Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-04
B|GL|FE INSURANCE
SALESPRED|CTED
Growing Tendency of Firms
to Insure Against Loss of
Valued Members.

Special Dispatch to The Star
NEW YORK, March 4.A strong
impetus will he given the writing OF
life insurance as result of business
developments of the last few days
This was the opinion expressed today
by insurance men here.
The Illness of Henry l., Doherty
controlling large public utility con
Germs, was sufficient to cause re
markable drop In the shares of the
cities Service Corporation and sus
pension in trading in its shares for "A
brief time. So far as insurance men
here know. Mr.. Doherty has no large
amount of insurance taken out in
favor OF the companies he heads.
The merging of the First National
Pictures. Inc: the Stanley Co. and
the West Coast Theaters Co, undoubt.
eddy will lead to writing OF additional
life insurance on executives and art
ists in favor OF the new corpora ton.
The life of Jules Masthaum. head OF
the Stanley Co, which operates more
than zoo theaters in the East, II
understood to he insured Tor million
dollars or more.
Custom In Movie Industry.
II has always been customary for
companies In the moving picture IN
dustry to insure their executives and
stars. 1t is likely therefore that the
policies on the lives OF Richard
Barthelmess. Leon Erroi. Colleen
Moore. Johnny Hines. Billie Dove.
Sam Hardy and other motion picture
actors under contract to the FIRST
National Pictures will be increased.
Adolf Zullor, president, and Jesse
l.. Iasky, vice president of Famous
Y zi. a In.
sured for So 900 900 each and Marcus
Loew, head of a chain of motion pic
ture and vaudeville theaters. is in
sured for a similar amount.
Other business concerns have found
ii eXpedient to secure themselves
against loss through sudden death OF
their executives. Three members OF
the Book family OF Detroit. real estate
men and builders of the Book-Cadial
lac Hotel, each carry $5.000,000 in
surance. Horace A. Saks of the Saks
Department Stores, who died suddenly
q year ago from blood poisoning. was
insured from 100000 in favor OF
the Central Union Trust Co, which
had sponsored bond issue through
sale of which the Saks Fifth avenue
store was built. The life of Rodmar
Wanamaker. head of the John Wanna
maker stores, is underwritten for 81 j..
100000, while William Kresge, chain
store merchant, carries $1,000 0Ol
worth of insurance and William Fox
moving picture magnate $6,000,0O0.
Franklin Simon Ill.
The news today that Franklin
Simon, New York merchant of ma
tional reputation, is seriously i'll in
Florida. caused immediate inquiry as
10 the amount of insurance carried
by him in favor of the company he
neads. This was prompted by the
tact that Mr.. Simon takes active part
IN the management of the concern
and also is widely interested in other
civic and business activities.
II has been the effort of most of the
big financial houses to put themselves
in such shape that they would not
be lone man" corporations and suf-
fer accordingly when one of their key
men dropped out of harness. The
corporations dependent on one mans
activities now are few and far be-
tween, but there are several such
which unquestionably would suffer a
terrific slump in the stock markets of
the world if their chief sponsors were
to die suddenly.
IT is to meet situations of this sort
that the boards of governors of nearly
all the legitimate stock exchanges re.
serve the right to suspend trading in
any security, and insist that brokers
notify them at once and demand such
O. suspension at any time when a
market is so diSorga nized as to make
1t difficult for the customers of the
broker to be protected