{"1": {"fulltext": "", "height": "4191", "width": "2772", "jp2-path": "historyofprudent00hoff_0001.jp2"}, "2": {"fulltext": "LIBRARY OF CONGRESS.\\nChap. Copyright No.\\nShell_H6 8U3\\nUNITED STATES OF AMERICA.", "height": "4068", "width": "2581", "jp2-path": "historyofprudent00hoff_0002.jp2"}, "3": {"fulltext": "", "height": "4068", "width": "2581", "jp2-path": "historyofprudent00hoff_0003.jp2"}, "4": {"fulltext": "", "height": "4030", "width": "2505", "jp2-path": "historyofprudent00hoff_0004.jp2"}, "5": {"fulltext": "", "height": "4030", "width": "2505", "jp2-path": "historyofprudent00hoff_0005.jp2"}, "6": {"fulltext": "", "height": "4030", "width": "2505", "jp2-path": "historyofprudent00hoff_0006.jp2"}, "7": {"fulltext": "Paris Exposition of Nineteen Hundred.\\nH I STO RY\\nOF\\nThe Prudential Insurance\\nCompany of America\\n(INDUSTRIAL INSURANCE)\\n187 5-I 9OO\\nFREDERICK L. HOFFMAN, F. S. S.\\nn\\nStatistician of\\nThe Prudential Insurance Company of America\\nPRUDENTIAL PRESS\\nI9OO\\nV..", "height": "4030", "width": "2505", "jp2-path": "historyofprudent00hoff_0007.jp2"}, "8": {"fulltext": "11377\\nLibrary \u00c2\u00abr Conqrs\u00c2\u00bb(,\\nTwo Copies Kfceiveo\\nJUN 27 1900\\nStCtNl) COPV.\\nDelivered t\u00c2\u00ab\\n\u00c2\u00a9RDl* HVlSlON.\\nJUN 28 1900\\nKJ\\nCopyright igoo,\\n64427\\nThe Prudential Insurance Company of America.", "height": "4030", "width": "2505", "jp2-path": "historyofprudent00hoff_0008.jp2"}, "9": {"fulltext": "PREFACE.\\nTHIS work has been prepared at the request of the United\\nStates Commissioner to the Paris Exposition of 1900, as\\npart of an exhibit of charts, diagrams and statistics illus-\\ntrating full}* the methods and results of Industrial insurance in\\nthe United States, as represented in the history of The Pruden-\\ntial Insurance Company of America. The time at my command\\nfor the preparation of this work having been very limited, I can\\nhardly hope to have succeeded in presenting the subject in all its\\nessential aspects to the full satisfaction of the reader, but every\\neffort has been made to meet ordinary requirements for informa-\\ntion and data on a subject here, for the first time, dealt with on\\na somewhat extensive scale. In view of the fact that The Pru-\\ndential Insurance Company of America was the first company\\norganized in this country for the transaction of an Industrial\\nbusiness on the plan of The Prudential Assurance Company of\\nEngland, I believe that it can be said, with perfect justice, that\\nthe history of The Prudential is the history of American Industrial\\ninsurance for in all measures, methods and results, the Company\\nhas not only had its proper share, but it has ever made the most\\ndetermined effort to hold the first place among American life com-\\npanies, as a progressive institution vitally interested in everything\\ntending to make the business with which its name is inseparably\\nassociated the most successful of its kind, and to offer the most\\nsatisfactory form of insurance to the people, who now, to the\\nextent of more than three and a half millions, are its patrons and\\npolicy-holders. I have been compelled, for want of space, to limit\\nmyself to the barest recital of the historical facts pertaining to\\n(v)", "height": "4030", "width": "2505", "jp2-path": "historyofprudent00hoff_0009.jp2"}, "10": {"fulltext": "Vi PREFACE.\\nthe early history of the Company itself, and practically everything\\nof a personal character relating to Mr. John F. Dryden, Dr. Leslie\\nD. Ward and other early and present officers of the Company\\nhas been omitted to allow for as wide a discussion of general\\nfacts as possible. I feel very keenly the imperfect manner in\\nwhich I have done justice to the men to whose energy, skill\\nand abiding faith the Prudential Company and Industrial insur-\\nance in general owe so large a share of the wonderful success\\nwhich has been achieved, but under the circumstances referred\\nto, no other course was possible without injury to the under-\\ntaking as a whole.\\nFor similar reasons I have been compelled to deal very briefly\\nwith the early history of workingmen s associations for life-insur-\\nance purposes, with the worthy object of providing for uncertain\\ncontingencies by means of fraternal associations, gilds, burial\\nclubs or friendly societies, from the latter of which the present\\nform of Industrial insurance is able to trace its origin by an un-\\nbroken chain of historic evidence. This limitation is much to be\\nregretted, since many of the works dealing with the subject, or\\nits related aspects, are difficult of access to the general reader,\\nwhile others are practically out of print, and to be found only in\\nthe larger libraries of New York and Boston. For a complete\\nunderstanding of the causes which have been productive of such\\nvast results in the development of modern Industrial insurance,\\nthe reader should make himself familiar with the works of Cor-\\nnelius Walford on Gilds and Friendly Societies, and with the large\\nnumber of Parliamentary reports on Friendly Societies and Indus-\\ntrial Insurance Companies, on Old-Age Pensions, Compulsory\\nInsurance and the Life Insurance of Children, published during\\nthe period 1 825-1 899. To these must be added the exceedingly\\nvaluable paper of Mr. Harben on The History of Industrial\\nAssurance, published in 1871 The History of The Prudential\\nAssurance Company, published in 1880 Baernreither s work on\\nEnglish Associations of Workingmen T. Mackay on The", "height": "3992", "width": "2514", "jp2-path": "historyofprudent00hoff_0010.jp2"}, "11": {"fulltext": "PREFACE. Vll\\nEnglish Poor and Insurance and Saving and C. H. E.\\nRea s paper on w Some Observations on Industrial Assurance,\\npublished in the Journal of the Institute of Actuaries, July, 1898.\\nFor this country the information is much more limited, but the\\nstudent should not fail to read the address of Mr. Dry den before\\nthe Massachusetts Legislature in 1895, an tne March, 1898,\\nnumber of the Charities Review, containing an excellent paper\\non the subject of Industrial Insurance by Mr. Haley Fiske, the\\nVice-President of the Metropolitan Life Insurance Company. A\\nvaluable address on Industrial Insurance was made by Mr. John\\nR. Hegeman, the president of the last-named company, at the\\nannual meeting of Insurance Commissioners at Milwaukee,\\nSeptember, 1898, but the paper, not being in general circulation,\\nmust be applied for at the office of the company. Other infor-\\nmation and minor publications can be obtained free on application\\nto any one of the larger Industrial companies, while the general\\nsubject of workingmen s insurance can best be studied in Mr.\\nWilloughby s Workingmen s Insurance, and the United States\\nLabor Report on Compulsory Insurance in Germany.\\nHad space permitted, I would have added to this volume a\\nbibliography of works and articles in periodical literature, but the\\nfew references given will indicate sources from which valuable\\nmaterial for the study of this most modern form of life insurance\\ncan be derived. Some of the more important articles can easily\\nbe traced through Poole s index of periodical literature, under\\nthe titles of Insurance, Life Insurance, Industrial Insurance,\\nChild Insurance, etc., while a brief discussion of controversial\\nmatter can be found in The Development of Thrift, by Miss\\nMary Willcox Brown (New York, 1899).\\nThis work would have been impossible but for two facts,\\nwhich may be mentioned in explanation of some points other-\\nwise likely to be imperfectly understood. The writer has, for a\\nnumber of years, been engaged in the collection of material for a\\nlarger and more complete work on Industrial insurance in this", "height": "3992", "width": "2514", "jp2-path": "historyofprudent00hoff_0011.jp2"}, "12": {"fulltext": "Vlll PREFACE.\\nand other countries, and from the partly completed manuscript of\\nthe larger work this sketch has been prepared to meet the wishes\\nof the United States Commissioner to the Paris Exposition. It is,\\ntherefore, more than probable that within a few years this book\\nwill be followed by another of a more satisfactory nature, supple-\\nmenting many matters here imperfectly dealt with. Another\\nfactor of some importance, and one which is only too often absent\\nin similar discussions of social and economic problems, is that the\\nwriter has had many years of actual field experience, having\\ncommenced his connection with the business as an agent, succes-\\nsively filling the higher positions of assistant and superintendent\\nin charge of districts in the East, West and South. I have\\nthus had exceptional opportunities to verify field observations\\nby extensive office investigations, and I may add that there\\nis not in this work a single statement of fact or theory which\\nhas not the support of personal observation and experience.\\nOn account of the peculiar nature of the business of Industrial\\ninsurance, the relations of agents to policy-holders are so very\\nclose and personal that there is little of importance affecting the\\ndaily life and struggle of working people that fails to come to the\\nknowledge of the intelligent observer who, week after week, calls\\nupon the same people for the purpose of collecting the weekly\\npremiums. Their difficulties, trials, hardships and final successes\\nare known to him he is their friend and they are his friends,\\nand he is often their adviser, counsellor and aid in emergen-\\ncies. Coming in such close contact with hundreds of thousands\\nof our wage-earners of all types and nationalities, engaged\\nin every occupation, the Industrial agent has opportunities for\\nstudy and observation which fall to the lot of only the very few,\\nand I can not but think that in the light of this personal\\nexperience I may be pardoned for having at times expressed\\nmyself with exceptional emphasis in favor of the character of our\\nindustrial population and its struggle for economic independence.\\nI am convinced that if those who think ill of the masses, and", "height": "3992", "width": "2514", "jp2-path": "historyofprudent00hoff_0012.jp2"}, "13": {"fulltext": "PREFACE. IX\\nwho see in their humble endeavors little deserving of praise\\nand much to blame, would go and really live among the plain\\npeople, they would soon realize that beneath all of the apparent\\nsordidness and selfishness there lies much nobility of effort and of\\naim. The more I have seen of working people, the more I have\\nlearned to respect their motives, their efforts and the results of\\ntheir struggle, and the less, I acknowledge with shame, do I\\nthink of the efforts and results of those who, under vastly better\\nconditions, with far greater opportunities, fall materially short of\\nwhat, by a reasonable standard, we have a right to expect.\\nIn the preparation of this volume I have been materially\\naided by the editors and publishers of a number of our more im-\\nportant insurance publications, especially Mr. Walter S. Nichols,\\nof the Insurance Monitor; Mr. Clifford Thomson, of the Spectator;\\nMr. J. A. Fowler, of the Exchange and Review and the editor\\nof the Weekly U?iderwriter, who have been good enough to ex-\\ntend to me the loan of their complete files, extending in some\\ninstances over a period of more than fifty years.\\nI am also under obligations to the Insurance Commissioners\\nof the various States for valuable data and information relative to\\nthe results of official investigations into the practice of Industrial\\ninsurance to the Health and Charity officials of nearly all the\\nStates and large cities for valuable statistics and data indirectly\\nrelating to the business to Mr. Julius Clarke, of West Newton,\\nMass. and Mr. John B. Clark, of New Haven, Conn. for infor-\\nmation relating to the early history of the business in this country\\nto Mr. John K. Gore, the Actuary of The Prudential, and Mr. F.\\nS. Crum, my associate in office, for the reading of the manuscript\\nof this work and valuable aid and suggestions which have mate-\\nrially diminished the possibility of occasional errors and uninten-\\ntional misstatements. But most of all, I am under a debt of grati-\\ntude to Mr. John F. Dry den and Dr. Leslie D. Ward, respectively\\nthe President and Vice-President of The Prudential, for complete\\nfreedom in making use of the records and archives of the Company", "height": "3992", "width": "2514", "jp2-path": "historyofprudent00hoff_0013.jp2"}, "14": {"fulltext": "X PREFACE.\\nand for every possible aid in making this work one of interest\\nand value to the student of Industrial insurance and its relation\\nto the general progress of the industrial population of this coun-\\ntry. I trust that I have discharged my duty to the satisfaction\\nof those into whose hands this volume may fall that I have not\\nmaterially fallen short in my effort to do justice to the founders\\nof the Company, who have made Industrial insurance the busi-\\nness success of the age and that I have done equal justice to the\\nmillions of honest, high-minded men and women who are the\\npatrons, as they are the policy-holders and true makers of The\\nPrudential Insurance Company of America.\\nF. I* H.\\n761 Broad Street,\\nNewark, N. J.", "height": "3992", "width": "2514", "jp2-path": "historyofprudent00hoff_0014.jp2"}, "15": {"fulltext": "TABLE OF CONTENTS.\\nChapter. Page.\\nI. Introduction, i\\nII. Early Workingmen s Insurance in America, 6\\nIII. Industrial Insurance Before 1874, 20\\nIV. Industrial Insurance in America in 1874, 39\\nV. The Prudential Friendly Society, 1875, 55\\nVI. The Prudential Friendly Society, 1876-1877, 84\\nVII. The Prudential Insurance Co. of America,\\n1877-1879, 94\\nVIII. The Prudential Insurance Co. of America,\\n1879-1880, 108\\nIX. The Prudential Insurance Co. of America,\\n1881-1884, 133\\nX. The Prudential Insurance Co. of America,\\n1885-1888, 158\\nXI. The Prudential Insurance Co. of America,\\n1 889-1 89 1, 175\\nXII. The Prudential Insurance Co. of America,\\n1892-1893, 187\\nXIII. The Prudential Insurance Co. of America,\\n1894-1896, 202\\nXIV. The Prudential Insurance Co. of America,\\n1897-1898, 235\\nXV. The Prudential Insurance Co. of America,\\n1899, 266\\nXVI. Summary of Conclusions and Results, 284\\nIndex, 319\\n(xi)", "height": "3992", "width": "2514", "jp2-path": "historyofprudent00hoff_0015.jp2"}, "16": {"fulltext": "", "height": "3992", "width": "2514", "jp2-path": "historyofprudent00hoff_0016.jp2"}, "17": {"fulltext": "PORTRAITS AND ILLUSTRATIONS.\\nOpposite Page.\\nJohn F. Dryden, President, i\\nJulius L. Clarke and John E. Clark, 48\\nHome Office of The Prudential Friendly Society,\\n1875-1878, 55\\nFirst Application Received by The Prudential\\nFriendly Society, 58\\nLeslie D. Ward, Vice-President, 69\\nFirst Industrial Policy Form Used by The Pru-\\ndential Insurance Co. of America, 96\\nHome Office of The Prudential Insurance Co. of\\nAmerica, 1878-1883, 100\\nEdgar B. Ward, Second Vice-President and Counsel, 127\\nHome Office of The Prudential Insurance Co. of\\nAmerica, 1883-1892, 147\\nForrest F. Dryden, Secretary, 183\\nPresent Home-Office Buildings of The Prudential\\nInsurance Co. of America, 191\\nIndustrial Policy Form at Present in Use by The\\nPrudential Insurance Co. of America, 236\\nPaid-up Policy Form at Present in Use by The\\nPrudential Insurance Co. of America, 238\\nIndustrial Application Form at Present in Use\\nby The Prudential Insurance Co. of America, 240\\nIndustrial Agent s Agreement at Present in Use\\nby The Prudential Insurance Co. of America, 242\\n(xiii)", "height": "3992", "width": "2514", "jp2-path": "historyofprudent00hoff_0017.jp2"}, "18": {"fulltext": "", "height": "3992", "width": "2514", "jp2-path": "historyofprudent00hoff_0018.jp2"}, "19": {"fulltext": "", "height": "3992", "width": "2514", "jp2-path": "historyofprudent00hoff_0019.jp2"}, "20": {"fulltext": "g~Ji^L^_/", "height": "3992", "width": "2514", "jp2-path": "historyofprudent00hoff_0020.jp2"}, "21": {"fulltext": "HISTORY\\nOF\\nTHE PRUDENTIAL INSURANCE\\nCOMPANY OF AMERICA.\\nCHAPTER I.\\nINTRODUCTION.\\nThe history of The Prudential Insurance Company is, in a\\nlarge measure, the history of Industrial insurance in America.\\nFounded in 1875 by Mr. John F. Dryden, the present President\\nof the Company, it was the first organization of its kind to prac-\\ntically demonstrate the possibility of extending the benefits of\\nlife insurance to the masses, and the first to demonstrate to\\nthe industrial population that life-insurance principles, properly\\napplied, could be made to serve the useful purpose of providing\\nfor the burial expenses of every member of the family, in return\\nfor a small weekly charge collected from the house of the\\ninsured. Mr. Dryden was the first among a number of American\\ninsurance managers to put to a successful test the methods of\\nthe British Prudential Assurance Company, and the first to\\nrecognize the possibilities of family insurance on the Industrial\\nplan in the United States. All efforts in this direction previous\\nto 1875 had failed every variety of co-operative or other form\\nof workingmen s insurance had been tried and found wanting,\\nand, instead of acting as an incentive to savings and thrift, these\\nforms of pseudo-insurance had acted as a direct discouragement,\\nand, instead of tending to diminish pauperism and want, these\\norganizations, on account of their inherent worthlessness, were\\npartly responsible for an amount of out-door relief and public\\nsupport in illness and at death such as has not been known\\n(1)", "height": "3992", "width": "2514", "jp2-path": "historyofprudent00hoff_0021.jp2"}, "22": {"fulltext": "2 HISTORY OF THE PRUDENTIAL.\\nsince Industrial insurance became an active factor in the social\\neconomy of the American population.\\nRecognizing that Political Economy is concerned with\\nthe facts of industrial life and that this involves a treatment\\nof past industrial life, the forces which have been at work and\\nwhich have made it what it is to-day, I have largely confined\\nmy sketch to a statement of the underlying causes making\\nfor the establishment of The Prudential and the subsequent\\ndevelopment and present success of Industrial insurance in\\nAmerica.\\nIt has justly been said, by a great French writer on English\\nhistory and civilization, that Whoever attentively considers the\\nEnglish turn of mind will be struck by the fact of a twofold\\nnature on one side practical ability, and on the other the absence\\nof general ideas and elevation of mind on purely theoretical\\nquestions, and, whether we turn to works on history or juris-\\nprudence or any other subject, we rarely find that the great\\nfundamental causes of things have been investigated. These\\nremarks of Guizot apply with special force to the history of life\\ninsurance and in particular to that modern branch of the business\\nwhich is to-day, the English-speaking world over, known by\\nmillions of working people as Industrial Insurance.\\nWith this idea in mind, the following sketch has been pre-\\npared as a contribution towards a better study of the all- important\\nproblem of life insurance for the masses and a better knowledge\\nof a form of insurance which, though familiar to millions of the\\nindustrial population, is practically unknown to even the most\\nthoroughly informed students of sociology and political economy.\\nWhile Mr. Spencer could speak of Friendly Societies as the most\\nfamiliar instances of co-operation among working people, and\\nrightly included certain other bodies of kindred natures, chiefly\\nburial societies and Industrial Assurance Societies doing for\\nthe poor what the more conspicuous institutions for averaging the\\nrisks of fire, accidents, etc., do for the better off, t it is only too\\ntrue that this form of insurance, of saving and thrift has almost\\ncompletely escaped the notice of the economist and been practi-\\ncally ignored by writers on what Mr. Spencer has so well defined\\nas forms of social structure.\\nRichard T. Ely, Problems of To-Day, p. ioo.\\nf Principles of Sociology, Vol. III., p 556.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0022.jp2"}, "23": {"fulltext": "INTRODUCTION. 3\\nIndustrial insurance differs from ordinary level -premium life\\ninsurance in the following four essential points first, the\\npremiums are payable weekly, instead of being payable quar-\\nterly, semi-annually or annually second, the premiums are\\ncollected from the house of the insured by an agent of the\\ncompany, instead of\u00c2\u00bb being payable at the office of the company\\nthird, the amounts of insurance are adjusted to the unit pre-\\nmium, instead of the premium being adjusted to the amount\\nthat is, in Industrial insurance certain amounts of insurance\\ncan be purchased for a premium of five cents per week or\\nmultiples thereof, while in Ordinary insurance the amount is\\nin round numbers and usually in multiples of one thousand\\ndollars fourth, every member of the family can be insured\\nfor a small premium, while in Ordinary insurance, as a rule,\\nonly the head of the family is insured for a proportionately\\nlarge amount.\\nIn the sense of this definition Industrial insurance is prac-\\ntically ??iass insurance, while Ordinary insurance is, in a measure,\\nclass insurance, and the popularity of the former and its extent\\nmay be attributed to the fact that, for reasons inherent in the\\nfour cardinal principles, the system provides for contingencies\\nand acts as a protection against uncertainties which are not\\nprovided for by any other form of saving or of thrift. Combin-\\ning with all the elements of security of Ordinary level-premium\\ncompanies a convenience or propinquity in the manner of paying\\nthe premiums from week to week out of weekly wages, the\\nmethod of Industrial insurance has thus far been proven to be\\nbest adapted to the wants and convenience of the industrial\\npopulation; hence the term Industrial, which has from the\\nbeginning distinguished, and properly so, this form of insurance\\nfrom life insurance on the Ordinary plan for the more prosperous\\nelements of the population. The business was called Industrial\\nby the first company which attempted to develop the system in\\nEngland, in 1849, that is, The Industrial and General and\\nwhile most of the companies transacting this form of insurance\\nare at the same time transacting an Ordinary business, often\\nreaching vast proportions, the Industrial part of the business\\nis always separately managed and separately valued, with its\\nfunds separately invested, similar to the manner in which the\\nbusiness and funds of English Fire and I^ife companies are kept\\napart.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0023.jp2"}, "24": {"fulltext": "4 HISTORY OF THE PRUDENTIAL.\\nHaving defined the principles of Industrial insurance, I\\nadd here a brief definition of its immediate and remote objects,\\nwhich will partly explain its wonderful success from a purely busi-\\nness standpoint of financial importance. The underlying purpose\\nof Industrial insurance is to provide for the expenses of burial and\\nthe cost of the last illness of every member of the family, and\\nthus make unnecessary the assistance of the State or of charitable\\nagencies in meeting a call for funds at a time when such funds\\nare needed most. The abhorrence of pauper support, especially\\nfor the burial of the dead, is a pronounced trait of every self-\\nrespecting man, and only those who are familiar with the life\\nand the labor of the industrial masses can fairly grasp the deeper\\nmeaning of the abhorrence of a pauper burial of a member of the\\nfamily in the potter s field. Only those who for years have come\\ninto intimate contact with the masses can understand the unwil-\\nlingness of wage-workers, or what I have elsewhere called the\\nindustrial masses, to avail themselves of the dispensary doctor\\nduring the last illness of a father or a child hence the readiness\\nor willingness on the part of the masses to make use of life insur-\\nance on the Industrial plan as a method of providing for these\\ncontingencies. It has been well said by B. Demolins that a\\nman who is conscious of his respectability is naturally inclined\\nto increase it, and, as a first step in this direction, a pro-\\nvision against pauper burial and pauper medical attendance\\nmust be looked upon as a most effective means to elevate or\\nameliorate the lot of the average man.\\nTo understand this trait for such it is among Anglo-Saxon\\npeoples, it is necessary to take into account Germanic origins\\nwhich have remained race traits up to the present time. To bury\\nthe dead was an ancient obligation, and even in the early days of\\nthe Northmen there is recorded a famous passage in the Kdda\\nwhich mentions the different deaths which men may die, and\\nwhich contains the counsel and demand That thou give the dead\\nman burial wherever thou shalt find him. According to Tacitus,\\n1 Funerals among the Germans of his day were of the highest\\nimportance, and in the words of Mr. Gummere, from whose work\\nI have just quoted, Whatever is sanctioned by religion and\\ndateless customs comes to be regarded as a virtue, and by the\\nsame author, in another passage, it seems reasonable to infer\\nAnglo-Saxon Superiority, p. 183.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0024.jp2"}, "25": {"fulltext": "INTRODUCTION. 5\\nfor the whole Germanic race a general sense of the immense im-\\nportance of funeral-rites. This respect for the memory of the\\ndead became in time an obligation for survivors to make proper\\nprovision for the burial of the departed, and is met with among\\nall peoples and at all times, but most so among the early Romans,\\nthe Germans and the English, where we find abundant proof of\\nan ever-present recognition of the decent burial of the dead as a\\nsocial duty which had to be discharged, even though other duties\\nhad, for the time being, to be ignored.\\nIn most of the charters of ancient associations, the Roman\\nCollegia and the Gilds of the middle ages, provision was made\\nfor the burial of the dead as one of the most important duties to\\nbe discharged by one member of the association towards the\\nother. After the destruction of the Gilds by Henry VIII.,\\nFriendly Societies and Burial Clubs came into existence, largely\\nfor the purpose of fulfilling one of the essential functions of the\\nformer Gilds that is, the proper burial of the dead. Out of\\nthese clubs and societies Industrial insurance was developed in\\nEngland, the first company for the purpose of transacting such a\\nbusiness having been founded in 1849, under the name of the\\nIndustrial and General. This company was absorbed in 1854\\nby the Prudential Assurance Company, which commenced the\\ntransaction of an Industrial business in that year, its attention\\nhaving been called to the need for such an extension of insurance\\nprinciples to the masses by a Parliamentary report on Assurance\\nAssociations in 1853^\\nGermanic Origins, pp. 306, 321, 322.\\nt Report on Assurance Associations, London, 1853, P- y i- Your Com-\\nmittee feel that the ground [s] hitherto occupied by these useful institu-\\ntions have been comparatively limited and that their application is capable\\nof a great extension, not only in the higher and middle classes of society,\\nbut also among the humbler classes, to whom it has recently been very\\nconsiderably applied and that it is therefore very important that no check\\nor impediment should be placed in the way of the further extension of this\\nenterprise, not absolutely needful for the security of the public.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0025.jp2"}, "26": {"fulltext": "HISTORY OF THE PRUDENTIAL,.\\nCHAPTER II.\\nEARLY WORKINGMEN S INSURANCE IN AMERICA.\\nBriefly explained, the underlying purpose of Industrial\\ninsurance has its justification in an inherent trait of Anglo-\\nSaxon peoples to make provision for the proper and respectful\\nburial of the dead. Under the earlier forms of association,\\nas Gilds, Fraternities or Secret Orders, this object was accom-\\nplished largely on the basis of status and a kindly spirit of\\nbrotherly regard, fully in harmony with the conditions of the\\ntime. During more recent years the condition of status has\\nlargely passed away, giving place to the condition of contract,\\nin which sums certain are insured for in place of indefinite\\npromises made by associations operating, contrary to their inten-\\ntions, on an unscientific and unbusinesslike basis.\\nModern conditions in a free democracy make it imperative\\nthat each man shall take care of his own, or, as Professor Sumner\\nhas put it, Every man and woman in society has one big duty.\\nThat is, to take care of his or her own self. This is a social\\nduty. For, fortunately, the matter stands so that the duty of\\nmaking the best of one s self individually is not a separate thing\\nfrom the duty of filling one s place in society, but the two are\\none, and the latter is accomplished when the former is done.\\nFor fifty years previous to the establishment of The Prudential\\nin the city of Newark, N. J., workingmen, in their own way and\\nat their own cost, made efforts to provide, by means of the\\nprinciple of association, for the contingencies of illness and of\\ndeath. It is a long and interesting history, which has never\\nbeen written and which has only rarely been touched upon by\\nhistorians. That the principle of providing by the association\\nof the many for the contingencies likely to affect the few is\\nweak and inherently false when applied to life contingencies,\\nunless the laws of human mortality, of sickness and finance\\nWhat Social Classes Owe to Each Other, p. 113.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0026.jp2"}, "27": {"fulltext": "EARLY WORKINGMEN S INSURANCE IN AMERICA. 7\\nare properly recognized and rigorously applied, is self-evident\\nto all familiar with the science of life insurance. The early\\nforms of association secret orders, as they have been called\\nrecognized fully the general principle of association and while\\nthey accomplished much good by its application, they failed\\ncompletely the moment they added to their benefit features a life-\\ninsurance provision for a sum certain, without taking account of\\nthe laws of human mortality and finance. With all the good which\\nthese associations have accomplished, they have fallen lamentably\\nshort in this respect, and countless millions of hard-earned money\\nhave been sunk in Fraternal Orders or other forms of work-\\ningmen s insurance associations, for which neither a fraternal or\\nfinancial return has ever been made. Providing for the wants of\\nthe few at the expense of the many is a complete perversion of\\nthe principle of association, a principle fully deserving to be more\\ncompletely understood and recognized by economists and writers\\non social problems, since it lies at the root of all modern efforts\\nto improve the methods of production and distribution for the\\nbenefit of the masses.\\nL,ife insurance as carried on by corporations or companies is\\nsolely a question of contract, while all forms of organizations\\nsuch as Fraternal Orders are either wholly or largely operated on\\nthe ancient basis of status. The former method concerns itself\\nprincipally with the question of security for the performance of\\nits accepted obligations, while the latter has for its object a multi-\\ntude of aims, with but small regard for the contract or business\\nnature of its implied obligations.* Such organizations existed in\\nthis country long before even Ordinary life insurance assumed\\nThis point is well brought out by Mr. Sydney Webb, perhaps the\\nhighest authority on Trades Unions, in his recently published work,\\nIndustrial Democracy, pp. 154 and 155, where it is said that A member\\nwho has paid a whole life-time to the sick and superannuation funds may\\nat any moment be expelled and forfeit all claims for reasons quite uncon-\\nnected with his desire for insurance in old age. Against the decision of his\\nfellow-members there is in no case any appeal moreover, the scale of\\ncontributions and benefits may at any time be altered even to the extent\\nof abolishing the benefits altogether and such alterations do, in fact, even\\ntake place in spite of all the protests of the minorities of old members.\\nIt is a further aggravation that in any crisis the Trades Union,\\nunlike the Friendly Society, regards the punctual discharge of sick and\\nsuperannuation liabilities as a distinctly secondary consideration.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0027.jp2"}, "28": {"fulltext": "8 HISTORY OF THE PRUDENTIAL.\\ndefinite proportions, and the Odd Fellows, for instance, had a\\nlarge membership before the first active American life company\\nwas organized, in 1843. Occasionally some of the principles of\\nthe system of Industrial insurance were partly recognized and\\npartly incorporated in the various efforts to improve the condi-\\ntion of the masses but, standing alone, all of such efforts came\\nto an early end and proved useless undertakings. Thus, for\\nexample, the element of weekly saving by the weekly payment\\nof small sums for a future contingency was recognized as early\\nas about 1820 by the Philadelphia Fuel Saving Society, which\\nrequired members to deposit weekly small sums of money to\\nprovide for the winter supply of fuel. The principle of family\\ninsurance was partly carried out in the practice of the Pennsyl-\\nvania Company for the Insurance of Lives, organized in 181 2,\\nwhich accepted risks at ages as low as eight years, indicating\\nthat even at this early period life insurance at the younger ages\\nwas thought desirable, if for no other purpose than as an encour-\\nagement of the habits of saving and thrift in early life.