Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1919-01-21

I claim TO be cultured people, MOI
shall we be equipped to carry on com
merce with the balance of the world
In our own private and parochia
schools sufficient course of English
should be carried. This should in
clude reading. writing, American his
tory, and civics. This is clearly in
the interest of the children, but moth
| ing should be done that will in any
way interfere with religious instruc
tons or religious services. / take
the position that he who prays to his
Deity shall have the right to do so in
the language of his own choice. And
! again, it must be understood that the
right to carry on religious services in
foreign language shall not be used
as propaganda against our country
and its institutions.
State Life Insurance.
l wish to call your attention to the
conditions of the state life insurance
fund, and in that connection / sub
NIT the following report which l have
received from the Commissioner OF
Insurance:
"In 1911 section 19S9m was enacted
This statute provided for State Life
Fund to be managed by the state
without obligation on the part of the
state except to the extent of the fund.
Policies were issued in 1913-at the
end of that year 239 policies had been
issued granting $147,50000 of insur-
ance.
I'm 1914, SO policies for So, 10000 of
insurance were issued and policies
for 100000 insurance lapsed. In 1915,
II policies for S70,500.0O insurance
were issued, 2 policy-holders with
100000 insurance died, l surren-
dered and 5 lapsed. In 1915, "a poll
cies for $S0,200.00 were issued, /
policy-holder died. surrendered and
IA lapsed. In 1917, 81 policies for
S21 100000 were issued. / surrendered
and lapsed. In 1918, IL policies were
issued, people with 100000 of in
surance died, people with 100000
insurance surrendered and people
with 100000 insurance lapsed.
There are in force 461 policies for
$379,700.00 of insurance.
1.-THE Insurance Department has
Kept UP a continuous campaign for
business through circularizing avail
able ists-state banks and local Off
Gals do not send in business"
It will be observed that the fund is
now carrying a total of $379,70000 of
insurance. The total assets of the
fund on January 1, 1919, were $685.
676.08. The death losses for the year
1918 exceeded the expected by about
40 per cent. With so small an amount
of insurance in force sharp fiuctua-
tons in mortality experience are like
ly to occur. A few years of unfavor-
able experience would deplete the
surplus and impair the reserve. The
state is liable only to the extent of
the fund and if the reserve is i'm
paired the policies are not worth one
hundred cents on the dollar.
The state should not continue a sys-
tenn of life insurance that does not
guarantee the full value of the policy
i'm fact if this type of insurance is
permitted to continue l would regard
it as a moral obligation on the state
to make good any loss that the policy
holder might sustain for the reason
that the policy was sold by the state
and that in itself should be a guaran-
ty against any loss by the policy
holder and am certain that it was &C
cepted in that spirit.
This fund is based upon the theory
that desirable life insurance risks vol
unfairly seek assurances. That theory
is unsound - they do not do so. If
this enterprise is to prosper and grow,
as it must to have a normal expert
ence, it must have an organization for
soliciting business. If the expense of
such an organization is incurred the
fund can offer no inducement not Of
fered by privately managed life insruu-
ance companies and fraternal socie-
ties.
The present po1icy-holders can be
fully protected and their policies
guaranteed by reinsurance in a re-
sponsible company. Their present as
sets are sufficient for this purpose.
l recommend that you repeal the
statute under which this form of life
insurance is being carried and direct
the Insurance Commissioner to rein
sure the present policy-holders in a
reliable company.
"Blue Sky Law"
Tho oP 1919 ooce17 ~-Io&
is commonly known as the blue Sky
Law" Its purpose was to protect the
people Of the state against false repre-
sensations in respect to the value of
stocks and bonds that are offered for
sale to our people.
In the administration of this law 1t
is found that it is always difficult, and
sometimes impossible, to determine
the value of the property that that
type Of obligation frequently repre-
SCENTS, particularly when the corpora.
tons that issue the securities are dom.
iciled in other states and the property
is also located elsewhere. Whenever
permits are given by the Railroad
Commission to sell the securities in
the state, the public accepts that
fact as an endorsement by
the state which is interpreted to mean,
and Is frequently represented to
mean. that the corporation has been
investigated by the state and that the
stock certificates or whatever form of
security may be offered truly repre-
sents property values in the sum In
corporated in the certificates.
Briefly stated, the right to sell Sc
curity to our people, the value of
which could not be determined, is fire.
qnently used as an endorsement by
the state Of a security that is either
valueless or fraud.