The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-05-03
Continued from Page One)

about four billion dollars,
While the size Of the assets are adj
mittedly high, they do not give
evidence Of the power implied there
in. The danger to the economic life
Of the nation lies in the character and
condition under which these terrific
sums are held.
The day is long past when hanks
constituted the greatest menace to
the control of industry and produc-
ton. Standing behind the banks are
these colossal insurance combines
with their billions of dollars of liquid
capital.
Modified Menace.
Liquid capital-therein lies the
menace. For whereas other anti-so-
cial combines such as the Steel Trust,
the Oil Trust and the Automobile
Trust control enormous amounts Of
capital, such capital, is Of necessity,
tied up in real estate, machinery and
stock. This condition does not exist
in the case of insurance assets.
Where the former are essen
TALLY borrowers of capital, the "Big
-Four" are lenders.
On November 31st 1925 these four
public plunderers had on deposit in
their controlled banks throughout the
country over $4,000, 100000 in cash.
No one but child will hesitate to say
who controls the banks in which this
enormous amount of ready cash is de-
posted.
During the month of November the
Metropolitan Life Insurance Com
pany, the largest of the "Big Four"
had over $33,00O,0O0OO in cash de-
posted with the Metropolitan branch
Of the Chase National Bank in New
York City.
Assets Negotiable.
Even the four billions of dollars in
assets are more or less in liquid form.
The vast majority of it being invested
in negotiable bonds and securities.
Some idea of the enormity Of these
figures may be gained by calling to
mind that the entire amount of cur
rency in circulation in the United
States is $3,s59, 100000. This is less
than the amounts of assets 2ow held
by the Big Four"
The total number Of savings bank
depositors are 12,573,001, the number
Of weekly payment life insurance.
policyholders is over 100000.
On December 21st 1925 there were
S,054 national banks doing business in
the United States with an aggregate
paid in capital Of $1,379, 101, 900.
Four weekly payment life insurance
companies have S4,OO0,0OO,OOO in as
sets.
The total government revenue for
1926 was $685., 755,69O; the "Big
Four" assets are greater than the en-
tire U. S. revenue for one solid year.
Great, Not Good.
The magnitude of these companies
means absolutely nothing. They do
not bespeak honesty, efficiency or fair
dealing. Size, in insurance COM
panies, indicates the energy with
which the company has been pro-
scouting its business. A hoppopot-
anus is not more intelligent than an
ant.
The immensely Of the "Big -Four"
is evidence of the gullibility of the
insuring public and proof that the
presence OF Frank B. Noyes, presi-
dent Of the Associated Press, on the
directorate of the Metropolitan Life
has aided the insurance trust in get
ting lots of free favorable publicity.
For example the Metropolitan as
sets Of over one and a half billion
dollars and over twelve billions Of in
surance in force is no more proof of
worth and business acumen than a
5 karet diamond ring on the finger of
prosperous pawnbroker is proof of
his business integrity.
Success Measure.
The success Of industrial life insur-
ance viii be proven not by pointing to
the scores of millions Of poor dupes
that have fallen for the swindle but
rather by the great amount Of in
surance which these companies can
offer with absolute safety at the
lowest possible cost. Previous ar
ticles have shown how exorbitant the
weekly payment life insurance rates
are in comparison with the risk and
honest expenses involved.
'The Big Four" will be adjudged
successful when they learn (sic) to
operate at low ratio of expenses,
safe return on investment and when
the present murderous lapse rate is
considerably lowered.
For the year 1925, rs out Of every
100 weekly payment policies which
terminated on these companies books
were total loss lapses. Only / per
cent were matured endowmentsl This
condition of lapses has existed for
the past twenty years. Only an in
durable optimist could imagine that
these corrupt companies will ever re-
form without the most drastic action
on tho mart of the 30 600 900 policv-