The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1922-01-13
compensation to such community, /

IKE insurance contract liz IT'S power tC
extend his estate beyond the life of
the policyholder. and maintain its In
tegrity. in spite Of the certainty Of
death. 1t differs from every other
form OF indemnity. because it IL as
eurance against the happening CT a
contingency certain to occur. A fire or
accident policy may mature a. q claim
or may not. These forms Of indemnity
are based upon the probabilities Of
accidents. and the premiums are cal
culated from the averages Of expert
cnce. The life contract is a contin.
Jung assurance Of indemnity against
an event certain. and under the law Of
averages. inevitable, at a fixed date,
though not determinable in advance as
to the individual maturity.
In 1905, during the New York inves-
legations. and for several years fol?
lowing, the citadel CT life insurance,
then represented by the largest aggre-
gate Of fiduciary capital which enter
prise and enius had ever accumul ated,
in single line Of undertaking. was
attacked by legislation, by dema.
gogues, by self-seeking and self-serv-
ing interests OF great wealth. and by
similar ana ingenious malevolence. The
newspapers Of this great country, the
inuckrakers in nearly all the maga-
zines, the statesmen big and little in
states and nation, and the president of
the United States, united in senti-
inent Ct antagonism. Many persons
were frightened away from the bene-
ficient and misused institution. At
tempts were made in courts. inl egis-
latures in congress, and in combina-
tions of wealth, and by the most men,
de cious propaganda. to undermine and
overthrow this tremendous fortress of
protection.
It survived and stood forth after a
ten-year war of utmost violence UNI
sullied and supremely solvent. No
bank of England, or Federal Reserve
System would have maintained its A.
nancial integrity against the attacks
made upon the institution Of life in
.urance. Not one policy contract was
repudiated. scaled or postponed by rea-
sen of this unparalleled situation
This magnificent demonstration Of
the soundness of the principles. the
safety Of the trust funds. the perpe-
tCtty of the organized beneficence
which American genius and human
| prescience devised and constructed, is
the most phenomenal commercial fact
in all history.
When the United States became in
volve in the world war. the integrity
OF the life insurance contract was
again assailed. Contracts based upon
| reace conditions without anticipation
| &C war losses. were confronted with
dire possibilities. before the Armistice
| brought about cessation Of the
1o,, ,~.>0s ~ n
v ide. epidemic Ct influenza was expe-
licnced and the normal mortality of
| the companies was doubled and in
| many instances redoubled. Again the
institution demonstrated It's marvellous
perfection as a business enterprise and
rot a single contract was repudiated
Ter loss scaled.
The United States assumed an ulti-
$4,000. coo, 900 upon the lives of it's
gal reserve net premium, only. for its
proposed indemnity. The greatest and
richest government ct the world stood
hack of its contracts and based Its
ability to meet unheard Of possible
los ses upon legal reserve life insur-
ance principles and the American MOI.
tality tables with 3s per cent interest
| Again the foundation of the NEST woH-
de rful business n the world was sncwr
| ia be sound. The government has car.
RED it's tremendous risk without add.
| ing a dollar to the net premium rates
| fixed by the experience CT the compa.
MES. assuming voluntary the expense
element. but standing safely urol tht
mortality tables and the reserve.
| which life Insurance has made tin.
groundwork Of it's great growth ant
| its history and beneficence.
In passing. it may be fur'cer re-
marked that tho government has dem
onstrated anew IL fact long N'rcwo Il
Tie life insurance companies. The fac
that life insurance is not bought bu
r,ust be sold. The forty billions writ
ten under the pressure of w:r oppor
tunities and conditions. has tapsed Il
much less than one billion. because il
the parlance of the business. the poll
cies of life insurance taken by soldier
and sailors were not sold. The per
sonal appeal secures and saves tn
policy and protects the beneficiary. Nd
vertising, oratory and statistics ar
ineffective unless they are followed II
by the solicitation of the life insn"
arces salesman.
, The life Insurance companies O
America with all their aggressivenes
have succeeded in writing only ahc,l
s27 200. O0O.O of ordinary legal re
serve life insurance. which mean
about 5000. 100000 policyholders. Thcs
. figures do not include some $4,000
0Oo. 600 Of industrial life insurance o
, perhaps 100000 policyholders Thel
e are not less than 50.0O0.0OO of insura
lie people in the United States an
p every day new host reaches the ir
n srrable age. "The field is white unit
: the harvest but the laborers are few
f &C impaired to the opportunities for SUE
: cessful soliciting.
J. The Importance. yea the nccessit
), of legal reserve life insurance, is no
= an accepted fact. The unhappy exp
z iience of fraternal societies and a
= assessment associations. has brougl
q home to insurers everywhere, the val,
d Ct the legal reserve system. All ter
e porary makeshifts have gene. or W
s go later. into the discard. and life i
- surance as exemplified by the old III