Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-06-04
GOVERNMENT PLANS ON SYSTEM
TO REPLACE oLp.TlME PEN.
SION POLICY.
RISKS OF $1,000 ON
SOLDIERS AND SAILORS
Insurance Without Cost Proposed, to
Continue During War Period--lnsur.
anee Companies Said to Be Ready to
Approve Seheme-Would Improve
Morale Of Army.

Wasrin gton, June 4.-Plans for is
suing $4,000 free government insurance
on the life Of every American soldier
and sailor during the war in lieu of
pension arrangements, will be taken
up next week by the council of ma
ttonal defense.
A report prepared by Assistant Sec
retary Sweet Of the commerce depart
ment, ready to be submitted. urges
that the Insurance be provided thru
legislation before American troops are
sent to France.
The defense council took up the
question some weeks ago and turned
the whole subject over TO the depart
ment of commerce for investigation.
The report now ready offers long
list Of arguments showing the adTant-
age of working out a compensation
system before American lives are lost
in the war.
The plans as prepared provide for
fiat Insurance of $4,000 on the life
of every officer and private in the
military and naval service, 10 be paid
to his beneficiaries without premiums.
A government 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 premiums at peace
rates.
Comp anies Are Ready.
Insurance companies, it is said, are
~ s,enprn o II q Ssjrrn3
the government will not continue in
the insurance business after the war.
War hazards are SO great that few
companies are anxious TO insure SOL
diers and sailors except at high prem
iums, officials have been told, altho
many companies who have on their
lists men now in the military and
naval service have not advanced their
premium rates.
At the end of the war, the gov
eminent, it is suggested, could turn
over to insurance companies its pre-
MUM war business, dropping the fiat
I 81, 600 policies on all VINO leave the
service, but continuing it on men who
remain in the army or navy.
Would Improve Morale.
One argument advanced for the in
s,arance plan is that it would improve
kthe morale OF the troops since many
twou1d 60 into battle much more willing
lily If assured their dependents would
be cared for if they were killed. The
plan would provide also insurance for
tpartial or total disability. In case OF
death the insurance would be paid in
| installments whose amount would be
determined by government board
Government officials are convinced
the best way to dispose Of the pension
sproblem is to meet it beforehand. The
history Of the pension system since the
civil war has shown many abuses
which it is hoped to avoid by providing
insurance before men are killed.
Cheaper Than Pensions.
Many officials hold that since many
,1nen VINO viii be drafted will be drawn
from occupations in which government
and state laws compel compensation
for injury or death, the government
lean not subject a man TO more risk
than ne encounters in his usual occu-
tpatton and not make compensation II
lhe is wounded or killed.
| The success of the government war
risk insurance bureau, which has paid
out large sums for ship losses, is
,pointed to as an argument that the
government itself can bear the risk.
THE government free of enormous
overhead charges, can carry extra in
surance on soldiers and sailors at a
much smaller cost than can corpora
i1ious. OF course the $4,000 insurance
given free would be a direct loss, but
pensions, it is argued, would be much
more costly in the long run.
Mt. Sweet will see heads Of in
.surarce companies in New York within
fhe next few days 10 discuss the
plans