Evening star., 1933-10-02
OUTLOOK CHEERS
D. c. UNDERWRITERS
Association Members Hear
Encouraging Reports at
Chicago.
BY EDWARD C. STONE.

Life Underwriters Association, who at
tended the national convention in Chi
cago. are highly enthusiastic over the
reports and speeches covering business
during the last year and the forecasts
made on the outlook for the next II
months Many new ideas were pre-
sented
In this period of reconstruction.
when along every line weaknesses
should be repaired, it does not follow
that the loan and cash surrender pro-
visions of life insurance policies should
be scrapped," George S. Van Schaick,
superintendent of insurance for New
York State, told the delegates.
Mr.. Van Schaick traced the emer-
gency measures which enabled New
York to place restrictions on policy
loans and cash surrender values shortly
after the declaration of the bank holi-
were subsequently liberalized from time
to time and finally entirely removed
early in September.
He emphasized the emergency i'm
portance of such values, stating that
'the value of life insurance contract
without cash or loan value is prac-
tically destroyed for credit purposes
To do away with these values would
be step backward in American life
insurance. Such a backward step is
not justified in the experience of the
past three years"
There were undoubtedly some COM
panies, he stated. Vino could have con-
tinued to meet their contracts even in
the face of the bank moratorium, but
nevertheless emergency measures were
needed to prevent in the insurance field
a repetition of what happened in the
banking field.
He stressed the point that the funda-
mental purposes of life insurance are to
pay death claims, matured endoWments,
claims for disability and annuities, and
that in emergency every other feature
must give way by suspension in order
that these fundamentals may be carried
out promptly at all events
Huge Policies Unpopular.
Million-dollar life insurance policies
are in disfavor with the companies and,
contrary to common belief, this disfavor
is not an outgrowth of the depression,
John M Laird, vice president of Con-
necticut General Life asserted.
The experience on Jumbo risks has
been distinctly unfavorable,' he said,
land some attribute this wholly to the
depression. But statistics show that
the death rate on this type was eXces-
Sive on issues of the boom decade be-
fore 1880. The experience includes
period of generally favorable mortality
and excludes practically all of the de-
preston. Nevertheless. the mortality
on persons insured for S1,000,000 or
more was 169 per cent of the normal
, Clearly, there was something wrong
even before the depression
The limit of insurance should be
determined not by the size of a mans
indebtedness. the number of dependents
and their capacity to spend money, but
by his actual and potential financial
value. Life insurance is fundamentally
intended to indemnify for actual fnan-
cial loss, the speaker said.
Some think that over-insurance is
a product of the depression, but more
than 10 years ago underwriters were
watching this problem and trying to
form reasonable measuring rods for de-
termining the upper limit which might
safely be granted
ANY rule for measuring overinsur-
ance is merely general guide and must
be interpreted in the light of the broad
business situation and the applicants s
personal affairs" Mr.. Laird concluded.
Washington underwriters are antici-
pating lot more about the convention
at their first Fall luncheon to be held
at the Willard Wednesday.
Bruere Already Known Here.
Henry Bruere, president of the Bowery
Savings Bank, who is to become one of
the administration officials in charge
OF co-ordinating efforts to expand bank
credit, already has many friends among
Washington bankers. Some years ago
he addressed one of the annual con-
ventions OF the District Bankers Asso-
citation at Hot Springs. Va, and has
been heard at several other bank meet
1ngS in New York and elsewhere since
that time. He is an unusually wide
awake banker and has plenty of con-
structive financial ideas. Local bankers
consider him an excellent selection for
the new job New York bankers are
greatly pleased, as they claim they have
not been consulted any too much on
national affairs since the new deal"
was started
Richmond Review Optimistic.
The Federal Reserve Bank of Rich
mond'S monthly review of business,
trade and agriculture in the fifth Fed
eral Reserve district, noted in The Sum-
day Star, was optimistic on the outlook.
"On the whole" the bank concluded,
"the outlook for Fall and Winter busi-
ness is notably better than it was year
ago" The review comes up to the
middle of September and says that
improved business conditions reported
in July and August continued well into
last month
There was a great variation in fifth
district stores as to stocks on hand
at the end of August. Stocks in Wash
lngton stores were up % per cent over
Augut 81. 1882. and 18 per cent higher
than at the end of July of this year.
washington stores turned their stock
2.282 times between January l and Au-
gust 81. Local stores made a good
record for collections in August, taking
In 242 per cent of receivables during
the month. only Richmond making a
better showing.
Business Lively on Exchange.
October business on the Washington
Stock Exchange started off with a bet
ter demand for local issues. Capital
Traction SIS opened the trading, ST 1000
moving at 5434 After call, ST 900 more
sold at SIS. Washington Gas IS. series
B. came out at 1882 on a $500 sale.
Capital Traction stock opened at 13
and closed at 1895 on a light turnover.
Railway & Electric preferred changed
hands at 8612 for 80 shares, and
Mergenthaler Linotype came out on the
board at 2612. Potomac Electric Power
5l2 per cent preferred brought 1071z
for a single share
The local office of j. S. Bache & Co.
announced today that the company has
taken over. the Offices of Ettinger &
Brand in Cleveland, Akron, Cincinnati
and Milwaukee.
The will of Francis H. Sisson, former
president of the A. B. A. and vice presi-
dent of the Guaranty Trust Co. of
New York, who died September II, left
practically all of his estate to his widow,
Grace Lass Sisson.