\\nIt was not, however, until 1847 that the first effort was made\\nto provide genuine life insurance for the masses, and, while the\\nexperiment proved a failure, it is of considerable interest from an\\nhistorical standpoint, as a strong indication of the early need of\\nthe masses for life insurance on the weekly-payment plan. The\\ncredit for having tried this experiment belongs to the Mutual\\nBenefit Life Insurance Company, of Newark, N. J., which com-\\npany, in 1847, offered to the less prosperous classes a policy on\\nwhich premiums of twenty-five or fifty cents could be paid\\nweekly, but, no provision having been made for the collection of\\nthe premiums, the plan proved a failure and few if any policies\\nseem ever to have been issued. The views of this company on\\nthe subject of Life Insurance for All are clearly set forth in a\\nlittle publication called The American Manual of Life Insur-\\nance, in which it is stated that life insurance is a mode of\\naccumulation open to all classes of men in all pursuits of life,\\nthat the merchant, the minister, the mechanic, the farmer and\\nthe laborer may all avail themselves of it to some extent with\\nease, and to the greatest advantage, and it is therefore truly\\nan investment for the millions.\\nTo meet the demand for mass insurance at this early period,\\na form of association was brought into existence which in part\\nresembled the English Friendly Societies, and in a larger part", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0028.jp2"}, "29": {"fulltext": "EARLY WORKINGMEN S INSURANCE IN AMERICA. 9\\nthe trading and business organizations of the present day.\\nHealth Insurance, as it was called, attempted to provide\\nfor support in sickness and for a burial fund at death, but,\\nwithout exception, all the societies of this name organized\\nbetween 1845 and 1855 came to an early end, in consequence of\\ninherent weakness and the absolute impossibility of transacting\\na sick-benefit business through the medium of a non-fraternal\\norganization. Although the early health-insurance companies\\nall came to an end by about 1855, a revival of these organizations\\noccurred during the sixties, when in a somewhat similar form\\nanother effort was made to gain permanent public support,\\nwhich, however, was again followed by failure. Very little\\nseems to have been known in this country as to the practice of\\nEnglish Friendly Societies and practically nothing of the system\\nof Industrial insurance as practiced at this time by the Indus-\\ntrial and General and the British Industry, which com-\\nmenced the Industrial business in 1852 and had by this time\\nissued a considerable number of policies.\\nThe first American reference to the system of Industrial\\ninsurance, as practiced in England, occurs in Hunt s Merchant s\\nMagazine* for 1851, in which the editor, Freeman Hunt, called\\nattention to the recent English experiment by the Industrial\\nand General in the following quotation from the Liverpool\\nChronicle\\nWe have had our attention directed to a brochure bearing\\nthe title What is Life Insurance written by the Rev. J. B.\\nBeade. It is in the form of a dialogue between two laboring\\nmen, and is mainly calculated to show the illiterate and unthink-\\ning the great advantages offered by well-regulated and stable as-\\nsurance associations. The Industrial and General Life Insur-\\nance and Deposit Company has been instituted, and arranged on\\na plan expressly to meet the requirements of persons of limited\\nincomes accruing at short periods. With a view of adapting it\\nto the wants and wishes of the industrial classes, the directors\\nhave arranged to grant assurances and annuities as low as ^5, at\\npremiums payable weekly, monthly, quarterly, or annually.\\nThis, as far as I know, is the first distinct mention of the modern\\npractice of Industrial insurance in any American publication,\\nbut the article seems to have attracted little attention and had no\\n*Vol. XXIV., p. 521.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0029.jp2"}, "30": {"fulltext": "IO HISTORY OF THE PRUDENTIAL.\\ninfluence in establishing Industrial insurance in the United States.\\nAt this time Savings Banks, Health Insurance Companies and\\nSecret Fraternal Societies were apparently more promising and\\nmore satisfactory methods of insurance and saving, though, as a\\nmatter of fact, all forms of life insurance were looked upon with\\nbut a small degree of favor by otherwise well-informed public\\njournals and men of influence and power.\\nThus, in the year 1853, the New York Times, in a lengthy\\nargument, maintained the view that He who insures his life or\\nhealth must be indeed a victim of his own folly or others knav-\\nery, and a Mr. A. B. Johnson, a Baltimore banker and writer\\non economic subjects, expressed himself forcibly against the\\ntheory of life insurance and in favor of the theory and practice of\\nsavings banks, holding that all life insurance was wrong in prin-\\nciple and false in practice, and that savings banks alone furnished\\na proper means for the investment of the surplus funds of the\\npeople. It may not be out of place to give some space to Mr.\\nJohnson s views, since they were re-published in his book on\\nOur American Union in 1857.* The writer argued that if\\nno life insurance would provide for our families after our decease,\\nno health insurance or club would provide for ourselves during\\ndisease, and bury us decently when dead, we should [would]\\nprovide for these purposes by self-denying accumulations.\\nMr. Johnson did not stop here, but quoted some English data\\nand madethe distinct charge that L,ife insurance is unfavorable\\nto domestic purity, and in England, mothers have been con-\\nvicted of murdering their infants to obtain some petty sums\\nwhich certain clubs bestow for funeral expenses on members\\nwhose children die. This is, as far as I know, the first instance\\nof the charge of child-murder for insurance money made in this\\ncountry against the system of life insurance for persons of young\\nages. Mr. Johnson was wrong in his confusion of ideas as to\\nEnglish burial clubs, which never represented a distinct form of\\ninsurance associations organized on actuarial principles. He\\nadmitted that the insurance was only for decent burial purposes,\\nand he brought no proof to support his monstrous allegation\\nof child-murder for insurance money, an assertion made solely for\\nthe purpose of emphasizing his views and opinions in favor of\\nA Guide to the Right Understanding of our American Union, N. Y.,\\n1857, P- 263 et seq.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0030.jp2"}, "31": {"fulltext": "EARLY WORKINGMEN S INSURANCE IN AMERICA. II\\nsavings banks for the masses. Mr. Johnson s article attracted\\nconsiderable attention, and was answered by the then President of\\nthe Mutual L,ife Insurance Company, Mr. J. B. Collins, who ably\\nrefuted the absurd propositions of the writer. Mr. Collins 1 s forci-\\nble argument induced the editor of Hun? s Magazine to publicly\\ndisavow any responsibility for Mr. Johnson s views, and to express\\nhimself as being strongly in favor of life insurance asa method\\nof delivering human life from the tyranny of chance, and as a\\nmeans or arrangement by which all the insured become pos-\\nsessed at once, for the benefit of their survivors, of accumulated\\nproperty, and in which no one, in any contingency, can be con-\\nsidered a loser.\\nWhat was needed at this period was a more extensive dis-\\ncussion of life-insurance principles, with which the most intelli-\\ngent were practically unfamiliar. Agents were rarely employed\\non an extensive scale by even the larger companies, and the\\nreal facts pertaining to the business seldom came to public\\nknowledge.\\nOne of the first public journals to give intelligent considera-\\ntion to life insurance was Rhodes s United States Advertiser^\\nwhich in 1854 contained a lengthy dissertation on this subject, its\\ngeneral history, object and principles, the article concluding with\\nthe statement that There is a wide and increasing field for the\\noperations of life assurance in the United States, and even in the\\ncity of New York. The subject requires to be familiarized to the\\nintelligent middle classes of the people. Much can yet be done in\\nthis country to popularize life assurance and bring it within the\\nreach of even the humblest classes. This is, as far as I*know,\\nthe first distinct plea for the extension of life-insurance principles\\nto the industrial population of the United States. It was made at a\\ntime when all life insurance in this country was in its infancy,\\nwhen the largest company in existence had only a little over\\n8,000 policies in force, and when the total number of policies in\\nthe United States was estimated at only 30,000.\\nLack of familiarity with the English experiment in the\\ndirection of extending life insurance to the masses, and a well-\\nfounded aversion to the existing forms of so-called Health or\\nVol. XXVII., p. 541.\\nf Insurance Monitor, 1854, p. 38.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0031.jp2"}, "32": {"fulltext": "12 HISTORY OF THE PRUDENTIAL.\\nCo-operative insurance, induced the editor of TucketV s Insur-\\nance Journal* to advocate at this time the extension of life\\ninsurance to the masses in a manner and by a method which only\\nduring recent years has been applied with any degree of scien-\\ntific accuracy. Mr. Tuckett s suggestion, that Canvassing\\nfrom home to home will furnish the largest amount of business\\nand afford the highest amount of remuneration, made clear\\nhis conception of the value of life insurance for all, and the\\nneed of direct personal explanation to the people of the\\nmethods and objects of the business. Gradually, the view\\nthat life insurance could be made available to all of the ele-\\nments of the population, the rich, the middle class and even the\\npoor, had gained ground. By 1858 some of the leading news-\\npapers had taken up the question, and, among others, the Boston\\nHerald expressed the opinion that There is another branch of\\ninsurance which demands more attention than it has thus far\\nreceived we mean life insurance that is, the class of individu-\\nals whose families depend upon their daily exertion should\\ninsure their lives more frequently than they do and hence the\\nconclusion that Those who could not afford to pay for large\\npolicies could, with a little extra economy, pay the premiums\\nupon a policy for $1,000, or upon a policy for a few hundred,\\nwhich would have been of invaluable aid to their families in case\\nthe bread-winner himself is taken away. f The suggestion of\\nthe Herald was fully supported by the fact that at that time the\\nhumbler classes did not avail themselves to any appreciable\\nextent of life insurance on the Ordinary plan, for out of 830 new\\napplicants in the New England Mutual Life, a Massachusetts\\ninsurance company, only thirty-one were mechanics, while the\\nremainder were all men in well-paying positions, or men of\\nconsiderable income and means. Some companies since 1840, at\\nleast, had granted insurance for sums as low as $100, but the\\ndemand for this form of insurance had been very small. J It was\\nnot merely a question of amounts, but much more a question of\\nTuckett s Insurance Journal, 1853, p. 43.\\nt Hunt s Merchant s Magazine, Vol. XXXVIII., p. 626.\\nAccording to an advertisement of the New York Life Insurance and\\nTrust Company, published in Williams s New York Annual Register for 1840,\\nlife insurance was offered at ages fourteen years and upwards for sums as\\nlow as $100.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0032.jp2"}, "33": {"fulltext": "EARLY WORKINGMEN S INSURANCE IN AMERICA. 13\\nthe mode of paying the premiums, and for these improvements\\nand the consequent introduction in this country of the Industrial\\nplan of insurance on the weekly-premium basis, the time had not\\narrived in 1859. That there was an open field and large oppor-\\ntunity for the extension of the efforts to insure the masses was\\nnot only recognized by influential insurance and financial jour-\\nnals, but also by at least one of the officers of one of the large\\ninsurance companies of the day. In a speech made at a conven-\\ntion of life-insurance companies in 1859, Dr. R. M. Reese, Medical\\nExaminer of the Knickerbocker Life Insurance Company, referred\\nto the subject as follows I allude to the importance of greatly\\nextending the benefits of Life Insurance among the masses, by\\ncreating public opinion, and educating the whole people into\\nenlightened views of the duty of every man, living in a land\\nwhere casualty and disease expose him to the hazard of early\\nand even sudden death.\\nBy i860 Ordinary life insurance had assumed considerable\\nproportions, and insurance journalism had developed into a\\ndistinct branch of literature. According to the census of that\\nyear, there were, in the United States, forty-seven companies for\\nthe insurance of lives, having an aggregate amount of insurance in\\nforce of about $180,000,000, on 60,000 lives. Among the foremost\\ninsurance journals of the period we must name the Insurance Moni-\\ntor a journal devoting a large amount of its space to the technical\\ndiscussion of the perplexing problems confronting the life-insur-\\nance companies of this period. The Monitor, following TucketV s\\nJournal, had frequently argued in behalf of a more extensive\\ndevelopment of insurance principles, but, as has been pointed\\nout, very little had thus far been done to meet these wants, while\\nthe effort of the Health insurance companies had been\\na delusion and a fraud. In the latter part of i860 the Moni-\\ntor, in an article on Life Insurance for the Poor, f referred\\nto the subject of insurance for the masses, as follows: Every\\nworkingman should know that for one shilling a week a penny\\nmore or less, according to his age he can leave $500 at death,\\nand have his fair share of the profits of the company. This is,\\nas far as I know, the first distinct attempt to interest the poor\\nof this country in life-insurance questions and while the term\\nInsurance Monitor, June, 1859.\\nf Insurance Monitor, i860, p. 207.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0033.jp2"}, "34": {"fulltext": "14 HISTORY OF THE PRUDENTIAL.\\npoor is one of indefinite meaning and wide application, we\\nmay safely assume that the writer referred to the masses of people\\nearning weekly wages, for it will be noticed that he argues in\\nfavor of insurance based on a weekly premium of one shilling,\\nor about twenty -five cents. This plea for workingmen s insur-\\nance on the weekly-payment plan proved, however, also a useless\\none, and no one seems to have considered it worth while, at\\nthis period, to undertake the transaction of this form of insurance.\\nBy i860 the difficulty of extending level-premium insurance\\nto the masses had been fairly well recognized. On the one hand,\\nit was apparent that direct solicitation, through the medium of\\nagents, by a house-to-house canvass, was absolutely necessary to\\nfamiliarize the masses with the principles and objects of insur-\\nance. On the other hand, it was equally clear that the system\\nrequired modification, both in the mode of paying the premiums\\nand in the opportunity offered for insurance for small amounts.\\nAmong others, Mr. Elizur Wright, somewhat in harmony with\\nMr. Tuckett, expressed himself on this question as follows\\n1 Forethought and mutuality of effort to provide the most effect-\\nually against future contingencies are not a spontaneous growth\\nof the human soil. It is a matter of special cultivation the result\\nonly of some sort of missioyiary labor notwithstanding its manifest\\ncoincidence with the highest interests of all concerned.\\nMr. Wright clearly recognized the importance and necessity\\nof the canvassing insurance agent, and in concluding his argu-\\nment expressed himself as follows on this point Among the\\nhonorable workers in the civilized world to whom the public as\\nwell as the insured will die indebted, we give faithful and suc-\\ncessful life insurance agents a high place. It is hardly possible\\nto believe that a life insurance agent can achieve any long -con-\\ntinued success without bringing into action some of the noblest\\nqualities of a sterling man, and no field that we know of is more\\ninviting to an ambition that would devote the best of talents to\\nthe benefit of society at large and individuals in particular. f\\nWhat was true of Ordinary insurance was still more true of\\nIndustrial insurance on the weekly-payment plan. Among the\\nindustrial population practically nothing was known of the prin-\\nciples on which the science of insurance is founded, and of the\\nMass. Ins. Report for 1863.\\nt Ibid.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0034.jp2"}, "35": {"fulltext": "EARLY WORKINGMEN S INSURANCE IN AMERICA. 15\\nresults of life insurance as they were fairly known and recog-\\nnized among the more prosperous elements of the population. It\\nis not too much to say that there was very little faith in insur-\\nance principles, and that the entire scheme of so-called Frater-\\nnal insurance, of Health insurance, or of insurance on the\\nco-operative plan, was looked upon rather as a form of specula-\\ntion or even as a game of chance, than as a legitimate method of\\ninvesting surplus earnings for the purpose of providing for future\\ncontingencies. An immense amount of missionary work was\\nnecessary to acquaint the masses with the facts which would tend\\nto make possible a universal recognition of the adequacy of\\ninsurance principles as applied to Industrial insurance on the\\nweekly-payment plan.\\nIn looking back over the quarter-century which has passed\\nsince Industrial insurance was successfully introduced in this\\ncountry, by the establishment of The Prudential in 1875, the fact\\nwhich stands out broadly as perhaps its greatest triumph is the\\nabsolute confidence of millions of working people in the financial\\nsolvency of the institutions which carry on this business at the\\npresent time. So absolute is this confidence, so firm is this faith,\\nthat it is not too much to say that in this country, as in England,\\nthe average workingman looks upon an Industrial policy as the\\nmore prosperous look upon the possession of a government bond.\\nThis much-to-be-desired result has been brought about by the\\ncareful management of representative Industrial companies, not\\none of which has ever failed to meet its obligations, and by the\\nwork of tens of thousands of agents, who daily carry into the\\nhomes of the people the gospel of insurance in one direction and\\nthe gospel of thrift in every other direction.\\nIn view of the clear recognition on the part of Mr. Wright,\\nof certain practical aspects of the insurance problem, it is rather\\ncurious that he should have failed to recognize the intrinsic value\\nof the principles of Industrial insurance, or family insurance on\\nthe weekly-payment plan. Rather to the contrary, such refer-\\nences as were made by Mr. Wright, in his public reports as\\nInsurance Commissioner of Massachusetts, to the practice of In-\\ndustrial insurance in England, were adverse to its extension to\\nthe United States on the ground of its being inimical to public\\npolicy. Mr. Wright, as early as 1865,* expressed himself in\\nTenth Mass. Ins. Report, 1865.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0035.jp2"}, "36": {"fulltext": "1 6 HISTORY OF THE PRUDENTIAL.\\nopposition, not only to the insurance of children, but also to the\\ninsurance of persons above sixty, and, while opposed to the\\nIndustrial companies and by implication, at least, to the Friendly\\nSocieties, he fully approved of Gladstone s plan of post-office\\ninsurance, which was introduced at this period as a government\\nmeasure, which, it was claimed, would produce the same results\\nin life insurance as had been achieved in another direction through\\nthe medium of Post-Office Savings Banks, although subsequent\\nexperience, extending now over thirty-five years, has clearly\\nproven that State trading in the direction of life insurance for the\\nmasses on a voluntary basis has been a distinct failure, in spite\\nof the energetic efforts which have been employed to make it a\\nsuccess.\\nIn his advocacy of Government Insurance Mr. Wright had\\nthe support of the New York Times, which endorsed the theory\\nthat the condition of the industrial masses was likely to be\\nmaterially improved through the medium of Government Insur-\\nance for small amounts but the Insurance Monitor properly\\ndirected attention to the fact that what was attempted by means\\nof Government Insurance had already been accomplished by\\nthe British Prudential through its system of Industrial insur-\\nance, and that the company at that time that is, in 1864 had\\nalready 174,000 policies in force on the weekly-payment plan.\\nWhen it is considered that the largest Ordinary life company\\nin the United States had in 1864 only a little over 12,000 policies\\nin force, it will be readily understood that this statement of\\nthe actual progress and results of the British Prudential must\\nhave had a considerable effect on the public mind, and on reflec-\\ntion it must have been apparent that what was true for England\\nwas equally true for this country, namely, in the words of the\\nInsurance Monitor (1864), that the tendency of life insurance now\\nis towards small amounts. But at this period co-operative insur-\\nance, health insurance, trade benefit societies, etc., were looked\\nupon as more likely to accomplish for this country what the\\nPrudential had already accomplished for England. In New York\\nState alone, 303 mutual aid societies, for benefit in sickness and\\nassistance at burial, had been organized during the period\\n1848-66, while countless other insurance and aid associations had\\nbeen organized in different parts of the country, but of all those\\nestablished previous to 1865 practically none remains in existence\\nat the present time. In making reference to one of these", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0036.jp2"}, "37": {"fulltext": "EARLY WORKINGMEN S INSURANCE IN AMERICA. 17\\nextinct associations, the New York Policemen s Insurance Fund,\\nthe Monitor (1865, p. 191) touched upon the subject of insurance\\nfor the masses in the following words Life insurance in all of its\\nforms is so great a blessing that we can never tire of recommend-\\ning its features and progress, and urging it upon every class of\\nour fellow-citizens. When everybody is insured, then, but not\\nuntil then, shall we know that the voice of warning and of\\ncounsel in this respect may properly be hushed.\\nWhile emphatically in favor of insurance for the masses the\\nMonitor and other insurance journals missed no opportunity to\\ncondemn the large number of impracticable schemes constantly\\nplaced before the public under the name of health insurance\\nor co-operative insurance, all of which were inherently weak\\nand unable to survive more than a generation at the best. Refer-\\nring to the revival of health insurance at this period, the Monitor\\ndenounced its impracticability in words which were not likely to be\\nmisunderstood. As health insurance in this country and in\\nEngland (meaning the Friendly Societies) has proved a delusion\\nand a snare and has terminated disastrously to the insured, con-\\nsisting solely of the poorer classes, we should deplore a repetition\\nof an experiment that has so little chance of success. Referring\\nto the same subject, the Spectator in 1868 condemned the plea for\\nhealth insurance as one which was successfully and ingeniously\\nframed, and therefore all the more dangerous. With equal\\nemphasis, the Insurance Times spoke of health insurance as\\nfounded on a fraudulent fallacy, which could only survive by\\ndeceiving and robbing the poor.\\nIn defense of these associations it was argued by the manager\\nof one of them that The object is to extend the benefits of\\ninsurance to a class of people heretofore entirely neglected, and\\nby judicious and scientific management this branch of insurance\\ncan not only be made the most secure and profitable, but it will\\nalso prove a benefactor to the working classes.\\nSince all of these associations were practically founded on\\nguesswork, with no attempt to provide a financial basis for\\nmaturing obligations, it was only a question of time when\\nfailure had to take place and of all the associations that were\\nestablished at this period, of whatever name, claiming to provide\\ninsurance for the industrial masses, not a single one survives\\nat the present time, and all these futile efforts to effect so-called\\ncheap insurance represent an immense loss to those who could", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0037.jp2"}, "38": {"fulltext": "18 HISTORY OF THE PRUDENTIAL.\\nleast afford to waste their money in worthless enterprises of\\nthis kind.\\nIt is impossible for me, for want of space, to discuss here the\\nquestion of co-operative insurance and the rise and fall of these\\nsocieties, as well as the cause of their inevitable insolvency and\\ndecay. They represent a dreary repetition of the well-known\\nstory of the workingmen s insurance associations of England,\\nwithout the redeeming feature of workingmen s insurance on the\\nFriendly Society plan. No more instructive lesson is furnished\\nby life-insurance history than that which deals with the gloomy\\nrecord of co-operative or other forms of associations attempting\\nto furnish so-called life-insurance protection in defiance of life-\\ninsurance principles. Unfortunately, the very term co-opera-\\ntive has been almost universally misunderstood, and a special\\nmeaning has been attached to the word which has remained in\\ncommon use up to the present time, and is likely to remain so\\nfor many years to come. As Mr. Spencer has well pointed out,\\nSocial life in its entirety is carried on by co-operation, and the\\nuse of the word to distinguish a special form of social life is a nar-\\nrow use of it. But this view of Mr. Spencer has not yet found\\nacceptance in common thought rather to the contrary, it is the\\nopinion of the masses, who believe in this special form of co-opera-\\ntion, and who agree with Professor Ely, that Co-operation con-\\ntemplates a complete though peaceful transformation of society,\\nand that the method by which this is to be accomplished is to se-\\ncure economy by the abolition of the middle-men. f Unfortunate\\nconsequences must naturally result from such confusion of princi-\\nples and facts.\\nOriginating at a time when life insurance on the part of\\nthe masses was being demanded to an ever-increasing degree,\\nthese associations, often parading under high-sounding titles, and\\noften supported by the names of men of prominence in the com-\\nmunity, imposed upon the credulous masses a sham. An excel-\\nlent illustration of one of these concerns is furnished by the\\nManhattan Co-operative Relief Association, organized in New\\nYork in 1868. From the outset this association was condemned\\nby the Spectator and other insurance journals, as a monstrous\\nfraud, and as nothing more or less than insurance for an\\nPrinciples of Sociology, Vol. III., p. 553.\\nt The Labor Movement in America, p. 169.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0038.jp2"}, "39": {"fulltext": "EARLY WORKINGMEN S INSURANCE IN AMERICA. 19\\nuncertain amount at uncertain cost. It represented only prom-\\nises, and in nowise offered a guaranty of results, though, in the\\nwords of the Spectator, Those who are familiar with even the\\nelementary principles which govern life contingencies do not need\\nto be told that the scheme is as utterly impossible in practice as it\\nis wild in theory. Unfortunately, the masses and even the\\neducated and well-to-do of this period had but hazy conceptions of\\nthe principles of life insurance, and it is a fact worthy of notice\\nthat a scheme so plainly speculative had the support of emi-\\nnently respectable journals like the Church Union and The\\nIndependent, and of secular publications like the Atlantic Monthly\\nand the New York Tribune, in which the concern was exten-\\nsively advertised. As regards the Church Union, it was stated\\nat the time, with much truth, that it was the laudation of\\nthe editor of this journal that first gave repute and standing\\nto the delusion and enabled its concocters to inveigle agents\\ninto its service, and to employ them to deceive the people. f\\nAfter a brief period the Manhattan Co-operative Relief Asso-\\nciation went out of existence, and the money that had been put\\ninto the Association by ignorant policy-holders was, of course, a\\ntotal loss but in spite of actual experience, in spite of emphatic\\ncondemnation on the part of qualified critics, of the insurance\\npress and the Insurance Commissioners of the various States, in\\nthe absence of a more legitimate and permanent form of insurance,\\nsuch as could have been furnished on the Industrial plan, similar\\nassociations flourished for a short period in all parts of the coun-\\ntry. Moreover, they are in existence to-day, numbering their\\nmembers by the million, although the handwriting on the wall\\nhas for years pointed to an enormous loss, and the annual crop\\nof failures has brought misery and loss to hundreds of thousands,\\nwho in these associations had invested their all. A complete\\nperversion of the principle of association is not likely to prove a\\nmeans for the permanent amelioration of the condition of the\\nindustrial population.\\nSpectator, 1868, p. 271.\\nt Insurance Times, 1868, p. 472.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0039.jp2"}, "40": {"fulltext": "20 HISTORY OF THE PRUDENTIAL.\\nCHAPTER III.\\nINDUSTRIAL INSURANCE BEFORE 1874.\\nBy 1868 Ordinary life insurance had reached almost stupen-\\ndous proportions, but, as has been previously pointed out, thus\\nfar there had been no distinct effort to make level-premium\\ninsurance available to the industrial population by improvements\\nand changes in the method of premium payments. Thousands\\nof ventures under the name of health insurance, co-operative\\ninsurance or life insurance by the secret orders had proven inade-\\nquate to the demand. Association after association, companj-\\nafter company had been organized, flourished for a short time\\nand failed. Even under the distinct name of workingmen s or\\nlaboringmen s insurance a number of companies or societies\\nmade efforts to gain a firm footing, but without success. Thus,\\nin 1868 there was organized the People s Life Insurance Company\\nfor industrial classes, in the city of New York, and in 1869 the\\nMiners and Mechanics Life Association of Missouri, the Labor-\\ningmen s Life Insurance Company of Chicago, the Workingmen s\\nLife Insurance Company of New Orleans, the New York Work-\\ningmen s Benefit Company, and also the Workingmen s Union\\nin the city of New York, but none of these companies, on account\\nof inherent defects, was able to attain to even a fair degree of\\nprosperity and financial stability, and all, without exception,\\ncame to an early end. That these associations were created or\\ndeveloped in answer to a distinct demand on the part of the\\nworking-people for some form of life insurance is self-evident\\nfrom a study of the prospectuses, which, as a rule, state, as the\\nobject in devising the scheme, that it is to render the blessings\\nof life insurance more than ever accessible to the industrial\\nclasses. Unfortunately, the promoters erred in assuming that\\nwhat was wanted on the part of the masses was cheap insur-\\nance, rather than insurance on a plan of premium payment more\\nconvenient and more in harmony with their ability to pay. In", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0040.jp2"}, "41": {"fulltext": "INDUSTRIAL INSURANCE BEFORE 1874. 21\\nsome instances the premiums were to be paid monthly, but in all\\ncases the fundamental principles of life insurance were violated\\nand the ignorance of the promoters of these organizations of the\\npractice and principles of the business was evident from the fact\\nthat, as a rule, all classes of members were accepted without\\ndistinction as to age, the cause of insolvency and failure in the\\nEnglish Friendly Societies.\\nIn 1867 the Insura?ice Monitor recognized the increasing\\nnecessity of insurance for the masses, stating that Working\\npeople, and all whose families are supported by daily, weekly or\\nmonthly wages, stand more in need of life insurance than any\\nother class. For this reason the Monitor advised improvements\\nin the mode of paying the premiums, which would render the\\ntask much easier of fulfillment than formerly to persons of moder-\\nate means. In 1868 the Mofiitor further discussed the question\\nas to Who and how many may insure their lives as follows\\n1 Whether life insurance will finally be so far cheapened and\\npopularized that the working masses, mechanics and laborers,\\nthose depending on weekly wages, can be persuaded to a general\\nadoption of the practice, must depend largely on moral and intel-\\nlectual training. Life insurance presupposes a community of\\nrefined tastes, social affections and correct moral conviction. In\\nproportion as our people advance to the higher planes, the custom\\nwill widen and deepen among the foundation classes. After\\nsome further remarks, the Monitor concluded that The common\\npeople, as well as sagacious business folk, begin to understand its\\nvalue. Up to this time, however, the weekly -premium plan of\\nthe British Prudential had remained practically unknown to the\\ninsurance journalists of the period, and, although the British\\nPrudential by 1868 had approximately 170,000 policies in force,\\nno one writing on insurance subjects seems to have been familiar\\nwith its practice and results.\\nOne company, the American Popular Life, organized in 1866\\nas a level-premium company, following the effort of the Mutual\\nBenefit of Newark in 1847, had offered to accept premiums\\nweekly, monthly, quarterly or annually, but, as far as I have\\nbeen able to learn from correspondence with some of its officers,\\nvery little business was ever transacted on the weekly plan.\\nThe first distinct effort to establish Industrial insurance in the\\nUnited States would seem to have been made by a Mr. Peacock,", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0041.jp2"}, "42": {"fulltext": "22 HISTORY OF THE PRUDENTIAL.