The sun., 1917-07-09
INSURANCE PLANNED
IN LIEU OF PENSIONS
Revolutionary Legislation to
Be Submitted Within the
Next Fortnight.
WILL MEAN BIG SAVING
Compensation Of $1,000 for
Death of Enlisted Men and
$4,000 for Officers.

WASHINGTON, July S.-The most revo-
lutionary proposal In war legislation yet
considered will be submitted to Congress
by the Administration probably within
the next fortnight
The Administration purposes to abolish
the system Of pensions for wounded
soldiers and for the surviving kin OF
soldiers killed in battle and to substitute
therefor a casualty insurance plan. A
committee of officers OF some Of the
largest life insurance companies in the
country will begin series of conferences
this week on the formulation Of the pro-
posed legislation.
Secretary McAdoo proposes that Con-
gress shall specify before american
soldiers are sent into battle the death
and injury benefits that shall be paid
by the nation. The tentative proposals
are:
minimum compensation of $500
for the death OF an enlisted man.
A maximum compensation of $1,000
for total disability.
A maximum compensation Of 5000
for the death or total disability of an
officer.
1t is proposed 10 pay this compensa-
ton not In a lump sum but in a series
Of instalments extending over period
Of years.
Two Plans Considered.
Two plans are under consideration.
One provides that the Government shall
insure its soldiers against death and in
jury with the insurance companies which
accept the business at the high rates
which would be charged for war risks.
The other provides that the Government
shall undertake the whole obligation,
Congress Rppropriaing sufficient funds to
cover the death and injury benefits. II
the latter plan should be adopted II
would be a system not Of insurance but
Of limited pensions.
The Administration Is opposed to con-
tinuing the present pension system dur
ing and after this war. Secretary Nc
Adoo holds that the plan he proposes
will be less wasteful more equitable and
more satisfactory both to the Govern
ment and to the pensioners.
1t Is contended that whatever the
compensation provided the total cost TO
the Government would be much less
than under the present pension system
Civil war pensions already aggregate
81, 900, ,000, 900, and II is estimated that
the total will be $1,000, 100000 before
the last civil war pension Is paid. In
addition the administration OF the civil
war pensions has cost approximately
81. 900. .000. 900.
There were about 100000 men in
the Union army and the Government
| already has paid out in pensions ap-
proximately $4,000 for every man in
the Northern forces. About 100000
pensions were granted, so the expense
of each civil war pension averages about
$4,000. II is estimated that II 1000, 900
American soldiers should be killed or
wounded in this war the expense to the
Government for compensation would not
exceed $4,000. 900, 900, or an average of
$4,000 for each casualty.
To Hear From Country.
A soldiers widow under the McAdoo
nlan would receive not less than $1,000.
! Twelve dollars a month was granted to
civil war soldiers widow. Whether
pensioners would prefer specified
maximum amount or a monthly payment
for life Is question upon which Con-
gress will hear from the country when
II begins consideration of the McAdoo
| plan.
! American life insurance companies In
sured a large number OF Canadian SOL
diers from Toronto, but the mortality
experience caused them to refuse fur
ther insurance on the original terms, and
the city OF Toronto then undertook the
obligation. The State Life of Indian
apolis wrote policies aggregating $262,-
| 900 and has paid 81. 900 in death claims
tho Etna Life Insurance Company OF
Hartford issued policies to the amount
of $1.100,000 and has paid death claims
amounting to $SS,o00, and the Metro.
politan Life of New York had a volume
of $S,63S,000 with payments for deaths
aggregating $4,000. The city OF To.
ronto has issued insurance in the
amount OF $32,297,Oo0 and paid death
claims totalling s930,o00. Each enlisted
man gets a policy of $1,000, the protec.
ton running from the date Of his en-
listment to his death or six months after
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