New-York tribune., 1920-12-10
Ten Billions In
Life Il1staranlc
Is 1920 Gain
BY Far the Greatest Near in
the History Of Companies
Doing Business in Z. S.
Marked by 2lWo Increase
Shows National Thrift
More Than 2 Billions Invest
Ell by Concerns in Mort
cages During II 8lontlfs

ed by Concerns in Mort
cages During II 83ontlfs
Despite the spirit of retrenchment
in the United States, which is reflected
by complaints from various centers Of
production, the people Of the country
are buying $4,000 100000 more this
year in life insurance than they did
last year. This represents gain OF 81
per cent over the amount Of insurance
sold last year, and 1919, in turn, ex-
ceeded 1913 by G2 per cent
These statistics were submitted yes
torday to the annual convention Of the
Association Of Life Insurance Presi-
dents at the Hotel Astor by George !.
Cochran, president Of the Pacific Mu-
tual Life Insurance Company, Of Los
Angeles. Mr. c0chras further pointed
out that the total insurance in force
on all American lives nineteen years
ago was only 50 100000, 600, or less than
the present years new insurance. The
statistics quoted by the speaker were
contributed by 15s Companies, doing
9G1a jer cent OF the life insurance
business in the country.
Insurance World Amazed
Last year, Nh Cochran SAID, "the
insurance world discussed with 3ncon-
ccaled -amazement the tremendous in
crease in new life insurance bought by
the American people, analyzed it and
sought to understand the reasons for it.
This year we are moro than surprised
to find a still further increased vol
ume Of new business.
Last year, which vastly. exceeded
previous records in volumre Of new life
insurance, was the biggest year in ex-
traVagance, and the people seemed To 20
the limit i'll almost proHigate individual
Expenditure. This GEAR. being one Of
thrift and retienchmcnt, lit Was hardly
expected that the large volume of life
insurance business would be kept up.7
An interesting phase cf the insur-
ahcc business was touched upon bv
Haley F.ske president or the Metro
politan Id1c Insurance Company Of
this ely. when he declared tha5 in re
sponsc II the nation-wide CIV for
ehclter and reduced living cost the
lie insurance companies of the coun-
try for the first ten months OF the
year had loaned more than S230000.-
900 on city and farm real estate mort
cages.
The total investment in farm and
other mortgages throughout the coun-
tly to-day. The speaker declared. is
S2,Da2 ,00o,090, and commitments have
been made ior many millions more
Real estate mortgages form more than
20 per cent Of the assets OF American
HE Insurance companies. Railroad Sc
culities are second with 2S@, per cent,
and nearly 20 per cent os the total as
sets are tled Up in federal. state,
county and municipal bonds
substantial reduction Of taYes is
not possible in TIE near future. Sc
cord'0e to Representative Nicholas
lon%Worth Of Ohio, who was one Of
the speakers at the afternoon session.
Predicts Far Taxation
Our Immediate problem" Repre-
sentative Iongworth said otter an am
alysis of the governments fiscal situa-
uon, "is The revision and modification
and slmphilcation OF present law, ana
taxes fer the prcsent taxes. which to
my mind are in many respects unfair
and improper"
The speakcr predicted that CONGRESS-
would slice in the ncighbcsho0N of e.
billion dollars from estimates aegre-
eating more than four billions. pre-
sented by the executive derartlnentI
! when Congress opened That would
not permit; however, he adled. any
general reduction in taxes. and Con-
gress faced the task OF finding ucN-
sources OF revenue which could be
substituted Tor existing tuxos, which
should be abandoned or modified.
After declaring The customs re-
c.eipts were too low. Representative
longworth characterized the excess
profits tax as "A tax on brains and
ABILITY and efficiency OF management.
and declared it should he repealed.
Ihcre arc Two substitutes for this
tax, he pointed out. now under com
m1ttce discussion. They arc sales
tax or tax on the undistributel I
profits Of cofporaticns
The relation OF the insurance com
panies to the grca. railroads was dis
cussed by Daniel willard. president
Of the Baltimore &. Ohio Railroad.
Addresses also.Ner, made by +. II.
Ellsworth, president OF the National
Convention of Insurance Commission
ers' Of Lansing, Mich, who spoke on
"The Progress Of Insurance Throuch
Cons tructiVe Regulation" and William
a Hutcheson. president Of the Ac-
tuarlal Society OF America. whose sub
iect was "Sonc Facts in the Develon-
mont of Life Insurance in The Unjted
States.' Fred A. Rowland, of Mont
relier, VI, presided at the days ses-
sions.
The delegates Will meet again TODAY
at the Astor whom several leadcrs in
the insurance field viii sneak. Alex
ander G. Humphreys, president Of Ste
Nens institute Of Technology, also
WI VIII make an address on "Mcntal
Thrift"
Lake Says biggest job.