\\nof Zanesville, Ohio, who, according to the Insurance Times\\nfor 1868 (p. 232), had made a special study of life insurance in\\nits adaptation to the industrial classes, and devised a system\\nby which he hopes to bring the benefit of the institution within\\nthe reach of the poorest* laborer, and render it more available\\nto him in life and to his heirs at his death, than by any other\\nhitherto adopted. This attempt on the part of Mr. Peacock\\nseems to have been the first effort to establish Industrial insurance\\nin the United States, but there is no evidence to show that the\\nplan, so briefly outlined, was ever actually carried into effect,\\nand insurance history is silent as regards one who thus early\\nrecognized the need of the masses for legitimate life insurance\\non the Industrial plan. No doubt the item attracted attention,\\nand possibly had some influence in bringing about another\\nsimilar effort during the latter part of the year 1868.\\nThe Insurance Times for October, 1868, makes mention of\\nThe Industrial Life Insurance Company, which title has been\\nadopted by a new organization, whose formation exhibits the\\nexpansive vitality of good seed planted in a rich soil. It is to be\\na purely stock company, promising no profits to the insured, and\\nwill have a capital of $125,000. Among its incorporators was\\nMr. William H. Beers, at that time Vice-President of the New\\nYork Life. The Insurance Times stated that the company would\\nbe a thorough and legitimate life insurance company, but more\\nespecially adapted to the requirements of the poorer classes.\\nIt will seek to extend to them the blessings of life insurance, by\\naccepting weekly instead of quarter^, semi-annual and yearly\\npayments of premiums, and by conforming all its plans, methods\\nand practices to the necessities, wants and abilities of the indi-\\ngent and laboring portion of the community.\\nThis effort, also, seems not to have been carried beyond the\\npreliminary steps, and I find no record of the Industrial Life\\never having had a corporate existence. Mr. Beers, as Vice-\\nPresident of the New York Life, had no doubt become familiar\\nwith the English system of Industrial insurance, but, for reasons\\nwhich can not now even be guessed at, the project fell through,\\nand the Industrial Life of 1868 never had more than a paper ex-\\nistence. The effort, however, was a step in the right direction,\\nand at the time seems to have attracted considerable attention.\\nThus, in the Exchange and Review for November, 1868, there\\nappeared an article on Industrial Insurance from which I also", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0042.jp2"}, "43": {"fulltext": "INDUSTRIAL INSURANCE BEFORE 1874. 23\\nmake a brief extract The adaptation of life insurance to the\\ncircumstances of the working classes is an idea whose practical\\nand true development in the United States is yet in embryo. In\\nEngland it has received more attention, but it is there beset with\\nthe drawbacks which seem inevitable to all projects having for\\ntheir proposed object the bettering of the financial condition of the\\ngreat masses. Without doubt, the penny of the poor man\\nis to have its place in life insurance accumulation as well as the\\ndollar of the capitalist, but it behooves all concerned to watch\\nthat sharpers do not divert the tendency of the hour in this re-\\nspect to their own benefit. In explanation of its attitude of\\ncaution, the Exchange and Review added the statement that\\nA London journal, in an exposition of the frauds which\\nhave, under the name of industrial assurance societies, so exten-\\nsively swindled the poorer classes of England, remarks In-\\ndustrial, like the higher kinds of life insurance, can not be man-\\naged properly except upon purely scientific principles.\\nThis is the manner in which the Prudential and one or two\\nother offices have proceeded, and which now stand out promi-\\nnently as the leading industrial assurance companies, presenting\\na marked contrast to the miserable creations of the illiterate\\nadventurers.\\nWe have here a clear and concise recognition not only of the\\npublic demand for Industrial insurance on the plan of the Pru-\\ndential of England, but a word of caution against the fraudulent\\nand ruinous methods employed by co-operative and other forms\\nof pseudo-insurance associations having for their principal\\nobject the rapid enrichment of their promoters. It was just such\\nadvice as this, based on a sound knowledge of insurance princi-\\nples, that was needed at this period to keep the ill-informed,\\nthough perhaps of honest intent, from entering upon an enter-\\nprise in which failure on a large scale would have done incalcu-\\nlable harm to the cause of legitimate life insurance for the indus-\\ntrial population of the United States.\\nThat the subj ect was now attracting considerable attention\\namong the intelligent and well informed is apparent in the\\nincreasing number of articles upon the subject in the insur-\\nance journals of the period. In the Insurance Times for 1869,\\nMr. J. F. Entz, one time Actuary of the New York Life Insur-\\nance and Trust Company, in a long and able article discussed\\nthe subject as follows: With all the noble and widespread", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0043.jp2"}, "44": {"fulltext": "24 HISTORY OF THE PRUDENTIAL.\\nbenefits which life insurance confers upon society, it must be\\nacknowledged that it falls lamentably short in one quarter, and\\nthat in a quarter where its ministrations are most needed we\\nmean among the poorer classes. Notwithstanding the immense\\nprogress of life insurance in this country during the last twenty\\nyears, we are ignorant of many features practised with great\\nsuccess in England, France and Germany. These improvements\\nare mostly toward the end of opening the doors to the masses of\\nthe middle and laboring classes, and every well-wisher of his fel-\\nlow-citizens who has influence among our insurance companies\\nshould interest himself in their speedy introduction in the United\\nStates.\\nMr. Bntz fully recognized, as one of the most important\\nsteps in this direction, that every facility should be extended in\\nthe mode of paying premiums but he also recognized another\\nfactor of most importance in the extension of insurance princi-\\nples to the masses, and that was the need of insurance for every\\nmember of the family. In other words, family insurance on the\\nIndustrial plan, as practiced by the British Prudential since 1854.\\nIn reference to this part of his subject Mr. Kntz stated that\\nBurial societies have existed for many years in this country,\\nbut they have hitherto been defective in two points, namely,\\n1 all members were assessed alike without regard to age sec-\\nondly, they have not extended the benefit of the subscriber s risk\\nto every member of the family.\\nBy 1870 two of the essential principles of Industrial insur-\\nance had been recognized by influential writers on insurance,\\nnamely, the weekly-payment principle and the principle of family\\ninsurance and it only remained for those who contemplated the\\npractical inauguration of Industrial insurance in the United States\\nto recognize with equal clearness the necessity of the collector\\nand the adjustment of the amounts of insurance to the premium\\nas a unit of five cents, or multiples thereof.\\nMr. Bntz in 1870 had made an attempt to carry his ideas into\\npractical execution, and organized that year The Progress L,ife and\\nSavings Insurance Company of the United States, but, for reasons\\nwhich can not here be discussed, the project was never carried into\\nactual operation, and in some respects this was fortunate, since,\\nas has previously been pointed out, failure of any honest attempt\\nto promote savings or insurance on a large scale would have\\nbeen disastrous to the cause of legitimate life insurance for the", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0044.jp2"}, "45": {"fulltext": "INDUSTRIAL INSURANCE BEFORE 1874. 25\\nindustrial population. The rather curious and interesting com-\\nbination of the principle of savings with the principle of insur-\\nance has previously been referred to, but it can not be too often\\npointed out that savings banks and life-insurance companies each\\nhave their distinct position in the domain of thrift and social\\nprogress, and they can never be combined to successfully accom-\\nplish the same purpose. Savings banks by 1870 had, it is true,\\nreached a very important position, but it was far from being true\\nthat savings habits among the masses had been extensively devel-\\noped. Careful investigations made into the subject by qualified\\ninvestigators, especially in Massachusetts by the Commissioner\\nof Labor,* had demonstrated, first, that only a little more than\\none-half of the depositors at that time really belonged to the\\nwage-earning classes second, that the average number of de-\\nposits made per annum by a depositor was small, and in Massa-\\nchusetts savings banks was only two and a half deposits for each\\ndepositor. The latter fact is of much importance in that it shows\\nthat systematic weekly savings had not yet gained a firm footing\\namong the industrial wage-earners of Massachusetts, and the\\nLabor Commissioner supports this conclusion by the emphatic\\nstatement that Our investigations into the earnings and cost of\\nliving of wage-laborers, the results of which were given in two\\nprevious reports, convinced us that savings are the exception and\\nnot the rule. To reconcile this fact with the general statement\\nthat the hundreds of millions of dollars now on deposit in our\\nSavings Institutions are the savings of the wage-laborer, is im-\\npossible. This assertion was not new to those familiar with the\\nofficial reports of the Savings Banks Commission, who as far back\\nas 1852 had stated that persons who are regarded as wealthy\\nmake deposits in Savings Banks to the extent of the legal\\nlimits, and in 1870 Governor Claflin repeated this statement in\\nthe words that These institutions are becoming still more the\\nfavorite places of deposit, not only for persons of small means, but\\nalso for those seeking investment for very considerable sums.\\nThe prudent management of those banks has met its reward in\\ngaining the confidence of the public to such a degree that even\\nthe capitalists use them as places of investment. To these em-\\nphatic and unqualified statements I may add the following extract\\nfrom the Governor s message for 1871 It is very evident that\\nThird Mass. Labor Report, p. 293 et seq.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0045.jp2"}, "46": {"fulltext": "26 HISTORY OF THE PRUDENTIAL.\\na large share of this increase is not the saving of labor. Each\\nyear shows more deposits by capitalists. From such evidence\\nit is quite plain that by 1 870 a very considerable proportion in\\nnumber and a much more considerable proportion in amount of\\nthe savings-banks deposits were those of the well-to-do, rather\\nthan those of the industrial or wage-earning masses.\\nThe facts for Massachusetts would seem fully to warrant the\\nfollowing conclusions first, that by 1870 the considerable in-\\ncrease in the amount of deposits was largely due to the rapid\\naccumulations of the wealthy, who made extensive use of the\\nbanks at this period second, the proportion of the depositors who\\nwere actually wage-earners was only 58 per cent. third, the\\naverage number of deposits per annum and per depositor was\\nonly two and a half, which would absolutely prove that the\\nhabit of systematic weekly or even monthly saving had not yet\\nbeen developed among the industrial masses of Massachusetts,\\nand probably not in other parts of the country. Finally, it was\\nshown, by investigations made at this period, that the foreign-\\nborn population, most in need of a small fund for unforeseen\\ncontingencies, had not yet learned to make extensive use of the\\nbanks. It remained for Industrial insurance, by its system of\\nweekly -premium payments, to largely develop the habit of sys-\\ntematic savings which has done much, if not most, to materially\\nincrease the general welfare of the industrial population.\\nWhat was true of savings habits in the use made of savings\\nbanks was equally true of savings habits in the use made of Ordi-\\nnary life companies by the wage-earning population. Attacks on\\nthe whole system of life insurance as one of robbery and fraud\\nwere made editorially in the New York Tribune in 1869, while\\nother newspapers with equal emphasis condemned the entire\\nsystem of life insurance, much to the detriment of the prog-\\nress of the insurance idea among the masses. Still the ques-\\ntion of providing life insurance for the industrial population\\ncontinued to receive occasional attention, though only in a half-\\nhearted manner. Evidently, many of those who most seriously\\nconsidered the problem, being confronted by the rising tide of\\nco-operative insurance, combined with the hostilities of leading\\nnewspapers and of men of influence to the entire system of level-\\npremium insurance, considered the task of establishing safe\\ninsurance on the principle of absolute security, in the face of", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0046.jp2"}, "47": {"fulltext": "INDUSTRIAL INSURANCE BEFORE 1874. 2J\\nthe demand for cheap insurance, or pseudo-insurance, a hope-\\nless one.\\n11 Life insurance, in the words of Mr. D. N. Holway, is a\\npurely scientific financial procedure. It guesses at nothing.\\nOn the other hand, co-operative insurance, so-called, was a pro-\\ncedure in defiance of all principles of sound finance, and a guess\\nat everything, including the rate of human mortality, on which\\nthe charges or dues were supposed to be based. Hence, with the\\nlatter it was only a question of time when the inevitable crash\\nwould have to take place. Owing to a large variety of causes\\nfavoring the growth of co-operative insurance, the end was put\\noff much longer than would have been the case under normal\\nconditions. Still, in the words of the Exchange and Review, the\\nco-operative movement, and similar attempts at life insurance\\nby organizations or trade societies, were not without signs\\nof good, despite the abnormal forms which they are assuming.\\nThey reveal a growing interest in life insurance among masses\\nwho have not yet embraced its provisions. And as one of the\\npossible solutions of the problem the Exchange and Review\\n(1869) suggested that Unions for effecting life insurance with\\nthe companies, and under special arrangements, may be a part\\nof the programme of the future unions which may make indi-\\nvidual insurance certain and more available.\\nCultivating the habit and practice of life insurance, they\\nmay make it less apart from the practical consideration of the\\npeople.\\nIn explanation of these unions for effecting life insurance\\nwith the companies, which, in a measure, were rather peculiar\\nattempts for an alliance of trade associations and others with the\\nregular life-insurance companies for the purpose of providing life\\ninsurance for the members, the Exchange and Review refers to\\none such experiment as follows The New York Life Insurance\\nCompany has made a proposition of this kind to the Working-\\nmen s Union [previously referred to]. The prop-\\nosition was to insure not less than 1,000 workingmen of the\\nvarious trade unions, issuing 1,000 policies at a premium of 50\\ncents a week each. The attempt seems to have failed on\\naccount of the opposition on the part of some members of the\\ntrade unions, who were opposed to life insurance on any terms.\\nThe most important fact is the weekly -premium stipulation, and,.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0047.jp2"}, "48": {"fulltext": "28 HISTORY OF THE PRUDENTIAL.\\nwhile still far from being in the nature of Industrial insurance,\\nwe have here a form of workingmen s insurance tending dis-\\ntinctly in the direction of what, in course of time, became known\\nas life insurance on the Industrial plan.\\nA somewhat similar arrangement was effected at about this\\ntime by the Metropolitan Life Insurance Company of New York,\\nwhich insured the members of a German organization, the\\nHildise Bund, of Cincinnati, Ohio, and in an historical sketch of\\nthe company it is stated that In the year 1869 and for many\\nyears thereafter the Company did a large business on the weekly-\\npayment plan. The agreement of the company with the\\nHildise Bund was to insure the lives of those who want to\\nbecome members, if the risks are acceptable to the company, and\\ncharge therefor the regular rates. The Hildise Bund, which is a\\nchartered institution, is charged for, and pays to the company the\\nregular quarterly premium, and collects by its own treasurer the\\nweekly dues from the members. No matter how these weekly\\ndues are fixed, the Metropolitan never receives more nor less than\\nthe regular premium. It is clear, from official correspondence\\npublished in the Spectator,^ that the company itself did not transact\\na weekly-payment business, but that the Bund paid to the com-\\npany the quarterly premiums collected weekly from the members,\\nand that, strictly speaking, the company itself did not transact a\\nweekly-payment business at this period.\\nOn a plan somewhat similar to the method of the Metro-\\npolitan, the New York Life Insurance Company in 1870 organized\\na society by the name of The Fortuna Life Insurance Society, as\\na branch of the New York Life, though as a separate organiza-\\ntion, having for its object the insuring of the middle classes and\\nreceiving the premiums in weekly instalments. The society\\nissued all the ordinary kinds of policies from $500 to $20,000,\\nand the plan was especially designed to bring life insurance within\\nthe reach of the working population, and accommodate those\\nwho could best afford to pay their premiums on the weekly-\\npayment plan. Whether this society ever actually transacted\\nbusiness does not appear from a careful examination of the\\nhistory of the company published in 1895.\\nSouvenir Bulletin, p. 10.\\nt Spectator, 1871, p. 352.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0048.jp2"}, "49": {"fulltext": "INDUSTRIAL INSURANCE BEFORE 1874. 29\\nAnother level-premium company which attempted a some-\\nwhat similar plan was the Western New York Life, of Batavia,\\nN. Y., which, through the Familien Schutz, transacted a business\\npractically identical with the arrangement of the Metropolitan\\nwith the Hildise Bund and, as far as it is possible to judge, the\\nWestern New York Life Company also used the other concern\\nsimply as a soliciting and collecting agency. It was stated at\\nthe time that the Familien Schutz had been organized for the\\npurpose of insuring its members against sickness and death by\\nthe payment of small weekly premiums, and by an agreement\\nbetween the society and the company the latter was to receive\\nthe premiums collected by the former, and insure its members at\\nthe regular life rates, and otherwise aid in sustaining the society.\\nThe plan was stated to have been popular among the German\\npopulation, and a considerable number of members seem to\\nhave been obtained in different States.\\nStill another society on this order was the Bund Hilfin-\\nnoth, or New York Help in Need society, an organization\\nhaving also for its object the insurance of workingmen whose\\nweekly incomes seldom furnish accumulation of sufficient size\\nfor the payment of annual or semi-annual premiums on life\\npolicies. The insurance through this Bund was furnished by\\nthe New York Life Insurance Company, but later, in 1875, by\\nthe German Department of the Life Association of America.\\nVery probably the New York Life Insurance Company found\\nthe experiment an unprofitable one and turned the business\\nover to the Life Association of America, which company failed\\nin 1878.\\nGradually, however, the light was breaking, and the problem\\nof genuine workingmen s insurance was being brought to the\\nattention of the public with an ever-increasing degree of\\nemphasis and force. The impending failure of the International\\nLife of London, and the reinsurance of its American business,\\nhad drawn public attention to the Prudential of London, which\\ncompany had assumed some of the outstanding risks of the\\nInternational. The controversy was referred to at length in the\\nMassachusetts insurance reports, and, as a coincident matter,\\npublic attention was once more directed to the great success of\\nthe Prudential Assurance Company. Another most important\\nfactor was the publication of a paper by Mr. (now Sir) Henry", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0049.jp2"}, "50": {"fulltext": "2,0 HISTORY OF THE PRUDENTIAL.\\nHarben on the history of the Prudential, read before the Institute\\nof Actuaries of England, on April 24, 1871. The paper itself,\\nand the learned discussion thereon by the foremost men of\\nactuarial science of the time, attracted sufficient attention in the\\nUnited States to induce a number of influential insurance journals\\nto discuss the subject of workingmen s- insurance on the Indus-\\ntrial plan from a new standpoint, and among the first to give\\nconsiderable space to the new views regarding Industrial insur-\\nance was the Spectator, which in its October issue for 187 1 devoted\\nconsiderable space to the system of Industrial insurance *as prac-\\nticed by the London Prudential. I quote from the Spectator as\\nfollows\\nHow far, if at all, the English plan of industrial insurance\\nis susceptible of application and development in this country\\nmust be a question for actuaries and managers to decide. That\\nthere are features of the system which commend it to the accept-\\nance of certain classes in the community, here as there, does not\\nadmit of doubt. But the reduction of these to practical use among\\nus is a problem whose solution may not be very easy and must\\nbe a work of considerable time.\\nAs to the Prudential the Spectator further said As we\\nshowed in the June number of the Spectator, the Prudential has\\nattracted to itself and its system the attention of life managers\\neverywhere, by reason of its immense volume of business and\\nthe S3 Stematic manner in which infinite details are kept well in\\nhand. And the paper read by Mr. Harben before the Institute of\\nActuaries, some months ago, has brought the subject of industrial\\ninsurance so graphically and prominently into notice, as to indi-\\ncate not only a new sensation, but a ?iew departure in life insur-\\nance.\\nThat this new departure would, therefore, attract considerable\\nattention in this country, and that there would be developed a\\nlocal demand for some such institution in this country, which\\nwould both be convenient as to the premium payments and abso-\\nlutely secure as to the payment of claims, was only a question of\\ntime. Inquiries, no doubt, were made during these years directly\\nto the Prudential of L/Ondon, for facts and information pertaining\\nto the business, and it is on record in Mr. Harben s own words to\\nthe Royal Commission on Friendly Societies in 1872 that in\\nAmerica they want to adopt the Industrial system of insurance,", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0050.jp2"}, "51": {"fulltext": "INDUSTRIAL INSURANCE BEFORE 1874. 31\\nand I myself have framed an Act with all the necessary schedules\\nfor them for the purpose.\\nBy June, 1872, the Prudential of London had 812,000\\npolicies in force on the Industrial plan and 11,000 policies on the\\nOrdinary plan of life insurance. In the whole history of life\\ninsurance no such result had ever before been accomplished, and\\nwell could the Spectator say of Mr. Harben, the master-mind of\\nthe Prudential, that It is very obvious that Mr. Harben, the\\nSuperintendent of this colossal business, must be a man of\\nremarkable organizing and administrative talent, and that the\\nPrudential is doing, upon wholesale principles, the most extensive\\nretail life insurance business ever undertaken. But the results are\\ncertainly remarkable, and, thus far, they appear to bear the stamp\\nof entire success.\\nIt remained for the Insurance Times to make itself the first pro-\\nnounced and energetic advocate of the establishment of Industrial\\ninsurance in the United States. To the Insurance Times, and to\\nits gifted editor, Stephen English, belongs the credit for having\\nfirst placed the general facts pertaining to the practice of Indus-\\ntrial insurance before the insurance managers of the United States.\\nFrom April, 1872, the Insura?^ce Times never ceased dealing at\\nlength with the subject month after month page after page was\\ndevoted to Industrial insurance, and in the whole history of life\\nor any other kind of insurance there is not another instance of a\\nsimilar propaganda in behalf of a new departure destined in\\ntime to become the greatest business success of the age.\\nIn the July number of the Insurance Times the Irish Cor-\\nrespondent of that paper, in a long and interesting communi-\\ncation stated that he had learned from various sources that the\\nsubject of Industrial insurance, as set forth in the recent issues\\nof the Times, was attracting considerable attention among the\\ncompanies in the United States, and that he had been informed\\nby the Secretary of the Victoria Assurance Society that Ameri-\\ncan companies were in direct communication with him on the\\nsubject, while Mr. Harben has been applied to for all the\\npapers of the Prudential hence the conclusion that You\\nmay, therefore, look out, I think, for another good result to\\nAmerican life insurance, arising from the facts and advocacy of the\\n1 Industrial business in your journal. I am mistaken, or some of\\nThird Report, Q. 26,125.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0051.jp2"}, "52": {"fulltext": "32 HISTORY OF THE PRUDENTIAL.\\nyour New York companies mean to adopt the industrial system of\\nmonthly-premium payments.\\nIt was, however, an error on the part of the Times corre-\\nspondent to speak of insurance on the monthly-payment plan as\\nIndustrial insurance. It can not be too often pointed out that\\nIndustrial insurance recognizes as two of its elementary principles\\nthat the premiums must be paid weekly and be collected from\\nthe hoUvSes of the insured but for some curious reason the Insur-\\nance Times, in its early advocacy of the cause of Industrial\\ninsurance in the United States, advocated the monthly-premium\\npayment plan rather than the Prudential system of Industrial\\ninsurance on the weekly-premium payment plan.\\nThe increasing demand for workingmen s insurance on the\\nIndustrial plan is partly explained by the excessive mortality,\\naffecting all age periods, which prevailed in the large cities, and es-\\npecially in New York and Newark at this particular time. The\\ngeneral death-rate of New York City, which had been exceed-\\ningly high during 1870 and 1871, having been 27.9 and 28.2 per\\n1,000, respectively, had increased to 33.0 per 1,000 of population\\nduring 1872. At the younger ages the mortality in 1872 was, in\\nsome instances, more than 50 per cent, in excess of the mortality\\nfor the previous year. The Insurance Times, commenting at\\nlength on the excessive mortality of children, discussed the prob-\\nlem of child-life waste from various standpoints, advancing the\\nconclusion that a very large amount of infant mortality was from\\npreventable causes, especially malnutrition due to artificial feed-\\ning, the habit of drugging with patent preparations, and the\\ngeneral unsanitary condition of the dwellings. Unquestionably,\\nNew York City at this time was not a very healthy place to\\nlive in.\\nUnder such conditions life insurance for the whole family\\nwas becoming an almost absolute necessity. Nothing remained\\nin many cases but pauper support during the last illness and\\npauper funerals for the dead. Pauper funerals in New York\\nCity, which had numbered 2,897 n I ^7o, had increased to\\n3,502 in 1 87 1, increasing still further to 4,086 in 1872 a point\\nwhich was not reached again until 1891, when the population\\nhad almost doubled itself. While, no doubt, much relief was\\nafforded by such of the aid societies as were temporarily in\\na solvent condition, these confined their burial assistance to\\nadults, while the burial of children was practically unprovided", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0052.jp2"}, "53": {"fulltext": "INDUSTRIAL INSURANCE BEFORE 1874. 33\\nfor and nothing was more natural than that, during such a\\nperiod of distress, a considerable amount of attention should be\\ngiven to a system of insurance which, in England, had accom-\\nplished so vast an amount of good, and had done much, and was\\ntending to do more, towards improving the condition of life of\\nthe industrial population.\\nThe practical results of Industrial insurance in England\\nwere of course familiar to many English emigrants who had\\ncome to this country during the past twenty years, and who,\\neither as members of Friendly Societies, of Trading Collecting\\nSocieties, or of the Industrial insurance companies, had carried\\nto this country considerable information of the actual results\\naccomplished by family insurance in the old country.\\nAnother element making distinctly for an increasing interest\\nin this form of insurance was the increasing public dissatisfaction\\nwith the existing forms of co-operative or other kinds of pseudo\\nlife insurance. While new organizations were being constantly\\norganized, and while new movements were constantly set on\\nfoot, now for purely speculative reasons, now for secret-society\\npurposes, or again for trade-society objects, all such move-\\nments ultimately proved disastrous experiences along the now\\nwell-recognized road which inevitably leads to insolvency and\\nruin.\\nThe frequency of failure among these numerous societies or\\nassociations granting sick benefits and promising sums payable\\nat death attracted the attention of Insurance Commissioners in\\nnearly all the States of the Union. Hardly an official report was\\nissued by a State official in charge of insurance matters but atten-\\ntion was called to the increasing danger of a great public loss\\nand subsequent calamity resulting from the ill-advised schemes\\nunder the name of co-operative life insurance. Thus, in the\\nreport of the Missouri Superintendent of Insurance for 1872,\\nreference is made to the delusive plan of co-operative life in-\\nsurance as one demanding some action by the Legislature, and\\nthe words of warning concluded with the remark that They\\nare mentioned again because in the West this form of insurance\\nis making headway, seriously to the detriment of the public\\ngood.\\nThe time for establishing an Industrial insurance company\\nin the United States had, however, not yet arrived in 1872. The\\nfundamental principle underlying Industrial insurance, as well", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0053.jp2"}, "54": {"fulltext": "34 HISTORY OF THE PRUDENTIAL,.\\nas all other legitimate forms of life insurance, is that the first\\na?id most essential element of insurance is safety but at this\\nperiod of insurance history the masses had not yet realized\\nthat so-called cheap insurance, or insurance at cost, as\\ntransacted by men ignorant of the principles and practice of\\nthe business, could prove only a delusion and a snare. Time\\nonly could remedy these evils and replace worthless institutions\\nby worthy ones. It was as yet too early to establish a com-\\npany solely on business principles, offering insurance as a matter\\nof contract, without any pretense of a pseudo-philanthropy\\nfor there was still a belief that somehow, some way, the\\nmagic word co-operation would solve a problem which, for\\nits true solution, required exceptional ability, courage, patience\\nand unremitting toil, devoted to the achievement of a single\\npurpose.\\nThe Insurance Times continued its efforts in behalf of the\\ndissemination of information in the United States as to the value\\nand importance of the English method of Industrial insurance.\\nUnquestionably, the current hearings, or taking of evidence, before\\nthe Royal Commission on Friendly Societies (1871- 74) had much\\nto do with the growth of an American sentiment in favor of\\ninsurance for the masses on the plan of family insurance, so suc-\\ncessfully developed by the British Prudential. Mr. Harben s\\ntestimony given in 1872, no doubt, had come to the notice of\\nAmerican insurance managers and while there remains no trace\\nof an effort to establish an Industrial insurance company during\\n1872, there is evidence of such an attempt having been made in\\nColumbus, Ohio, during the early part of the following year,\\nwhere, according to the Insurance Times of February, 1873, the\\nPrudential L,ife Insurance Company, with a capital of $200,000,\\nwas in progress of organization. This proposed company, how-\\never, seems never to have come into a corporate existence\\nat least, there is no record, in the report of the Insurance Depart-\\nment for that year, of such a company ever having been incor-\\nporated in Ohio.\\nIn its March issue for 1873 the Insurance Times discussed\\nsome of the evidence given before the Royal Commission, and\\nLife insurance has properly been defined as a present means of\\nobtaining a certain advantage over an uncertain event.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0054.jp2"}, "55": {"fulltext": "INDUSTRIAL INSURANCE BEFORE 1 874. 35\\nrestated its former position in favor of Industrial insurance for\\nthe American industrial masses, as follows\\nThe very first new Life Insurance Company that ought to\\nbe established in the United States should be one of this class for\\nIndustrial business. The field is open to be worked to an unlim-\\nited extent. It would be found to be one of the most successful\\nfields ever cultivated for Life Insurance in this country.\\nWhile practical minds, familiar with insurance matters, were\\nthus considering the question of workingmen s insurance from a\\nstandpoint of fact and expediency, at least one of the leading\\neconomists of the period, Mr. Amasa Walker, advanced arguments\\nin favor of government life insurance, on the ground that the\\nState is bound to afford protection to the lives and property of\\nits citizens, and any act on its part necessary to the full realiza-\\ntion of this great object is not only right and proper, but obliga-\\ntory and, in Virginia, it was Mr. Henry A. Wise who, in his\\ngubernatorial campaign, announced himself unconditionally in\\nfavor of life insurance by the State. He advocated such a\\ncourse, not because it was likely that the State would offer\\nsuperior plans of insurance at lower rates than those charged\\nby private companies, but because the State was in a bank-\\nrupt condition, and he had hopes that the government would\\nthus be able, by the means of life-insurance profits, to recruit\\nits exhausted or insufficient resources. The Insurance Times\\nproperly explained that life insurance was the last thing in the\\nworld that an unsettled government should indulge in, and it is\\nmuch to the credit of the Legislature of Virginia that they were\\nnot to be deluded by the specious aspects of the bill presented for\\nthe incorporation of the scheme, and very prudently laid it in the\\nlimbo of countless similar visionary plans for ameliorating the\\ncondition of the human race.