Jue; 192



Volume CXXII New York and Chicago, Thursday, May 30, 1929 suun tne a Gee

7/\ Number XXII

$150,000,000 Company

In the City of New York

The United States Life Insurance

O ized 1850. Non-Participating Policies A Complete Line of Policy Contracts rg Over 78 Years wy es to Real Sales Aids for Representatives

Policyholders Excellent Territory available for General Agency Development

Good Territory for personal producers, under Write

direct contract. THE MINNESOTA MUTUAL


The White Fireman*

quarantines contagious fires.

He gives the millions of American property owners excellent advice to enable them to stamp out com- municated fire. See the White Fireman in The Satur- day Evening Post April 27, The Literary Digest May 4 and the May issues of the Review of Reviews;

World’s Work and The Golden Book.

* The White Fireman in the magazine advertise- ments of the Insurance Company of North America represents the Loss-Prevention Service supported by insurance companies.

This advertising_is informing property owners that they may secure Loss-Prevention Service through responsible insurance agents.

=|) of Multiple Line Service

Tre Spectator is published every Thursday by The Spectator Company, at 243 West 39th Street, New York, N. Y. Entered as second-class matter June 28, 187% at the postoffice, New York, N. Y., under the act of March 8, 1879. Tue Spcctator, Volume CXXII, Number XXII, May 30, 1929; $4.00 per annum.

Like Page 7

Old Colony Litigation Life Counsel Meeting Chicago Underwrtters Elect.

Lower Initial Cost Predicted


Page 33

Actuaries at Hartford Discussion on Merit Plan President Addresses Actuaries

Canadian Special Lines

\ Features inThis Issue


Page 21

Adjustment Organization National Board Election Kentucky Rate Case

Texas Commission War

The Suicide Record of 1928

Figures for Last Year Reached Highest Total Recorded Since 1920—Tables and Analysis of Rate for the

Past Quarter of a Century

By FrepertcK L. HorrMan, LL.D.

Consulting Statistician the Prudential Insurance Company of America

UICIDES during

S 1928 reached the

highest figure on

record since 1920. In that

year the rate for 100

cities was 12.3 per 100,-

000 while for 96 cities

the corresponding rate

was 17.0 for 1928. The

rate, however, has not

yet reached the maxi-

mum figures prevailing

during certain earlier years, particularly during 1908 when the rate reached 21.5, but the ten- dency apparently at the present time is towards a higher rate in the future. The increase in rate is difficult to understand in view of the generally favorable industrial and business conditions of the present period. But what is true of the country in general is not necessarily true of certain sections, or particular elements of the population, which may be injuriously affected by industrial or financial depressions. The so- cial and economic conditions of the nation are now so extremely complex that no single item, favorable or unfavorable, is likely to be seriously reflected in general averages unless conditions in this respect become very pronounced. But it is

THE SPECTATOR May 30, 1929

easy to draw false conclusions from the prevail- ing prosperity which after all may be much more apparent than real in countless individual cases in which the struggle for existence falls with crushing weight upon persons unable to cope with circumstances beyond their control. There are reasons for believing that in many re- spects present day life is thoroughly unwhole- some in large sections of the population which find it difficult to maintain a standard of life presupposing incessant anxiety and toil.

The first table summarizes the suicide record since 1900 for comparable cities for which the returns are available. It shows that the rate started with 15.4 per 100,000, reaching a maxi- mum of 21.5 in 1908, while at the present time the prevailing rate is 17.5

1927-28 Returns

The next table gives comparable returns for 1927 and 1928 for 156 American cities. Of course, in the calculation of these rates enters the uncertain factor of population estimates which always become more precarious with the approach of a new census enumeration, which will take place in 1930. All rates, therefore, are subject to this limitation and future correction in the light of that enumeration. But it is highly

suggestive that the actual number of suicides in the cities under review should have increased from 6,041 in 1927 to 6,534 in 1928, while the rate per 100,000 of population during the two years has increased from 16.1 to 17.0.

Of the 156 cities, 88 showed an increase in the rate, of course, of very variable degree. The 10 leading cities in the order of their im- portance as regards suicidal frequency are enu- merated in the tabulation below: :

SUICIDE RATES FOR TEN CITIES—1927-1928 (Rates per 100,000)

SUI CN cao wiv idee due cacw duns

San Francisco, Cal.

Tacoma, Wash.

Atlantic City, N. J.

