that nothing like the total
number engaged dies in action or as the
results or wounds or sickness; the amounts
payable would be greatly below the total
insured.
Ny point is simply this: The current use
Of group insurance has shown that the en-
ployer alone can insure for all. Uncle Sam
is the employer. He is asking his employees
tC risk their lives for him. When he is as
rich as he is the least he can do is to make
some provision for those left behind, such as !
a thrifty and thoughtful man makes of his
own accord in peace times for those he loves.
The thing is perfectly practicable and ex-
tremely simple. 1t needs no experts to niti-
ate it and but simple honesty to administer
i. All the world calls for It.
All that Mr.. McAdoo's proposals call for is
subject to the same principle as here indi-
lated, but the difficulties inherent in casualty
insurance should be dealt with in the open
by experts before this matter is thrown into
'onpress