\\nThat there was a local demand in Virginia for the extension\\nof the principles of life insurance to the masses is illustrated by\\na peculiar experiment in insurance attempted at the same time\\nthat the question of insurance by the government was seriously\\nunder discussion. Quoting from the New York Evening Mail of\\n1873, Cornelius Walford, in the Insurance Cyclopedia (Vol. V.,\\np. 165), states that a Richmond (Va.) newspaper during this year\\nadvertised the Undertakers and Burial Insurance Company,\\nwhich offered to agree to furnish promptly to all persons in good\\nhealth, under forty years of age, for $1 per annum, the insurance", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0055.jp2"}, "56": {"fulltext": "36 HISTORY OF THE PRUDENTIAL.\\n11 needful for a funeral. For some reason or other this experi-\\nment, which in later years was frequently repeated, seems, then\\nas now, to have fallen short of success.\\nStill another form of life insurance for the masses had been\\ndevised by the Hon. Emerson W. Keyes, the author of a work\\non the history of savings banks and one of the directors of the\\nAmerican Popular Life, to whose weekly-payment plan previous\\nreference has been made. The plan of Mr. Keyes was a combi-\\nnation of the principles of life insurance and the methods of\\nsavings banks, and had, in the words of the editor of the\\nMonitor (1873), sound sense and reason to commend it but, as\\na matter of fact, as a form of family insurance the method was\\nfaulty and useless for the purpose of family protection, since it was\\npractically nothing but term insurance, providing life insurance\\nfor a specified period of years. A somewhat similar plan was advo-\\ncated some years later by Mr. Klizur Wright, but both methods\\nof combining a savings bank with a life-insurance company proved\\nfailures and practically impossible.\\nAs early as 1870 the Peabody Life had offered a peculiar\\nplan of savings-bank insurance to the public, originated and\\ncopyrighted by H. H. Hadley, the vice-president of the company.\\nAccording to the Monitor, Mr. Hadley had devised this plan for\\nlife insurance among people of small means, to be consummated\\nby daily or weekly deposits of small amounts. Nothing, how-\\never, came of any one of these attempts, too fanciful in theory to\\nbe useful in practice. Neither Keyes s Labor-Term Insurance nor\\nHadley s Savings-Bank Plan seems ever to have been adopted by\\nany responsible company, and, as far as I have been able to learn,\\nno policies seem ever to have been issued covering the peculiar\\nprovisions incorporated in these attempts, which, however, are of\\nhistorical value in view of Mr. Keyes s undoubted ability as a\\nwriter on savings-banks history and Mr. Hadley s later connec-\\ntion with a somewhat similar effort which, by a narrow margin,\\nfailed to prove a success.\\nMr. Hadley seems to have been a man of strong convictions\\non the subject of life insurance for the masses, but wanting in\\ntechnical knowledge and practical ability to grasp the fundamental\\nprinciples of Industrial insurance. Not discouraged by his failure\\nto make a success of his savings-bank plan through the Peabody\\nLife, he made another effort through the Missouri Valley Life, of\\nLeavenworth, Kansas, to furnish some sort of reliable indemnity", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0056.jp2"}, "57": {"fulltext": "INDUSTRIAL INSURANCE BEFORE 1874. 37\\nto the insuring public. The plan of this company was to issue\\npolicies for $100 each, in form and appearance resembling a\\ngreenback. The premium was uniform for all ages, while the\\nduration of the policy was graded according to age, being, in\\nother words, a term policy, somewhat in the nature of the plan\\nadvocated by Mr. Keyes. While the company called this form of\\ninsurance Industrial insurance, it was neither that nor whole-\\nlife insurance in any form. The plan was inherently weak, and\\nto a considerable extent a deception, in that it opened a very\\ninviting and practicable field for fraud. The Insurance Times in\\n1873 well spoke of this plan as one of the most objectionable\\nattempts at insurance that has ever been placed before the Amer-\\nican public.\\nThe Missouri Valley Life, however, transacted a not incon-\\nsiderable amount of business on this plan, and issued as many as\\n8,000 policies during 1874, 5 700 policies during 1875, and 3,200\\npolicies during 1876 but thereafter the business dwindled down to\\nnothing, the company discontinuing active business operations\\nin August, 1877.\\nThe failure of the Missouri Valley Life to make a success\\nof this form of insurance was due entirely to the inherent weak-\\nness of a scheme which in all essentials was the very opposite of\\nIndustrial insurance as practiced by the British Prudential. The\\nexperiment, however, gave proof that there was a strong demand\\nfor life insurance in small amounts and on a convenient method\\nof premium payments, and it was now only a question of time\\nwhen the essentials of success in this direction would be fully\\nrecognized in the success of the British Prudential. Naturally,\\nsuch further efforts were most likely to be made in the large\\ncities of the Bast, where the industrial conditions were more\\nfavorable to the extension of the principles and practice of Indus-\\ntrial insurance; and early in 1873 a society was organized with\\nthis end in view, in Newark, N. J., which in a few years was\\ndestined to become the corner-stone of the present Prudential\\nInsurance Company of America.\\nAccording to the Insurance Monitor for July, 1873, The\\nWidows and Orphans Friendly Society was chartered this year,\\nunder date of April 3rd, by the New Jersey Legislature, for\\nthe purpose of placing the blessings of life insurance within\\nthe reach of those classes whose narrow means restrict them to\\nthe payment of monthly premiums. It was further explained", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0057.jp2"}, "58": {"fulltext": "38 HISTORY OF THK PRUDENTIAL.\\nthat the clerical labor has generally been found too great to\\nadmit the adoption of this method by the companies directly. But,\\nthrough the aid of an auxiliary society of this kind, the end can be\\naccomplished, and all the benefits of legitimate insurance can be\\nsecured by those who, if they are inclined to insure at all, fall a\\nprey to co-operation, or are forced to join some benevolent organ-\\nization. This society had made an arrangement with the\\nPiedmont and Arlington Insurance Company for insuring the\\nmembers by means of a saving-fund policy at ordinary life rates,\\nin other words, it did not differ materially from the numerous\\nforms of Unions or Bunds previously dealt with, and which had\\nfor their object the insurance of working people in substantial\\nOrdinary companies through the medium of fraternal or bene-\\nficial societies acting as soliciting and collecting agencies. As has\\nbeen stated, most of the Unions or Bunds were of German origin,\\nand the largely Teutonic character of The Widows and Orphans\\nFriendly Society is indicated by the names of the men who organ-\\nized the same, and of whom it can be said, with all truth, that\\n4 they builded better than they knew.\\nOf the actual business transactions of this society, the\\nobjects of which were well defined as assistance in sickness and\\naid in defraying the funeral expenses of deceased members,\\nfew facts have come to my notice. It is very doubtful whether\\nthe society ever transacted business on an extensive scale,\\nprobably finding it difficult, as similar societies had, to do\\nbusiness by a method at once clumsy as to practice and inherently\\nweak as to insurance methods and principles. The permanent\\ninterest in this society and its historical value are to be found in\\nthe fact that on February 18, 1875, the name of the society was\\nchanged to The Prudential Friendly Society, which title was\\nfurther altered in 1877 to the present name The Prudential\\nInsurance Company of America.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0058.jp2"}, "59": {"fulltext": "INDUSTRIAL INSURANCE IN AMERICA IN 1 874. 39\\nCHAPTER IV.\\nINDUSTRIAL INSURANCE IN AMERICA IN 1874.\\nThe beginning of Industrial insurance in the United States\\nmust be fixed on the date on which the name of The Widows\\nand Orphans Friendly Society was changed to The Prudential\\nFriendly Society, of which Mr. John F. Dryden was made the\\nfirst secretary, as he had been instrumental in bringing about\\nthe reorganization and the establishment of the new society on\\nactuarial principles, identical in all respects with those which\\nunderlie the transactions of the large and successful Ordinary\\nlife companies of this or any other country.\\nOf the events affecting life-insurance history during the two\\nyears which passed from the date of the charter of The Widows\\nand Orphans Society to the date of the foundation of The\\nPrudential Friendly Society only brief notice can be taken in\\nour historical survey of the facts relating to the origin and growth\\nof The Prudential Insurance Company of America.\\nThe Insurance Times continued to call public attention to the\\nsubject of Industrial insurance by publishing from time to time\\ntables and other data pertaining to the practice of the British\\nPrudential. Such information must needs have been of vital\\ninterest to those who at this early period were considering the\\nexpediency of establishing an Industrial insurance company in\\nthe United States. It is much to the credit of the Insurance\\nTimes that it early recognized the inexpediency of uniting the\\nobjects of Industrial insurance with those of regular life-insurance\\ncompanies operating on the Ordinary plan, warning American life\\ncompanies to rigidly avoid any and every attempt of this kind.*\\nThe importance of this suggestion lies in the fact that the combina-\\ntion of Industrial with Ordinary insurance was likely to prove a hindrance\\nto the development of the former in that the latter being already estab-\\nlished, the former would receive but little attention. The Prudential Insur-\\nance Company being free from this burden in the beginning, was, therefore,\\nenabled to develop every technical feature of the business to a high degree", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0059.jp2"}, "60": {"fulltext": "40 HISTORY OF THE PRUDENTIAL.\\nIn the September issue of the Insurance Times for 1873, this\\nwarning was repeated in the following words Hundreds of\\nthousands of policies can at once be issued by any responsible\\ncompany that will bring the business fairly before the public as a\\nspecial feature. It can never be well done through any secondary\\norganization. But even the Insurance Times had not yet\\nrecognized the essential difference between Industrial insurance\\non the plan of the British Prudential and Ordinary life insur-\\nance transacted on the monthly-premium payment plan, being\\napparently more in favor of monthly payments than in favor of\\ngenuine Industrial insurance, in which the payments are made\\nweekly and collected from the houses of the insured. By the\\nend of the year 1873 the establishment of genuine Industrial\\ninsurance was, therefore, apparently, as far off as ever, and as\\nlate as November, 1873, the Insurance Times lamented the fact that,\\nin spite of all the arguments advanced and all the rich promises of\\nreward, no company had come forward to follow its advice, and\\nthere is no record of any serious effort to organize an Industrial\\ninsurance company during the year.\\nThe confusion of ideas as to the true nature of Industrial\\ninsurance on the part of the Insurance Times, in advocating a\\nsystem of monthly-premium payments, is one which can be\\nexplained largely on the ground that life-insurance ideas in\\ngeneral were still in a very primitive state. This is apparent\\nfrom another confusion of thought which is only too often made\\nin well-intentioned remarks on life insurance even at the\\nof perfection before assuming the burdens of Ordinary insurance. The\\nOrdinary insurance companies which attempted to transact an Industrial\\nbusiness as a side issue invariably failed to make a success of the business\\nand discontinued the Industrial Branch after a few years of experiment in\\nthis direction. On the other hand, the Ordinary companies which attempted\\nto transact an Industrial business and for the time being devoted all their\\nenergies and efforts to the successful transaction of the Industrial business\\nsucceeded in this direction, but for the time being fell materially behind in\\ntheir Ordinary business. While, therefore, inherently there are no reasons\\nwhy an Ordinary company should not transact an Industrial business,\\npractically it was desirable that the business should be first taken up by a\\ncompany devoted exclusively to the transaction of the Industrial business.\\nHence, the fact that Industrial companies to-day transact a very large\\nvolume of Ordinary business is not to be considered as a contradiction of\\nthe warning note of the Insurance Times, which was fully justified by the\\nconditions existing at the time the article was written.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0060.jp2"}, "61": {"fulltext": "INDUSTRIAL INSURANCE IN AMERICA IN 1 874. 41\\npresent time. Speaking of life insurance for the poor and\\npeople of small means who need insurance protection most,\\nthe Insurance Times, in its issue for December, 1873, pointed\\nout that The benefits of life insurance are peculiarly designed\\nfor persons of moderate means. As charitable institutions, the\\ncompanies ought, from motives of public spirit, to make it\\none of their principal objects to make small policies readily-\\naccessible. No error can be more serious and at the same\\ntime more self-evident than that life insurance is in any sense\\na charity, for, to the contrary, it is, in all respects, a business\\nenterprise identical with banking or any other form of com-\\nmerce. Through life insurance an immense amount of misery\\nis alleviated and an incalculable amount of human suffering pre-\\nvented, but it is not as a charitable agency that life insurance\\nhas brought about this much-to-be-desired end. To confound\\nlife-insurance companies which are social institutions, making\\nfor social and economic independence with charitable institu-\\ntions, the best of which must always, even though in a most\\nsubtle manner, make for individual dependence,* is an error\\nwhich can not be too much deplored, and one to which, I be-\\nlieve, are due most of the sins of legislators who look upon life-\\ninsurance companies as semi-charitable institutions which should\\ngrant unheard-of favors and gratuities, cash-surrender values, and\\npaid-up policy provisions in excess of the actual values which a\\ncompany may have on hand or have received for the purpose of\\nmeeting its contracts. This error was repeated in the Massa-\\nchusetts bisurance Report for 1873, in the statement that Life\\ninsurance seems to have lost the character of a purely benevolent\\ninstitution, and has begun to assume that of a mere speculation.\\nAs a matter of fact, life insurance at no period of its history\\nhas had the character of a purely benevolent institution, and had\\nnot, at this period, assumed the character of a speculative enter-\\nprise. The Insurance Times (Dec, 1873), however, fully recog-\\nnized the true nature of life insurance in its interpretation of the\\ncharacter and objects of the British Prudential in the statement\\nthat the Prudential is a company which makes no loud-sounding\\nI fully believe that to-day the next most pernicious thing to vice is\\ncharity in its broad and popular sense. (W. G. Sumner.)\\nThe number of our almshouses, asylums and charitable institutions\\nof all sorts, of which we boast so much, is really our shame. (R. T. Ely.)", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0061.jp2"}, "62": {"fulltext": "42 HISTORY OF THE PRUDENTIAL.\\npretensions it makes no parade of philanthropy, and of its wish\\nto benefit the human race. This company says, in substance,\\nWe are business men, and must be paid for our trouble; we\\ntherefore charge an extra premium for extra trouble, and collect-\\ning money shilling by shilling involves no little extra trouble.\\nBut in return we guarantee you as much absolute security as is\\nenjoyed by those who have large sums to invest, and hence\\nthe conclusion that If the amounts which were actually paid to\\nworkingmen upon the occurrence of death by the life insurance\\ncompanies during the year 1872 are compared with the relief\\nafforded within the same period by the friendly societies, it will\\nbe found that the insurance companies have proved in practice\\nfar the more beneficial, and the further conclusion that The\\nPrudential Assurance Company [of London] has not only enlarged\\nthe sphere of life insurance, but has conferred a substantial\\nbenefit upon the working classes. We can readily appreciate the\\nfeelings of pride with which the directors of the company, in look-\\ning back upon the splendid success which has been achieved\\nby the company during the past year, claim that their triumph\\nis one of the most memorable that has ever been gained\\nby any life insurance company, and to these remarks the Insur-\\nance Times adds, We urge once more, as we have already urged\\nbefore, the speedy establishment of a good industrial insurance\\ncompany in New York.\\nReference has been made to numerous attempts to combine\\nthe functions of a savings bank with the functions of a life-insur-\\nance company, and one reason why so many of these projects\\noriginated at just about this time is to be found in the fact that,\\nin consequence of numerous failures of Ordinary life companies,\\nsavings banks were held in higher esteem among the working\\nclasses than the numerous life-insurance projects of the period.\\nOnce more a distinct antagonism of life-insurance companies to\\nsavings banks was developed, but, as was pointed out by the\\nIn a paper read at the International Congress of Charities, held in\\nChicago in 1893, it was pointed out that in the town of Rochdale, out of a\\ntotal sum of ,\u00c2\u00a323,952 paid out for funeral expenses, ,\u00c2\u00a319,493 was paid by\\nIndustrial companies, while the local Friendly Societies contributed 4,027\\nand the Trades Unions ,\u00c2\u00a3432. Thus it was shown that in a town recognized\\nby economists as one in which thrift institutions of all kinds have prospered\\nmost, Industrial insurance holds to-day first rank as a means of providing\\nfor the expenses of burial and incidentally for the cost of the last illness.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0062.jp2"}, "63": {"fulltext": "INDUSTRIAL INSURANCE IN AMERICA IN 1 874. 43\\nMonitor and other insurance journals, the one class of institu-\\ntions had never seriously interfered with the other, and, on the\\ncontrary, it is more likely that the business of each has been\\nlarger on account of the other s existence. However, as I have\\nhad occasion to point out, habits* of systematic saving had not\\nbeen extensively developed in the industrial population previous\\nto 1875. The difference between savings banks and insurance\\ncompanies is essential. The savings bank represents a different\\nform of voluntary thrift from that of the insurance company.\\nThe depositor is not required, and is not induced to deposit\\nweekly or monthly, the surplus of his income over his expenses,\\nbut, once he becomes a life-insurance policy-holder, a certain\\ndegree of compulsion forces him to make premium payments\\nweekly, quarterly, semi-annually or annually, as the case may\\nbe. This essential difference between savings banks and life-\\ninsurance companies should be better recognized than has thus\\nfar been the case, and from this point of view, I feel satisfied that\\ninsurance companies, especially Industrial insurance companies,\\nrepresent a more distinct form of thrift promotion than the ordi-\\nnary savings banks.\\nPrevious failures to combine the two thrift functions into\\none had not discouraged those who were more favorably inclined\\ntowards savings banks than towards life-insurance companies.\\nAmong those who made the most determined, as it was in a\\nmeasure the last, effort to establish savings-bank insurance was\\nMr. Elizur Wright, the well-known actuary and former Insur-\\nance Commissioner of Massachusetts, who in 1872 commenced\\nan agitation in favor of a Family Bank,* which, though devised\\nby one experienced and familiar with life-insurance theories and\\npractice, was at once as vicious and as weak as any method\\nwhich had ever been devised to develop both objects of savings\\nand insurance. In advocating his plan of savings-bank insur-\\nance, Mr. Wright went to such extremes that in the end he\\nbecame the open antagonist and enemy of all forms of life insur-\\nance, conveying to the public the idea that the system of life\\ninsurance as generally conducted was a humbug and wrong,\\niniquitous and deceptive, unfair to the policy-holder, unsafe to\\nthe companies, and altogether behind the age, and unworthy of\\nthe American people. The attacks on life insurance made by\\nPolitics and Mysteries of Life Insurance, Boston, 1873.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0063.jp2"}, "64": {"fulltext": "44 HISTORY OF THE PRUDENTIAL.\\nMr. Wright induced Mr. English, the editor of the Insurance\\nTimes, and a life-long friend of Mr. Wright, to express himself\\nin an open letter as follows The failure of your attempt to\\nfoist your scheme upon the life-insurance companies was followed\\nby your bitter and unwarrantable attacks upon the life-insur-\\nance system and companies of America. You have left nothing\\nundone, unsaid and unpublished, to destroy public confidence in\\nall the life companies, and, if possible, to ruin the business {Insur-\\nance Times, September, 1874). It would be difficult to frame a\\nmore severe and just condemnation than this. Mr. Wright s plan\\nwas never carried into actual practice, but it is claimed, by those\\nwho are familiar with the facts, that some of the companies which\\nembodied some of Mr. Wright s theories into their practice, and\\nwhich were guided by his advice, were unable, in consequence 01\\nhis unsound theories, to meet their outstanding contract obliga-\\ntions, to the serious disappointment of the thousands of widows and\\norphans who were thus deprived of their legitimate support.\\nWhile, by the close of 1874, the problem of life insurance for\\nthe masses had, no doubt, received more serious and thoughtful\\nrecognition than ever before, no one seems to have had the cour-\\nage to undertake a task which gave every indication of failure\\nand very little assurance of success.\\nAs an indication of the attitude of experienced life managers\\ntowards the new system of insurance, by this time so success-\\nfully practiced in England, I quote a few remarks from inter-\\nviews reported in the Spectator during the first half of the\\nyear 1 874. These interviews are very suggestive in the light of\\nfuture events, and I abstract a few replies which are of special\\nimportance. In answer to the question put by the Spectator, Do\\nyou think that this system can be made to furnish safe insur-\\nance? Mr. Heber Smith, the Vice-President of the Northwestern\\nMutual Life Insurance Company, replied I have not become\\nfamiliar enough with the principles underlying the industrial\\nscheme of life insurance to speak definitely regarding its adapta-\\nbility, but from what I know of it, I have no desire, as an officer,\\nto experiment with it (January, 1874). In reply to the same\\nquestion Mr. Samuel H. White, Vice-President of the Charter Oak\\nLife Insurance Company, replied: So far as I have examined\\nthe plan, I think it impracticable, unless the sole object is for the\\npoorest classes to provide a burial fund. Practically, it can not\\ndo much good (February, 1874). Mr. Nathan D. Morgan,", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0064.jp2"}, "65": {"fulltext": "INDUSTRIAL INSURANCE IN AMERICA IN 1874. 45\\nPresident of the North American Life Insurance Company, re-\\nplied to substantially the same question, I would promote,\\nin every proper way, a habit among the poorer classes of in-\\nvesting a portion of their earnings in life insurance. Some mode\\nshould be devised for doing this at less cost than under the\\npresent agency system (May, 1874). Thus it appears that\\nvSome of those who were in a position to know either* did not\\nfavor the plan, or but imperfectly understood the essential prin-\\nciples of the theory and practice of the system, while no one seems\\nto have had the courage to undertake the formation of a company\\ndesigned to transact Industrial insurance, even in connection\\nwith, or as a part of, the business of an Ordinary life company.\\nWhile the insurance press continued to give considerable\\nattention to the general subject of Industrial insurance, the\\nInsurance Times more than any other publication, continued its\\nadvocacy of the system, and of the establishment of an Indus-\\ntrial company in the United States. The editor, Mr. Stephen\\nEnglish, not only gave space to the general discussion of the\\nprinciples and practice of the business, but supplemented such\\ntheoretical discussions with practical demonstrations of the bene-\\nfits and results of Industrial insurance from the standpoint of public\\npolicy. In an article entitled The Progress of Industrial Insur-\\nance, the Insurance Times (April and May, 1874) pointed out the\\neducational influence of this work among the masses of the people\\nas in itself a matter of importance and of immense value. In\\nexplanation, the statement was added that Year after year these\\nthousands of artisans and operatives, thus effecting insurance on\\ntheir lives, are taught thriftiness, carefulness, prudence, and fore-\\nthought. The very fact that these thousands of workingmen are\\ninduced to make timely provision against the day of death, by life\\ninsurance, for even ever so small an amount, is a proof that the\\nrecklessness, selfishness, and spendthrift habits of these men are\\ngiving way before better influences, and that the future of their\\nhomes and families is of more consideration to them than to any\\nof their class in days gone by. A more worthy and deserved\\ntribute has seldom been paid to the English workingmen than in\\nthe above lines, written by one who, although unknown to the\\nAmerican working people, yet rendered them a most important ser-\\nvice, and to him Industrial insurance owes a debt of gratitude, as\\none who during a dark hour of American social history did much,\\nif not most, to keep the facts pertaining to Industrial insurance", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0065.jp2"}, "66": {"fulltext": "46 HISTORY OF THE PRUDENTIAL.\\nbefore the public, and who, in spite of discouragement, did not\\ndespair of seeing his ambition realized by the early establishment\\nof an American Industrial insurance company.\\nIt was otherwise with Mr. Elizur Wright, who, for rea-\\nsons which will probably never be known, had been opposed\\nto Industrial insurance almost from the time the system had\\nbeen gaining ground in England, and who, as far back as\\n1865, had been making attacks on what he called Industrial\\ninsurance, but what in reality was the old system of Burial\\nSocieties, which was then rapidly passing away, giving place\\nto the modern form of workingmen s insurance on the Indus-\\ntrial plan.\\nIn an open letter to the editor of the Insurance Times, dated\\nMay 26, 1874, Mr. Wright summed up his charges against\\nIndustrial insurance, stating that it was his conviction that the\\nevil of Mr. Harben s gigantic success decidedly outweighs the\\ngood. Among other charges Mr. Wright asserted, as a matter\\nof fact, that the system was one productive of infanticide, that\\nthe companies were living on lapses, and that the general system\\nwas an iniquitous one, and practically of no further benefit than\\nthat it was profitable to Mr. Harben and the stockholders in the\\nPrudential. Mr. Wright confined himself to generalities, making,\\nhowever, specific charges without a single statement of fact, and,\\nthough himself an actuary, he expressed an actuarial opinion\\nwithout actuarial testimony or facts to support it. He referred\\nto Mr. Gladstone s remarks in 1864, to the effect that the Pruden-\\ntial was insolvent, but he did not say that these remarks of Mr.\\nGladstone s had been refuted and proven unfounded by the high-\\nest actuarial authority in England, the President of the Institute\\nof Actuaries. He repeated the thirty-year-old charge of child-\\nmurder for insurance money, occasionally made against the old-\\ntime type of Burial Clubs, without citing a single case in support\\nof his monstrous allegations.\\nMr. Wright was immediately answered by Mr. James Alex-\\nander Mowatt, a man thoroughly familiar with the practice of\\nIndustrial insurance in England, and also, under date of June\\n23rd, by Mr. Harben, who, in an open letter addressed to the\\neditor of the Insurance Times (published August, 1874), emphati-\\ncally and ably refuted the charges made by Mr. Wright by a\\nsimple statement of the facts in the case. Mr. Harben concluded\\nhis letter with the following remarks, which I quote as they are", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0066.jp2"}, "67": {"fulltext": "INDUSTRIAL INSURANCE IN AMERICA IN 1 874. 47\\nlikely to be of permanent interest to the student of the develop-\\nment of Industrial insurance in this country\\nThe theory that a working man should be prohibited from\\ninsuring the means of burying his child because the sum of\\nthirty shillings (seven and a half dollars) will tempt him to\\ncommit murder, hardly needs serious discussion.* Can Mr.\\nWright support this argument by the slightest trustworthy evi-\\ndence and if he can, is murder for the sake of insurance money\\nconfined to the poor, because, if not, why not go further\\nWhy do the critics of this Company always speak in gen-\\neral terms Why do they not make some definite charge against\\nit, and instead of confining themselves to may-bes and no\\ndoubts, point out any engagement broken, any benefit with-\\nheld, or any promise unfulfilled But no The Prudential\\nCompany may have faithfully performed every engagement into\\nwhich it has entered it may have opened up a new source of\\njoint-stock enterprise it may have brought the benefits of life\\ninsurance within the reach of the humblest classes but it has\\nnot justified the predictions that would-be-prophets made by\\negregious failure. It has committed the unpardonable crime of\\nsuccess.\\nTo these distinct and well-supported charges of inconsistency,\\nignorance and perversion of facts Mr. Wright made no reply,\\nexcept in a rambling communication under date of August 14th,\\nin which he once more shifted the burden of proof to generalities\\nnot deserving of space. This unworthy attempt to evade the real\\npoints at issue, brought forth a most emphatic and scathing reply\\nfrom Mr. English, the editor of the Insurance Times (September,\\n1874), who expressed himself, in part, as follows: You have,\\nupon your own admission, made mistakes in your attempts to\\nreform life insurance, and your blunders have made the insurance\\nfraternity mistrustful of your theories and experiments. The\\nofficers of our life companies would be recreant to their fiduciary\\nduties if they allowed themselves to be bullied into an acceptance\\nof your scheme, and they only show a proper and manly spirit in\\nThe time has passed for dealing with the masses as children who\\nare to be treated to truth in quantities and on occasions suited to their\\nwelfare or the interests of society. The political economist only aban-\\ndons his ground of vantage and forfeits the confidence of the community\\nwhen he accepts any responsibility for the use that may be made of the\\ntruth he discovers and discloses. (Francis A. Walker.)", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0067.jp2"}, "68": {"fulltext": "48 HISTORY OF THE PRUDENTIAL.\\nresenting your misrepresentations and decrial, by letting you con-\\ntemptuously and severely alone.\\nIndustrial insurance can not be said to have been injured\\nby this controversy, and the subsequent correspondence on the\\nsubject. Clear and emphatic proof had been produced that the\\nsystem was not only worthy of public confidence, not only met\\na great public want, but, also, could be undertaken on a business\\nbasis, and was likely to produce a fair rate of profit in return.\\nForces, independent of the agitation of the Insurance Times,\\nwere making for a better public understanding of the subject, and\\ntending towards a more clearly recognized necessity for the estab-\\nlishment of genuine Industrial insurance in the United States.