Year: 1877


der by various ways the means which
belong TO the policy holder then they
will object to this bill. Such companies
as will comply with this law will give
evidence of their soundness by 30 doing,
such companies will haYe the confidence
of the people which they will justly be
entitled to, and it will not require half
the expense for such a company to So
licit applications for policies as 1t will If
this bill does not pass, because the peo'
pie have lost the confidence they used to
have. The recent numerous failures, and
the many worthless policies have created
a distrust among the people, which l
hope will be the means of preventing
any person from taking out another pol
icy until measure like this becomes a
law.


will advise no one under any consid-
Grafton to invest in any life insurance
company. AS a general result the man
ayers Of the companies accumulate vast
fortunes, and those who insure foot all
the bills.


Mr. Meuser--I wish to ask the'gentleman
from Stark, if it is his intention to injure
the persons who are holding policies now
by driving out all the companies.


eMr. SherriCk-I would advise the gen.
tleman from Crawford to consult the Con-
stitution ofthis State. He will there learn
that the Legislature can make no law re.
troactive and consequently this law would
not apply to them, as it would be inter-
fering with contract previously made.


Some of my constituents desire to in
sure, and it is their investments that |
want to protect, and for that reason !
have prepared this bill. AS for myself,
l want no protection. If every person
we're like me, those schemes of legalized
robbery would die out of their own &C.
cord. l am convinced beyond doubt,
that the people of this State would to-
day be far better off if there never had
been a life insurance company permitted
in this State to do business.


Thousands of persons who have been
investing in this way for years, and who
have paid out to these companies thou
sands of fdollars, are now becoming alarm
ed at the insecurity of their investments.
Manv of them will not risk another dol
lar-preierring to lose all they have paid,
rather than take the great risk of losing
more. Our Insurance report informs us
that SO ,775 policies lapsed in the year 1875
in this State, and in that way alone one
hundred and fifty millions dollars were
lost to the people ofOhio. This vast sum
will be more than doubled in this year,
owing to the panic now prevailing among
the insured, caused by the recent numer'
GUS failures of life insurance companies
These failures have not been occasioned
because there are no profits in the busi
ness, but because of reckless extrava
ganCe, bad management, and Considera
Bile amount of stealing. The profits il
the business are simply enormous. Sta
tistics inform us that out of every hun
dred dollars paid to the company by the
insured more than fifty dollar ofthat sun
is profit to the company. | have beer
informed by a gentleman who has spent
a great part of his life in the insurance
business, and who is now disconnected
with that business, that the New York
Mutual charges to carry policy on q
man at the age of % years, $40 on thou
sand, while it is asCertained by proper
consultation of the mortality table, that il
costs but 5000 actually to carry man al
that age. This statement shows that
more than one hundred per cent, is the
margin to that company. And that com
pany does larger business than any 9th
er company in this country, A manwhc
insures in that company only pays in
twice as much as he ever will get back
In other words, it costs man two dollars
to have another take care of one dollar
for him.


Mr. Richards-I will ask the member
from Stark, if his bill is not in the inter
est of the "Greenback party ?" We are
informed that that party is opposed to
the reduction of the currency, and this
bill seeks to stop the life insurance COM
panies from carrying off all our money.


Mr.. Sherrick-I will say in answer to
that question: l believe that the State
of Ohio is entitled to her proportion of
the currency. This bill will assist the
"Greenback Party" in keeping, the Circu-
lating medium up to the wants oftrade"
in Ohio; otherwise we are in danger
when resumption comes.


My purpose in having referred to the
relation existing between the insurer and
the insured, was to show the advantage
in pecuniary point of view in favor Of
the insurer.


Ihave endeavored to esta blish the fact
that the institutions of life insurance is an
injury among us, and that no general
good ever does or ever will arise to the
people, | believe that it would be best
- Larn Efa onpoporia
among us except those beneficiary associ-
ations which are purely local, and are
conducted by some society at no cost,
and in which every policy holder is a
member. | am satisfied that if this sys-
tenn of insuring peoples lives continues
without restrictions, as are proposed in
this bill, there will, ere many "heeting
years pass by" be times of CONSERVATION
great losses, disappointments, and untold
misery among those whose confidence
has been betrayed. l desire to take
"time by the fore lock-" l desire, by
proper legislation, in the interest and
welfare of those whom have the honor
to represent, to throw out the mantle of
protection and cover their unguarded
homes. I desire by this law to retard
the progress of the army of vultures that
are lowering over the beautiful and fer
tile valleys Of Ohio, gathering in the har-
vests prepared by the daily toll of our
own people, l am in favor of this mea-
sure because it protects the policy hold
er and restricts the companies. am in
favor oft because it will drive irrespon-
sible companies out of the State. 1 am
in favor of it because it will reduce the
vast sums of money that now flow out
our State, like mighty river, filling the
Golfers of eastern institutions, and enrich
ing their managers,


l appeal to the convictions ofmembers
of the House, and ask them to exercise
their better judgement in behalf of those
whom they represent. The time has
non. nn..an g., thia Gtnfa .nhar, lnr.ialntin.,