Kitabı oku: «The Bay State Monthly, Volume 3, No. 5», sayfa 2
ASSESSMENT INSURANCE
By G.A. Litchfield
It is the purpose of this article to fairly treat the subject under consideration and to set forth such claims only as can be sustained to the satisfaction of candid and unprejudiced minds. It will not be assumed that the science of Assessment Insurance is perfected; on the contrary, our most advanced thinkers upon the subject are those who see most clearly its defects, and are laboring most assiduously to correct them. Grave obstacles have been encountered in their endeavors to perfect the system. Those who have written upon the subject in the public press have been largely such as have given it but a cursory study, or such as have been totally unfit to discuss it from an impartial standpoint by reason of preconceived notions or prejudices in favor of the level premium system of insurance, if, indeed, they have not been retained for a consideration by that gigantic moneyed monopoly.
So largely has prejudice controlled in the consideration of the subject, that those who have sought judicious and stringent legislation to correct abuses, and to bring the business under equally careful and official supervision as that given other forms of insurance, with a view to making it permanently subserve public interests, have been more than once defeated in their laudable endeavors, because they insisted that no legislation could meet the necessities of the case that did not contemplate it as a permanent institution. Great advances have been made however in the last three or four years, and much that was objectionable has been corrected. Wise legislation has been secured in many States. At the last session of her legislature, Massachusetts signalized an important step in advance, by enacting a law whose provisions indicate an intelligent comprehension of the subject on the part of her legislators, unsurpassed by those of any other State. It has already begun to correct existing evils, as its advocates foresaw it would do.
Several companies dishonestly and incompetently conducted have found it impossible to longer prey upon a too confiding public.
The collapse of fraudulent concerns has furnished an occasion for the enemies of the system to cry out against the system itself, but thinking men are not deceived thereby. As was recently remarked by a distinguished ex-insurance Commissioner of Massachusetts, "Assessment Insurance has come to stay." There is not, as has been claimed by its opponents, anything inherent in the system that fore-dooms it to early and inevitable collapse.
Assessment insurance is natural insurance as against artificial. In the early establishment of life insurance companies, everything was assumption, there was little or no experience to guide in formulating the principles upon which the business should be conducted. There was partial information, it is true, upon certain general facts pertaining to longevity or to mortality laws, under certain conditions, but nothing that could give substantial data upon which to base mathematical calculations for the establishment of a science. Under those conditions, rates of premium were fixed for insurance at the different ages which the experience of many years has shown to be very much higher than is required to meet reasonable expenses, and losses occurring from policies maturing by death.
A rate of mortality was assumed greater than experience has shown to prevail among well selected lives. The important element of lapses was not considered, an element so considerable in its practical bearing upon the requirements of the company to meet its liabilities, that of one million of assumed liabilities upon say one thousand lives, only about $77.000 become actual liabilities by reason of policies maturing by death of the insured.
Assessment insurance instructed by the experience of life companies, adjusts its plans and methods upon the natural basis of fact, and not the artificial one of supposition. It tabulates its rates according to the combined experience of all American companies, requiring the insured to pay a sum proportionate to the amount assured, and to his life expectancy.
It places its risks upon carefully selected lives only, requiring a competent medical examination of the applicant, having regard to his previous health and habits, his occupation or profession, his family history, and such other circumstances as should properly be considered in calculating probable longevity.
We assert without fear, that we shall be successfully controverted, that there is as great care and discrimination exercised in the placing of risks by our representation assessment companies, as in any other form of insurance. Time was when this claim could not have been supported by facts, but that time is not now. Our conservative assessment companies,—and there are many of them that can be fairly so styled, ignore none of the scientific principles upon which life insurance depends for its permanent success. They do believe however that their methods of conducting the business will conserve the interests of a far greater number, and relieve them of a large proportion of the burdens imposed by the older and more cumbersome form.
Assessment companies call upon their policy-holders for such sums as are required to meet actual losses, together with a small amount for expenses and for an emergency fund. Mortuary assessments are called only when there is an amount in hand on that account, insufficient to meet the maximum sum for which a policy is issued. They may be called at stated periods, or as the exigencies of the case shall require. Objection is made to this method that it is unreliable, and cannot be depended upon when the mortality is from any cause unusual or excessive.
It is not claimed by the best informed advocates of assessment insurance, that direct assessments should be the sole reliance of the company. Some other provision should be made which is referred to later in this article, but the main dependence is upon assessments.