Sy err er ee rere

SRN Ce hc. 3 tcaed cawncun dete

Seattle, Wash.

Sete, SENG Blac bb a cansiccncenens

Denver, Colo.

Parti, Otis ccccacsnscctoenscaess In the foregoing tabulation, San Diego, Calif.,

as usual heads the list with a rate of 43.4 per

100,000, suggestive of a very slight decline over

the preceding year. This is followed by San

Francisco with a rate of 41.7, also slightly below

the rate for 1927. The third city in the order of

importance is Tacoma, Washington, followéd

curiously enough by Atlantic City, N. J. The

(Concluded on page 18)


Life Insurance


ERSONALITY and service are, without a

doubt, two of the hardest working words in the English dictionary to-day. Modern busi- ness, aided and abetted by the advertising agency boys, has just simply used and abused poor old service until it is a mere shadow of its former lusty self. As for personality, well, the word has become a synonym for everything from a cigar to a sound and talking movie star. But just the same, the words are indispensable and combined, summarize a fundamental of the life insurance business.

x * *

ERSONAL service has and always will be

a very big factor in the successful con- duct of life underwriting. In a small com- pany it is largely up to the president and other executives to assume the responsibility of guar- anteeing personal service to the policyholders. The company’s following is built up largely on the personality of the man at its head and its continued success greatly depends on the man- ner in which he cares for the needs of the cus- tomers—on the service he is able to give.

* * *

HIS thought is not offered as original but

as a staunch, old truth well deserving re- peated emphasis. I was talking over this point with a shrewd observer in one of the larger New York companies the other day and he was pointing out the fortunate position of the small life insurance company, as compared with the beginner in other lines of business. He con- tended that almost in the same proportion that a small commercial organization is handicapped by its smailness is the small life company in a position of advantage, because if John Thomp- son, the president, is known as a man of integ- rity and one who has managed well his own funds, then his friends and neighbors will not hesitate to intrust their own to his care. His personality launches the craft and keeps it afloat during the early part of the voyage.

* * *

¢¢ HAVE an idea,” said the man with an

idea, “that the success of a young life insurance company pretty closely follows the ratio of its policyholders who drop into the home office and ask to see the president.” And the same logic applies to the larger organiza- tions but in the course of expansion it falls more and more to the lot of the agency per- sonnel to discharge the obligation of personal service and it is in the agency where personal service coniinues to live and to dominate the insurance business. Thousands of men and women will buy policies from “Bill Jones’ com- pany” next month and thirty days later will be unable to tell you the name and address of the insuring company. And that is the splendid re- sponsibility that Bill Jones, life insurance sales- man, carries to work each morning.

THE SPECTATOR May 30, 1929



Y friend John Daniels of Boston turned up as “Sir Ronald MacDonald, Publicist and Traveler of Glasgow, Scotland,” at the banquet last Wednesday night which celebrated the conclusion of Pennsylvania Insurance Days at the Americus Hotel in Allentown, Penna., last week. His discussion of “A Sojourner’s Impressions” was as highly entertaining and instructive as his remarks have been during pre- vious appearances before insurance gatherings, and his songs—each note laden with a broad burr—were as dulcet as ever. x * x HE general chairman of this year’s Penn- sylvania Insurance Days’ Harry I. Koch, of the well-known agency of Brown & Koch, is in a fair way to be the next mayor of the city of Allentown, I’m told. If that’s true, it’s a good thing because Mr. Koch not only has contributed greatly to the insurance develop- ment of the city, but has done much for civic organizations and for individuals. * *- * HE golf and entertainment features which occupied the last day of the convention were largely attended, even though the golf re- sults suffered somewhat as a consequence of too much business on preceding days. I under- stand that the low score was in the neighbor- hood of 142, made by a player who generally shoots the course in under 90. Naturally that proves the old adage that early to bed and early to rise makes a good golfer. * * * P NE of the most interesting events of the meeting was the address made by Edward C. Lunt, vice-president of the Great American Indemnity Company, on the subject of “Surety Bonds.” Mr. Lunt has a degree of knowledge and a clarity of delivery which few speakers posses and he has, in addition, the saving grace of wit so that the audience does not tire of listening to him and has the pleasure of hear- ing serious points made in a humorous vein. Those who have heard his sales talk on behalf of his own books will agree with that. * * x

MONG the guests at the convention I, of course, saw John Hutchinson, secretary of the Insurance Federation of America and probably the greatest Federationist in the coun- try to-day. John is a great boy and a mighty hard worker at meetings and executive sessions all over the States. In fact, a gathering of casualty and surety or fire insurance field men is hardly complete without his presence. * * * the el2borately-prepared program of con- vention activities appeared sets of ques- tions and answers pertaining to fire insurance and casualty and surety insurance which were so worded as to be of practical assistance to agents. They were from the examinations given recentiy.

