The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-04-14
WALL STREET BEHIND BIG four"
INSURANCE SWINDLINC OF WORKERS

why 40 Guey CunDd1 every az
tempt to inquire about its disposal?
Because it is through the mani
pulation of this enormous fund that
they are content to work as directors
for a nominal few paltry dollars
year.
This excess TWO BILLION DOL
LARS belongs to the workers who
have fallen for the smooth words of
the mutual directors who control
this powerful pile.
The concentration of such tremen-
dous economic power in the hands of
a small group constitutes a decided
menace to the economic life of the
nation.
Unless effective legislative meas
ures are taken, this pyramiding will
doubtless continue, because, the in
surance saturation point is still a
long way off.
The average workers life is in
sured with the "Big Four" for the
handsome sum of $400.
Scandal of Decade.
The enormous reserve" is accu.
mulated through three general re-
sources: excessive premium charged
for this petty hold-up insurance, for
FIXTURES (money made on lapsed
policies) and the interest earned on
the reserve"
If every policy matured for its
face value, either as a claim or as
an endowment, and if the excess
earnings on the company's invest
ment were returned pro rata to its
mutual policyholders las it is
popularity supposed to do) this terri
fic pyramiding of assets would, so
it seems, be impossible.
But all policies are not kept I'M
til maturity or death. A surprising
small number do so. Only l per
cent of all terminated policies are
paid as endowments and but 8 per
cent are paid as death claims. rs
per cent Of all examinations are
lapsed. An an industrial lapse is
a total loss to the insurer.
If these figures in themselves, re-
CARELESS of the exposures which will
follow, do not constitute the SMELL
lest financial scandal that ever as
sailed the nostrils of our citizenry
then Charley Schwab is in business
for his health and Judge Gary is a
member of the Communist Party.
Naturally, the big Four are
very loud in voicing the good they
do in spreading the mantle Of pro-
lection over the poor who cannot
afford ordinary insurance - rem
dering Service where service is most
needed" Possibly it was nonsense
similar to this which impelled Abe
Martin to remark, what we want
nowadays is less Service an more
of what we're payin' for"
Legislature Aids "Big Four"
Hiding behind technical and mean
ingless jargon such as met prem
iums." terminal reserves" and "se-
lect and ultimate methods" to which
there are no clear and we'll defined
meanings, the "Big Four" have writ
ten the insurance law for the crea-
ture legislatures who have legalized
this outrageous robbery.
Employing double back action
bookkeeping which makes possible
numerous cross entries in the draw
ing up of annual reports to their
mutual" policyholders, the "Big
Four" merrily keep on piling up the
reserve"
Naturalization Only Cure
Mutual" industrial life insurance
companies, if they were mutual in
spirit as well as in name, should give
their policyholders insurance at cost.
Gigantic assets, quite unnecessary,
should be cut to a practical mini
mum and the balance returned to
their mulcted members.
Don't worry, nothing of the sort
will ever happen. These boys are
not in business for their health.
Only one solution presents itself |
in the face of this unmitigated fraud
and that is State Ownership Of the
big Four" Lets go!