\\nWhile, as we have seen, Mr. Wright, as a former Commissioner\\nof Insurance of Massachusetts, had proclaimed himself an open\\nand uncompromising opponent to the introduction of the system,\\nanother Massachusetts Commissioner, Mr. Julius Clarke^ in his\\nannual report for 1874, came forth plainly and emphatically -in\\nfavor of the system of Industrial insurance as practiced by the\\nBritish Prudential. In this report, which must ever be looked\\nupon as one of the foundation-stones of the present-day structure\\nof American Industrial insurance, Mr. Clarke addressed the Legis-\\nlature as follows\\n1 In presenting to the Legislature a general view of the dif-\\nferent matters of interest and importance relating to insurance,\\nwhich have attracted attention during the last year, reference\\nshould be made to the subject of industrial insurance. The term\\nis applied with sufficient appropriateness to insurance for small\\namounts, supposed to be particularly adapted to the wants of\\npersons of small means, who are engaged in various industrial\\npursuits. After giving a brief historical sketch of the origin\\nand growth of Industrial insurance in England, Mr. Clarke dealt\\nwith the practice of the British Prudential, and pointed out that\\nThough it does not, like the old Friendly Societies, guarantee\\nallowances in sickness, yet like them it adjusts the amount of\\ninsurance to the premium paid that is to say, instead of naming\\ncertain sums as the premiums for which it will insure the payment\\nof ten, a hundred or a thousand pounds at death, it offers certain\\namounts of insurance in return for the payment of small fixed\\nsums each week such as one penny, twopence, threepence or\\nfourpence, as the case may be. Like the Friendly Societies, also,\\nthe company sends its collectors from house to house and collects", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0068.jp2"}, "69": {"fulltext": "XJZs-*\\n^A, ^Cf^A/Cr-", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0069.jp2"}, "70": {"fulltext": "", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0070.jp2"}, "71": {"fulltext": "INDUSTRIAL INSURANCE IN AMERICA IN 1 874. 49\\nthe premiums weekly. Thus Mr. Clarke had thoroughly and\\ncompletely grasped three of the four essential principles of Indus-\\ntrial insurance, the charge of a weekly premium, the adjustment\\nof the amounts of insurance to this weekly premium, and the col-\\nlection of the premium weekly from the house of the insured,\\nand, as we shall presently note, he had not overlooked the fourth\\nessential, the principle of family insurance that is, of persons of\\nboth sexes and all ages.\\nMr. Clarke did not fail to recognize the historic continuity\\nof the business and its direct relation to the Friendly Societies\\nand earlier forms of burial associations. In his own words, The\\nsecret of the success of this company may be found in the fact\\nthat the ground had been thoroughly prepared for the new system\\nby the old societies. The company merely takes advantage of\\ntradition, habits and ideas that have been the growth of more than\\na century. In their adoption and application it is hoped that the\\ncompany will not, like so many Friendly Societies, prove in the\\nend a failure.\\nIn explanation of the fourth cardinal principle of Industrial\\ninsurance, that is, the insurance of every member of the family,\\nand incidentally the insurance of children, Mr. Clarke stated that\\nOne of the objections made to the Company s mode of doing\\nbusiness, is, that it grants insurance upon the lives of young\\nchildren. This was the practice of the Friendly Societies, and\\nin regard to them, also, the objection was urged that the practice\\nheld out inducements to infanticide. The managers of the\\nFriendly Societies contended in reply, that the character of poor\\npeople is not such as entitles the objection to weight, and for the\\ncredit of human nature it is hoped they were right. They main-\\ntained further, that even if the danger existed, which they denied,\\nit might be amply guarded against by requiring proper medical\\nexaminations and certificates. The contract of life insurance\\nbeing unlike that covering a fire or marine risk, a contract of\\nindemnity, it is not absolutely necessary that the interest in the\\nlife insured should be of a pecuniary nature. The parental rela-\\ntion in itself is all that is required to support the contract. Were\\na pecuniary interest requisite, life insurance might still be properly\\ninvoked to provide against extraordinary expenses forced upon a\\npoor man by sickness or death in his family, as well as to compen-\\nsate him for the loss of aid and assistance derived from the", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0071.jp2"}, "72": {"fulltext": "50 HISTORY OF THE PRUDENTIAL.\\nservices of his child. This extended quotation shows how\\ncarefully Mr. Clarke had gone into the facts of the case, and how\\nwell he had considered the pros and cons of a question to which\\nthere were bound to be at least two sides.\\nMr. Clarke had also considered the question of cost and the\\nexpense rate of transacting an Industrial business, stating that\\nIt has also been stated that the rates charged by the Prudential\\nupon its small policies, are unreasonably high in proportion to\\nthose usually charged upon policies of larger amounts also that\\nit makes no dividends, and pays no surrender values but, he\\nadds, it is unnecessary for our purpose to examine in detail the\\nCompany s mode of doing business, if the prices it charges are\\nout of proportion to the benefit it confers, the proper ratio will\\nere long be established by competition. Mr. Clarke recognized\\nfully that stability was the main point in regard to all institutions\\ncreated for the purpose of insurance, and especially so in the case\\nof those designed to bring life insurance within the reach of the\\nmasses. Quoting his own words, The number of persons whose\\nhappiness is staked upon the solvency of institutions of the latter\\nclass is larger, and they are persons whose situation is such that\\nthe distress produced by disappointment is more cruel. It is\\nclear that Mr. Clarke realized fully that the most vital element in\\nIndustrial insurance is the absolute necessity that such insur-\\nance shall be of the same intrinsic value as life insurance on the\\nOrdinary plan sold to the well-to-do, leaving the question of cost\\nand the expenses of conducting the business, which consists of a\\nmultitude of intricate transactions, to the people themselves and\\nto the law of competition which regulates profits in similar busi-\\nness undertakings.\\nExtended consideration was thus given by an intelligent\\nInsurance Commissioner to a business which had not yet been\\nestablished in this country, and his views were communicated\\nto the Legislature of Massachusetts solely for the purpose of\\nplacing before the people of the State the facts pertaining to a\\nbusiness which, from his point of view, was one of great public\\nbenefit, and which was deserving of attention from the stand-\\npoint of public policy. His opinion as to whether the time had\\ncome for the organization of such companies in this country, is\\nexpressed in the following quotation It does not of course neces-\\nsarily follow, that because there is a demand in England for small", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0072.jp2"}, "73": {"fulltext": "INDUSTRIAL INSURANCE IN AMERICA IN 1874. 51\\npolicies, as shown by the experience of the Benefit Societies and\\nthe success of the Prudential, that therefore a similar demand\\nexists in this country. Various circumstances, however, indicate\\nthat the want exists here also. As one of these, may be mentioned\\nthe great variety of forms in which what is called co-operative\\ninsurance crops out. This Department has long been and still\\nis greatly embarrassed by the frequent attempts to impose this\\nco-operative fallacy upon the community, and all the more so\\nbecause they are often made by people of most excellent inten-\\ntions and unimpeachable respectability. Though co-operative\\ninsurance sometimes resembles industrial insurance in the small-\\nness of the amounts in which it is furnished, it is in substance\\nessentially different.\\n1 1 All the different contrivances practically adapted for the\\npromotion of saving, among which life insurance is to be consid-\\nered one, are deserving of encouragement. They increase the\\ncapital of the community, indispensable for the organization of\\nindustrial enterprises, and aid powerfully in the development of\\nthe material wealth. Numerically the people of small means form\\na large part of the population, and their contributions, although\\nhumble singly, are in the aggregate of importance. Any accumu-\\nlation of means which inures for their benefit is valuable, not only\\non account of the capital which it furnishes taken collectively, but\\nalso because it brings improvement to precisely the very people\\nwhose material condition stands most in need of it. And,\\nfinally, The further extension of life insurance in Massachusetts\\nis no doubt a subject of so much importance, that it might very\\nproperly occupy the attention of the Legislature. But it is very\\ndoubtful whether the Legislature could devise any measures that\\nwould be of service, in aiding directly in the introduction of indus-\\ntrial insurance. Fashions, however, are so contagious that it is\\nnot unlikely that some attempt may be made to introduce here a\\nkind of insurance at present so popular abroad. Should this be\\nthe case, it is highly desirable that legislation should establish all\\nproper precautions against insolvency and fraud.\\nThe report of Mr. Clarke could hardly have become generally\\nknown until after the first half of the year 1874, for, as is usual\\nwith public documents, they are printed and distributed to the\\npublic some months after the close of the legislative session\\nhence it is not strange that it was not until the latter part of the", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0073.jp2"}, "74": {"fulltext": "52 HISTORY OF THE PRUDENTIAL.\\nyear that a new and apparently energetic effort was made to\\ncarry the frequent suggestions of the hisurance Times and the\\nmore recent suggestions of Commissioner Clarke into actual\\nexecution. In the hisurance Times for October, 1874, is a notice\\nof the proposed organization of a company contemplating the\\ntransaction of an Industrial business, which I quote as follows\\n1 The appeal made by Commissioner Clarke, in behalf of the\\nrequirements of the industrial classes with respect to life insur-\\nance, has met with a prompt response from the capitalists of this\\ncity [New York]. Progress has already been made in the\\norganization of a new life company, to be entitled the u Prudential\\nInsurance Company of America, to be conducted on a plan\\nsimilar to that of the Prudential of London, which has been\\nattended with so much success and benefit to the indigent work-\\ning classes.\\nDespite the preceding businesslike announcement, nothing\\nseems to have been done to effect an organization, and there is no\\nrecord that the company was ever incorporated and authorized to\\ntransact business, but there is a brief notice in the December\\nnumber of Wit Insurance Times (1874), indicating that the pro-\\njected new company had difficulties, perhaps on account of its in-\\nability to raise the necessary capital of $100,000, with which it was\\nproposed to organize. It would be interesting to know who were\\nthe promoters of the enterprise and why the same failed in its\\nearliest stages without having had, at least, a fair trial, but there is\\nno record of the names of those who made this second attempt to\\norganize a Prudential Insurance Company of America, and thus,\\nat the close of 1874, Industrial insurance was still a probability,\\nbut with every assurance of early realization.\\nThe report of Commissioner Clarke attracted considerable\\nattention outside of Massachusetts, and came to the notice of\\nMr. John F. Dryden, who for some years had given considerable\\nattention and thought to the study of Industrial insurance. Mr.\\nDryden must needs have been strongly influenced by so urgent a\\nplea for the organization of an Industrial insurance company,\\ncoming from a source free from bias or prejudice, and from a\\nman fully capable of dealing with so intricate and highly involved\\na subject.\\nIt is often argued that the unstinted praise of Industrial\\ninsurance, its methods and results, on the part of the press in", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0074.jp2"}, "75": {"fulltext": "INDUSTRIAL INSURANCE IN AMERICA IN 1 874. 53\\ngeneral, and the insurance press in particular, is due to the fact\\nthat the Industrial companies are advertisers in these journals,\\nand that the latter are, therefore, interested advocates or special\\npleaders. Unwarranted as this opinion is, it has much semblance\\nof truth, in that newspaper praise is, unfortunately, too often the\\nresult of a personal interest, while, conversely, newspaper fault-\\nfinding is too often the result of personal spite or prejudice but\\nhere we have overwhelming proof that before a single Industrial\\ncompany was organized in the United States, the more intelli-\\ngent insurance press, and especially the Insurance Times, devoted\\ncolumns and pages to the discussion of the new form of life in-\\nsurance, which certainly brought not a cent of direct compensation\\nto the owners or managers of this particular journal and we\\nfind the leading Insurance Commissioner of the United States, in\\n1874, making a special plea in six pages of his report, long before\\nan Industrial company had ever paid a dollar in taxes or license\\nfees to the Department of Insurance of his State. Surely this\\nmay be accepted as proof that the system was early recognized as\\none of intrinsic value, and that it was advocated because it was\\nlikely to meet a large and increasing demand for life insurance\\nby the industrial masses of that State.\\nAs another illustration of the earnestness and ability with\\nwhich the editor of the Insurance Times advocated the establish-\\nment of an Industrial insurance company in the United States, I\\nquote from an article which appeared in the October issue of\\nthat journal for 1874, which brings out with much emphasis the\\nreasons which influenced the editor to devote so much space and\\ntime to the advocacy of the new form of life insurance in this\\ncountry\\nThe worthiest members of this class [the working people]\\nhave been betrayed continually by the most specious inducements\\nto invest their little spare cash in associations and companies\\npromising the most alluring profits and advantages imaginable.\\nTheir promises have been broken, and those that trusted in them\\nhave consequently been subjected to cruel loss and privation.\\nAnd after quoting in full that part of Mr. Clarke s report which\\ndealt with Industrial insurance, and to which was thus given a\\nmuch-needed amount of publicity not usually accorded to a pub-\\nlic document, the article continued: There is, therefore, a\\ngreat need of its adaptation to the wants of the laboring classes,", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0075.jp2"}, "76": {"fulltext": "54 HISTORY OF THE PRUDENTIAL.\\nnot by unreliable parties, but by those who would worthily com-\\nmand the entire confidence of the people. To answer\\nthe purpose indicated, it is of no avail to introduce agencies of\\nremote companies, however excellent, or to place the conduct of\\nthis business in the hands of persons not recognized by the pub-\\nlic as leading men of the highest rank in the insurance world.\\nThe schemes already afloat and worked by men\\nwithout repute, have only beclouded a fine opening, and rendered\\nits prosecution more difficult by the disappointment and preju-\\ndice which have been engendered by unsatisfactory experience.\\njf tfiQ duty of supplying the need of life insurance\\nto the industrial classes were undertaken by a superior under-\\nwriter, at the head of a great life institution, they would dissolve\\nlike wreaths of mist in the blaze of the summer sun.\\nThus, after years of agitation, Mr. English, as editor of the\\nInsurance Times, had reached the conclusion that it no longer\\nwas merely desirable that the business of Industrial insurance\\nshould be undertaken by a responsible company, but in the above\\nsentence he speaks of the duty of supplying the need of life\\ninsurance to the industrial masses, and he concludes with the\\nhope that the suggestion of Commissioner Clarke, which almost\\nassumes the form and urgency of an appeal, will meet a fitting\\nresponse from some one of the master minds of the life under-\\nwriting fraternity.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0076.jp2"}, "77": {"fulltext": "", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0077.jp2"}, "78": {"fulltext": "The PrudentialFriendetSociety\\nHOME OFFICE OF\\nthe: prudential friendly society,\\n1875-1878.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0078.jp2"}, "79": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1875. 55\\nCHAPTER V.\\nTHE PRUDENTIAL FRIENDLY SOCIETY, 1875.\\nIt is self-evident that the period of agitation and experiment\\nhad passed, and that the time for the foundation of an institution\\non the basis of the English Friendly Societies and the British\\nPrudential had come with the new year, 1875. While Stephen\\nEnglish and others had pleaded and argued for the organization\\nof an Industrial company, there were those who were strongly\\nin favor of forming an institution more in harmony with the\\nprinciples and practice of the Manchester Order of Unity and\\nthe Royal I^iver Friendly Society,* which combine a provision for\\naid in sickness with assurance for a sum sufficient for burial ex-\\npenses in case of death. Many factors contributed to favor the\\nlatter form, not the least of which, if not the most important,\\nmust be considered the large amount of sickness prevailing in the\\nlarge cities of the United States during the early seventies. As\\na rule the mortality was above 25 per 1 ,000 of population, often\\nrising as high as 30 per 1,000 during a single year. The larger\\npart of this excessive mortality was caused by zymotic diseases,\\nand the disease prevalence was in general far in excess of that of\\nthe present time.\\nWhat was generally true of most of the large cities of the\\nEast was true in particular of Newark, N. J., which at this time\\nhad a population of about 120,000, and held high rank as one of\\nthe most important manufacturing centres in the United States.\\nThe average death-rate of Newark for the period 1 872- 75 was\\n31 per 1,000 of population. Smallpox, typhoid fever, diphtheria,\\nscarlet fever, and especially consumption were all excessively\\nprevalent during this period. While the general mortality was\\nhigh, the mortality at the younger ages was even more pro-\\nnounced, the increase in the death-rate at ages under ten, for\\nThis society no longer transacts a sickness insurance business.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0079.jp2"}, "80": {"fulltext": "56 HISTORY OF THE PRUDENTIAL.\\ninstance, having been largely in excess of the increase in the\\npopulation.\\nTaking into consideration the fact that Newark was almost\\nexclusively a manufacturing city, with a large proportion of its\\npopulation depending on weekly wages, it is quite clear, to any\\none who has at all studied the relation of an excessive mortality\\nto social welfare, that it was here, as in England (in Liverpool,\\nBirmingham and Manchester), that the demand for Industrial\\ninsurance should first manifest itself in a most emphatic form,\\nand, as we shall point out more clearly later on, it was from the\\nlarge employers of labor that the first direct assistance came in\\nthe formation of a society and later on of a company as a remedy\\nfor the ills resulting from social burdens beyond the strength of\\nthe average individual workman.\\nIt is much to be regretted that data are wanting as regards\\nthe actual amount of pauperism and poverty prevailing in Newark\\nat this period, but, from census returns and other fragmentary\\ndata, it is evident that pauper funerals were exceedingly common\\nin Newark during the early seventies. For New York City,\\nwhere conditions were even worse than they were in Newark,\\nactual data as to pauper funerals are available, showing that the\\nrate of such funerals per 10,000 of population was 33.1 during\\n1 870- 74, against an average rate of only 22.0 during the five\\nyears 1 895- 99. Hence, it is shown that not only were pauper\\nfunerals exceedingly common during the years preceding the\\nestablishment of Industrial insurance, but since that date a\\nmaterial reduction in number has taken place.\\nSuch conditions as have been pointed out are likely to prove\\nan incentive for the development of plans tending towards im-\\nprovement by the application of insurance principles, which aim\\nto do away with the necessity of a demand for public charity from\\nan otherwise able and intelligent body of workingmen, making\\nworthy efforts to solve life s problems in their own way and\\nwithin the limits of their means.\\nIt was to Newark that Mr. John F. Dry den had come, in\\nJ 873, with the purpose of launching his new scheme of working-\\nmen s insurance. Surely he could not have selected a more\\nappropriate locality, a better city for a trial of his new ideas in\\nlife insurance and finance, and a more promising field for the\\nfirst application of English principles of Industrial insurance to", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0080.jp2"}, "81": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1875. 57\\nAmerican social and economic conditions. Time has proved that\\nthe selection of Newark was a most wise one time has proved\\nthat Mr. Dryden was right in his conception of the future possi-\\nbilities of Industrial insurance on American soil.\\nMr. Dryden had for some years devoted much time and\\nstudy to the question of life insurance for workingmen and their\\nfamilies, his attention to this branch of the business having been\\nattracted by the report of Klizur Wright on the methods and\\ncondition of the British Prudential. On digesting these com-\\nmentaries of Mr. Wright and Mr. Gladstone, Mr. Dryden did not\\ntake their conclusions for granted, but procured all the reports\\nand data of the English company and the British Friendly Socie-\\nties, and after a careful study of the facts concluded that Mr.\\nHarben and the English people were right, and that Mr. Wright\\nand Mr. Gladstone were in error.\\nSatisfied that the business was deserving of a trial, when\\nmodified to meet American social and economic conditions, Mr.\\nDryden first submitted his plans to some people in his native\\nState (Maine), but no encouragement was given for a practical\\ndemonstration of his ideas. Not discouraged, he had come to\\nNewark in 1873, and, after interesting a few people in the matter,\\nhad a bill passed by the Legislature, chartering The Widows and\\nOrphans Benefit Society, but, as has been pointed out, nothing\\nsubstantial came from this effort, an effort too much in harmony\\nwith the prevailing idea of providing workingmen s insurance on\\nthe Bund or Union plan. After a brief experiment, it\\nwas found necessary to alter the original plans, and in the spring\\nof 1875 the charter of The Widows and Orphans Benefit Society\\nwas amended so that the name of the society was changed to\\nthat of The Prudential Friendly Society, which, in 1877, by\\nanother amendment became The Prudential Insurance Company\\nof America.\\nAmong the incorporators of the society were many leading\\nmerchants and manufacturers, who, according to a sketch in the\\nNewark Standard, had been daily called upon for subscriptions\\nto bury the poor or furnish aid in sickness and distress. It\\nwas well for the new enterprise that men of exceptional ability\\nand known integrity and experience should have been drawn into\\nthe formation of the new insurance project, since the frequent\\nfailures of so-called Aid Societies or Fraternal Societies, parading", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0081.jp2"}, "82": {"fulltext": "58 HISTORY OF THE PRUDENTIAL.\\nunder the guise of high-sounding titles and often supported by\\nnames well known in the world of finance and commerce, had\\nonly too often fallen far short of their promises and shamefully\\nbetrayed a most sacred trust.\\nIt will be recalled in this connection, how earnestly and per-\\nsistently the Insurance Times, in its frequent articles in favor of\\nthe organization of an Industrial insurance company, had insisted\\nthat It is all-important that whoever undertakes it should stand\\nso high as to command the entire confidence of the people, and\\nbe able to gather about him a corps of coadjutors and subordi-\\nnates who would work with him with intelligence, zeal and\\nindustry, incapable of despair, flagging or failure.\\nIt was, therefore, most fortunate for the cause of genuine\\nworkingmen s insurance that from the outset the new organiza-\\ntion had the moral and material support of the very best com-\\nmercial and financial element in the city of Newark. In a\\nnotice of the actual commencement of business operations by\\nThe Prudential Friendly Society, the Newark Evening Courier of\\nNovember 13, 1875, referred to the managers of the society as\\nfollows The gentlemen who have the management of this\\nimportant and humane enterprise are too well known in Newark\\nto require our endorsement. Their names are a synonym for\\nfinancial strength and integrity, and our people know that funds\\nentrusted to an organization which is under such control will be\\nguarded with sacred care. The Newark Register of the same\\ndate referred to the society in the following words One of the\\nmost gratifying facts connected with this society is its strength\\nand security, and it may be said to be founded upo?i a rock,\\na rather curious coincidence, considering the fact that the motto\\nof the Company, The Prudential has the strength of Gibraltar,\\nbecame, in course of time, a household word.\\nWhile the charter of the society had been supplemented on\\nFebruary 18, 1875, which must be considered the date on which\\nIndustrial insurance had its beginnings in the United States, it\\nwas not until November 10, 1875, that the actual business opera-\\ntions commenced, and it was on this day that the first application\\nwas written on the life of the then cashier of the German Bank,\\nMr. W. R. Drake. The name of John F. Dryden, the first\\nsecretary of the society, appears as a witness to the application,\\nwhich is reproduced in full on the opposite page.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0082.jp2"}, "83": {"fulltext": "L\\nADU^APPETbATION.\\nTHE PRUDENTIAL FRIENDLY SOCIETY,\\nIsTjETW A-ia-IC, 3ST. cr.\\nTHK APTLH ANI\\nA^^ jQ^^-Ly^^,\\nrand Mmh.r tyt.b\\nIf Bring, wi.ut^PRr health t I\\nv^\\n^f*7.\\n:fc^\\n-^3P\\nC\\nfc^L\\n\\\\JfjtJt~\\n/%1-*\\nFIRST APPLICATION RECEIVED BY\\nTHE PRUDENTIAL, FRIENDLY SOCIETY,\\nNOVEMBER IO, 1875.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0083.jp2"}, "84": {"fulltext": "IS, v hal\\nHa\\nW. What lj\u00c2\u00ab.\\nrtJc hd.\\nifHp,\\nI\\nJSc\\nfar.\\n-N\\ny4g t--^**^^ rXy^V\\nC \u00c2\u00ab4C \u00c2\u00a3\u00c2\u00ab4U", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0084.jp2"}, "85": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1 875. 59\\nBefore taking account of the events following this actual\\ncommencement of business operations, it is necessary to consider\\nbriefly the general facts relating to the period which had elapsed\\nfrom the time the charter of The Widows and Orphans Friendly\\nSociety had been amended on February 18th, to November 10th,\\nwhen the first application for membership in The Prudential\\nFriendly Society was made.\\nDuring the month of January, 1875, the discussion and\\npublic consideration of Mr. Wright s savings-bank plan contin-\\nued, and much attention was given to his many publications on\\nthe subject, especially his bitter attacks on regular level-premium\\nlife insurance. The Boston Board of Trade took the matter into\\nconsideration and proposed to inaugurate a new movement in\\nlife insurance, which, had it succeeded, it is not too much to\\nsay, would have made Industrial insurance unnecessary and im-\\npossible. The Board of Trade unanimously approved the plan of\\nMr. Wright and recommended that the same should be tried on\\nthe ground that the people who most need life insurance can not\\nwell afford the luxury of the agenc}^ expenses of the present sys-\\ntem. It will be observed that this was in direct opposition to\\nMr. Wright s earlier plea, that the agency system was indis-\\npensable to the extension of life-insurance principles to the masses.\\nIt had been further recognized by this time, in the words of the\\nMonitor, that any man who knows anything about life-insur-\\nance companies understands perfectly well that soliciting agents\\nare their motive power. While something was to be said in\\nfavor of Mr. Wright s scheme, the people at large, and especially\\nthose best informed in the science and practice of life insur-\\nance, were opposed to his project on the ground of its utter\\nimpracticability, and the opposition is best expressed in the words\\nof a member of the Massachusetts Legislature, who, in explana-\\ntion of the reason why the Legislature had refused Mr. Wright a\\ncharter for his proposed company, said that Mr. Wright s plan\\nwas looked upon as impracticable, very ingeniously contrived,\\nbut wholly without motive power, since, as has been stated, it\\nwas proposed to employ no agents to acquaint the public with the\\nmerits of the scheme by a direct canvass, such as is made by\\nOrdinary and Industrial companies.\\nWhile this discussion was engaging the attention of the people\\nin the Eastern United States, an effort was made in Hamilton,", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0085.jp2"}, "86": {"fulltext": "60 HISTORY OF THE PRUDENTIAL.\\nin the province of Ontario, Canada, to organize an Industrial\\ncompany on the plan of the British Prudential, by the name\\nof The Industrial and Commercial Life Insurance Company,\\nbut, as far as I have been able to learn, practically nothing\\nwas accomplished, and no actual business was ever transacted.\\nThis fact is of interest merely as an indication of the growing\\ndemand for Industrial insurance in all parts of the country.\\nThe great English company continued to attract attention on\\nthis side of the Atlantic, and its success as recorded in. the\\ninsurance journals must have offered tempting inducements to\\nAmerican insurance managers to try the same experiment.\\nThe report of the British company for the year 1874 had stated\\nthat there had been issued during that year the almost incompre-\\nhensible number of 888,758 Industrial policies, against 646,377\\npolicies issued during 1873. The returns of the company were\\nextensively commented upon, and led the Insurance World (1875,\\np. 82) to remark that the system of Industrial insurance is yet\\nin its chrysalis state in this country, which was strictly true,\\nfor Mr. Dryden and his associates were working almost day and\\nnight to perfect the organization of a society which in time was to\\nprove the first successful Industrial insurance company of Ameri-\\ncan origin to be operated on the plan of the British Prudential.\\nAs has been stated, Mr. Dryden had had the subject of\\nIndustrial insurance under consideration for some years, and had\\nnot only made himself familiar with the leading principles and\\nfeatures of the system of the British Prudential, but he had also\\ncarefully considered and studied the plans of the English Friendly\\nSocieties, and in particular the Manchester Order of Unity, and\\nthe Trading Societies, like the Royal Liver, of Liverpool, the\\nlatter of which made a specialty of burial insurance for all the\\nmembers of a family. With the object of developing in the United\\nStates a new form of workingmen s insurance, which would com-\\nbine all the virtues of the old plans, while eliminating, as far as\\npossible, the weak points, which had been the cause of so many\\ndisastrous failures, Mr. Dryden secured all the available informa-\\ntion from England, entering at the same time into correspondence\\nwith Neison and Ratcliffe, the highest authorities on Friendly\\nSociety practice of this period.\\nThe one broad fact which remained with Mr. Dryden as\\nthe result of his study and investigation must have been the", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0086.jp2"}, "87": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1 875. 6l\\nconclusion pre-eminent in the minds of all English students of\\nthe subject of Friendly Society practice and finance, namely,\\nthat an actuarial basis was the first requisite to make possible the\\nsuccess of an undertaking of this kind, and with this thought in\\nmind, Mr. Dry den entered into communication with Mr. John K.\\nClark, Professor of Mathematics at Yale College, who seems to\\nhave made himself thoroughly familiar with the actuarial and\\nfinancial basis of life contingencies.\\nFrom letters of Mr. Clark addressed to Mr. Dry den, during\\nthe months preceding the actual commencement of business opera-\\ntions, I make a few extracts, as likely to prove of more than\\npassing interest and importance to the student of Industrial\\ninsurance history.\\nIn his first letter to Mr. Dry den, dated March 26, 1875, Mr.\\nClark referred to the dearth of information on the subject of insur-\\nance, and especially on sickness and mortality, in the possession\\nof Yale College, and intimates that his knowledge of the subject\\nhas been practically confined to a study of Neison s work on\\nVital Statistics. Influenced, no doubt, by the investigations of\\nNeison, the great value of which is recognized even at the\\npresent time, Mr. Clark seems to have devoted considerable atten-\\ntion to the question of the possibility of successfully transacting a\\nsickness insurance business, and in a letter dated April 26th, he\\nreported to Mr. Dryden that in consequence of his preliminary\\ninvestigations he could safely recommend the adoption of a plan\\nfor the transaction of a sickness, burial and pension scheme, and\\nthat, with strict attention to well-established principles and to\\ndetail of administration, it can, in my opinion, be transacted\\nsafely, and, if the demand for it be good, with a fair return to the\\nstockholders. He, however, recognized the inadequacy of the\\ndata at his command, and in reference to sickness benefits stated\\nthat, by going into operation cautiously upon the basis of this\\nexperience, you will be able to gather in your office an experience\\nof your own, which will, after a time, furnish such checks and\\nmodifications as maybe desirable, and in still another letter,\\ndated April 30th, Mr. Clark repeated his words of caution in\\nreference to the sickness branch of the business, stating that\\n1 this branch of the business should be particularly studied. Sub-\\nsequent experience proved for this country, as it had been\\ntrue for England, that a sickness benefit business can not be", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0087.jp2"}, "88": {"fulltext": "62 HISTORY OF THE PRUDENTIAL.