LTHOUGH we read much in the literature of business about “trends and analyses,” there is actually a small amount of searching and scientific economic comment finding its way into print. The march of business progress is being reported, certainly, and for the most part in an able manner; but there is such a fear of the theoretical and the academic in business that much of the “practical” and “hard headed” ob- servations given wide publicity are, after all, nothing m»re than surface facts, discernable to anyone who can see the length of his nose. To find in these assembled facts a common denominator, to detect in current economic phenomena a definite movement and direction which centuries hence will be regarded as the key to this era, is a task for farsighted and unusually gifted men, and I say there are few such prophets among us. x oe x SAY that because, sitting at the editorial desk of a business paper, I can, and do, paw for hours over reams of periodicals, re- ports and statistics—the raw material for a business history of the United States—but if you should ask me to boil the conglomerate mass down and precipitate the essential ele- ments, the things in business today which dis- tinguish it from business in the nineteenth cen- tury or for that matter, business in the twentieth century, I could but stare at you blankly or else try to disarm you. with such aphorisms as “Production is on the ascendency” or “We are living in an era of unparalleled prosperity?” * * * UT a man of the ilk, say. of David Law- rence, editor of the United States Daily, can stand on the rostrum in the Hotel Roosevelt ballroom and in thirty minutes give the mem- bers of the National Board of Fire Under- writers a digest and interpretation of what it has taken gallons of printers’ ink to dissemi- nate through the Congressional Record, the Chamber of Commerce Reports, the dispatches of Washington correspondents and thousands of earnest technical journals, THE SpecTATOR among them. + > VERY minute of the day a child is born and at least once every two minutes a public speaker says, “The Government should keep out of business.” David Lawrence agrees with him but points out the happy fact that harmful interference is the result of an over- zealous attempt to protect business, that gov- ernment today is unusually concerned with the promotion of business prosperity.

If I had a stenographic report of his speech in front of me I could show similar exam- ples of how he is continually cutting through, getting dircctly to the meat, unearthing the new principle be1icath the mass of new facts. What an editor! An ideal audience enjoyed and ap- plauded him to a man,

jour trus pric Fou: eign


Rob Cull

iS | wo uti edi pe fo: ate act sel me nit up as po

co pr fo re th pr an bu an 1 mi


Tue Spectator, established in 1868, is a weekly journal devoted to promoting the best interests of trustworthy insurance of all kinds. The subscription price for the United States, Canada and Mexico is Four Dollars per annum, postage prepaid; to all for- eign countries in the Postal Union, Five Dollars.


Arthur L. J. Smith President Loughton T. Smith Vice-President and General Manager Harry W. Barnard Robert W. Blake Second Vice-President Treasurer Sholto D. Kirk

W. H. Vallar Secretary Assistant Treasurer Fred. B. Humphrey Assistant Secretary Robert W. Blake, Managing Editor; Thomas J. V. Cullen, Statistician; Ralph Reed Wolfe, Assistant Editor; Robert W. Sheehan, Assistant Editor.

Telephone, Pennsylvania 0080

WESTERN DEPARTMENT Insurance Exchange, Chicago, Telephone, Wabash 0531 Sole Selling Agents in America for the publications of Charies & Edwin Layton of London, England. Copyright, 1929, by The Spectator Company, New York

Vor. CXXII MAY 30, 1929 No. XXII

, Income Endowment for Old Age

UNIVERSALLY recognized prob-

lent is that of the elderly man. It is not a new problem, but as the industrial world gravitates more and more to the utilization of machines, and the spread of education makes an increasingly large percentage of the young men available for white-collar positions, it is accentu- ated in the present era. The tense activity of our business life demands the services of the young. The unemploy- ment of the older man has forced a recog- nition of the necessity for action not only upon social and labor organizations, but as well upon business enterprises and political organizations.

