The Washington herald., 1920-12-29
OPPOSE FORCED
INVESTMENT In
STATE SECURITIES
Risk Heads Say Better
Plan to Make Policy
Loans.

In the fourteen years Of its ex-
istence the Association of Life In
surance Presidents has grown
steadily in membership and use
fulness, and today is recognized
as one of the most constructive
bodies in the realm of American
underwriting. says the National
Underwater. The annual gathering
of the organization held in New
York last week was better at
tended than any former meeting.
leading company executives being
present from every section of the
land. and from Canada as well.
The "Betterment of Life Insur-
ahce Service" supplied the keynote
Of the gathering, men of eminence
in the realms of education. finance
and statecraft as well as in in
surance giving their views as to
how the end sought could best be
obtained. The wonderful progress
made bys life insurance in the
United States In the past rs years.
and more particularly in the past
decade. was recited by a number
Of the speakers, while others
touched upon outside interest in the
operation of which the life insur-
ance companies had a very positive
concern.
An especially comprehensive his
torical review of the development
of life insurance in the United
States was given by William A
Hutcheson, second vice president
and actuary of the Mutual Life OF
New York and president of the Ac-
tuarial Society of America.
Longworth Talks of Taxation.
While members Of the Association
expressed their Endorsement of the
objection voiced by Representative
Longworth to the present excess
profits tax levied by the Federal
government, and with his views as
to the need for a complete revision
of the present tax laws, they heard
with regret his statement that the
near future holds no hope for
modification of the total tax i'm
post, the fixed expenses OF the ma
tional government precluding any
such result
The fear was felt by a number OF
company men that IL the suggestion
favored by Mr.. Longworth OF levy
ing a tax upon the undivided sur
plus of corporations were carried
into effect it might mean consider
able further trouble for the life in
surance companies, the thought in
the minds of many public men be-
ing that surplus accumulation rep
resented profit, whereas so far as
life institutions are concerned, they
are reserve accumulations to be
drawn upon in case of emergency,
and that such emergency can arise
is evidenced by the experience two
years ago, when all companies suf-
fered excessively through the in
fiuenza epidemic.
Evils of Compulsory Investments-
A fitting reply to those Legislators
throughout the country who would
compel by legislative enactment life
insurance companies to invest per-
centage of their funds in securities
in the different States was made by
President Fiske, of the Metropolitan
Life, who clearly pointed out the
unwisdom of any such policy. I'm
der certain broad restrictions i'm
posed by statute, Mr.. Fiske said life
insurance companies sought invest
ment of their funds with a primary
view to safety, rate OF interest, gov
ernmentsl and municipal needs, and
the necessities of the policyhold-
ers. The most secure of all forms
of investment was that of policy
loans, and 12 per cent of the entire
sccumulations of the companies is
invested in such direction.