\\nsafely transacted by an insurance company. It is absolutely im-\\npossible to guard against sham sickness, imposition and fraud\\nin other directions, and all calculations, on no matter how ac-\\ncurate a basis, will prove inadequate in practice. In conse-\\nquence, a few years later, The Prudential Insurance Company\\ndiscontinued the transaction of sickness insurance, after this\\nbranch of the business had been given a sufficiently extensive\\ntrial to prove that it could not be safely and profitably transacted,\\nand that the demand for this form of insurance protection was\\nmuch less than had been anticipated, increasing preference being\\ngiven to life insurance for burial or investment purposes.\\nAnother point receiving considerable attention before the\\nactual business operations had commenced, was the probable and\\nproper expense-rate of a life-insurance business to be transacted on\\nthe weekly- or monthly-payment plan, and, while this question in a\\nmanner demanded considerable actuarial consideration and treat-\\nment, it was still very largely a practical one, demanding the\\ntaking into account of the conditions under which the business\\nhad to be carried on, namely, by a house-to-house canvass, and\\nthe subsequent collection of weekly premiums from the houses of\\nthe insured. Mr. Dryden from the outset insisted upon a load-\\ning of the premiums sufficient for the safe transaction of the busi-\\nness, holding to the belief that it would be very easy to make\\nan equitable return to the policy-holder if an overcharge had\\nbeen made, and he further especially insisted upon safety and\\npermanency, rather than yield upon a point which might have\\nbrought more rapid success during the first few years, but have\\nimperiled the future existence of the society and in these views,\\nMr. Dryden was fully sustained by Mr. Clark, who, after a\\nlengthy discussion, conceded that I shall proceed to carry out\\nyour views cheerfully, and the latter, I am sure, do not appear to\\nme in any sense unreasonable from your point of view and in\\nclosing his letter of June 16th, Mr. Clark added that in any case\\nof doubt in such matters action should, of course, keep well on\\nthe side of safety, and this maxim I have constantly considered\\nin my recent calculations.\\nIn a letter dated June 4th, Mr. Clark makes reference to Mr.\\nDryden s careful selection of men of ability and prominence as\\ndirectors and stockholders in the new enterprise, a matter of the\\ngreatest possible importance, and one of the formative influences", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0088.jp2"}, "89": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1875. 63\\nmaking for the future success of the company. Mention has\\nalready been made of the fact that among the incorporators of the\\nsociety were men of wealth and influence, merchants and manu-\\nfacturers of the city of Newark, and Mr. Clark incidentally refers\\nto the matter in stating that your plan for reaching the different\\nindustries through the selection of your directors seems a good\\none, and you do not seem to be unwise in not hastening too much\\nthe completion of your Board. Anxious as Mr. Dryden must\\nhave been to commence active operations, he, nevertheless, with\\na characteristic spirit of patience and conservatism, refrained\\nfrom making haste at the most critical period of the history of\\nthe society, which was to be the future Prudential Insurance\\nCompany of America.\\nIt is thus apparent that every step taken by Mr. Dryden\\nhad been carefully considered, and it was not until July that Mr.\\nClark was able to forward the completed calculation of rates for\\nthe sickness and annuity branch of the business, and on July 10th\\nthe life-rates for the burial branch. In transmitting his sickness\\ncalculations he once more emphasized the importance of dealing\\ncautiously with this part of the business, and at the same time\\npointed out most of the observed dangers pertaining to this form\\nof insurance as carried on by the Friendly Societies in England.\\nMr. Clark carefully went over the whole ground, so ably discussed\\nby Finlaison, Neison and others, and concluded his recommenda-\\ntions with the advice that an actuarial valuation of each branch\\nof the business should be made, if possible, once per annum, and\\nthat the first of these valuations should be made at least within\\na year after the business had well gotten under way. To this\\nadvice, which is clearly indicative of a thorough comprehension\\non the part of Mr. Clark of the difficulties incident to the suc-\\ncessful transaction of an Industrial insurance business, he added\\nthe further advice, which deserves to be remembered as the very\\nfoundation of the massive and colossal structure of present-day\\nIndustrial insurance, and for the disregard of which so many\\nthousands of so-called fraternal or co-operative schemes have\\ncome to an untimely end: Meanwhile, as at all times, your\\ndirectors should be impressed with the importance of keeping\\nsacredly the proper reserve on all your policies, so that if your\\nbusiness is successful, as I most sincerely hope it may be, you\\nmay secure constantly increasing confidence; and if in the worst", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0089.jp2"}, "90": {"fulltext": "64 HISTORY OF THE PRUDENTIAL.\\nevent it should chance to be at all unsuccessful, it may at least\\nnot end in dishonor. Such were the foundation principles on\\nwhich Industrial insurance in the United States was established\\nby The Prudential, which in a brief quarter of a century became\\nknown to every one, old and young, as the Company which has\\nthe strength of Gibraltar.\\nAnother evidence of the painstaking efforts of Mr. Dry den,\\nin giving consideration to every possible theoretical or practical\\naspect of the problem of workingmen s insurance, is found in a\\nletter of Mr. Clark, dated August 24, 1875. Mr. Dryden seems\\nto have called Mr. Clark s attention to an article in the New York\\nTribune on Life Insurance for Workingmen, which may pos-\\nsibly have been suggested by an address of Elizur Wright on\\nLife Insurance for the Poor, delivered at the annual meeting\\nof the National Social Science Association at Detroit, Mich., on\\nMay 13, 1875. In the Tribune article a strong argument had\\nbeen made for life insurance for the masses, and I can not but\\nthink it of value to give a few extracts from a now inaccessible\\nplea for workingmen s insurance on the Industrial plan in the\\nUnited States.\\nThe Tribune had said as follows The policies that work-\\nmen take at best are small, and the payments of premiums are\\ndivided as much as possible hence the shop and the factory offer\\nan unprofitable ground to the canvassers [for Ordinary insurance]\\nwho get a commission on paid premiums only, consequently life\\ninsurance is not brought home to the workingman by personal\\neffort, as it is to other classes in this country. This, then, is the\\ndifficulty to be surmounted. That it is not impossible is shown\\nby the enormous business of an English company [the Pruden-\\ntial] which makes workingmen s policies a specialty. In Great\\nBritain the insurance companies have found out how to insure\\nthe workingman our companies have not. In these times, while\\nthe business of life insurance is dull, and agents find it hard work\\nto earn a living, it might be worth while to study the system\\nadopted abroad. Insurance for workingmen in this country offers\\nan opening into fresh fields and pastures.\\nIn his remarks at the Detroit meeting of the Social Science\\nAssociation, Mr. Wright had discussed the subject from an en-\\ntirely different standpoint, expressing the belief that, by means\\nof his family bank, it was possible to introduce self -solicited", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0090.jp2"}, "91": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1 875. 65\\nlife insurance for the industrial masses of the United States. As\\nhas previously been pointed out, his efforts in this direction proved\\na complete failure, and such companies, especially the Provident\\nSavings Assurance Society, as adopted his suggestion to trans-\\nact business without agents, were soon compelled to abandon the\\nplan and revert to the universal method of soliciting insurance by\\ndirect personal canvass, the necessity of which had been pointed\\nout as early as 1853 by Tuckett in his insurance journal, to which\\nprevious reference has been made. However, there was one\\nremark of Mr. Wright which deserves to be placed on record, and\\nthat is, his opinion that, to adapt life insurance to the poor,\\nit should be reduced to the utmost simplicity, so as to be within\\nthe comprehension of the humblest capacity. It may safely be\\nsaid for Industrial insurance that it fully and completely came up\\nto this demand, and to this fact it owes no small amount of the\\nsuccess which has since been attained.\\nAs an indication of the small extent to which life insurance\\nhad been made accessible to the masses, it may be pointed out\\nthat, according to a report made in 1875 by the Massachusetts\\nBureau of Labor Statistics, out of 397 workingmen s families\\nwhich made returns of their expenditures, only a single working-\\nman s family paid an annual premium of $18 for insurance\\npurposes. While practically nothing was expended for life\\ninsurance, a disproportionate part of the income was expended\\nfor charities and societies, and it is not too much to say that by\\nJ 875, workingmen s insurance was practically limited to secret\\norganizations or co-operative benefit societies, most of which, at\\nbest, provide only temporary insurance for a small number, who\\nreceive benefits during the existence of the organization, an ex-\\nistence which is usually limited to a generation as its maximum\\nperiod of possible usefulness.\\nIn marked contrast to the investigations in Massachusetts in\\n1875, the investigations made by the Aldrich Senate Finance\\nCommittee on Retail Prices and Wages, and also by the\\nMichigan and Indiana State Bureaus of Labor, prove that, at the\\npresent time, life insurance forms a very considerable element in\\nthe expense-rate of workingmen s families, and this result, it may\\nwith confidence be asserted, must be attributed largely to the\\nMass. Labor Report, 1875, p. 435.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0091.jp2"}, "92": {"fulltext": "66 HISTORY OF THE PRUDENTIAL.\\nmissionary work carried on by Industrial insurance companies in\\nbehalf, not only of Industrial insurance, but also of other forms\\nof insurance, savings and thrift and it may not be out of place\\nin this connection to state that in 1875, although there were then\\nin the State of Massachusetts some 720,639 of savings-banks\\ndepositors, with an average deposit of $330, it was officially\\npointed out by the Labor Commission of that State that the\\nfact remains that the English Government aids fewer paupers in\\nproportion to population than our own;\\nAttention may here properly be called to a point of more\\nthan passing importance, in view of present-day attacks on\\nIndustrial insurance as a method by which the poor are encour-\\naged to expend extravagant sums for funeral purposes. While\\nthe charge in itself is so absurd that it hardly needs refuta-\\ntion, in view of the self-evident fact that the amounts realized\\nare, as a rule, hardly sufficient to meet the funeral expenses and\\nthe cost of the last illness, it may be of interest to call attention\\nto an article in the September number of the Insurance Times for\\n1875, in which the question of funeral expenses and funeral pomp\\nwas discussed and from which I make the following extract It\\nis impossible to pay a visit to any of our cemeteries when funerals\\nare going on, without experiencing not only a kind of shudder at\\nthe whole paraphernalia of the undertaking business, but also a\\nfeeling of pious grief at the thought of the silly trammels of cus-\\ntom, in which all classes of society are bound, in the matter of\\nfuneral pomp and the wanton extravagance which sets up in\\nadmired disorder, full of endless repetitions, monumental effigies,\\nand thousands of silly sentiments embodied in stone and marble,\\nsome of which are, even like the inverted torch, purely heathen.\\nThis article is of exceptional interest in view of latter-\\nday discussions in which the charge has been made that the vast\\nextension of Industrial insurance has been responsible for the\\nasserted increase in funeral pomp and funeral expenditure. It\\nwill be observed that before a single Industrial policy had been\\nwritten funeral expenditures were sufficiently extravagant to call\\nfor public condemnation, and that it is therefore shown that\\npublic opposition to funeral extravagance antedates the estab-\\nlishment of Industrial insurance in the United States.\\nMass. Labor Report, 1875, p. 211.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0092.jp2"}, "93": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1875. 7\\nBy October, 1875, three-quarters of the year had passed, and,\\nas far as the public knew, no definite steps had been taken to\\nestablish an Industrial insurance company in the United States.\\nThere is, however, record of an attempt made in Washington,\\nD. C, during the early part of the year, when an effort seems to\\nhave been made to establish an Industrial insurance company, but\\nlike the Industrial and Commercial, of Hamilton, Ontario, noth-\\ning substantial seems to have been the result, and there is no\\nproof that the proposed company ever actually transacted\\nbusiness.\\nThe Insurance Times, with a persistency fully worthy of the\\ncause, continued its pleadings in favor of such an undertaking,\\nand in the October number for 1875 appeared another excellent\\narticle, under the title Life Insurance for Those Who Need It\\nMost, from which I quote a few passages Who need life insur-\\nance most The poor, or the rich The families who are entirely\\ndependent upon the daily or weekly earnings of their head, or\\nthose who have other sources of maintenance Life insurance is\\ngood for the rich and the well-to-do, but it should be looked\\nupon as indispensable to the poor. The complaint is general,\\nhowever, that life insurance fails to reach those who most need it,\\nand upon whom it is calculated to confer the greatest benefit.\\nThe family of the poor man, that ought to be protected by life\\ninsurance, is seldom or never shielded by a life policy.\\nReferring to the efforts that had been made to transact an\\ninsurance business by means of Bunds or similar organiza-\\ntions, the Insurance Times stated that Some abortive efforts\\nhave been made in this direction, but, as we predicted from the\\nfirst, they failed and came to nothing, because they were not\\nmade by persons of the right quality and calibre. We regret, for\\nthis reason, to see men unequal to the task undertake it and to\\nsee others, whose talents, standing and influence fit them for the\\nwork, waste their powers in attempting the achievement of impos-\\nsibilities. If such gifted and eminent actuaries as\\nElizur Wright, Sheppard Homans, and some few other leading\\nlife insurance minds, would employ their great knowledge, trained\\nability and wide influence, to promote the extension of life insur-\\nance to the hard-working and industrial classes, instead of devot-\\ning their talents and labor to the development and introduction of\\npet theories, however ingenious and attractive, they would render", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0093.jp2"}, "94": {"fulltext": "68 HISTORY OF THE PRUDENTIAL.\\nhumanity a great and lasting service, in the blessings of which\\nmillions would be partakers for ages to come.\\nThe regular, rapid and solid growth of a system of indus-\\ntrial insurance, or life insurance for the poor, would have an\\nalmost unlimited scope and usefulness, and the prospect it\\npresents ought to kindle in great and benevolent minds a\\nnoble ambition to promote its spread and establishment. We\\nhave no desire to insist upon a servile adherence to the system\\nof the Prudential of England, which has achieved so much suc-\\ncess in this field of insurance, but its plans are certainly deserv-\\ning of careful study, and its prosperous example is full of\\ninspiriting encouragement. It insures the life of even the\\nday laborer, and collects of him a weekly premium of a penny.\\nij. i s f oun d that industrial insurance is in every\\nway, directly and indirectly, a benefit to the poorer classes. It\\nhelps to train them to habits of saving and foresight, and illus-\\ntrates, in the most practical manner, the advantages of making a\\nprovision for the future.\\nThese few extracts from a most excellent article will suffice\\nto indicate the increasing knowledge and comprehension of the\\nprinciples of Industrial insurance, and it would seem that by\\nOctober, 1875, the commencement of actual business operations\\ncould no longer be postponed. But the year 1875, about the\\nmiddle of the financial depression, extending from 1873 to 1878,\\nwas not one in which it was an easy matter to organize a financial\\nenterprise on a solvent and substantial basis and while the outlook\\nfor a successful undertaking in the domain of life insurance\\nwas very promising, it was nevertheless a most serious matter\\nto overcome local difficulties and to secure the necessary finan-\\ncial support, and I may recall the remarks in the Insurance Times\\n(October, 1875), to the effect that for such an undertaking it re-\\nquired a man and a mind that should stand so high as to com-\\nmand the entire confidence of the people, and be able to gather\\naround him a corps of coadjutors and subordinates who would work\\nwith him with intelligence, zeal and industry, incapable of despair,\\nflagging or failure. It is something very considerably to the\\ncredit of Mr. Dryden that at this trying time he was able to meet\\nthis requirement in the selection of a Board of Directors and a\\ncorps of coadjutors and subordinates, many of whom are still\\nconnected as executive officers with The Prudential Insurance", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0094.jp2"}, "95": {"fulltext": "", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0095.jp2"}, "96": {"fulltext": "AftftrtiJ^", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0096.jp2"}, "97": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1875. 69\\nCompany at the present time. It is impossible in a work of this\\nkind to do justice to the great services which were rendered Mr.\\nDryden by his early associates at this critical period of Prudential\\nhistory, but brief mention must be made of the invaluable assist-\\nance rendered the cause of Industrial insurance by Dr. Leslie D.\\nWard and Mr. Noah F. Blanchard. It was largely in consequence\\nof Dr. Ward s untiring efforts that a strong Board of Directors\\nwas secured for the Society and that the necessary financial support\\nwas obtained from men whose commercial standing in the com-\\nmunity was second to none. Dr. Ward was at the time a prac-\\nticing physician with a large private practice, in which he had\\nobtained an insight into the life of the people and had become\\nfamiliar with their most urgent wants. In a similar manner Mr.\\nBlanchard, as a large manufacturer and employer of labor, had\\nlearned by personal experience of the existing need of some\\ninstitution likely to accomplish the purpose for which The Pru-\\ndential had been designed. Mr. Blanchard became actively inter-\\nested in the affairs of the Society and incorporated into its business\\noperations the same principles which had been the cause of his\\nearlier successes in other commercial enterprises, and in the logic\\nof events he succeeded to the Presidency in 1879, which position\\nhe held until his death in 1881. Dr. Leslie D. Ward was elected\\nVice-President in 1884, which position he holds at the present time.\\nAll discouragements and difficulties notwithstanding, The\\nPrudential Friendly Society by November 6, 1875, was at last in\\na position to commence business, and it is but proper that I should\\nhere give in full the directorate of the Society, as I find it stated\\nin the Newark Daily Advertiser of November 18th\\nNEWARK DAILY ADVERTISER.\\nThursday Evening, November 18, 1875.\\nThe Prudential Friendly Society, 812 Broad Street, Newark.\\n(State Bank Building.)\\nDIRECTORS.\\nHorace Ailing, James M. Durand, George Richards,\\nBenjamin Atha, Isaac Gaston, William Robotham,\\nAllen L. Bassett, Albert O. Headley, Chas. W. A. Roemer,\\nNoah F. Blanchard, Andrew Hopper, Edgar B. Ward,\\nChas. G. Campbell, Henry J. Yates, Leslie D. Ward,\\nAaron Carter, Jr., Alfred Lister, Marcus L. Ward, Jr.,\\nWilliam R. Drake, George D. G. Moore, William Whitty,\\nJohn F. Dryden, Wm. H. Murphy, Elias A. Wilkinson.\\nAr,r,EN L. Bassett, President.\\nJohn F. Dryden, Secretary.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0097.jp2"}, "98": {"fulltext": "70 HISTORY OF THE PRUDENTIAL.\\nIt will be observed that Mr. Dryden had been made the Secre-\\ntary of the Society, while Mr. Bassett had been elected President.\\nAlthough Mr. Bassett had been somewhat interested in insurance\\nproblems and had been connected with the earlier effort of the\\nWidows and Orphans Friendly Society, he had not in any man-\\nner contributed directly to the organization of the new Society\\nall of the original work, especially the correspondence with Mr.\\nClark, had been carried on by Mr. Dryden, who, as a matter of\\ncourse, had to associate with himself men of capital and ability\\nto carry on so difficult an enterprise as a new insurance organiza-\\ntion on a substantial basis in the middle of the financial depression\\nof 1 873- 78. During the few years of his administration Mr.\\nBassett failed to give satisfaction to the Directors, and in May,\\n1879, resigned. He was succeeded by Mr. Noah F. Blan chard, a\\nman of exceptional administrative ability, at whose death, in May,\\n1 88 1, Mr. John F. Dryden was unanimously elected President,\\nwhich position he still occupies.\\nFor the purpose of acquainting the public with the special\\nfeatures of the new plan of insurance, a prospectus of the Society\\nhad been issued, which contained many features which were novel\\nand attractive, while, at the same time, the plan was set forth in a\\nplain and straightforward manner, so much so that the enterprise\\nat once attracted considerable public attention, giving rise to many\\neditorial discussions in the public prints. The following are the\\nmost important features referred to at length in the prospectus\\nThe Prudential Friendly Society offered insurance against\\nsickness and death, as well as a provision for support in old age\\nfor persons of either sex from infancy to old age.\\nThe Society required no medical examination and promised\\nto pay all claims immediately after the filing of proper proofs of\\ndeath or sickness.\\nContributions were principally to be made on the weekly-\\npayment plan, but many of the benefits of the Society could also\\nbe obtained upon the monthly, quarterly, or semi-annual payment\\nplan, according to the tables of the Society.\\nAs a check upon imposition and fraud it was set forth in the\\nprospectus that A member will not be entitled to recover from\\nthe Society on account of sickness or death happening before\\nthree months membership, or in case of sickness, except from the\\nday on which the Society, is notified.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0098.jp2"}, "99": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1 875.\\n7*\\nThe amounts for which insurance could be made were\\nlimited to $25 a week in case of sickness, and to $500 in case of\\ndeath.\\nThe following is an abbreviation of the first adult rate table\\nused by the Society\\nFIRST ADULT RATE TABLE USED BY THE PRUDENTIAL\\nFRIENDLY SOCIETY.\\nAmounts Payable at Death for a Weekly Premium of\\nAge Next\\n5\\n10\\n15\\n20\\n25\\nBirthday.\\nCents.\\nCents.\\nCents.\\nCents.\\nCents.\\nII to 15\\n$100 00\\n16 to 20\\n125 00\\n$250 00\\n25\\nIIO OO\\n220 OO\\n$330 00\\n$440 00\\n30\\n94 OO\\n188 00\\n283 OO\\n378 00\\n$472 00\\n35\\n80 OO\\n160 00\\n240 OO\\n320 OO\\n400 00\\n40\\n66 00\\n132 OO\\n200 OO\\n267 OO\\n334 00\\n45\\n54 00\\n108 00\\n164 OO\\n219 OO\\n274 00\\n50\\n88 00\\n133 OO\\n177 OO\\n221 00\\n55\\n70 OO\\n105 CO\\n140 OO\\n175 00\\n60\\n54 00\\n81 OO\\n109 OO\\n136 00\\n65\\n62 OO\\n82 OO\\n104 OO\\n70\\n62 OO\\n78 00\\n75\\n57 00\\nNo benefit will be payable until certificate has been in force three\\nmonths. Contributions payable during life. Benefits payable only at death.\\nTo the preceding table must be added the following extract\\nfrom the prospectus explaining the methods of payment and\\nobjects to be realized\\nThe Society will use the utmost promptness consistent\\nwith safety in the payment of claims. In the event of sickness,\\nbenefits will be paid from week to week while sickness lasts.\\nIn event of old age, benefits will be paid on a fixed day of\\neach month. In event of death, benefits will be paid immediately\\nafter proper proofs are filed with the Society, in order that the\\nmoney may be available at once for funeral expenses.\\nAs has been stated, the Society from the start made the bene-\\nfits of life insurance accessible to persons of all ages, a special\\ninfantile table having been constructed, of which the following is\\nan abbreviated copy, and to which I have added such extracts as", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0099.jp2"}, "100": {"fulltext": "72\\nHISTORY OF THE PRUDENTIAL.\\nare contained in the original prospectus. It will be observed that\\nthe lowest premium accepted was three cents, and the table there-\\nfore is based on this minimum premium\\nFor Three Cents a WEEK, Twelve Cents a MONTH, Thirty-Five\\nCents a QUARTER, Sixty-Five Cents SEMI-ANNUALLY, or One\\nDollar and Twenty-Five Cents ANNUALLY, the Prudential\\nwill pay at the Death of a Child as follows\\nAge of Child\\nwhen Admitted to\\nMembership.*\\nAmounts Payable After\\nThree Months.\\nOne Year.\\n1\\n$IO OO\\n$12 50\\n2\\nIO OO\\n12 50\\n3\\nIO OO\\n15 OO\\n4\\n12 50\\n17 50\\n5\\n15 00\\n20 OO\\n6\\n17 50\\n25 OO\\n7\\n1 20 00\\n30 OO\\n8\\n25 00\\n40 OO\\n9\\n30 OO\\n50 00\\nIf the child should die within three months from date of admission\\nto membership, no Benefit will be payable.\\nThis table was so arranged that the insurance increased from\\nyear to year with increasing age, while the premium remained\\nthe same, this being necessary in view of the well-known fact\\nthat the rate of mortality is highest at birth, gradually declines\\nuntil about ages twelve to thirteen, and after that constantly\\nincreases to the highest attainable age. Thus it will be observed\\nthat the principles of actuarial science were made applicable to\\nthe most complicated part of the business.\\nThe aims and objects of the Society are fully set forth in\\nthat part of the prospectus which dealt with the Plan of the\\nPrudential, where it is stated that It is the special aim of this\\nIt was at first the practice to consider the age last birthday as the age\\nat entry, hence age one is included in this table. Under the present prac-\\ntice of considering the age next birthday age two is the first to find a place\\nin the infantile table. It has never been the policy of the company to\\naccept risks at ages below one for reasons which have been discussed in\\nother parts of this work.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0100.jp2"}, "101": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1 875. 73\\nSociety to enable people of small means to provide themselves\\nwith relief in sickness or accident second, for a pension in old\\nage third, for an adult burial fund fourth, for an infant burial\\nfund. The contributions charged for the above-named bene-\\nfits have been computed by eminent actuaries of America and\\nEngland, and are such as careful study and close calculation have\\nshown to be equitable and necessary. They are as low as the\\nSociety can afford, for the benefits granted, and are high enough\\nto make it safe.\\nOf the above-named four distinct branches, the first, as has\\nbeen stated, was discontinued after a few years of actual expe-\\nrience, as had been the case with the English companies attempt-\\ning to transact a sickness insurance scheme on a large scale.\\nThe second failed to meet with public favor on account of the\\ninherent difficulty of obtaining so desirable an object as independ-\\nence in old age by the payment of the small sums which the\\nworking people of the period could afford to devote to the\\naccumulation of a fund sufficient to yield a substantial annuity in\\nold age. The third and fourth branches became in time the all-\\nimportant parts of the business, experience having demonstrated\\nthat the demand for a sum payable at death was greater than the\\ndemand for other insurance features, however desirable in them-\\nselves.\\nThe Prudential Friendly Society was thus plainly what it\\nwas designed to be, an Industrial insurance company on the plan\\nof the British Prudential, with such modifications and slight\\nchanges as seemed desirable at the time to make the plan attract-\\nive to the American working people. In the prospectus it had\\nbeen clearly stated that The Prudential is designed for persons\\nof limited means, and that Its benefits may be secured by cutting\\noff some luxury which can be dispensed with without injury to\\nhealth or Jiappiness. It was never the plea of Industrial insur-\\nance companies that they were soliciting the risks of paupers\\nor the lowest poor, but from the start they made an effort to\\nreach the industrial masses if it be so, the industrious poor\\nbut in their efforts to obtain business, in their efforts to insure\\nas large a proportion of the population as possible, they never\\nfailed to keep in mind the early principle of the Prudential,\\nthat The benefits of Industrial insurance may be secured by\\ncutting off some luxury which can be dispensed with without", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0101.jp2"}, "102": {"fulltext": "74 HISTORY OF THE PRUDENTIAL.\\ninjury to health or happiness, and, I may add, without detri-\\nment to habits of thrift in other directions than insurance. For\\neven at this time, before a single application had been accepted,\\nit had been recognized by Mr. Dry den, and was so stated in\\nthe first prospectus, that A membership in the Prudential will\\ninduce prudence and economy, and become the foundation of\\ngood habits, as It may be the means of saving an individual\\nor family from a fate worse than death. In these after-years,\\nwhen so much has been said and written on the question of the\\npossible evil effect of this system of insurance on the morals and\\nmanners and material welfare of the people, it is well to recall\\nthese simple straightforward statements, which were thus incor-\\nporated into the foundations of Industrial insurance in America,\\nand which are to-day its strongest claim to public favor, as they\\nhave for twenty-five years been the strongest inducement to the\\nindustrial masses to keep the millions of policies in force on the\\nbooks of the Industrial companies.\\nHaving pointed out the grounds on which the Prudential\\nFriendly Society from the very beginning rested its case, it may\\nnot be out of place to refer at some length to the public approval\\nof the introduction of Industrial insurance in the city of Newark\\nin 1875. Among others the Newark Daily Advertiser, one of\\nthe oldest newspapers in the northern part of the State, referred\\nto the new plan of the Prudential as follows\\nA new feature in insurance has just been introduced in this city,\\nknown as the Prudential Friendly Society, directed and officered by gentle-\\nmen of the highest character. Its business location is in the State\\nBank building, and as it is the first move in this direction made in this\\ncountry, its working should be, explained.\\nThe plan is that a certain weekly or monthly stipend paid to the\\nCompany shall secure a certain return in case of sickness, a provision for\\nfuneral expenses in case of death and in other cases a pension after a cer-\\ntain age. This latter phase is not new, except as it is attainable by persons\\nof small means who are Prudential enough to make and invest small\\nsavings at frequent intervals. The Prudential Friendly Society of Newark\\nprovides the applicant for membership with a blank on which are printed\\ncertain questions, which are answered and signed by the applicant and\\nthen referred to the Board of Directors. No medical examination is\\nrequired, and the application is approved or rejected as the Board may\\ndecide. If accepted, something like a pass-book is issued to the new\\nmember, in which is printed the agreement between him and the Society,\\nand in which the account between the two is written up at every payment.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0102.jp2"}, "103": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1875. 75\\nIn so far it does not differ much from many other forms of benefit or burial\\nsocieties emplo} r ed by the -working classes of England.\\nBut the Prudential Friendly Societies go further and more wisely.\\nThey place no restriction on account of age, sex or occupation. All share\\nalike from one year of age to the oldest limit of our race, except as to the\\nrate charges, which vary with the age. By tables prepared from a very\\nwide experience in England, and investigations scientifically conducted,\\nthe societies have ascertained the actual experience of two millions of lives\\nin England, Wales and Scotland, as regards sickness, old age and death.