A foreign writer, discussing business conditions in the United States, was sur- prised at the number of young men he found occupying positions of trust and responsibility. He saw men in their thirties at the head of prominent enter- prises, burdened with vast responsibilities and innumerable details, pushing their business forward with the greatest vigor and success. Their positions in the European countries would be filled by men of from fifty to sixty years of age, whose conservative methods commended them to their less aggressive constituents. It is a well-known fact that railroad com- panies and other leading industrial enter- prises, as well as commercial houses, will not employ new men over thirty-five years of age; they take care of their em-

THE SPECTATOR May 30, 1929

ployees who are aging, but want young men to train and to: gain by positive ex- perience the knowledge which would enable them to fill more responsible posi- tions. A man of fifty whose hair is more or less tinged with gray, who is so un- fortunate as to be unemployed, stands but a poor chance of finding a place where he can earn enough to supply the necessities of himself and family. Many such who have spent the greater part of their lives in one line of endeavor are refused em- ployment because they are too old to accommodate themselves to new business conditions. In this army of the unem- ployed are to be found college graduates willing to work for a mere pittance; others who have lost their positions of responsibility through business complica- tions over which they had no control; others, again, trained mechanics, whose age make them a liability to a business because of an uncertainty in operating mechanical devices. It is pitiful to see these men seeking employment from place to place, but meeting refusal because of their gray hairs and advanced age. The want columns of the daily papers reflect this situation, young men being in de- mand and elderly men being eliminated. The right of succession which is estab- lished in most business houses allows for constant advancement of those in sub- ordinate positions. There is no place for the new comer, especially if he be an elderly man. In enterprises where this promotion rule is established the ageing man, because of his lack of adapt- ability, is pushed aside from lucrative positions by the younger man and is placed practically upon a pension.

The prospect of having the uncertain- ties of old age cared for in such a semi- charitable way as a pension, whether it be given by a house to which he has devoted the greater portion of his life, or by some civic or social body, should not appeal to the young men. They should, in their youth, anticipate the problems of their old age, which experience of history shows is singular to no one time in the cycle of the world.

It is within the power of every young man to make through his own efforts a provision for old age, and if he has a wife and children it is his bounden duty to do so. He can easily accomplish this by en- dowment insurance. Insurance com- panies provide him with a vehicle to sur-


mount his probable needs. For a young man the premiums upon an endowment policy are not burdensome. It is the best investment he can possibly make, for not only will he receive in return far more than the sums paid out, but the necessity of paying his premiums, and so maintain- ing his policy, would teach him thrift and the habit of saving which would be to his lifetime advantage. It is an economic question to which every young man should give close attention. Youth must, in the natural order, grow old, and unless he is insured against adverse contingen- cies in his old age, he may be subjected to the same familiar problems that beset the older man. The service of modern life insurance companies which protects against loss occasioned to his loved ones by untimely death or provide him with an endowment fund to tide him over the autumn of his life, may also, by its in- come-for-life feature, eliminate the wor- ries of investing, and leave him free to end his days without financial cares or dis- tasteful annoyance of feeling that he is a semi-charitable “remittance man.” Em- ployers indicate their willingness to assist their employees, as is evidenced by the great growth of group insurance, and the present agitation for pension funds. It would be of timely service to their em- ployees if commercial and _ industrial houses would impress upon their young men the advantages of endowment life in- surance. Insurance agents of life insur- ance companies could materially benefit themselves by spreading this propaganda to large employers, who are only too glad to cooperate with the life insurance man in raising the outlook of the workers.

Prominent Patrons Now in Preparation

N the summer of 1927 THE SPECTATOR I] issued a special Prominent Patrons of Life Insurance Number, which contained the names of some thirteen thousand per- sons, each of whom carried $50,000 or more of life insurance. The demand for this issue was so great, and the additions to and changes in the list have become so extensive since that Number was issued, that a new Prominent Patrons Number is about to be published by THE Spsc- TATOR, in order to provide life insurance companies, general agents and solicitors with up-to-date information which | will



enable them to largely increase their writings.

The last Prominent Patrons of Life Insurance Number issued not only con- tained the names of about thirteen thous- and holders of life insurance policies, with the respective amounts of insurance carried, but also contained such further helpful information as the opinions of six presidents of the United States on life insurance, the opinion of President Coolidge and the members of his Cabinet on life insurance, and the opinions of various other prominent men, including the governors or ex-governors of most of the states; a separate list of 247 million- aire policyholders, and also various appropriate diagrams and articles. The main list contains about thirteen thousand names, arranged by states in their alpha- betical order, and under each state are given respective cities and towns arranged alphabetically, with the names of large policyholders in each town in their alpha- betical order under the names of the towns.

