The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1921-01-18

or Brain
Iunsulr anace
ny MARION r. CUMMINGS

Nbbtd NiAtih VI lNAt 's~'" - $50 1900,
or your stock OF goods that had been
purchased for low figure if you
were manufacturer. you might
think OF some special machine that
was doing wonderful work. or your
new factory with It's labor saving do
vices. etc. In these times. when the
most active and up.to-date concerns
have been giving attention Co eff
cheney methods and cost prices. com
paratlvcly few have examined their
business from the productive and
earning power standpoint Arc you
prepared 10 name the most valuable
asset In your busincssi
THREE ESSENTIALS
An analysis OF any successful
business would reveal the fact that
II comprises three elements.
CAPITAL. EQUIPMENT. BRAINs-
These three essentials In tho
right proportions arc guarantee
OF success in any enterprise. Fer
manrnt saeees. Requires the main
trnanec OF each.
Capital whether you are a farm
er. merchant or manufacturer.
" - HEEfANAfV TO nave W.
tain amount 81 capital Sometimes
this Is borrowed money. sometimes
Il In acquired by Industry and econ
omy. Capital at the going rate OF
interest may DO figured as earning
about six or seven per cent. that !.
safely expect TO realize
Eauipm~st consist. Of the M
lures. tools. machinery or stock in
trade. Although Equipment must
DO renewed from time 20 time. "
can be done. BY an outlay OF money.
stances would be worth about ak
per cent
Brais.. or the skin and ingenuity
which direct. arc an essential with
out which capital and equipment
would have but little economic
value. When credit 10 good. u Il
easy 20 obtain additional funds for
either capital or equipment. brains.
however, cannot 80 easily be val
ued. and arc much more difficult
20 replace. In view 81 this fact.
possibly the success. Of your bust
two men whose know ledge and
ability constitute an Invaluable as
set.
Does your business earn from 10
20 IS per cent annually II your
capital 10 worth only per cent
and the money represented BY
the Investment on your equipment
Is worth about the same. Il u not
difficult To determine the value OF
brains as a contributing factor.
Probably ono Of tho most fRmii-
lar illustrations of the value Of
brain ia a business "a tho case OF
ys sS'ea How e G mSss s ps som Sss
would have lost financially ~ he
had been taken away Is OF 20
years ago would be difficult
and most Interesting maihema,-
Issl psoe ssr him Ak 70 live IS or
years longer, with his health snd
energies unimpaired. undoubtedly
equally favorabie results would
accrue. You say this is an un-
s snash.s wb.rs ' H. yaun. srafsss
man with limited experience con-
cetssd the idea of constructing q
tunnci In a mountain 30 as 90 over
come a grade which was almost an
imposribls barrier to the progress
Of tranacontln.ntal railroad.
This young man. before he was
ss years old. designed tho famous
'-Corkscrew tunnel In the canafi-
an Rockies whereby the track OF
tho railroad Was made 70 wind
around the Interior of tho noun
tain. thereby accomplishing some
thing which had never been thought
Of before. Unfortunately. the young
man died before the work was fully
completed. but that which he planned
was a success aud stands out as a
monuns nj 10 his SKIN and ability.
Who can value the brains and abii-
ity that were lost To the Canadian
Pacific railroad thru the untlmely
death Of this young enginecrf
That lpsurinE the brains % bust
ness H. important IL apparent when
~
pun'a mercantile agencies make Il
rule 10 continue the fun credit
rating % n corporation in the event
OF the death OF one Of the important
mem bars OF n concern when business
Insurance f. carried. II. however.
there 10 no business Insurance. tho
rating IL suspended until matters
are readjusted and u IL known more
accurately how the death viii affect
the affairs OF the company imam
ciaily.
A few r~sssss WY busisess sv-
Enaisations should carry this pro-
teefive form of iasuraneei
fa) To protect credit
(b) To cover debts or special obii-
cations
(e) To provid. capital which win
bridge over the unsettled condition
resulting from death. and partially
compensate for the loss OF some
master mind
td) To protect the indorr-rs OF
the concerns paper or an issue OF
preferred stock or bonds
(e) To fortify the ent.rprir.
against the death Of a silent part
ner. or OF one who otherwise gives
IL financial backing.
90 To create n surplus which may
be used to acquire the interest OF
any member who dies. thus insuriug
an uninterrupted continuance Of the
business.
(g) The technical knowiedg. OF
some valuable employe. suddenly
removed by death. might seriously
cripple n business. and here again
life Insurance payable to the firm or
company is desirable.
(h) To provide. as sound bust
ness proposition and entirely indc-
pendent OF the question Of death. n
the cash or loan values OF the poll
ciea, which may be used TO buy out
the interest Of retiring member OF
the concern, or to mature an Issue
Of bonds or to exunguish floating
obligations.
Tho interest earned by the com
pany upon this reserve or cash value
gradually reduces the premium cost
by increasing the dividends 40 that
each year the Insurance. u kept in
FORCE inf net payment ~ fnaus
smaller. II at any time u Is deeir-
able TO terminate the policy. tho
cash available would bring down
the net annual cost TO about the
same as fire insurance upon stock
Of goods.
The need 81 ftrs and marine In
surance TO protect perishable prop
erty. and the need Of life insurance
10 protect the family. are univer-
sally recognized. The value Of life
insurance 20 safeguard corporations
and business enterprises VIII be
found upon investigation to be
equally important
The death OF men closely identi-
fled with a business must result in n
shock TO organized and efficient OPP
GRAFTON. and means finally "A distinct
pecuniary loss. Therefore. 10 ia wise
and prudent for every concern TO in
sure the lives Of those men who arc
vital TO Its success.
In the ultimate analysis, with
every policy that Ia written. one OF
three things IS bound 10 happen
the holder will live, quit or DIE. If
he lives. as we have before OK
planned. n substantial asset Is being