If companies are honestly and capably conducted, and risks judiciously selected, there is nothing in the experience of life companies to indicate that mortality assessments on the average will be sufficiently burdensome to seriously threaten the permanence of the institution. Where disaster has been visited upon assessment companies, the cause has been easily traceable to incompetent or dishonest conduct of the business, and utter disregard of the foundation principles of all insurance. It has in no instance been fairly chargeable to defects in the system. With the record before us of our best assessment companies, faithfully and competently administered, paying their losses promptly, at a cost to the insured for a term of years, of one third to one half only, of that in level premium companies, what reason is there for the insuring public withdrawing their patronage.
But we admit that it is not sound policy to depend upon assessments alone, and this view is held by most if not all, who have studied the subject in its various aspects. While for many years, and perhaps indefinitely, a company might be successfully conducted, if under a competent management, depending solely upon assessments, yet contingencies arc liable to arise in which it will be evident that true conservatism and wise forethought would have held in hand some funds for use without imposing, at that particular time, the burden of an assessment upon the policy holders.
The advocates of such conservatism have been met with the argument that it is contrary to the principle of assessment insurance, and a concession to the theory of the level premium plan. But the reply is that the requirements of an assessment company in the form of an emergency or reserve are in no sense comparable with those of a level premium company, and the application of it is upon an entirely different principle, and for an altogether different purpose.
An assessment company may need funds in hand to relieve its members of an assessment when otherwise they might be overburdened, because the death rate fluctuates in different years. Or again, in case of a depleted membership from any cause, the assessment company would need funds in hand to supply any deficiency in the proceeds of an assessment below the face of the maturing obligation. For either purpose a comparatively small sum is required, while the level premium company must pile up tens of millions of overpayments to cover the requirements of the principle on which it conducts its business. It is susceptible of mathematical demonstration that one or two millions of dollars of reserve is adequate to perpetuate any well conducted assessment company for all time, however large or small it may be, while the spectacle is presented to us of level premium life companies holding fifty to one hundred millions of accumulations belonging to their policy holders, from which no possible benefit, in most cases, will ever accrue to them. We therefore emphasize the proposition that a system of insurance that relieves the insurer of one half the pecuniary burden he is compelled to bear under the level premium system, is one that is worthy of fair treatment on the part of a discriminating public, and that the people cannot afford to have impeded in its usefulness by ignorance, prejudice, or moneyed monopolies. We repeat the claim for assessment insurance that it is natural as against artificial insurance.
It is pure insurance as against insurance and banking combined.
It is within the comprehension of ordinary minds. It is adapted to the wants of the people, because they can easily avail themselves of it, and as easily discontinue it without material or considerable loss.
It is within the reach of a much greater proportion of the people on account of its small comparative cost, and the ease with which payments can be made in small amounts. More than sixteen hundred thousand of the citizens of this country are now availing themselves of its advantages, as against about six hundred thousand in level premium companies while the former represent more than thirty-seven hundred millions of insurance, as against about fifteen hundred millions represented by the latter.
The disbursements of assessment companies to families of deceased members reach the munificent sum of more than twenty-two millions of dollars annually. The national organization of Mutual Benefit Assessment Associations of America is exerting a most healthful influence in elevating the standard of those companies that comprise its membership. It embraces organizations from all of the principal States of the Union, and its influence is strongly on the side of scientific and conservative methods and practices.
To be eligible to membership, a company must have its rates of assessment graded according to one, or the combined standard mortality tables, take proper precautions in selection of risks, protect new members at any time in its history against an excessive number of assessments, either by increasing the rate of assessment with advancing years or by accumulating a fund in lieu of advancing rates, will make a full exhibit of its policy data annually to the Convention. This standard upon its publication, compelled favorable recognition upon the part of level premium journals.
Thus assessment insurance has gradually placed itself upon a higher and more scientific basis, until it has commended itself to the most intelligent and thoughtful, and in its wonderful growth outstripped its older and less popular rival, until its obligations to the families of the insured exceed those of level premium insurance to the amount of about two thousand millions of dollars.
A Bureau of Insurance has been established under the auspices of the National Organization whose object is to gather and compile statistics relating to all phases of assessment insurance, such as the experience of companies with agents and medical examiners, the comparative cost of carrying various classes of risks and in short, everything in the practical working of the business by the companies comprising its membership, that may furnish data for a more scientific basis, and more satisfactory results in the future.
Many assessment insurance companies are not what they ought to be, but there are those worthy of confidence and patronage, whose managers are making the business a careful study, and bringing to its administration, honesty of purpose and large executive ability.
If the insuring public will learn to discriminate and place their risks in the best assessment companies, remembering that insurance in any good company must cost a reasonable amount, they need have no apprehension as to the result.