The Number was embellished by the portraits of many of the prominent men whose opinions were given.

The publishers aim to produce in the near future a Prominent Patrons of Life Insurance Number which shall be even better and more helpful than any preced- ing publication of this character. The production of information of this kind by The Spectator Company began in 1886 when the book entitled Prominent Patrons of Life Insurance was first issued. Since then there have been numerous editions of the book named, and in 1927 it was decided to print this vast amount of serv- iceable information in the form of a sepa- rately bound section of THE SPECTATOR, so that each subscriber to THE SPECTATOR would receive a copy of this exceptionally useful information without extra charge, separate copies being purchasable at $1 each, or for less in quantity. The utility of the 1927 issue was so widely recog- nized that THE SPECTATOR is now prepar- ing to issue another similar publication, with the convincing information it con- tains brought up-to-date.

Twenty-one Per Cent Increase The Continental Life Insurance Company of St. Louis, Mo., reports a 21 per cent increase in January, February, March and April, com- pared with the same period in 1928. In the four months the agents paid for $4,102,480.

Life Insurance

Likes New Make-Up [To the Editor of THe Spectator]

Let me be among the first to volunteer com- plimentary comment on the new make-up of THE Spectator. It is a more attractive journal journal in appearance, and the general set-up of the news items seems to draw attention and hold the interest of the reader. Yet, with all of these apparently new attributes, one still has the happy iteeling that he is reading THE Sprc- TATOR and that it has not lost that dependable note which has permeated it and made it dis- tinctive for so many years.

I am going to look forward with increased pleasure to my receipt of future issues of Tur SPECTATOR.

W. A. SPENCER, Vice-President, Retail Credit Co. New York, N. Y., May 24, 1929.

Insurance Club of Chicago Elects New Officers

At the recent annual meeting of the Insur- ance Club of Chicago, J. Earl Fleming was elected president for the ensuing year. Other officers elected include: Louis J. Fohr, first vice-president ; Walter A. Schmidt, second vice- president; Roy A. Lill, third vice-president ; Frank A. Dapper, secretary; C. H. Tillman, treasurer, and Donald A. Drury, librarian. New directors elected were: John F. Stafford, L. J. Schiltz, Arnold Daugaull, J. S. Chiedo and Joseph Bolton.

It was aimounced the headquarters would re- main in the Great Northern Hotel for the ensu- ing year, and that the membership now num- bers 298.

It Can’t Be Done!


Think of Old King Canute

Here was history’s outstanding optimist.

He believed he could cause the ocean tide to recede by com- manding it to do so. tide rolled in just the same.

Not unlike some men of today. Despite the proved uncertainty _of life, they ignore life insur- ance, believing that they and their dependents can evade the mailed fist of fate if an emer- gency arises.

The Prudential

Insurance Company of America Epwarp D. Durrietp, President Fiome Office, Newark, New Jersey

But the

THE SPECTATOR May 30, 1929

Old Colony Life Fights Insolvency Action

Company’s Attorneys Obtain Ten Thousand Dollars to Carry on Litigation

Land Appraisal Considered Too Low

Florida Holdings Listed Under Fifty Thousand by Realtor Against $364,000 by Company

Cuicaco, Itt., May 29.—The legal fight as to whether the Old Colony Life Insurance Com- pany of Chicago is in truth insolvent or whether the impairment alleged by the State is merely a “paper deficit” as claimed by the company, set- tled down for a prolonged duration last week. In the meantime the company is restrained from doing any business until the question of its solvency is finally determined.

The company’s solvency rests on the valua- tion of 7660 acres of real estate in Florida and city property in Tampa and of its home office property in Chicago. The State alleges that the valuation used by the company is too high.

Accordingly the case went to Master in Chancery Max M. Korshak and despite the fact that two sessions were utilized, the direct examination and part of the cross examination of just one witness was all that was accom- plished. Also the company served notice that it intended to vigorously defend its right to continue business when it petitioned the court for $25,000 of its own cash to finance its de- fense. The court allowed the attorneys, Rufus M. Potts and C. W. Armstrong $10,000 sub- ject only to the accounting of the court and in- dicated that additional funds would be granted if necessary.

