Evening journal., 1920-04-16
INSURANCE RESULTS NI9I9

Ths AsnBrcss - up He fnBr.noe
oumpanios-er even moro OF policy
AcfAuu Of life insurance companies. In
the oase Of uutrA companies-sn the
general prosperity Of the country and
OF lis economic institutions, railroads,
industries and farms. is direct and
vital. There are today not far from
fifteen million individual life Insurance
policies in existence IN the various oom-
panics Of She United States, including
not merely those operating In New
York state, but all others. Even s1lov-
ing for duplicatiors, 10 is conserva-
tive estimsic 10 say that fully half Of
the population ol the United States is
more Or less directly concerned with
ordinary life Insurance policies. Every
holder Of life Insurance Is Indirectly an
insesler, and there arc. therefore. fully
ton million Of these investors in the
United States. Their Investments, in
the form Of payment of premiums,
amount 10 approximately a billion dol
lars a year. They represent Every class
Of the community. from The richest TO
he poorest. ali Of Whom. from what
ever motive they have taken out in
surance. are perforee interested in the
stability and prosperity Of ihe institu-
lions OF the country. t. political and
economic organization
Life Insurance companies have ten
per cent. OF more Of their assets fnyesi-
cd in government securities, and IL isl
obvious that they and their policy !
holders are now directly concerned IN
Everything which affects the price OF
such securities. Prospects OF new is-
sues that might depress the prices Of
those alreody outstanding; income or
other taxation affecting the demand for
The bonds; individual extravaganza /
that oauses bondhOiders 10 part with 1
their investments governmental ox- /
t-avagauce that keeps up the volume
OF the public debt: thees and all other
perthent factors are OF importance to I
the insurance oompanios and TO the
holders OF their millions OF policies.
10 is by no means true, however, that
the holders Of insurance are keenly in
terested in government finance, merely
because ten per cent Of the companies
assets are ia government bonds. The
value u all assets IS distinctly ar
feoted by fiscal and financial policies OF
governmental bodies. In current dis
ol'ssicns Of the per cent gross yields
20 investors that such substantial rail-
roads as the Pennsylvania and the New
York Central are having 90 pay In re-
cent issues Of bonds and equipment
trust notes, respectively. the important
bearing of the income tax on the net
yield must always be emphasized.
These roads are paying 7 per cent. 10
investors moi beoansse capital OF itself
needs per cent attraction 20 induce
1t TO come forth but because capital,
taxed all the way from a few per cent.
TO two-thirds Of lis income. must seek
q large gross yield II net yield is 10 be
a reasonable amount The poorest in
gestor whose investment takes the form .
of an insurance policy, therefore, comes
to have equal proportionate interest I
with The richest in government eco
nomics and IN a sound economic strur-
lure, by very reason Of his investment
In insurance and his Interest ia the
value Of those assets Of his Insurance
company which his own and thousands
Of other premium payn1Ss make pos
sihle.
New York Statistics
A study Of New York STATE NE in
surance statistics and results for 1915
reveals among other things. these four
striking facts:
~ The net smount 81 Insurance
h, the increase In poll.
sies outstanding after deiuchious FOR
t'aths lap7es, eto-during the year was ]
sreater than the total amount OF now
insurance written during any previous
year. =
go The average size OF tsle ordinary
lie insurance policy at the enl OF The
iear was about 5000. compared with
4 $3.50 at the end Of 1918 and only 81. $50
Il the end of 1915;
t3) The amount Of ordinary life poll
hes in force with insurance compan- :
es operating in New York was nearly
= billion dollars;
~ The total admitted assets"-vir-
'ualiy gross assets--of these same COM