\\nThese investigations show the experience on males and females separately,\\nthe effect of life in cities, towns and rural neighborhoods and of different\\ntrades and occupations, from the worker in the mine to the mechanic in\\nthe shop, the seamstress at her work, the clerk in the store and all the\\nvarious avocations and professions. They also show the average amount of\\nsickness of each particular year of life from infancy to old age. It is a fact\\nbrought out by these researches that the risk increases with the age of the\\nmember, that youth resists the assaults of disease and more easily throws\\nit off, while older age succumbs more readily to either sickness or death.\\nThe practice of many benevolent societies has been directly the opposite\\nof this, and so either the young person pays too much or the old too little.\\nIn fact it is the theory of some of them that the young should shelter the\\nold. It may be very generous, but it is not business.\\nThese data reached, and they have been carefully reached by a long\\nexperience, the general average of the chance of having to pay for a sick-\\nness, an accident, a burial or a pension can be fixed, although the individual\\ncases will occasionally confound the statistics and the member takes out\\nvastly more than he puts in. For the sick relief no greater amount is\\ngranted than $25 per week, and for the burial fund $500 is the limit. When\\na loss accrues it is instantly payable. The terms of the agreement are so\\nsimple that questions of fraud are not likely to arise, and the presentation\\nof the evidence is all that is needed to secure the payment. The whole\\nsubject is worthy of study. We have given only a meagre outline of its\\ngeneral features and are not altogether informed as to all its merits or\\ndemerits. But we know that it has succeeded in England, and our rank as\\na manufacturing town, the close likeness of our industrial classes to those\\nof the best class of English mechanics, induces us to suppose that the plan\\nmay work a great beneficence.\\nIn a similar manner the Society received the endorsement\\nof other leading newspapers of Newark, and, as an indication of\\nthe careful consideration given to the subject, I quote the following\\nextract from the Newark Eve?ii?ig Courier of November 13, 1875\\nWe have examined with considerable interest and satisfaction the\\nprospectus of a new institution in our city called The Prudential Friendly\\nSociety, and which is located in the State Bank building, 812 Broad street.\\nThis Society has for its object to provide aid to its members whether male", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0103.jp2"}, "104": {"fulltext": "j6 HISTORY OF THE PRUDENTIAL.\\nor female in event of sickness, old age and death. The contract\\nbetween the Society and the member is very plain, and there seems very little\\nchance for misunderstanding. It is so much benefit for so much money.\\nOne of the Joundation-stones of the system which the Prudential has intro-\\nduced here is equity. Members are charged a contribution according to age,\\nand the rates are so adjusted that each age contributes to the funds of the\\nSociety just in proportion as that age contributes to the risk. Experience\\nhas shown that at age twenty a person may be expected to be sick a little\\nover eight-tenths of one week, while at sixty a person will upon the\\naverage be sick a little over four weeks in a year. Now it would be mani-\\nfestly unjust to charge two persons of the two different ages named, the\\nsame amount of contribution for an equal benefit, when one contributes\\nfive times as much to the risk of the Society as the other. The Prudential\\nhas kept this fact in view in making up rates, and has adopted the plan of\\ncharging contributions according to the age at the time a member enters\\nthe Society. In fact the whole plan of the Society rests upon a scientific\\nbasis, a basis which has been ascertained and approved by the highest\\nactuarial ability in this country and England.\\nIn a city like Newark, whose population is largely made up of working\\nmen and women, the Prudential ought to find a large and successful field\\nof operation. It seems to us that this organization is calculated to accom-\\nplish a work of great beneficence wherever are to be found poor families in\\nwhich the expense of sickness or death, or the infirmities of old age would\\ncause discomfort or distress. It certainly will be a great boon if people of\\nlimited income can, by payments so small as not to cause inconvenience,\\nprovide a fund sufficient to pay the expense of a decent funeral, or which\\nshall relieve the suffering and sorrow of the sick chamber.\\nAnd as a further indication of the approval on the part of\\nthe press, I quote an extract from the Newark Register of\\nNovember 13, 1875, in which the subject of Industrial insurance\\nis also discussed at length from the standpoint of public policy\\nIt is often said that there is nothing new under the sun but the plan\\nof insurance put forth by the Prudential Friendly Society, an institution\\njust organized in this city under the auspices of some of our very best and\\nmost responsible citizens, is certainly a novelty in this country.\\nA feature of the Prudential system is the certificate issued guarantee-\\ning payment of a burial fund only, and may be obtained at all ages from\\nthe child one year old to the old man or woman who has reached the ripe\\nold age of seventy-five.\\nEvery pains seems to have been taken by the projectors of this institu-\\ntion to adapt it to the requirements of people in moderate circumstances.\\nHence, in event of sickness or accident, the society pays losses promptly\\nfrom week to week while sickness lasts, that the money may be had and\\nused when it will be of the greatest value and in old age the pension will", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0104.jp2"}, "105": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1875. JJ\\nbe paid upon a fixed day of each month with as much regularity and cer-\\ntainty as a pension by the Government.\\nWhen death occurs the burial fund will be paid immediately after the\\nproper evidence of the loss is filed in the office of the society, and thus it\\nbecomes available for funeral expenses, at a time which to most people of\\nslender income is one of the greatest extremity.\\nThe terms of payment required are also of the most advantageous\\nkind. It would be worse than vain to offer poor people protection against\\nthe adversities of life and death, if the terms were such as to put it practi-\\ncally beyond their reach. But what prudent, right-minded working man or\\nwoman can not and will not lay by a few cents each week or month to\\nprovide for his or her own future comfort, or the comfort of those whom it\\nis a right and duty to protect? It is with great wisdom, it seems to us,\\nthat the Prudential has with so much care studied the necessities of the\\nindustrial classes. It makes the society in reality what it is designed to be,\\nan institution for all.\\nOne of the most gratifying facts connected with this society is its\\nstrength and security. It is not too much to say that no institution in\\nNewark a city justly proud of its strong moneyed corporations has a\\nBoard of Directors that can more strongly claim the confidence of our\\npeople. The gentlemen are unexceptionable as to ability, wealth and\\ncharacter. In this there is a guarantee that the affairs of the Prudential\\nwill be honestly and ably managed.\\nThe system upon which the society transacts its business has received\\na long, patient and thorough investigation. It is about three years since\\nan examination into the experience of similar societies in England was\\nfirst begun with a view to establishing a society here, and although this\\nhas been quietly carried on, the investigation has been the most searching\\nand thorough. The statistics upon which the rates are based are derived\\nfrom the experience of a large number of societies and extend over many\\nyears, and are made by some of the oldest actuaries in London. As a\\nmatter of still greater precaution these have been again examined and\\ntested by the Actuary of the society, Professor John E. Clark, of the\\nSheffield Scientific School of Yale College. These rates are founded upon\\nthe well-established fact that the risk increases with the increase in age,\\nand that it therefore costs less to insure a young person than it does an\\nold one. Each particular age is charged according to the risk he or she\\nbrings into the society on joining it.\\nThe society may be said to be founded upon a rock. In a city like\\nNewark, embracing so many working men and women, the Prudential\\nought to do a large business. In fact, we can not see how this class of\\npeople can afford to do without its protection.\\nIn these newspaper articles there is so clear a recognition of\\nthe value, importance and necessity of such an institution as the\\nPrudential, that I can not but think that, but for a recognized\\nand actually existing necessity, it would have been impossible for", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0105.jp2"}, "106": {"fulltext": "78 HISTORY OF THE PRUDENTIAL.\\nthe Society to have been ushered into existence by critics as\\nfriendly as they were honest, conservative and wise.\\nWhile the new undertaking received so warm a welcome in\\nthe city of its birth, but little knowledge of the organization of\\nthe Society seems to have extended beyond the local boundary,\\nand only fragmentary references occur in the insurance journals\\nduring the latter part of 1875. The Insurance Monitor in its\\nNovember number referred to the Prudential, making at the\\nsame time reference to a similar attempt to organize an Industrial\\ninsurance company in Washington, D. C. As has previously\\nbeen stated, The Industrial Life Insurance Company of Wash-\\nington never entered the stage of actual operations, and I confine\\nmy quotation to the reference made to the Prudential Friendly\\nSociety\\nThe Newark enterprise is known as the Prudential Friendly Society,\\nmodeled after the English associations of the same name, with an effort, so\\nfar as we have learned, to profit from the experience of the best among\\nthem the Manchester Unity and the Foresters. Here again a word of\\ncaution may not be amiss. Until the subject was brought to the attention\\nof Parliament some few years since, a large proportion of these organizations\\nwere, through ignorance or recklessness, sadly mismanaged, and numbers\\nof them were in a bankrupt condition, while others were rapidly drifting\\ninto the same state. This condition of things was brought about by the\\nsame error which characterizes the co-operative schemes in this country\\na total disregard of the influence of age on the cost of insurance. And we\\nwould remind those in charge of this young enterprise that whatever the\\nform of organization or nature of the benefit, age, as an element of the risk,\\ncan not be disregarded without almost certain failure in the end. The\\nearly experience of a friendly society is peculiarly deceptive. Only the\\nprobing of a skilled actuary can discern the insidious elements of future\\nevils existing under the deceptive strength of a friendly society for years\\nbefore the final crash.\\nThe manufacturing importance of Newark, approaching so nearly the\\ncondition of English cities, gives a strong encouragement to those interested\\nin the success of this new enterprise.\\nI have been compelled, for want of space, to limit myself\\nto meagre abstracts from the public press of the period, for the\\npurpose of illustrating the distinct local demand for such an in-\\nstitution as the Prudential, and the universal and intelligent local\\nrecognition of the value of Industrial insurance from the stand-\\npoint of public policy. Had space permitted, I could have added", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0106.jp2"}, "107": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1875. 79\\nmaterially to this proof in support of the assertion that Industrial\\ninsurance in this country has been founded in consequence of a\\nsocial demand, representing a social growth which has its founda-\\ntion in the necessities of the people, and that in consequence the\\nsubsequent enormous development and extent of the business is to\\nbe traced in the needs of the people, which had been ill-supplied\\nby a multitude of insurance schemes, all of which have since gone\\ninto bankruptcy or decay.\\nSo much space having been given to the factors leading up\\nto the formation of the Society, I must needs deal very briefly\\nwith the actual experience and business history. I have already\\nstated that the first actual business transaction occurred on\\nNovember 10th, when a Mr. W. R. Drake, Cashier of the German\\nBank of Newark, applied for an insurance of $500, payable at\\ndeath, and $10 per week, payable in case of sickness, the weekly-\\npremium payments to cease at the age of sixty-five. Mr. Drake,\\nit will be observed on reference to the list of directors, was also one\\nof the members of that Board, and no doubt was influenced in\\ntaking the risk by this personal relation to the Society. The\\napplication was signed by Mr. Dryden himself, as a witness to\\nthe transaction which marks the actual beginning of Industrial\\ninsurance in America. It was only by slow degrees that the\\nbusiness became known to the public, nevertheless by December 1,\\n1875, 62 applications had been received. During the month 242\\nmore applications were received, and during January, 1876, the\\nnumber of new applications reached 558. During a little less\\nthan three months 862 persons had made application for Indus-\\ntrial insurance on the various plans offered to the public by the\\nSociety at this early period of its existence. During the last week\\nof January, 1876, 206 applications were received, which must be\\nlooked upon as a very strong indication of the local demand for this\\nclass of insurance. As to the character of the business received, it\\nis possible to answer some questions on this point by the statis-\\ntics of the first one thousand applications, w r hich have been ab-\\nstracted from the records of the Society. Of the first 1,000 appli-\\ncations 25 have been lost or partly destroyed, 29 are duplicates,\\nindicating double insurances, 329 are infantile risks or applica-\\ntions for insurance on persons under ten years of age, while 617\\nare adult applications, of which 328 were on males and 289 on\\nfemales. The occupations of the 328 males are given in the", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0107.jp2"}, "108": {"fulltext": "8o\\nHISTORY OF THE PRUDENTIAL.\\nfollowing table, with as much detail as the space at my command\\npermits\\nOCCUPATIONS OF MALES INSURED IN\\nTHE PRUDENTIAL FRIENDLY SOCIETY. i875- 76.\\nAccountant, 2\\nAgent, 3\\nBag-Factory Employee, 2\\nBaker, 6\\nBank Employee, 4\\nBarber, 9\\nBartender, 1\\nBlacksmith, 6\\nBookkeeper, 5\\nBrass Moulder, 3\\nButcher, 6\\nCar Driver, 3\\nCarpenter, 11\\nClerk, 29\\nCoachman, 6\\nConductor, Horse-car, 3\\nDriver, Teamster, 8\\nDruggist, 2\\nEditor, 2\\nEngineer, 3\\nFlorist, 3\\nGardener, 2\\nGrocer, 4\\nGunsmith, 1\\nHatter, 4\\nHostler, 4.\\nInsurance, .2\\nJanitor, 2\\nJapanner, 4\\nJeweler, 5\\nJustice of the Peace, 1\\nLaborer, 5\\nLawyer, 3,\\nLiquor Dealer. 1\\nMachinist, 11\\nManufacturer, 5\\nMerchant, 3\\nMoulder, 3\\nMusician, 3\\nPainter, 3\\nPhysician, 1\\nPlumber, 2\\nSalesman, 5\\nShoemaker, 5\\nStudent, 30\\nSurrogate 1\\nUndertaker, 3\\nWaiter, 4\\nMiscellaneous Occupations, 94\\nThis table would seem to prove that the applicants for this\\nclass of insurance represented all the elements of the population,\\nincluding men employed in well-paid occupations, as well as those\\nwho earned their living by day labor. The truly industrial\\ncharacter of this class of risks is clearly indicated by the data\\nrepresented in the preceding tabulation.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0108.jp2"}, "109": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1875.\\n81\\nThe age distribution of the 329 infantile applications is given\\nin the following table, as an indication of the demand for this\\nform of insurance at early ages\\nPRUDENTIAL FRIENDLY SOCIETY. i875- 76.\\nInfantile Applications.\\nages at entry.\\nAge Last\\nBirthday.\\nMale.\\nFemale.\\nTotal.\\nI\\n3\\n5\\n8\\n2\\n24\\n21\\n45\\n3\\n29\\n23\\n52\\n4\\n15\\n22\\n37\\n5\\n21\\n18\\n39\\n6\\n17\\n14\\n3i\\n7\\n18\\n19\\n37\\n8\\n14\\n18\\n32\\n9\\n13\\nIO\\n23\\n10\\n12\\n13\\n25\\n166\\n163\\n329\\nThis table would seem to prove that there was no selection\\nagainst the Company in an excessive aggregation of risks at very\\nyoung ages, but that the distribution of applicants by age periods\\nwas normal and fully in accordance with the general distribution\\nof the population at the ages indicated. The reason for the\\nnon-acceptance of risks under one year is to be found in the fact\\nthat on account of the excessive mortality prevailing at ages\\nunder one the amounts which could be insured for under such\\npolicies would not be sufficient to attract custom enough to\\nwarrant the acceptance of this class of risks.\\nIn England it has always been the custom to insure children\\nfrom birth, or from within a few weeks of the date of their birth,\\nfor small sums in return for a weekly premium of one penny. It\\nis self-evident that the large increase in the business operations of\\nIndustrial companies must gradually diminish the number of\\nuninsured persons, making it desirable to accept risks from birth\\nupwards, but this point is not likely to be reached in this country\\nfor a number of years to come.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0109.jp2"}, "110": {"fulltext": "82\\nHISTORY OF THE PRUDENTIAL.\\nThe following table will show the age distribution of the\\n617 adult applicants, with distinction of sex\\nPRUDENTIAL FRIENDLY SOCIETY. i875~ 76.\\nAdui/t Applications-\\nAge at Entry.\\nMale.\\nFemale.\\nTOTAJU\\nIO-14\\n38\\n32\\n70\\n15-19\\n43\\n39\\n82\\n20-24\\n52\\n47\\n99\\n25-29\\n50\\n46\\n96\\n30-34\\n47\\n26\\n73\\n35-39\\n19\\n22\\n4i\\n40-44\\n25\\n21\\n46\\n45-49\\n24\\n19\\n43\\n50-54\\n14\\n14\\n28\\n55-59\\n8\\n10\\n18\\n60-64\\n2\\n8\\n10\\n65-69\\n3\\n4\\n7\\n70-74\\n1\\n1\\n2\\nUnstated,\\n2\\n2\\nTotals,\\n328\\n289\\n617\\nOn examination of this table it will be found that the age\\ndistribution was normal, showing no indication of adverse selec-\\ntion of applicants at advanced ages, but rather an aggregation at\\nthe productive period of life, when men and women are actively-\\nengaged in industrial occupations. The tables given confirm the\\npreceding conclusion, that the demand for Industrial insurance\\ncame directly from the industrial population, and that this class\\nof risks was fully represented in the body of the policy-holders of\\nthe Society from the beginning.\\nAmong other facts brought out by an examination of the\\nearly records of the Society, it appears that the method of pay-\\nment selected by the majority of the applicants was for insur-\\nance on the weekly- or bi-weekly-payment plan. Out of the\\n1,000 applicants the information as to method of payment is avail-\\nable in 946 cases, and of this number 484 selected the weekly-\\npayment plan, 130 the bi-weekly-payment plan, 180 the monthly-\\npayment plan, 29 elected to pay quarterly, 75 semi-annually, and\\n16 preferred to pay their premiums once a year. For 34 cases the", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0110.jp2"}, "111": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1875. 83\\ninformation as to method of payment was not stated. Hence, it is\\nclear that in the majority of cases the weekly-premium plan was\\ngiven preference, for, even in cases where the premium pay-\\nments were made bi-weekly or monthly, it is to be assumed that\\nthis was the choice of the office, to avoid loss of time in making\\ncollections. The industrial character of the risks accepted is,\\ntherefore, further supported by the distinct preference given to\\npremium payments on the weekly plan.\\nSome further information of interest is supplied by the data\\npertaining to the amount of insurance applied for. While all of\\nthe infantile risks accepted were for burial purposes only, of the\\n617 adult applicants for which the information is available, 356\\napplied for insurance payable at death, 136 for burial insurance\\nand additional benefits in case of sickness, 96 for sickness benefits\\nonly, 24 for sickness, annuity and death benefits, while for 5 the\\ninformation is not available. It is, therefore, shown that distinct\\npreference was given to insurance payable at death, and, while\\nsome preference was given to sickness insurance in combination\\nwith burial insurance, only a very small demand seems to have\\nexisted for sickness insurance alone, and the industrial character\\nof the class of risks accepted by the Society is, therefore, further\\nsupported by the data showing the preference given by applicants\\nto insurance for burial purposes only.\\nAn examination of the data pertaining to the amounts of\\ninsurance applied for indicates a tendency to insure for sums of\\nfrom $100 to $150. Out of 521 applicants, 90 insured for sums\\nunder $100, 324 insured for sums between $100 and $200, 66\\ninsured for sums from $200 to $300, 21 for sums from $300 to\\n$400, while only 15 insured for sums of $500, which at that time\\nwas the maximum amount which could be insured for in the\\nSociety. For five applicants the information was not stated.\\nThe foregoing data and statistics are clearly in favor of the con-\\nclusion that the applicants for Industrial insurance represented\\nthe industrial population, or men and women employed in gainful\\noccupations in other words, the superior class of working people\\nof the city of Newark at that period.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0111.jp2"}, "112": {"fulltext": "84 HISTORY OF THE PRUDENTIAL.\\nCHAPTER VI.\\nTHE PRUDENTIAL FRIENDLY SOCIETY, 1876-1877.\\nBy the first of February, 1876, it could, therefore, with some\\ntruth be said that the experimental stage of the business had\\nbeen passed, and that no further proof was needed to demonstrate\\nthe public demand for Industrial insurance in one of the most\\nimportant manufacturing cities in the United States. It could\\neven be said with some truth of Newark as an able writer had\\nsaid of Industrial insurance in England, that A vast yet\\nsilent and unseen revolution is in operation among the work-\\ning classes. Life insurance until lately has been exclusive^\\nconfined to the upper and middle classes of Englishmen. By\\nmeans, however, of what is called the Industrial system of life\\ninsurance, adopted by certain offices, life insurance for small\\namounts is becoming so popular among workingmen that signs\\nare not wanting that the life-insurance movement will permeate\\nupwards and receive an impetus among the higher classes from its\\nadoption by those at the other end of the scale. This great and\\nbeneficial work is mainly carried on by agents in London and the\\nmanufacturing districts, who go about among the workingmen and\\npersuade them to effect insurance, and then call upon them every\\nweek for the premiums.\\nWhile a large portion of the business obtained by the first of\\nFebruary had, of course, been secured as the result of direct per-\\nsonal solicitation by the agents of the Society, proof is not wanting\\nthat the working people, on their own account, had applied at the\\noffice of the Society for information as to the new plan of insur-\\nance, to which reference had been made in the daily newspapers\\nof the period. In fact, during December, 1875, it had already\\nbecome necessary to keep the office of the Society open evenings,\\nThe Life Assurance Handbook, by George Clifford, p. 53 et seq*\\nLondon, 1876.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0112.jp2"}, "113": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1876-1877. 85\\nto furnish information and accept proposals from voluntary appli-\\ncants. The Newark Register for this month contained a notice\\nto the effect that The Prudential Friendly Society in the State\\nBank Building has found it necessary to keep its office open even-\\nings until half -past seven o clock, to transact business with and\\nanswer the inquiries of those who are unable to get to the office in\\nthe day-time. Thus, at the very beginning the popular approval\\nand interest in the new plan of family insurance became manifest\\nto an extent hardly anticipated by those in charge of the new\\nenterprise.\\nThe friendly interest of the Newark newspaper press con-\\ntinued, and from a long article on the subject of Industrial in-\\nsurance in the Sunday Call (Dec. 12, 1875), at that time, as it is\\nto-day, the most important and respected Sunday family news-\\npaper issued in the State of New Jersey, I abstract a few\\nremarks of more than passing importance\\nIn its population of one hundred and thirty thousand souls, Newark has\\nat least fifty thousand who belong to the industrial class. The skill and\\nindustry and prudence of these people have raised our city to its present\\neminence, and given to it its name and fame. Whatever affects their\\ninterests is vital to its well-being. The Call has been in the past, and will\\ncontinue to be in the future, the champion of this important portion of our\\npeople, and it will ever be found to speak out plainly for or against any\\nenterprise seeking their patronage, according as it shall merit censure or\\napproval.\\nFollowing out this line of policy, we have closely scrutinized the\\nPrudential Friendly Society, an institution recently organized in this city\\nfor the benefit of working men and women, or, more correctly speaking,\\nfor the benefit of working people of both sexes and all ages for the Society\\naccepts members from one year old up to seventy -five. And at the outset we\\nwish to say that the Prudential is thoroughly well organized, and is founded\\non a firm basis, managed by a Board of Directors composed of some of our\\nmost substantial and honorable citizens, and controlled by gentiemen of\\ngreat intelligence, energy and ability.\\nAfter a lengthy explanation of the objects and methods of\\nthe Society, the Call continued\\nIn the payment required the Society has also carefully consulted the\\nrequirements of people of limited means. Any benefit granted by the\\nPrudential may be paid for in weekly, monthly, quarterly, half-yearly or\\nyearly contributions. There is not a mechanic or factory girl in Newark\\nwho can not spare a few cents a week to secure a benefit when sick and a\\ndecent burial at death. There is not a prudent, industrious father who", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0113.jp2"}, "114": {"fulltext": "86 HISTORY OF THE PRUDENTIAL.\\ncan not, without inconvenience pay a few cents to insure a respectable burial\\nfor his children.\\nAt the time we were at the office of the Society, which, by the way, is\\nthe State Bank building, 812 Broad Street, the Society was not prepared to\\nissue certificates of membership, yet many applications had come in unso-\\nlicited, and were filed to be acted upon as soon as the Society was ready for\\nbusiness. Among others that were shown us we noticed applications from\\none whole family of eight persons from the father, forty-six years old,\\ndown to the youngest child, three years old. All these benefits cost the\\nfather but a small amount each week, a sum that he could easily pay and\\nnot miss from his earnings, while he has the satisfaction of knowing that\\nin the event of misfortune he and those he loves are provided for.\\nThe whole scheme of the Prudential seems so completely to meet a need\\nin Newark that we are confident the benefits of the Society will be eagerly\\nsought. It is an institution established for people of small income. It is\\nmodeled upon societies in Europe which have existed for many years, and\\nhave met with great success. We believe the working people of this\\ncountry are unsurpassed by any people of the world for prudence, thrift\\nand industry, and we also believe that the Prudential, which is the pioneer\\nFriendly Society of America, will be received with the favor which its\\nmerits deserve.\\nThis unqualified endorsement of the plan of the Prudential\\nwas of special value to the Society, since the Sunday Call was\\nthen, as it is at the present time, strictly a family newspaper, and\\none of far-reaching influence among the industrial population of\\nthe city and vicinity and it was of no small importance to have\\nthe Call endorse the new plan of family insurance in words\\nwhich were indicative not only of a clear comprehension of the\\nsystem of Industrial insurance, but also, at the same time, of the\\nneeds and wants of the industrial population of the city.\\nWhile in its early stage some business, or even a considerable\\nproportion of business, might have been obtained by voluntary\\napplications, it was early evident that it was necessary to employ\\nagents, or solicitors, for the purpose of making the merits of the\\nplan more generally known, as well as for the purpose of collect-\\ning the weekly premiums, which were gradually assuming con-\\nsiderable proportions. Accordingly, the Society advertised for\\ncanvassers, and I abstract the following from one of the Newark\\nnewspapers, dated December 18, 1875\\nWANTED\\nCanvassers for the Prudential Friendly Society. This first effort in\\nthis country to establish a Friendly Society worthy of the patronage of all", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0114.jp2"}, "115": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1876-1877. 87\\nclasses, is meeting with a generous response. People in these hard times\\nare more than usually thoughtful in making provision for sickness, accident,\\nold age, and a burial fund, beyond the reach of the exigencies of business.\\nIntelligent ladies and gentlemen can secure good districts by applying to\\nthe principal office.\\n812 Broad Street, State Bank Building.\\nThe significant fact in this advertisement is that female, as\\nwell as male, agents were to be employed as solicitors and\\ncollectors, and, while this may not have been the first instance of\\nthe employment of women in the life-insurance business, it\\ncertainly was one of the earliest experiments in this direction\\nand while the practice, in later years, was discontinued, there\\nare still at the present time, women agents employed in the\\nIndustrial Department of the Prudential Insurance Company.\\nEvery step which had been taken by Mr. Dryden and his\\nassociates in the early management of the Society had been most\\ncarefully considered to insure, if possible, complete success from\\nthe beginning, not only in matters of general importance, but\\nalso in minor details, likely to demand consideration at some\\nfuture day, when the Society should have reached considerable\\nproportions. How thoroughly in earnest Mr. Dryden must have\\nbeen, and how anxious to do justice to both the Society and its\\nmembers, is in no case better illustrated than in his early corre-\\nspondence with Mr. Clark, who had now been officially appointed\\nconsulting actuary of the Society.\\nIn perfecting the Industrial insurance contract, Mr. Dryden\\nconsidered fully and seriously the question of surrender privilege\\nof some kind or another in cases where policies had lapsed for\\nnon-payment of premiums within the limit of grace granted by\\nthe Society in cases of default. Mr. Dryden seems to have stated\\nhis views in detail to Mr. Clark, who, under date of November\\n22, 1875, replied as follows\\nYour favor of the 19th instant, asking my opinion as to the advisability\\nof making some provision in your Annuity contracts by which members may\\nreceive some portion of their contributions in case they discontinued their\\npayments after having made them some time, is before me, and I answer\\nit as soon as practicable, after having given it due consideration. I should\\nadvise you by all means to deal equitably with such cases as they arise, but\\nhardly think it advisable to make any stipulation upon the subject in your\\ncontract. If you were to do so, in the case of the Annuity contract, to be", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0115.jp2"}, "116": {"fulltext": "88 HISTORY OF THE PRUDENTIAL.\\nconsistent you would also have to do so in the case of the sickness and\\nburial-fund contract, and to make upon any rational basis perfectly definite\\nstipulations that your members could readily understand in all these cases\\nwould involve you, before entering upon business, in no little additional\\ncalculation. It is, in my judgment, better to derive the data\\nfor such calculation [of surrender value] from your own experience, than\\neither from the best assumptions or the experience of other societies,\\nwhich may have been quite different from what yours will be. I am aware,\\nof course, that there is a growing opinion in favor of such stipulation [of\\nsurrender value] which is not without its foundation, and in procuring\\nbusiness it might be some advantage to have them, but, upon the whole,\\nshould avoid them for the present. For the discussion will no doubt throw\\nmore light upon the subject and bring about more unanimity of opinion,\\nas to how such stipulation ought to be fixed, as well as more unanimity of\\npractice in the allowance they contemplate where they are not inserted in\\nthe contract, and you can take a step forward in this direction at any time,\\nbut it will not be easy to take a step back.\\nThis letter is of more than passing importance, in view of\\nlatter-day developments and improvements in the Industrial\\ninsurance contract. It furnishes historic proof of an earnest\\neffort on the part of the founder of the Prudential to grant, from\\nthe start, a cash or other surrender value to policy-holders com-\\npelled to lapse their contracts. It is a clear demonstration of\\nthe spirit of fairness and equity which has characterized all\\nthe business transactions of the Prudential with its millions of\\npolicy-holders, and to which is largely due the immense popu-\\nlarity of the system from Maine to Colorado. It is made clear\\nby this letter, containing as it does the best available actuarial\\ntestimony of the time, that if cash-surrender privileges or paid-\\nup policies were not granted during the early years of the\\nCompany s growth, it was because actuarial experience was\\nagainst such a practice and while in later years the Industrial\\ncompanies, and especially the Prudential, made many valuable\\nand far-reaching concessions on this point, it was because they\\nacted once more upon the best actuarial advice, and waited until,\\nin the light of their own experience, the way was clear for grant-\\ning privileges which, once conceded, could not, without perma-\\nnent injury, be easily withdrawn.