The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1935-09-06

does happen, the dupe must go to
law to collect what Is due him.
Lawyers are forbidden by law to
solicit business. They at least
leave the public in peace. The most
frequently used phrase for an in
Surance agent is''insurance solicit
tor"
How much money do the insur-
ance solicitors get out of US? What
becomes of it? How much do we
get back? When you answer these
questions correctly on the official
figures, you will see why one Of
the eminent Masters of Economic
problems in the world, Mr.. Justice
Brendeis, of the U. S. Supreme
Court, says that, Insurance, life
insurance in particular is the dire
merace to this nation" Before as
sem0ling these figures We ask any
struggling dinner club rotarian
merchant if he is making 260 per
cent the year on what he has got
invested in Montana.
Annual Insurance Cost S26 Per
Person
Last year in Montana the pre-
miums paid by Montana people,,
idiots and other classes, including
ourselves, for small amounts for
insurance, amounted to $685.
769. Of we have one half million
people which is doubtful, this is
S26 from every man, woman and
child.) The bulk of this graft is
in life insurance. Two thoughts oc-
cur on this. Due to our fire eli
mate, public statistics show that
the death rate here has been lower
than in any other state in about
seven out of ten for the last 80
years. Another thought. Decent
old age pensions would largely E.
Intimate the anxiety for life in
surance and much cut down this
graft. How much did we get back
into Montana for the thirteen and
one quarter million dollars handed
by US to the insurance solicitors?
Well, the solicitors themselves US
ually get a commission of 20 per-
cent for landing the suckers. The
rest goes into the pockets of East
ern and London Millionaires. These
keep the premiums in u. S. bonds,
and before any loss is finally paid
the interest on tax exempt securi-
ties pays the company much of the
agents commissions Every time a
lawsuit is delayed by them, there
is more interest. What do we or
binary suckers get back for our
thirteen and one quarter million
dollars?
Insurance Companies Get $50 Per-
cent Profit
I In 1884, life insurance compani-
Ell paid in losses in this state a
total of S2,069,313.10; fire and auto
mobile insurance comptnies paid In
Montana losses, S929,761.31; acct
dent and fraternal organizations,
! 1892, 714.S6. Health etc, paid back
S1,03S, 315.76. Get out your pencil
and ad all these up. See if we are
correct in saying that for S13, 1884,
769 paid out by US, we got back
only S4,630, 1O5.O3, balance in favor
of insurance companies, SS,603, 1854.
Have Willie or Nancy, going to
grade school figure whether the
insurance companies in this state
are operating at profit of 260
percert per year or not.
When these questions are an
swered correctly you may have an
answer also to why plan two of
the Worsmans Compensation Act
should be abolished (plan one al
so.) The insurance companies Sc
lect their risks, particularly in
Workman's Compensation. The
preferred are taken by the absen-
tee companies, the culls, hazards,
and poor risks are thrown against
the state fund. If the state is car
rying TIE bad risks why not let il
benefit from the good risks? Yet,
to those who think of state insur-
ance, it is well to know that with
the poor risks landing in the state
plan, the fund reserve there has
grown almost to 100000.
Ninety Million Dollars Taken from
Montana
Figures for one year on anv
great racket are not as convincing
as the average over a long period
Of years. Liability insurance is a
comparatively new racket in Mon
tana, but we have the figures fol-
life and fire insurance for MANY
years. In q years, 1905-1931, fire
insurance companies got in pre-
miums IN Montana, S92, 299. 1858 $50
they paid back in losses S45,4O7.
O3S.0I, leaving a balance in their
favor of S46,892, 525.79, besides in
terest on money paid in advance
during the 81 years. In 25 wears
. 19O6-1931, life insurance compani-
es absorbed from this state in pre-
miums $124,20G;,4 8O.20, and paid
back IN losses to Montana folks
! SS4.255, 193.49. leaving a balance in
their favor of $50, 94T, 286.71-252
percent profit besides the interest
they made on moneys paid many
years in advance.
We should all read a magnifi-
cent monograph by Gen. Smedley
Butier-"War is a Racket" In II
ne defines a racket. "a racket
IS something that is not what il
, seems to the majority of people
to be. Only a small inside erosIn
knows what it is about. It is con-
Quoted for the benefit of the very
few. at the expense of the very
many" Possibly the Butler defini-
ton of a racket" fits the inSur-
ance game. Possibly orr MIGHTY
useful department of Entomoloov
should rest awhile in curbi550y
grasshopers: fever ticks ard wheat
rust and tell us what tn do sbo,1t
the insurance pests ~
4. MATTDU