THE HERO OF LAKE ERIE
ORATION DELIVERED AT THE UNVEILING OF HIS STATUE AT NEWPORT, R.I., SEPT. 10, 1885
By Hon. William P. Sheffield
The battle of Lake Erie was fought seventy-two years ago to-day; and we have convened to dedicate to the public and to posterity a statue in memory of the Commander of the American fleet on that occasion,
Oliver Hazard Perry needs no monument of bronze or marble to commemorate his name, or to illustrate his glory. History has taken these into its keeping and will preserve them for posterity, while genius in battle and heroic valor and unfaltering energy in the performance of high duty, receive the homage of the American people.
Wherever the patriotism of the citizen is the only reliance for the defence of the nation, the people owe it to themselves to show their appreciation of the conduct of those persons who have arisen among them that have been public benefactors, and have conferred distinction upon their localities. They owe it to those who may come after them, that they so manifest their gratitude that it will inspire succeeding generations with a due sense of patriotism, and be an incentive to them to rise above narrow and sinister purposes to the plane of exalted virtues, and be stimulated to the performance of great actions.
Citizens of South Kingstown, the town in which he was born,—of Newport, where he was reared, had his home in mature life, and is buried;—together with the State and people at large, who have participated in his glory, have been impelled by this common sense of obligation to undertake the erection of a memorial statue of Commodore Perry, a task, the execution of which was committed to a native artist, and here is the artist's finished work.
The statue is designed to represent Perry, not as he was superintending the cutting down of the forest for the construction of his ships; not as he was meditating the plan of the battle of Lake Erie or the order of its execution; not as he appeared the evening previous to the action advising his subordinate commanders in the words of Nelson, "No captain can do wrong if he places his ship alongside of that of an enemy;" nor as he was opening the battle flag which bore upon its folds the dying words of a gallant captain; not as he was leaving his wrecked ship with the deck strewed with his dead and dying comrades, when by the received cannons of naval warfare the Lawrence and the battle were lost; but as he appeared in that supreme moment of his life, when he had just gained the deck of the Niagara, before he had recovered his knocked-off cap, and while in distinct succession he was giving orders to "Back the main-top-sail," "Brail-up the main-try-sail," "Helm up" "Square the yards," "Bear down on the enemy's line," "Set the top-gallant-sail," "Hoist the signal for close action," orders which infused new enthusiasm into all the American crews; and as pendant answered pendant, from mast-head to mast-head indicating the reception of the order to break the enemy's lines, hearty cheers went up from the entire American force with a fervor that presaged the result of the impending death struggle.
In contemplating this statue, we should consider the circumstances in which Perry was placed, and the events impending when the artist has undertaken to represent him, as well as in the light of Perry's conduct thereafter and the results therefrom, reflected back upon this critical juncture in his career. For the battle of Lake Erie did not create, but illustrated and brought out in bold outline, the real character of the man.
The crews of the American fleet were of a mixed character. Perry sent from Newport one hundred and forty-nine men and three boys in three detachments. Half of one of these detachments was detained by Commodore Chauncey on Lake Ontario; but shortly before the battle Perry received from that officer a considerable accession to his force. Upon his arrival at Lake Erie, Perry found a few men in the service of the Government on the Lake, and the remainder of his men were made up of new recruits, with a contingent taken from the North Western army of men, naturally brave but without experience on ship-board. Perry had arrayed against him skillful officers who had been taught the art of war, and the methods of victory under Nelson. Brave and highly disciplined seamen in whose vocabulary defeat had had no place, with recruits like Perry's taken from the army, and an auxiliary force of Indian sharp-shooters.
The character of a naval engagement is not to be determined alone by the number of men, the tonnage of the ships, or the weight of the metal involved in the conflict. These are elements to be considered, and in the battle of Lake Erie all of these elements were against the American fleet, but the surrounding and attending circumstances, the conduct of the battle, and the results depending upon its issue are the considerations which go to make the place in the minds of succeeding generations which the event is to occupy. History has not had committed to it for preservation the story of the organization of a fleet, and the conduct of a battle the result of which was more dependent upon the genius, knowledge, energy, and courage of a single individual, than was the battle of Lake Erie.
Other commanders have fought in ships completely equipped for service by other hands, but Perry had to construct, equip, arm and man his ships, and in person to take two of them in succession into action; and it may be well questioned whether he is not entitled to as much credit for his intelligent comprehension of the wants of the occasion, his energy, and perseverance in collecting the materials to supply those wants, and in making up his fleet, as for his genius and courage in action.