The first witness before the master was George J. Kable of Springfield, Ill., a real es- tate appraiser, who examined the Old Colony’s Florida holdings this month at the request of Leo H. Lowe, director of trade and commerce.

Mr. Kable startled everyone when he placed a blanket valuation of only $3 an acre on the 7660 acres. of land, indicating a total of $29,- 980 for the rural property, and of $21,550 for the Tampa real estate, making a total of $44,- 530 for all of the Florida real estate. This compares with $364,761 claimed by the Old

THE SPECTATOR May 30, 1929

Colony in its statement and with $140,000 esti- mated by the State examiners in the examina- tion of the company’s records on which the present receivership action is based. The Old Colony took in the Florida property in satis- faction of a mortgage for more than $600,000.

On three small tracts, the first three inquired into, Mr. Kable raised his valuations consider- ably, placing the present value at $10 and say- ing that the value would be $50 an acre if the land was thoroughly drained. He also admitted that much of the Old Colony land could be made worth $2000 an acre in twelve years, pro- viding as much as $1000 an acre were spent during the period in fertilization and cultiva- tion.

During the week the attorneys for the com- pany filed an amended answer in which they as- sert that numerous offers for the Old Colony’s business have been made both prior and sub- sequent to the filing of the receivership petition, ranging from $20 to $25 a $1000 of insurance.


James A. Fulton

Mr. Fulton, agency vice-president of the Home Life Insurance Company of New York, was elected a director at the meeting of the board of directors, May 20. He has been con- nected with the company since March 2, 1927, when he was appointed superintendent of agents.

Life Counsel Convene At Old Point Comfort

Papers of Timely Interest Read at Two-Day Semi-Annual Meeting

Entertained By Virginia Members

Committee on Uniform Death Claim Blanks Will Continue to Func- tion

Combining business and pleasure in a most happy manner the Association of Life Insur- ance Counsel held their semi-annual meeting at Old Point Comfort, Va., last Friday and Saturday, May 24 and 25. A good attendance of members, many of whom brought their families along, took part in the elaborate pro- gram of outdoor entertainment arranged by the Virginia members of the association and the business sessions were well attended.

Aside from the scheduled program of ad- dresses and papers little of general interest oc- curred. Perhaps most important of the mis- cellaneous business transacted was the report of the committee on uniform death claim blanks, of which William Brosmith, vice-president and general counsel of the Travelers Insurance Company, is chairman. The context of the report was approved in principle and the com- mittee continued for further report at the an- nual meeting in New York next December.

The chairman appointed a new committee, with Francis V. Keesling as chairman, to con- sider the possible revision of the incontestable clause, their report also to be given at the December meeting.

Resolutions were read into the minutes on the deaths of the late Haley Fiske, president of the Metropolitan Life Insurance Company and for the late Eugene Angert, of St. Louis, counsel, American National Life.

The following papers were read at the Fri- day afternoon and Saturday morning sessions: Statutory regulation of life insurance invest- ments, by Charles B. Bradley, general solicit- or, Prudential Insurance Company of Amer- ica; parol contracts of life insurance, of Jelks H. Cabaniss, counsel Protectiye Life Insur- ance Company; assignment by the insured of policies which reserve to the insured the right

Life Insurance


Insurance Rate Cut Predicted by Acacia Head

Explains History of Organizations’ Successful Innovation—Points to Public Benefits

The following statement was issued recently by William Montgomery, president of the Acacia Mutual Life Association, in conjunction with the 60th annual report to the members of the Association :

The time has come for a frank discussion of a subject that is of vital interest to every American home, a subject that purely from habit and conservatism is. discussed too often behind closed doors. That subject is life in- surance rates, the. basic factor in America’s greatest single enterprise—one that involves a sum of more than $80,000,000,000 in the form of insurance in force.

The occasion for a discussion of the subject by the directors of the Acacia Mutual Life As- sociation comes upon the conclusion of a suc- cessful three years experiment with rates re- duced not only below those of other mutual com- panies but as low as those of the stock com- panies—lower than many of them.

With no selfish interest to serve, Acacia makes public the results of its experiment be- cause those results affect vitally every insurance policyholder in the United States.

Three years ago, after many years of care- ful investigation, the directors of Acacia con- cluded that the premiums charged by the mu- tual old-line companies could be reduced ma- terially and still be sufficient to guarantee in- surance beyond question. Their searching study of the rate system revealed that the system of refunding the unnecessary part of the premium in the form of a dividend was not economical inasmuch as taxes, fees, agents’ commissions and othert expenses had to be deducted before anything could be refunded.

