New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-28

Mr.. F. Spencer Baldwin's communication in
your issue of August 81, entitled Against
Group Insurance" suspects me Of being aea-
demic and unacquainted with the practical
side of the problem, so that the clay mind" is
confused By me. In reply to this, permit me
to confess that have had much TO do with
colleges. and am to that extent academic, but
to say, also, that have been for two years a
practical insurance man, though am not an
official of any company.
Mr.. Baldwin says that apparently the
writer myself sets out to criticise the pro-
family allowance for soldiers and sailors on
the ground Of expense" etc. Mr. Baldwin has
misread me. Not only was my article written
scme days before the bill was made public
but | quite heartily approve of most of the
provisions of that bill and should deeply re-
gret to see it fail. It will have my earnest
support in nearly all of its provisions.
Mr.. Baldwin objects to group insurance.
But all insurance is, properly understood
group insurance, since no man can be insured
by himself. He certainly cannot object that
| would be parsimonious, since he points out
that my plan would cost more than that ad-
vocated in the bill. | have no desire to be
controversial, but Mr.. Baldwin has challenged
one Of my statements: That the representa-
tives of the insurance companies who were
called into consultation on the problem of
war insurance declined to assume the risk at
all, and recommended that the government
insure the soldiers This" he adds, would
be extremely interesting and significant if
true; and then he quotes Secretary McAdoo's
communication to the President in submitting
the tentative bill, in which the opposition OF
the insurance companies to Article " of the
proposed bill is somewhat stressed.
The Companies Did Decline
Now, my statement was that "the companies
declined to assume the risk and recommended
that the government insure the soldiers" The
companies most assuredly did decline to as
sumo the risk. A prominent insurance official
said on July 3, presenting the opinion of his
company: "No part of the new insurance for
our fighting forces can be paid from the funds
Of our present policyholders. The entire
mortality cost must come from the premiums
on the highly hazardous class insured This
cost must either be paid by the men them
selves, by the men and the government COM
bined or by the government alone.
"All that the life insurance companies can
consistently offer the government in this case
is the use of their organizations and ma
chinery at actual cost.
IF the companies should be given this work
a safe charge must be made. II the actual
cost should fall below the amount collected
the excess should be returned at the end of
the war, and the government should guar
antee to make good the deficiency if the
charges proved inadequate to cover the cost"
There had been at that time no suggestion
on the part of the government that soldiers
should be required TO pay anything, so that
the attitude of insurance officials must be in
terpreted with this in mind. THE question
OF what would be the best course to pursue
and what would be the attitude of the COM
panies if there were inserted in the bill any
benefits in connection with which the enlisted
man paid part or all of the premiums or cost
was not presented to the conference (State-
ment of George +. Ide, July Is, chairman Of
the insurance committee appointed by the
Secretary of the Treasury This seems to
me to confirm my claim that the insurance
companies declined to assume the risk.
As for the statement that the companies
advised the government itself to insure SOL
diers, this is in no wise invalidated by the un-
Geniable fact that they did not advise what
is contained in Article " of the bill. That is
another matter to which | will shortly turn.
What the companies in effect advised, as can
be proved from the remarks of Mr.. lde, before
referred to, was, though did not know it at
the time practical group insurance of the
kind advocated by me-namely, death ben