New Britain herald., 1917-12-06
FINANCIAL NEEDS
OF GOVERNMENT
Official Of Mutual Life Insurance
Company Speaks to Colleagues

New York, Dec. 6.-Financial needs
Of the government for war purposes
are largely diverting current i:Vest-
ment funds Of life insurance crlr =
panies from the farmers, railroads,
municipalities, public service corpora
tons and other channels that rely on
this source of capital to a consider
able extent, according to original stat
tstics presented by William A. Hutch
eson. second vice president Of tho
Mutual Life Insurance Company be-
FORE the annual convention Of tho As
ISOLATION of Life Insurance Presidents
here today.
The figures showed that allotments
to the companies of the First Liberty
Loan and their subscriptions to tho
Second Liberty Loan amouhtoI TO
$131, 100000 in less than six months.
AS the increase in the invested
funds of all the life insurance COM
panies." said Mr.. Hutcheson, for
the year 1916 amounted to about
s236, 100000, or to about $16S,0Co.OOO
in a period of six months, the s2l,-
100000 Of First Liberty Bonds pur-
chased, plus the $1O9,5Oo,O0O of the
Second Series applied for If allotted
ir. fu.A, would have am ounteu to near
ly 80 per cent. Of the increase in the
invested funds of the companies with
II the Ieriod Of six months during
which these issues Of Liberty Bonds
were made. This will show what a
very substantial contribution the COM
oanirs we're 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
of Libery Bonds, the companies must
cease to help in these lines"
Turning to the subject of pros
pective increases in death losses be- |
the war, Mr.. Hutchinson said:
"All premium rates of life insur-
ance companies are, of course, basea ,
upon mortality tables which do not
provide for the casualties Of war
much less of a war such as the pres
ent. Born Of our confidence in the )
continuance of peace, we had como !;
to regard war as next to impossible |
for this country: AS result the |
practice had grown up Of issuing poll !
cies which permitted war service |
without any. restrictions and with |
out requiring payment of any ex-
ira premium for participation there |
in and these contracts, when issued, !
bound the companies Of course for |
all times. Although the older con- |
tracts as issued entitled the CON- |
panies to charge an extra premium,
the companies very generally removed |
all war restrictions from these old |
contracts either prior to or at the |
commencement Of the war. Since the |
war started, there has Of course, been |
very general return to the old prac- |
tice Of issuing new policies with war !
clauses therein, under which clauses
payment Of an extra premium is re- |
quired in the event Of the insured |
taking an active part in any war dur
ing the first few policy years.
$50 far, except in the European
business of certain companies, we
have had few war death claims 20
meet but we must steel ourselves to
meet them. The British weekly cas-
ualty lists may give Us some idea OF