In effect, the system involved taking a more than needed premium from the policyholder and then assessing him a handle charge upon his money before returning it to him.

A further revelation of the inquiry was that stock insurance companies, selling insurance as merchandise and promising their policyholders no dividends, were highly successful as a whole despite the fact that their premium charges were lower than those of mutual companies. The success of these companies, the fact that they were paying such large dividends to their stockholders, and the increased value of their stock clearly proved their stability and general soundness.

It was evident, in these conclusive findings, that a mutual company also could operate suc- cessfully under a reduced schedule of premium charges, with increased benefits to its policy- holders.

It must be conceded that the step was a bold one—even though based upon the most diligent and completely affirmative research—but in April, 1926, Acacia adopted a schedule of pre- mium rates reduced to the low level of those established by stock companies. Three years

Life Insurance

have proved the wisdom of that step and have proved that insurance thoroughly guaranteed can be written by mutual companies at rates directly comparable to those established by stock companies and besides pay good dividends. In that interval, official approval of Acacia’s course, one that involved $300,000,000 of insurance, has been unstintedly given in every analysis of the company’s condition.

The results attendant upon this departure, this modernization in insurance practice, clearly in- dicate that within a reasonable time mutual companies will be selling insurance at lower rates. In the judgment of Acacia’s directorate, the insurance buying public will insist on these reduced premium schedules because of the sav- ings which will result.

Life Counsel Convene Old Point Comfort (Concluded from page 7)

to Change the Beneficiary ; by Benjamin L. Hol- land. attorney, Phoenix Mutual Life Insurance Company; Some Aspects of Life Insurance Trusts, by Benjamin R. C. Lowe, general coun- sel, Home Life Insurance Company; Jurisdic- tion of the Federal Courts as Affected by the Amount in Controversy, by Paul E. Price, coun- sel, Old Colony Life Insurance Company. Entertainment features in connection with the meeting were carried out according to program, which included golf, fishing and automobile tours to nearby points of historical interest.

Nylic Public Service

counties and municipalities.

q q q q q

As of January 1, 1929, the New

York Life had about 2 Million policy-holders Insured for over 634 Billions.

Its assets amounted to over 114 Billion Dollars.

COMPANY 51 Madison Avenue, Madison Square NEW YORK, N. Y.

Life Insurance is “‘public service.”

It helps individuals to save and insures their life values against loss by death or by total and permanent disability.

In order to earn interest on the policy-holders’ savings, it loans money to home-owners, to railroads, to owners of city buildings, to public utility companies, to the United States government, and to states,

Probably no other institution serves our people singly and collectively, both as private individuals and as citizens, in so many vital ways.

A company’s usefulness to the community is, therefore, largely meas- ured by the number of people protected, the amount of insurance in force and the amount of its invested assets.


THE SPECTATOR May 30, 1929

Ralph R. Lounsbury President Bankers National Life

Succeeds Hon. Richard H. Lee as Head of Fast Growing New Jer- sey Company Directors of Bankers National Life Insur- ance Company, Jersey City, N. J., have an- nounced the election of Ralph R. Lounsbury to the presidency of the company. Mr. Lounsbury, formerly executive vice-president of this com- pany, succeeds Richard H. Lee in this posi-


Mr. Lounsbury is well known in life insur- ance circles through his work in organizing and heading the Bankers National Life Insurance companies 9f New Jersey, Colorado and Flor- ida. Prior to his connection with the Bankers National Life, he was actuary for the insur- ance department of the State of Nebraska; he assisted in the drafting of policy forms used in the conversion of government term insurance in the federal war risk bureau at Washington; he was secretary and actuary of the Union Life Accident Company, of Lincoln, Nebraska; and vice-president of the Union Automobile In- surance Company. He has been president of the Colorado and Florida companies since their organization in 1923 and 1925 respectively, and this now makes him president of the three Bankers Life companies.

The Bankers National Life Insurance Com- pany of Jersey City, N. J., was organized and incorporated on October 5, 1927, and was un- usually successful in its first year in business.

Purchase Kansas Life Machir J. Dorsey Elected President by Associates and New Board Is Named Machir J. Dorsey of Indianapolis and others have purchased a large interest in the Kan- sas Life Insurance Company of Topeka. Mr. Dorsey has