Perry, in the beginning, was unfortunate in having succeeded an officer who, in the engagement was his subordinate in command, and in anticipating a ranking officer in bringing on the conflict; but the surrounding circumstances and the positive orders of the Secretary of the Navy made his meeting the enemy a necessity.
The outcome of the attempts which had been made by the Government for the defence of this section of the country had not been such as to inspire sanguine hopes of the result of this action.
The Adams, the only vessel the United States had upon the Lake before the construction of Perry's ships, had been captured. General Hull had ignobly surrendered his force to the enemy at the head of the Lake, General Winchester's army had been lost to the Government, and General Van Rensselaer had been defeated at Niagara.
Perry was to act in conjunction with the northwestern army, under General Harrison, then awaiting the result of the battle to be transported across the Lake, in the event of a victory, to operate against the enemy in his own territory.
Perry's earnest appeal to Chauncey for men, backed by the promise that if he got them he would acquire honor and glory both for Chauncey and himself, or he would perish in the attempt, should be considered in connection with his appeal to the same officer to bring the men, and take command of the fleet. Together they show that the first appeal was not the result of an ambitious desire for vain glory; no mere impulse of emotion or passion; but the outcome of a high resolve wrought in the laboratory of a noble soul, born of that deliberate purpose which permeated his subsequent conduct in the action and which is recorded in the bronze before us.
The men from the army were animated for a desperate exertion; with them the slaughter at the river Raisin was to be redressed, and its repetition in the northwest was to be made impossible. In this disposition for redress the seamen heartily sympathized, for the war was a contest for Sailors' Rights. The American Flag then trailed in the dust, but it was to be restored to its appropriate place in the esteem of the men in that section of the country. With a crew animated by these motives, Perry went into action with the Lawrence and fought the enemy almost single-handed until all the guns of his ship were dismounted, and all but eight of her gallant crew that he left on board, were either killed or wounded, when with a boat's crew he left the Lawrence, boarded and took command of the Niagara, and it is at this moment in the conflict the artist has undertaken to represent him.
Barclay said in his report to the British Admiralty, that when Perry boarded the Niagara, that vessel was fresh in action. Up to that time she had been beyond the effective reach of the enemy's guns, but under her new commander there was no halting in her course as she bore down to break and pass through the enemy's ranks. Every brace and bowline were taut, and every man on board, apprised of what was expected of him, was soon at his post of duty; each, as he took his position, cast a hasty glance at Perry's battle flag then flying from the masthead of the Niagara, and as he took in the dying words of the noble Lawrence, formed a solemn resolve to obey their mandate and made that resolve a sacrament.
As she went into action, the Niagara belched forth a broadside at the Detroit and the Queen Charlotte, then a broadside at the Chippawa, the Lady Provost and the Hunter. These broadsides were repeated in rapid succession with terrific effect. The other American vessels, now in action, whose crews were inspired by the daring of their fleet commander, imitated his example and the combined result was such as Britons could not endure. The eagles of victory soon perched in triumph on the mastheads of the American fleet, and Perry had won the battle which James Madison, then President, said "had never been surpassed in lustre, however much it may have been surpassed in magnitude."
After the action, Perry returned to the Lawrence, changed the dress of a common sailor for an undress uniform, that he might appropriately receive the surrender of the enemy on board the vessel that had been in the hardest of the fight and had suffered most from it; and that the remnant of her gallant crew might witness the submission of the foe which had caused their sufferings.
That relief from apprehension for the safety of the fleet might be given to General Harrison and the settlers on the widely extended domain about the Lake, Perry penned and dispatched to that general a hasty note, in words familiar, and destined to be immortal, telling him "We have met the enemy and they are ours," and another like hasty note, to the Secretary of the Navy, informing that officer that, "It has pleased the Almighty to give to the arms of the United States a signal victory over their enemies on this lake. The British squadron consisting of two ships, two brigs, one schooner and one sloop, have this moment surrendered to the force under my command after a sharp conflict." There is nothing of the valor of the pen or of the exaggeration of self from the ink horn in this concise and expressive note.
The enemy's surrender was gracefully received. Perry soon visited the wounded Barclay, and tendered him every service that it was in his power to render, and every possible attention was given to the wounded of both fleets. Then came the roll-call to see who had answered the final summons to duty on the field of honor, who had received marks of courage in the fight, and who had gone through the dreadful ordeal of battle unscathed. It was then that the tears of sorrow mingled with the exultations of victory which soon were to be shouted along the line of every highway and by-way, from hamlet to village, from village to town, and from town to city, throughout the land.
