New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-21

One statement in the contribution OF pf.
Cox calls for correction He says that the
representatives of the insurance companies
who were called into consultation on the
problem of war insurance declneu 10 as
sumo the risk at all and recommended thsV
the government insure the soldiers MS
would be extremely interesting and sIgnln-
cant If true. The fact is, however, that the
advisory committee, representing the lie ana
casualty insurance companies, strenuousiy
opposed the proposal of government lnsur-
ance, as embodied in the third part OF the
Administration bill. In a communication
to the President outlining the proposed piah
Secretary McAdoo comments as follows upon
the attitude of this committee of insurance
representatives:
"They opposed the grant Of any govern
ment insurance over and above the compen-
sation, on the ground that the other provi-
sions were liberal enough, and might be
made more liberal in ways suggested py
them. They favored, over and above COM
pensation, the payment by the government
of 81 900 in each case of death during SER
vice, or within FIVE years after discharge
from the service, to such beneficiary as the
man NAV nominate, or TO his estate, in lieu
Of insurance.
zone of their fundamental objections to
the proposed plan Of insurance whereby any
man in the service can purchase from sl,oOo
to $4,000 of insurance was that this gave an
opportunity to the Weather men to get
something which the poorer men could not
obtain. They admitted that they had failed
to ascertain the premium rates to be charged
under the plan contemplated. This objec-
/ he o
the Actuarial Society of America stated IN
their presence, in response to my question:
that the premium rate to be made by the
government during the war would be between
81 and IS per 81 900 of insurance. This rate
would make the cost of $4,000 insurance
only $50 a year-and only $40 year for half
that amount-and would enable practically
every private to take the maximum amount
1t is pertinent to state in this connection
that the work of preparing the war insur-
ance bill was performed, not by committee
representing the insurance companies, but by
committee of the Advisory Commission OF
the Council of National Defence, appointed
by Samuel Gompers, chairman OF the COM
mittee on Labor Judge Julian W. Mack
of Chicago, was chairman of this committee,
and among the members were Captain ). h.
Wolfe, the well known actuary; T. Tecumsen
Sherman, Frank Whiting, j. W. Sullivan, u.
L. Cease and the writer.
The opposition of the insurance compa-
MES to the insurance feature of the pro-
posed measure was naturally to be expected
The plan will put the national government
into the insurance business on large scale
This unprecedented extension of govern
mental activity is, of course, viewed with
grave disfavor by the representatives OF the
private insurance companies. 1t IS evident,
however that the only way in which this war
insurance can be provided economically and
satisfactorily. is through governmental
agency. Incidentally, it may be remarked
here that the government will be forced by
the compelling exigencies of the war situa-
ton to undertake many things which doc
trinaire economists and practical business
men have insisted that it could not or should
not do Already the government has as
sumed the function of regulating prices and
is taking over the control of distribution
and production, at least with respect to
staple commodities of common consumption.
The New Regime
Whether we like il or not, we are entering
upon a new era of expansion of govern
mental activity in relation to industry. At
the same time the claims of labor are re-
ceiving larger and larger recognition, and
it is clear that the time is fast approaching
when labor will be admitted into real and
equal partnership in the direction of indus
trial operations. Moreover, these epochal
changes, once accomplished, will not be re-
pealed or undone after the close of the war.
The new regime that is rapidly evolving
itself, once established, will not be over
thrown by the return of peace. In conse-
quence of the war, industry will surely be-
come democratized and socalized to a de-
gree hitherto undreamed Of in our Ameri-
can economic and political philosophy.