The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-03-20
Policy on Morgan's Life.

New York Times: J. P. Morgan has
taken out the largest life insurance
policy ever written in this country
outside the group insurance field. 1t is
for $2.500.000 and calls for annual
$4,000 The New York Life Insur-
ance Co. is handling the business,
which will be reinsured in large part
among other leading companies.
Mr.. Morgan's purpose in seeking the
huge policy was to supply an Offset to
the inheritance taxes to which his
estate will be subject. Payment will
be so arranged. it is said. that either
the state Of federal treasures. or both,
will receive the net amount Of the
policy. In so far as the banker s
wealth can be estimated. the sum of
81, 500, 900 would by no means cover
both taxes, but 1t would meet the New
York State impost on many millions
OF dollars.
Considering the current rates of
taxation, as applied to legacies OF
direct heir. the insurance would pay
the state tax on an estate of $685.
$50. 1t would meet the federal tax on
an estate of $1S.256.666. and If divided
between the state and federal taxes,
an estate amounting to $14,957 ,63l
would be accounted for.
The policy is written by Harold Pierce
a general agent Of the New York Life
in Philadelphia. 1t is understood that
he previously insured Philadelphia
members Of the Morgan firm and
through the connections made in this
way was able to interest his richest
prospect. Mr.. Pierce has been in this
city for several days closing up the
details.
Mr.. Pierce has long been known in
insurance as the million dollar policy
writer" and it is a legend in insurance
quarters that he once got George w.
Perkins to sign an insurance applica-
ton at a dinner when other diners
were getting Mr.. Perkins signature on
their menu cards. Mr.. Perkins at the
time was an officer of the New York
Life Insurance Co.
The writer Of the Morgan policy
stands to secure substantial. return
from his efforts. Experts figured yes
terday that he would get as his re-
Enumeration from the first years prem
ium about 55 per cent Of the full
amount, of SCI, 800. and in the second
year 30 per cent of $22.400. Thereafter
his return would be on a monthly
basis for a long period.
Insurance men said that Mr.. Morgan
was considered an excellent risk" He
is in his 50th year and the proof OF
the care he has always taken Of him.
self was presented by the quick re-
coyeries he made from the bullet
wound inflicted more than year agk
in his Glen Cove home and from the
operation for appendicitis a few
months ago.
While details Of the reinsurance
phase of the transaction were not OBJ
tainable yesterday. it was estimated
that the New York Life would under
write about 20 per cent OF the total.
$685. 900. and that the balance might
be spit up in approximately these
Mutual Life. $25O.OoO: Metropolitan
Life. 100000 to $25O.000. and the
Equitable Life about as much; the
Prudential. Penn Mutual. Aetna, Union
Central and Mutual Benefit about
100000 each: the Travellers, $75, 900;
the Connecticut Mutual. 100000; and
the Fidelity Mutual. Phoenix Mutual,
Massachusetts, Mutual and Provident
Life and Trust $4,000 each; the
Connecticut General. $4,000; the Birk-
shire Life, $4,000; the Home Life,
$25, 900, and the balance of more than
5000, 900 would be split up among other
concerns.
The next largest individual life
insurance policy is that of James c..
Colgate, the banker. who carries ST.
500 ,000 Among the other large policies
are: Guglielmo Marconi. 100000;
August Belmont. 100000. and II. p.
Dawson, Mr.. Morgan's partner, who is
insured for 100000.