Evening star., 1936-03-05
INSURANCE FIRMS
. PAY HUGE SUMS
Average Of $4,000, 900
Each Working Day Distrib-
uted Since 1929 Crash.
BY EDWARD C. STONE.

uted Since 1929 Crash.
BY EDWARD c. STONE.
Information sent to the District of
Columbia Life Underwriters Associa-
ton by the national association shows
that since the Wall Street crash in
1929 the life insurance companies of
the United States have paid an aver
age of $l0,000,0O0 each working day
to policyholders and beneflciaries. this
vast sum being vital factor in re-
lieving the depression. In 1885 alone,
total payments by the life insurance
companies were $4,000, 900, 900, the re-
port states.
Total payments to policyholders
and beneflciaries in the six depression
years were approximately $4,000, ,000,-
000," the report just received here adds.
AN index to the extent to which life
insurance is being used to provide Sc
curity for the individual is found in
the 1885 payments of the companies.
Last year, of the total of $4,000, ,0O0, 900
paid out, $l,700,000,000 was disbursed
to living policyholders. The remaining
payments were represented by death
claims"
Commenting on the fact that nearly
$4,000, 100000 of the new life insurance
was purchased by people in the United
States last year, j. E. McCombs. presi-
dent of the District Life Underwriters
Association. said that at the close of
1885, the country's 100000 policy
holders owned $101 900 ,000, 900 in life
insurance in force.
Life insurance premium investment
by the American public in total pre-
miums paid in 1885 was $3,521 10000
This represented 10 per cent of the
national income. using the 1884 in
come figures, the last available, as a
basis.
Edie Views Interest Rates.
The outlook for interest rates was
considered by Lionel J. Edie. president
Edie-Davidson Co., before the annual
conference of the savings division of
the A. B. A., in New York today. He
summarized his views as follows:
mo collapse of Government credit
will occur during 1886 such as to cause
tight money; advancing phase in Gov
ernment bond prices, which began last
September. is now nearing a Climax
London apparently reached bottom of
low money rate cycle last Summer;
maximum figure of excess reserves in
the United States will be reached and
passed in 1886. probably in first half
OF year; major cycle of easy money is
due not mainly to artificial causes, but
to natural and fundamental causes of
supply and demand; balanced budget
might be bearish for high-grade bond
market, contrary to possible orthodox
views.
Most financial institutions make
the mistake of trying to speculate in
the interest rate itself by, in effect,
going short of the money market.
Business recovery is more important
than imitation in changing future
trend of interest rates. Short-term
rates are likely to tighten before long
term rates and improve more sharply
when change does come Return to
normal in interest levels does not
mean going back to levels of war and
postwar periods"
Asserting that lack of established
policies is the chief cause of unsatis-
factory results from investment port
folios in savings banks, Alexander
Standish OF Boston, who addressed the
conference, urged the savings bankers
to think out definite policies, adopt
them and adhere to them until there
Is good reason for altering them. Mr..
Standish's subject was Investments" !"
Sinker Writes Tax Treatise.
Julius Sinker. Washington account
ant. has written a new book entitled
Your Securities and Federal Taxes"
following the pamphlet he published
last year on "The Revenue Act of
1884 as 1t Affects Security Trans
actions" In his preface he states
that an effort has been made to sum-
Marie into workable form the various
revenue laws now in force. A re-
view Of the book shows he has done
an excellent job.
He discusses securities, investors,
traders, dealers. methods of reporting
income. recognition of gains or losses
and the limitation as to the deducta-
biity OF losses. One of the most in
teresting chapters relates to capital
gains and losses, followed by dis
cussions of partnership, corporations
and personal holding companies. In
terest. estate taxes, gift taxes and
stamp taxes all receive ample atten-
ton.
Mr.. Sinker has incorporated the
suggestions and experiences of many
other accountants and financiers and
his book is published by Commerce
Clearing House, Inc.
Financial District Gossip.
Friends in the financial district of
James B. Skinner said it with flow
ers" today when he assumed his new
duties as vice president of the Liberty
National Bank. His Office looked like
. hothouse.
1t Is expected that the Virginian
Railways big 3aa per cent 10000, 900
bond issue will appear tomorrow.
This will be the largest railroad Offer
Ing in several years.
Chauncey G. Parker jr, chairman
Of the Entertainment Committee. said
today that he expects fully 200 in
vestment bankers at the all-day con-
ference at the Mayflower Hotel Satur-
day. The sessions are open only to
members of the Investment Bankers
Association, reservations closing to-
morrow for the dinner.
The Washington Office of the Crane
Co., Chicago manufacturers of valves,
fittings and plumbing supplies, states
that the annual report shows a net
income, before deduction of extraor-
dinary and non-recurring charges,
for the year 1885 of $2,590, ,288 .68, as
compared with net income figured
upon the same basis for 1894 of ST.
071,04332. The final net income,
after extraordinary and non-recur-
ring charges, for 1885, of S., Az, ,637 81,