The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-05-14
Big Insurance Bosses
Cheat Own Agents

charge"
The labor turnover in agencies is
abnormally high, the agent in un-
derpaid, overworked and is constantly
supervised by an army Of company
spies assistant manager"
In the home offices of these COM
panies thousands of clerical workers
are frightfully underpaid, fifteen
dollars a week being the average
wage. In addition to the wage the
company throws in a free luncheon
in which water plays a predominant
role.
All efforts on the part of the field
or home office employees to organize
has been met with ruthless suppress
sion and wholesale dismissal.
Of course there are company or
CARNATIONS such as the company
brass band and the company the
atrical company at which everybody
has a good time and all are hope
lessly patronized by the lesser Of
ficials who are compelled to attend.
In conclusion l list briefly the case
against the "Big Four" weekly pay
ment life insurance companies.
To begin the mortality table on
which industrial life insurance pre-
miums are based are more than 40
per cent inaccurate. The table used
by these companies is incorporated in
the New York State Insurance Law.
The rate Of expected interest as
sumed by these companies in COM
putting premium charges is 8 per
cent whereas the actual interest re-
turn is nearer 6 per cent. This false
Understanding assumption is also
embodied in the law.
While the "Big Four" are supported
to be mutual or cooperative COM
panies the machinery of administra-
ton is totally in the hands Of a
group of Wall Street financiers who
not only benefit by the enormous
power which they enjoy as directors
of these companies, but in addition
they are also directors or officials of
the hundreds of railroads and public
utility companies in whose bonds and
securities the billions of mutual"
funds are invested. In addition to
this we find that most of these COM
panies are vitality interested in the
banks and trust companies which
handle their deposits and securities.
Due to the enormous overcharging
of policy rates and also to the harsh
and iniquitous policy conditions the
insurance is dropped at the slightest
misfortune or period of unemploy-
ment. rs per cent of all weekly
premium insurance lapses before it
is three years old, and only per
cent of all endowments mature for
their face value.
The superintendent of Insurance
in the State of New York is more
than lenient with these companies
and permits insurance practices
which are illegal and dishonest to
go by unnoticed. Many past super
intendents have been taken care Of
oy the "Big Four" and it is assumed
that unless the workers take over
the operation Of these companies this
will continue indefinitely.
Assets Mount.
The presence of the board of direc-
tors Of Frank p. Noyes, president Of
the Associated Press makes it i'm
possible to get any capitalistic news
paper to expose the fraud practiced
by this plunderbund.
As things are constituted at pres
ent the assets Of these companies will
continue to pyramid until, at the
existing rate of increase, the assets
of the "Big Four" will be over one
trillion dollars in 1877.
At the time Of writing their assets
are greater than the entire currency
in circulation in the United States.
AS these assets are mostly in the
form Of quick securities they could
be liquidated within as hours and the
country thrown into most hopeless
panic If it so suited their ends.
As the evils in the weekly payment
life insurance business are ones
which are embedded in the laws of
the state nothing short of legisla-
tive investigation will bring about an
amelioration of the unfair conditions.
TO achieve this end the millions
Of American workers who are de-
frauded under this system should
see to il that sufficient pressure is
brought to bear on "our" legislators
which will eventually result in the
much to be desired investigation.
The facts contained in this series
Of articles are only those which are
attainable through public documents,
what legislative enquiry will reveal,
Is an interesting thing to think about.
Time alone win tell.