attraction and its effect upon their judgment.

The number of companies existing to-day under the legal-reserve plan is smaller than a quarter of a century ago. Within the next quarter of a century, there is more apt to be a reduction than an increase in the number, so that the vast life insurance business of the land in 1925, with its almost immeasurable accumulations, will probably-if the policy of destruction in place of reform in Assessment Insurance prevails-be in the hands of less than fifty corporations.

VI.

PREJUDICE AGAINST PRINCIPLE.

The Assessment legislation of fifteen and sixteen years ago aimed mainly to embody in statutory law the methods of business then prevailing.

It took no account of principles which underlie Life Insurance, but sought to regulate in the simplest manner a business that had grown already to vast magnitude.

Assessment Life Insurance had its birth in

the wish of the masses for the benefits that Life Insurance alone can give and in the belief of the people that it was costing too much and was lacking in security as practiced by the old-line companies.

The disasters of the period, during which more than half the companies of the country retired from business, were fresh in the minds of deluded and disappointed policy-holders.

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There is no question but that many cooperative and fraternal societies operating between 1870 and 1880, in spite of their imperfect system, and because of honest management, furnished better protection to their patrons than the level-premium companies. whose demise we have been consideringalthough the latter were organized upon plans that were unassailable, ran their course of wickedness under the ægis of the law, and died in the odor (a very bad odor, to be sure) of regularity. While the business of the levelpremium companies that failed was but a small percentage of the whole, and there were always sound and well managed companies in the field, yet the losses were nevertheless great

and widespread, and it was little comfort to one who had lost the accumulations of years to be told that he should have insured in a

better company. A system that furnished (or

even promised) present protection at low cost, and did not profess to accumulate money for future needs, appealed very strongly to men who did not understand theories of insurance, but who who were angry and sore at heart over losses under a system that professed to be perfect." *

The people took counsel of their prejudices, and believed that they could throw principles to the wind.

To-day, simply because similar disaster has occurred to some of the newer organizations, prejudice is again called to aid those who would destroy.

There is no more regard for principle in the one course than in the other.

The method of common sense would be to enquire what is lacking in the original laws and supply the deficiency.

* From "A Review of Life Insurance," by John A. McCall, September, 1898.

The practice of the business has outgrown the law and is far sounder to-day than when the law was made. The law remains practically unchanged.

The old disasters grew out of the old methods, long since discarded so far as new business is concerned; but when this plea is urged, the answer is that the new methods were not contemplated by the law and that, therefore, they are illegal.

The statement of fact is true. The "therefore" which follows is sheer nonsense. If the law perpetuates evils of practice that the associations seek to discard, the law should be amended.

The object of a law is always more important than the mere words that make up the law.

VII.

NON-ACCUMULATIVE INSURANCE.

Men saw in the failure of old-line companies that the policy-holders lost not only the insurance which they had attempted to purchase, but, as well, the money accumulated

from their payments, which was to help pay for future insurance.

They decided that at least they could save, in case of failure, this accumulated excess, by paying only the cost as it accrued, thus avoiding all accumulation.

They failed, and the law followed blindly where they blindly led,- to take account of this one fact:

THE COST OF LIFE INSURANCE INCREASES WITH THE CHANCE OF DEATH, AND IF IT IS TO BE PAID AS IT ACCRUES, THE PAYMENT MUST INCREASE AS THE COST INCREASES. IN NO OTHER

WAY CAN ACCUMULATION BE AVOIDED.

This is law already made, founded in unalterable facts. The companies should of their own accord have conformed to its requirements. When they did not, statutory law should have compelled such conformation, as a condition of the right to do business.

The compulsion which should have been in the law from the first, should be placed there forthwith.