Perry wrote to Governor Brooks of Massachusetts a letter condoling with him on the fall of his gallant son in action; for while Perry's brow was laurelled with the wreath of victory, he did not forget that there were mourners weeping for brave hearts which in the fight had been forever put to rest.
The name of Perry was now made a household word from the great Northern Lakes to the Gulf of Mexico, from the Atlantic Coast to the impenetrated wilderness of the West, often repeated at the baptismal font; and a nation's gratitude was soon laid at his feet. As humane in victory as he had been brave in action, his generous kindness won the admiration of Barclay, and his dying comrades showered upon him their blessings and remembered him in their final prayers.
Prayers of gratitude to that Almighty Power which had given victory to the American arms went up from every fireside throughout the Northwest; and mothers pressed their children more closely to their breasts as they thought themselves to be henceforth secure from the scalping-knife of Indian barbarity, and that the savage war-whoop would no more break the sleep of the cradle.
At night-fall many of the dead with all due solemnity were tenderly committed to the deep. The wounded had all been visited and their wants attended to; the worn and weary now sought repose, and a solemn oppressive silence soon pervaded the fleet, save here and there a sound of distress from the wounded. The Captain now retired for reflection, for his mind and heart were too full for rest. He then thought of his young devoted wife whose prayers he believed had been his shield in battle; that his work was yet incomplete while the British had an army on the borders of the Lake, or in Upper Canada,—how he could best aid General Harrison's army; and then resolved on the work of the morrow; when, soothed by reflection, his tired nature gave out, and he, too, sank into a fitful slumber.
The mind of Barclay, relieved of present responsibility, evolved other less pressing but more pensive thoughts. He thought not of himself or his bleeding wound, for he had bled before for his country, when he earned his stars and made his fame secure at Trafalgar; but as the sun went down that night he thought that no more in the evening twilight would the mariners of England standing under the cross of St. George, on that great inland water, sing their national song, "Brittania rules the waves;" no more the echoes of that stirring air rolling over the silver surface of the Lake to its islands and shores would arouse the sturdy dwellers there to join in glad unison in those lofty strains which everywhere, the world over, melt into one every true and loyal British heart. He then was moved by the sadder thought, that on that night the sun of British power which had hitherto dominated the great Northern Lakes of America had gone down forever.
Perry's available vessels were now taken to transport General Harrison's army across the Lake, and up the Detroit river. The Lawrence, as soon as she was put into condition took on board the wounded of both fleets, and under the command of the gallant but wounded Yarnell carried them to Erie. The other vessels were repaired and fitted for other duties, or were to return to Erie.
Perry accompanied General Harrison as a volunteer aid, and participated and bore an honorable part in the battle of the Thames, as he had done in the battle of Fort George, under Chauncey, before the engagement on the Lake.
Upon his return to Detroit, he found a letter from the Secretary of Navy thanking and congratulating him for the eminent services he had rendered his country; and, as he had performed the duty committed to him, granting him leave to visit his family at Newport.
But Perry was first to return to Erie, which he had left the 12th of August. The news of the result of the battle had long preceded his arrival and the people had there been watching and waiting his coming. On the 23d of October, the Aerial, the last vessel of the fleet to leave the head of the lake, came within sight of Erie. She had on board General Harrison, who had then lately defeated General Procter at the Thames, the wounded Barclay, and Commodore Perry. The people from the surrounding country crowded into Erie to welcome the arrival of the victors. Barclay was taken to Perry's quarters and there properly cared for by Harrison and Perry.
The Lawrence was anchored in Misery Bay, in the harbor of Erie, maimed and battered and scarcely able to float, yet having on board her precious freight brought across the lake; Perry now visited this ship, and as he reached her blood-stained deck and beheld his surviving comrades and thought of those who had been in the fight, that were not then on board, he reverently raised his hands in fervent supplication to Him who giveth the victory not always to the strong, to heal the wounds, and bless, and raise up, the sufferers around him; and to sustain and help the widows and orphans the battle had made; and in thanksgiving for the preservation of those who had survived the conflict unhurt. He then returned to the shore to meet the vast concourse of people awaiting his arrival. The dead and the disabled men, the dismounted guns and the broken and tattered ships, told the story of the battle and the price of the victory with more eloquence than the most brilliant imagination could compass. These visible evidences of the strife for the mastery indicated the valor and the woe, incident to the ordeal which had been passed, with an energy and pathos which overpowered the most obdurate will; and the multitude greeted Harrison and Perry with tears and smiles,—rain in sunshine with a heartiness that language is too poor and barren to describe. The living had earned their title to everlasting gratitude, and the dead had fallen as the brave desire to fall, at the post of duty and on the field of victory.
