The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-04-16
Envoy to England In
big Four" Scandal
6Continued from Page One)

sight. The dead mans standing in his
poverty stricken community is judged
by the number Of prancing, plumed
horses in the encourage. A life's saw
ings is boarded for this one event.
The most servile English worker
wants his decent" burial.
Following the industrial revolution
in England, during which millions of
workers were driven by economic ne
cessity from their rural homes into
the bleak machine-communities, tenn
porarily dispossessed, the question of
urban funerals and burial ground be-
came pressing problem.
They Bury Him.
At this point the industrial" life
insurance company made its appear
ance with the decent" burial as its
drawing card. Shortly afterwards
this form of petty larceny life insur-
ance made its entry into the United
States via the Prudential Life.
Since that time the big Four"
have been having pretty nice time
of it. Controlled legislatures, crea-
ture superintendent of insurance, and
lax state supervision have made it a
most profitable business to be in.
The life insurance business is
cash" business. There is no "pa-
per-" no extended credits, everything
is done on a cash basis. Naturally
these companies carry large cash de-
posits in local banks. The Metropol-
itan Life has balance in the Chase
National Bank of about 20 million
dollars, sometimes as high as 35 mill
lions. Now can any bright boy in the
class tell me who really controls the
Chase National Bank? Johnny, you
are perfectly right. And if you will
make careful investigation you will
find that the directorate of the Bank
is nicely sprinkled with Metropolitan
directors.
Inside Clique Profits.
Needless to>say the mutual" policy
holders in the Metropolitan Life do
not benefit in any way by this nice
juicy contact, but then that is one of
the drawbacks in only being a policy
holder instead of director.
Capital is reproductive only by
means of investment and manipula-
ton. The power it confers upon its
possessor is in direct ratio to the use
he has of it, rather than in its mere
legal possession.
An extravagantly obliging legisla-
ture allows these companies ID of 10
Of the total assets as an annual Gin
vestment" fund. Investments are lin
tied to only the safest bonds and
mortgages. There is absolutely no
expenses involved in purchasing bonds
of this nature. On the contrary bond
houses usually pay a commission on
the sale of bonds. Still, in the face
of this fact the big Four" charged
their Mutual" policyholders more
than eleven and half million dollars
for investing the assets in the best
legally prescribed bonds.
Director HOughtOn.
Who wouldn't be a director of
life insurance company?
Surely Alanson B. Heughton, the
American ambassador to England
would. And he is. Asa side line he
directs for the Metropolitan Life for
the measly salary of $45 per year.
At any rate that's what the Insur-
ance Report says. If that's all this
plenipotentiary extraordinary gets for
such an important job l would sug-
gest that he go on strike Immediately
for more pay and shorter hours. But
then again, $45 may only be part of
his pay.
Every "Big -Four" policyholder
knows the name of his agent. He
calls often enough, fifty-two times a
year. But here is a name which am
sure will sound foreign to 23,999,999
out Of the "a million Metropolitan
policyholders. / refer specifically to
one Albert H. Wiggin.
Mr.. Wiggin is the chairman Of the
Board of Directors of the Chase Ma
tional Bank, one of the most impor-
tant banks in which the Metropolitan
Life keeps its money.
Is it small wonder, then, that the
powers that be see to it that the
"assets" of the big Four" keep
mounting to the high heavens?
How Mutual?
How mutual is mutual" indus
trial life insurance company? This
is question which is agitating mil
lions of weekly premium policyhold-
ers throughout the country. 1t is a
question which will have to be an
swered. And that right soon.
Although the forty million "indus-
trial" life insurance policyholders in
this country have no effective means
within their companies to voice
protest against the fraud and decep-
ton practiced by their self-appointed
directors, they would, to be sure, be
very interested spectators in a legis-
lative investigation into the evils
which beset this business.
Charles Evans Hughes rode into |