OBSEQUIES OF PRESIDENT GARFIELD.—ABOUT LIFE ASSURANCE.

Poverty Bay Standard, Volume IX, Issue 1012, 15 December 1881, Page 4

OBSEQUIES OF PRESIDENT GARFIELD.—ABOUT LIFE ASSURANCE.

Never before, and probably never ■will there be again, such a demonstration as that which took place on the occasion of the burial of the late President. The day was observed as a national fast. In the East it was strictly observed by abstinence from all business ; while the throngs which

followed the corpse to the grave in Cleveland, Ohio, contained representatives from all the States east of the Rocky Mountains. Far-off California was officially represented ; but the State conducted funeral services of its awn in every considerable town. The procession in San Francisco, of civic and military bodies, was very imposing. It took two hours and a-half to pass a a. given point, although the civic companies marched 12 abreast. The Knights Templars, in full regalia, inarched in lines in the form of a cross,

and presented a very imposing appearance. Looking at the longjine of procession, one was puzzled to know where all the well-dressed men came from, not to speak of the throngs which lined the streets along the route and occupied every point of view from windows, housetops, and parapets. The wonder is that no accidents occurred. But this parade was remarkable in another aspect. It was largely composed of the members of benefit and mutual insurance societies, Odd-Fel-lows, Chosen Friends, Knights of Honour, American Legion of Honour, Knights of Pythias, United Workmen, Ancient Order of Hibernians, Foresters, and half a score more; and the reflection that fully 10,000 men marching past to the strains of funeral music had made provision individually for those dependent on them in the case of death, might well give rise to

serious thought. This feature of American social life is remarkable. The regular life insurance companies do not like the popular and inexpensive system of mutual assurance which the American people have perfected by systematic organisation. It costs nothing to collect the dues and assessments —there are no commissions to be paid, or costly offices to be maintained. The money is levied and applied direct towards payment of claims as they arise. For example, a life insurance policy for 3000dol (say £600), payable in case of permanent disability or at death, as the case may be, does not cost an insurer, at the ■age of 40 years, including medical and ■entradce fees, monthly dues and assessments to meet claims upon the society, more than 20dol a year on an -average of six years. And none of these co-operative societies has ever made default, although the drain upon the funds of several orders during the yellow fever epidemic a few years ago was very great. Now, in your Government insurance a very large sum is annually wasted in commissions upon premiums to postmasters and other officers, who really do not work for it, and have no equitable claim for such remuneration. I say this, after reading the Actuaries’ report, and having an interest in the matter. At least £lOO,OOO additional should be available for distribution among policy-holders. I am surprised that this waste of the insurance funds should have passed unnoticed all these years in Parliament. To illustrate the unfairness of the system to insurers, I wili specify a case in which an application for a policy of £lOOO was made by the party to whom it was issued, without solicitation of any agent whatever; yet the postmaster through whom the application was necessarily made under the law was paid 10 per cent, upon the first and 5 per cent, upon all subsequent payments under the policy, and if not this gentleman himself, some other official less directly related to the original transaction receives the commission. And this case is illustrative of all others. In the case of private insurance companies it is necessary no doubt to pay the agents commissions to bring business, but in the case of the New Zealand Government insurance, which pledges the public security, and makes it a branch of the Post Office Department, the payment of commissions upon premiums is altogether wrong. If these commissions went to swell the insurance fund, the Government might offer better terms, and greatly popularise the business. I may be wrong in the amount of commissions, but the principle is the same, much or little. In time co-operative insurance will be introduced into the Colony from America, and when that takes place the costly management of the Government and other offices will tell greatly against them. I have examined into this matter, and I am satisfied that nothing surer, more effective, or which tends more to strengthen habits of thrift and mutual help than co-ope-rative insurance, as it existsin America, can be found anywhere else in the world. The remarkable out-turn of these beneficiary societies at the obsequies of General Garfield in this city (and, I may add, elsewhere in the State) determined my mind to throw out these suggestions in this letter.