\\nThus it is shown that due consideration was devoted to the\\nquestion of surrender values at the very beginning of the business\\nin this country, and it is equally clear from subsequent results", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0116.jp2"}, "117": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1876-1877. 89\\nthat, of however much theoretical value such concessions might\\nbe, practically it was a point of small importance at the time,\\nsince cases of hardship resulting from the lapsing of policies\\ncould not arise until such policies had been in force a considerable\\nperiod of time, while to those who really wished to remain mem-\\nbers of the Society it was easy to revive lapsed policies by the\\npayment of such arrears as might have accumulated. This, it is\\nplain, was the view of the public, which in ever-increasing\\nnumbers became patrons first of the Prudential, and, after 1879, of\\nother Industrial insurance companies which followed it, although\\nno cash surrender or paid-up provisions formed part of the Indus-\\ntrial contract until after the business had been some sixteen years in\\nsuccessful existence, and some 5,000,000 Industrial policy-holders\\nhad been secured.\\nHardly had the Prudential Friendly Society commenced to\\nissue its certificates and secured the local reputation and respect\\nof which I have spoken at some length, when, as it was perfectly\\nnatural to expect, efforts were made by unscrupulous individuals\\nto float similar enterprises, apparently identical in scope and\\nmethod with the Prudential, but, as a matter of fact, similar in\\nobjects and aims with a former type of fraudulent co-operative\\nsocieties. Had these efforts been honest and straightforward\\nnothing could be said against them, but, being without exception\\nbase and plainly fraudulent imitations of the Prudential plan\\nof Industrial insurance, they, for a time at least, caused no\\nsmall degree of anxiety and concern to Mr. Dryden and his\\nassociates.\\nOne of the first of these imitations of which I have record,\\nand probably the very first, was the Prudential League of\\nHarrisburg, Pa., an organization chartered under the laws of\\nPennsylvania, with the Governor of the State as president. The\\npolicies issued by this society were, it would seem, guaranteed by\\na regular life-insurance company, somewhat along the lines of\\nthe former Bunds or Unions, to which reference has been\\nmade. There was, in this effort, a clear intent to trade on the\\nname of the Prudential, but, as was natural, the society, after a\\nbrief struggle, by reason of its inherent weakness, was forced out\\nof existence.\\nIt is quite probable that the men who managed the concern\\nwere the same who, during the latter part of the year, founded", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0117.jp2"}, "118": {"fulltext": "90 HISTORY OF THE PRUDENTIAL.\\nthe Prudential Mutual Aid, also of Harrisburg, Pa. which had a\\ncareer extending over several years, but which also finally ended in\\nreceivership, causing a not inconsiderable loss to the unfortunate\\nmembership. The society was based on the principles of co-oper-\\native insurance, and was nothing more than an attempt to defraud\\nthe public by trading on the name and principle of the Prudential,\\nwhich by this time had been recognized as a success in the new\\ndomain of life insurance for the industrial population. Such\\nattempts at imitation were menacing to the Prudential Society\\nonly in that the public was likely to confuse the fraudulent\\npractices of the former with the honest and straightforward\\nefforts of the latter.\\nContinued public interest in the development of the Pru-\\ndential is evident from the numerous inquiries made as to the\\nnature of the new system of life insurance, which, I may add,\\nmet only with encouragement on the part of those who had the\\nmanagement of the Society in their charge and perhaps no\\nbetter illustration of this growth of a spirit of inquiry can be\\nfurnished than the following open letter, addressed to the Newark\\nDaily Advertiser of January 17, 1876, which throws a most inter-\\nesting side-light on the progress of the life-insurance idea among\\nthe wage-earners of the city of Newark\\nEditor Advertiser The industrial classes of Newark are a much\\nmore important factor in the prosperity of the city than is usually consid-\\nered, and perhaps more so than any other, with the possible exception of\\ncapital. This class is usually thoughtful and often provident, and therefore\\nto the number of thousands have become associated in various societies for\\nmutual aid and protection in the hour of need. No man will attempt to\\ndeny the value of association for this purpose. But the philosopher,\\npolitical economist or whatever name is his will see the importance of\\nassociation upon a proper basis.\\nWhat is the basis upon which these various mutual societies are con-\\nducted Is there any mathematical or scientific basis to any of them So\\nfar as we know, there is nothing beyond that which experience gives.\\nThis is worth something, but is it a sufficient guarantee for the future\\nWould the Life Insurance Companies be considered safe if their work was\\ncarried on by the light of experience only No, but the law steps in and\\nrequires them to lay aside for every risk a reserve large enough to meet that\\nrisk at maturity, at old age and death, and no such company is safe, even if\\nit has a large amount of cash in hand, unless it has a reserve sufficient to\\nmeet this liability upon a thoroughly mathematical basis.\\nHere, then, is a great question which concerns 10,000 and perhaps\\n50,000 of our industrious and clear-headed mechanics.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0118.jp2"}, "119": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1876-1877. 91\\nWho will take up this subject and not leave it until -we know where\\nthey stand\\nPerhaps the Board of Trade is in the position to do it. Certainly, the\\nsubject is of the greatest importance to Newark, and it is therefore worthy\\nof their attention.\\nLet them invite discussion by able minds, and if the basis is insecure\\nlet them memorialize the Legislature that such general laws may be enacted\\nas will oblige all such societies to provide the proper reserve or show what\\nis their fund and what their risk, so that people may know what they are\\ndoing before they pay their money.\\nThe Board of Trade can do no nobler work than throw their arms\\naround these people and protect them with their influence, their intelli-\\ngence and procurement of proper laws.\\n(Signed) Protection.\\nIt was not until April 29, 1876, that the Advertiser made\\nfurther reference to the proposed investigation of the system of\\nIndustrial insurance by the Board of Trade, and I can do no\\nbetter than quote the article in full, as a further contribution to\\nour knowledge of the development, at this period, of the Indus-\\ntrial insurance idea in the city of Newark among all classes of\\nthe population\\nIt is suggested to the Board of Trade that it invite information upon\\nthe system of industrial insurance that has recently been introduced by the\\nPrudential Friendly Society. This is a matter that would legitimately\\ncome before such a body, and one which, as large employers, the members\\nare directly interested in. This system aims to improve the condition of\\nthe class of people upon whom these gentlemen depend for skill and\\nindustry in the various departments of business activity. makes them\\nProvident and self-reliant. It encourages thrift and good morals, and\\nassists in producing useful mechanics and law-abiding citizens. Our large\\nemployers well understand that money can not be better expended even as\\na matter of economy we say nothing from the humanitarian standpoint\\nthan when used in elevating the condition of their help. But when the\\nhands can themselves be induced to take a wise thought and provide for\\nthe future, it greatly lifts them up. This is the beneficence of this system\\nof industrial insurance. Some of our largest employers deem this matter\\nso important that they establish associations among their employees and\\nrequire each person to contribute weekly to the fund. But the limited\\nnumber of hands employed by most establishments makes this impracti-\\ncable with them, and therefore the great mass of the industrial class must\\nlook for protection to some public institution that carries on the business.\\nNow, it is important to employer as well as employed that trust should\\nbe placed in a really solvent, reliable institution. Herein the gentlemen\\nwho compose the Board of Trade can greatly aid the people by becoming\\nthemselves well informed and imparting information to their employees.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0119.jp2"}, "120": {"fulltext": "92 HISTORY OF THE PRUDENTIAL.\\nWill the Board invite some competent gentleman to address them upon\\nthe subject of industrial insurance? The success of the Prudential clearly\\nindicates the importance of the matter. This Society, recently organized,\\nin the midst of hard times, with a system untried in this country, sought\\npatronage almost entirely among people of limited means, and confined its\\noperations to the city of Newark, yet it has already received over 4,000\\nmembers. Doubtless the character of its officers and directors has done\\nmuch to inspire confidence and popularize the institution. But back of\\nthis lies the fact that the industrial classes appreciated and eagerly\\nembraced its provisions. They needed the Society. We may accept this\\nas evidence that this is only the germ of a system which is to grow up and\\nexercise a great influence upon the social condition of the workingman of\\nAmerica. It has already done so in England, where 8,000,000 people now\\nare interested in this class of provident associations. It is probable that\\nthere will, in a few years, be as great a number interested in similar institu-\\ntions in America. It is important in the infancy of the business, and\\nbefore mistakes are made that can not be corrected, that there shall be had\\na full knowledge of those laws that regulate the risks attached to sickness\\nand burial insurance. The Odd Fellows, Knights of Pythias, and all\\nkindred associations are deeply interested in the matter. A proper knowl-\\nedge as to whether their rates of contributions are sufficient to enable them\\nto pay in the future the benefits they promise, is of vital importance to\\nthem, and a movement such as we have suggested on the part of the Board\\nof Trade would start an inquiry that would result beneficially.\\nOne of the most suggestive remarks in this quotation is the\\nsentence that We may accept this as evidence that this is only\\nthe germ of a system which is to grow up and exercise a great in-\\nfluence upon the social condition of the workingman of America.\\nThese were truly prophetic utterances at a time when hardly the\\nfoundation had been securely laid of the first Industrial insurance\\ncompany in this country, a company which at the present time\\nhas a large portion of the population of Newark insured on its\\nplans of Industrial, Intermediate or Ordinary life insurance a\\ncompany which at the present time has more than 3,500,000\\nIndustrial policies in force on its books on the lives of American\\nworking people, and has indeed grown into an institution of\\ngreat influence upon the social condition of the workingmen of\\nAmerica.\\nThe early success of the Society had been little short of\\nmarvellous, and by May 22, 1876, the five-thousandth application\\nfor Industrial insurance had been received. The difficulties\\nwhich had been experienced had not been sufficient to hinder\\nmaterially the rapid growth of the Society in various directions,", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0120.jp2"}, "121": {"fulltext": "THE PRUDENTIAL FRIENDLY SOCIETY, 1876-1877. 93\\nbut, as has previously been pointed out, the fraudulent imita-\\ntions of concerns operating under similar names and following\\nsimilar plans were likely, in course of time, to prove a serious\\nmenace to the good name and standing of The Prudential. The\\ndifficulties experienced in obtaining the services of good and reli-\\nable agents had often made it necessary to discharge inefficient\\nemployees, who would make use of their limited experience to\\nestablish societies or associations under names similar to the\\nPrudential. Thus, about April, 1876, The Prudential Benefit\\nSociety had been organized in Newark by two men discharged\\nfrom the service of The Prudential Friendly Society. The\\nNewark Sunday Call, under date of April 2, 1876, found it\\nnecessary to call public attention to the danger of confusing a\\nsolvent society with insolvent imitations.\\nHowever, in spite of such discouragements and disadvan-\\ntages, the Society continued to make progress, and by December\\n31, 1876, there were 4,816 policies in force, for an aggregate\\namount of insurance protection of $443,072. The total premium\\nincome during this year had been $14,495, of which $1,956 had\\nbeen paid for claims. The total expenses for the year had\\nreached $16,253, or $1 ,758 more than the income. The deficiency,\\ntogether with the necessary amount to be held as reserve, had, of\\ncourse, been paid in by the stockholders and thus, after almost\\nfifteen months of actual experience in business operations, the\\nSociety was far from being in a prosperous condition financially,\\nalthough, in the nature of the business, nothing else could have\\nbeen expected for a number of years, or until the business should\\nhave become self-sustaining.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0121.jp2"}, "122": {"fulltext": "94 HISTORY OF THE PRUDENTIAL.\\nCHAPTER VII.\\nTHE PRUDENTIAL INSURANCE COMPANY\\nOF AMERICA, 1877-1879.\\nThus far the business of the Society had practically been lim-\\nited to the city of Newark, but by November, 1876, it was\\ndecided to extend business operations to other cities of the State.\\nBefore this important step was taken it had been arranged for\\nMr. Dryden to visit England for the purpose of making a personal\\nstudy of the methods and results of the British Prudential and the\\nlarge Friendly Societies operating in the various parts of the\\nkingdom, and with this object in view he sailed for Liverpool on\\nNovember 28th, fully supplied with letters of introduction, not\\nonly to the managers of the leading societies and companies, but\\nalso to the leading actuaries and government officials connected\\nwith the administration of the various insurance institutions and\\nFriendly Societies. This local investigation of conditions affecting\\nIndustrial insurance in England had become more and more im-\\nperative as the business of the Society had increased, and experi-\\nence was gained which permitted of a careful study of the proba-\\nble normal rate of mortality and sickness among insured lives in\\nthis country. Hence the importance of a personal investigation,\\non the part of Mr. Dryden, of the actual conditions affecting\\nIndustrial insurance in England, and the necessity of a personal\\nstudy of the causes and reasons that induced the Prudential, the\\nRoyal Liver and other societies to abandon the sickness branch of\\ntheir business after a short experience, which, it is clear, must\\nneeds have been unfavorable. Without entering extensively into\\nthe question as to why the American Prudential finally followed\\nin the steps of the English companies in abandoning its sickness\\nbranch, it may briefly be stated that partly on account of the\\nsmall demand for such insurance in this country, partly on", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0122.jp2"}, "123": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1877- 79. 95\\naccount of the inherent difficulty of transacting this form of\\ninsurance on a profitable basis, the Society, after having given\\nthis branch of the business a fair trial, finding it impossible to\\ntransact the same profitably or safely, followed other companies\\nin limiting its business to whole-life policies on the level-premium\\nplan.\\nIt may not be out of place to add the words of Mr. (now Sir)\\nHenry Harben in explaining to the Royal Commission on\\nFriendly Societies the reasons as to why his company had\\ndiscontinued transacting a sickness insurance business. Mr.\\nHarben stated that, as a matter of fact, his company found\\nthat it did not pay, and, further, that We found that we\\nwere totally unable to cope with the fraud which was prac-\\nticed, and hence Mr. Harben s conclusion that We have\\ntried it, and I think our agents are the most honest, and we\\ncan not manage it.\\nDuring his stay in England Mr. Dryden gained much\\nadditional information, and became so thoroughly informed as to\\nthe most minute details of the vast business of the British Pru-\\ndential that on his return he not only materially changed the\\npractical working basis of the Society, but at once took steps to\\nhave the same reorganized on a purely commercial basis as the\\nPrudential Insurance Company of America, which change in\\nname took place by an amendment to the charter of The Pru-\\ndential Friendly Society, which passed the New Jersey Legisla-\\nture during the session of 1877, and became a law on March 15th\\nof that year.f\\nThus far, as has been stated, the business operations of the\\nPrudential had been almost entirely confined to the city of\\nNewark, but after Mr. Dryden s return from England steps were\\nimmediately taken to open offices in other cities of the State.\\nThis was not only in accordance with the laudable ambition to\\nincrease the business of the company, but was also due in no\\nsmall degree to a yielding to pressure brought to bear on the\\nThird Report of the Royal Commission on Friendly Societies,\\n1873. P. 73-\\nf I^ife Insurance Charters, p. 154. The Spectator Company, New York,\\n1895.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0123.jp2"}, "124": {"fulltext": "96 HISTORY OF THE PRUDENTIAL.\\nmanagers of the Company by leading citizens of surrounding\\ntowns, who by this time had fully realized the value of Industrial\\ninsurance from the standpoint of the taxpayer and public-spirited\\ncitizens interested in the betterment of the economic and social\\ncondition of the industrial masses.\\nNext to Newark, the most important manufacturing city in\\nthe State in 1877 was Paterson, which in that year had an esti-\\nmated population of about 43,000, and which, according to the\\nCensus of 1880, was one of the most important manufacturing\\ncentres in the United States. During the early part of April,\\nleading citizens of Paterson, including Mr. Garret A. Hobart,\\nthe late Vice-President of the United States, addressed a letter to\\nthe President of the Prudential, requesting a public explanation\\nof the essential principles of Industrial insurance.* The following\\nis a copy of the letter received by the Company\\nPaterson, April 6, 1877.\\nAllen L. Bassett, Esq.,\\nPresident of the Prudential Insurance Company of America, Newark, N. J.\\nDear Sir Understanding that your Company is about to open an\\noffice here for the transaction of its business with the citizens of Paterson,\\nwe the undersigned beg leave to request that you will address a public\\nmeeting of citizens interested in this new system of Insurance, in some\\npublic Hall, and at such time as may suit your convenience, and explain its\\npeculiar features.\\nYours Respectfully,\\nJohn J. Brown,\\nJohn Swinburne,\\nBenjamin Buckley,\\nGeorge Wurts,\\nThos. N. Dale,\\nSocrates Tutti,e,\\nGarret A. Hobart.\\nSuch lectures and public meetings on the subject of Industrial insur-\\nance were quite common during the early days of the business, and much\\ngood was accomplished by placing the merits of the new departure\\nplainly and emphatically before the people.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0124.jp2"}, "125": {"fulltext": "THE\\nIfrnWial\\nINSURANCE COMPANY\\nOS* AMERICA.\\nHOME OFFICE,\\nKE WABS, 1TSV JEBSST.\\nWhere aT communicabons respecting tbte\\nPolicy iboulJ be addrased.\\nfo.\\nCHARTER\\nS 3 S3 :E3 Z= S3 3? -O A la\\niinoin all itten tig these presents, That The Prudential Insurance Company op America, in codslc\\neration of the representations and agreements made to and with them, in the application for this Policy, respecting\\nthe health, habits and condition of the person named and described in the first column of the schedule embodied\\nherein, and also respecting any matter npon which this contract is based, and in further consideration of the sum of\\nmoney, stated in the second column of said schedule, to them in hand paid, and of a like sum to be paid to said\\nCompany, or their authorized Agent, on or before each and every Jlonday subsequent to the date hereof, during the\\nlifetime of said person, doth hereby promise and agree that, upon satisfactory proof of the decease of said person,\\nthey will pay, or cause to be paid (subject to the articles, conditions and agreements endorsed hereon), unto his or\\naer executors or administrators, the sum of money stated in the third column of said schedule.\\nr fD ClJ alUJaDS, that the production by or on behalf of this Company, its successors or assigns, of a receipt, of the description\\nSereinafter mentioned, for the sum of money insured hereby, or of other sufficient proof of payment by said Company of said sum of r:one7\\nto any or either of the persons hereinafter mentioned .and described, and hereby authorized and empowered to sign said receipt for tnli\\nreceive the said gum of money, said receipt being signed by any person being either an executor or an administrator, husband or wife or\\nrelative by blood or connection by marriage of the person designated in the first column of the schedule embodied herein, shall be final end\\nsonclusive evidence to all Intents and purposes that such sum has been duly pait unto and received cy .ae person or persons lawfully sad\\nrightfully entitled to receive the same, and that all nlaims and demands whatsoever, upon or against uiis Company tn isspect to ttrls PoLi .y,\\naave been fully satisfied.\\n^CODiuCil, ijOUKOET, that this Policy is issued and accepted subject to the restrictions, conditions and agreements aiwo\\nannexed, which it is agreed form part of this contract, and upon the express stipulation that this contract shall become absolutely vcW,\\nind all premiums paid thereon forfeited to said Company, if the considerations for which the same is granted are not tree, or shall not\\nin ail respects, performed and observed or if the said person shall, without the .written consent of said Company endorsed, hereon, g*\\nbeyond the settled limits of the United States, or the British Provinces, iri North America; or if the said person shall die by the hands of\\njustice or by suicide, whether sane or insane, or in consequence of the use of intoxicating drinks, opiates or narcotics or of being engaged\\nIn any unlawful act or if the said person shall have previously obtained, from said Company, a Policy which shall, at the decease of said\\nperson, be in force, insuring a sum of money in consequence of his or her decease, unless the Policy first issued contains express permission\\nthat this Policy may also be in force at the same time.\\nFIRST COLUMN.\\nDAUB AND DESCRIPTION OP THE I\\nSECOND\\ncolumn.\\nWEEKLY PREM.\\nTHIRD COLOIN\\ntit Lii3 ttlUSS JgEIjlTCOf, the President and Secretary of said Company have signed these presents, and attached the Policy\\nStamp of the Company, at the City of Newark, New Jersey, this\\nSecretary,\\n^^^Y^^l\\nFIRST INDUSTRIAL POLICY FORM USED BY\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0125.jp2"}, "126": {"fulltext": "a\\nO\\nr\\ni\u00e2\u0080\u0094 t\\no\\n3\\na\\no\\ns\\nw\\n\u00e2\u0080\u00a2J)\\n2\\no\\nJ\\nSr\\n25\\nCONDITIONS AND AGREEMENTS HEREIN BEFORE REFERRED TO.\\nX. The statements and declarations made In the applica-\\ntion for this Policy are in all respects full and true,\\nand the said application is hereby referred to, and\\nmade a part of this contract.\\nThe person insured under this Policy shall not, with-\\nout the written consent of the Company, enter into\\nany military or naval service (except the militia,\\nwhen not in actual service), or engage in the manu-\\nfacture of gunpowder, fire-works, or other explosive\\nsubstances, or submarine operations.\\nr. It the person insured under this Policy shall die\\nwithin six months from the date hereof, the Com-\\npany shall be liable to pay one-fourth only of the\\namount specified in this policy. If the said person\\n\u00e2\u0096\u00a0hall die after six months, and within one year from\\nthe date hereof, the Company shall be liable for\\none-half only of the amount specified in the policy.\\nIf the said person shall die after one year from the\\nuate hereof, the whole amount specified in this\\nPolicy shall be payable.\\nIf any erasure or alteration snail be made in this\\nPolicy, except by endorsement made and signed\\nby an officer of the Company, the Policy shall be void.\\nIf any attempt shall be made by any person or per-\\nsons interested in this Policy to obtain money from\\nthe Company, under this Policy, upon any false or\\nfraudulent claim or representation, then the said\\nCompany shall have the right to cancel this Policy,\\nwithout notice to such person or persons; and the\\nsaid person or persons shall thereupon forfeit aO\\nrights and privileges In the Company.\\nfl. This Policy, and the Receipt Book in whl a are\\nordered the premiums paid on the same, shall, at\\nall times, on application of any authorized officer\\nor servant of the Company, be produced and ex\\nhfblfed to hiip and -noon anv Davmant bv the\\nCompany, under this Policy, they shall have the\\nright to demand and retain possession of said Policy\\nand Receipt Book,\\n7. If, for any cause, this Insurance shall terminate, all\\npremiums paid on account thereof shall be forfeitea\\nto the Company, and all liability on the part of the\\nCompany under this policy shall cease; and incase\\nfor any reason the Company shall not attend to the\\ncollection of premiums payable on this policy\\nthrough its agent or collector, it shall be the duty\\nof the policy-holder (within the time allowed by the\\nCompany) to bring or send said premiums to tie\\nhome office or to the Company s agent, and in event\\nof the failure of the policy-holder to perform this\\nduty, the Company may cancel this policy without\\nnotice to any person or persons interested therein,\\nany statute to the contrary notwithstanding.\\n8. No suit or action at law or in equity shall be main-\\ntainable to enforce the performance of this contract\\nuntil fifteen days shall have expired after the f i ling\\nin the principal office of the Company of the above-\\nmentioned proof, nor unless such suit or action shall\\nbe commenced within six months next after the\\ndeeease of the person insured under this policy;\\nand it is expressly agreed that should any such suit or\\naction be commenced after .the expiration of said sis\\nmonths, the lapso of time shall be deemed as conclu-\\nsive evidence against the validity of such claim, any\\n6tatute of limitations to the contrary notwithstanding.\\n0. No payments of premium made on this policy while\\nit is in force will be recognized by the Company\\nas valid or binding unless made to a duly authorized,\\nagent, and by such agent entered at the time of\\npayment in the Premium Receipt Book belonging\\nwith this Policy.\\n10. Agents are not authorized to make, alter, or dis-\\ncharge contracts; or waive forfeitures; or receive\\npremiums on policies in arrears beyond the time\\nallowed by the regulations of the Company.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0126.jp2"}, "127": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1877- 79. 97\\nTo this letter Mr. Bassett, in behalf of the Company, replied\\nas follows\\nNewark, N. J., April 7, 1877.\\nMessrs. John J. Brown, Benjamin Buckley and others.\\nGentlemen It will afford me pleasure to accept your kind invitation,\\nand I will name Thursday Evening, 12th inst., at a before 8 o clock,\\nat Odd Fellows Hall, Main Street, as the time and place. During the last\\nyear of unparalleled hard times we issued 9,000 Policies to the citizens\\nof Newark alone, and I can not see why the great beneficence which\\naccrued to our people by reason of its liberal provisions, should not be\\nfurnished to the people of your City. This is a great step towards the\\npeople, providing as it does, some insurance to the poorest or the richest,\\nmale and female, and from 1 to 76 years of age, for a payment of 3 cents a\\nweek and upwards. I believe it worthy of the attention of all your people.\\nVery Respectfully, your Obedient Servant,\\nAllen L. Bassett,\\nPresident Prudential Insurance Company.\\nThe above letter proves clearly the public interest in the\\nnew form of life insurance, and, by implication, the local need of\\nsome such form of a voluntary method of enabling the factory-\\nworkers and others to make secure provision for funeral expenses\\nand the cost of medical attendance in a manner suitable to their\\nsocial and economic conditions.\\nAmong other leading newspapers of Paterson, the Pater son\\nGuardian, one of the oldest newspapers in New Jersey, gave\\nemphatic endorsement to the plan of the Prudential, referring to\\nit as practical insurance, adding that we do not see why it\\nshould not be placed within the reach of everybody. Inciden-\\ntally, mention was made of the fact that the Company had already\\nextended its operations to Jersey City, Elizabeth and Hoboken,\\nwhile the average issue of new policies had then reached 250\\npolicies a week.\\nThat there was a similar demand for Industrial insurance in\\nPennsylvania is proven by frequent references to the subject in the\\nInsurance World, published at Pittsburg, Pa., agitating for the\\nopening of Industrial offices in that State.\\nIn Jersey City, where an office had been established during\\nthe early part of 1877, the leading newspaper, the Jersey City\\nJournal, in its issue of June 23, 1877, referred to the Prudential", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0127.jp2"}, "128": {"fulltext": "98 HISTORY OF THE PRUDENTIAL.\\nas follows The secret of this success is, we take it, not only\\nthe tact and energy with which the enterprise has been managed,\\nnot even the eminent respectability of its Board of Directors,\\nthough these have contributed much to it, but it is mainly in the\\nfact that this feature of insurance supplies a need which the\\nindustrial classes have felt. They now have the opportunity of\\nmaking a small provision for their families, on easy terms. We\\ndoubt not the opportunity will be gladly embraced here, as it has\\nbeen elsewhere, and that it will result in a positive advantage to\\nour people.\\nThus during its early career the Company was welcomed\\nwherever it opened its offices, as a useful factor in a much- to-be-\\ndesired amelioration of the condition of the industrial population\\nwhile at the same time eminent citizens, as well as the public\\npress, recognized clearly the fact that Industrial insurance was\\nmost likely to meet a want on the part of the masses, which thus\\nfar had not been met by any other of the large number of so-\\ncalled insurance institutions.\\nWhile some satisfactory progress had been made, outside\\nfactors did much to hinder the -financial and general progress of\\nthe Company. Aside from the general distrust of the public in\\nall matters of life insurance, in consequence of the many failures\\nof companies in other States, there also occurred this year the\\nfailure of a company having its home office in the city of Newark,\\nwhich proved a most serious matter to all the other insurance\\ncompanies transacting business in the State of New Jersey.\\nThe New Jersey Mutual I^ife Insurance Company had been\\norganized in 1865, and during its early years had been in the\\nhands of some of the leading citizens of the State. For reasons\\nwhich can not be discussed here, the company had, in 1872, come\\nunder the control of outside parties, who at once began opera-\\ntions which soon involved the concern in financial difficulties, and\\nfinally brought about the bankruptcy of the company. As late\\nas August, 1874, the company had been examined by Blizur\\nWright, who reported, as the result of his examination, that he\\n1 found no reason why its policy-holders should be dissatisfied or\\ndistrustful. But proof was soon forthcoming which made it\\nclear that the company, at the time of its examination, was not\\nNew Jersey Life Insurance Report for 1877.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0128.jp2"}, "129": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l877~ 79. 99\\nin a sound condition, and that Mr. Wright and his examiners\\nhad been deliberately and wof ully deceived. The cause of\\nthe failure was due to nothing else than criminal mismanagement,\\nand under date of December 16, 1876, Mr. David Parks Fackler\\nmade a further examination which disclosed a most stupendous\\nfraud, proof of fraudulent mortgages and fictitious bank balances,\\nof borrowed bonds and unstated liabilities, illegal loans and the\\nfraudulent attempt to reinsure the business of the company in\\nanother concern in a similar shaky condition.\\nThe effect of this failure can readily be understood by any one\\nfamiliar with the effect of public distrust on financial institutions\\nand when I add that the loss to policy-holders was estimated at\\n$965, 161 in cash, to say nothing of the amount of insurance protec-\\ntion lost to the unfortunate policy-holders, it will be apparent\\nwhy such a calamity must needs have proven a serious check to\\nthe business development of a young company offering to the\\nworking people life insurance on a new and, for the time, rather\\nnovel plan.\\nConsidering all the difficulties and drawbacks indicated, it is\\nremarkable that during the year 1877 no less than 10,521 new\\npolicies for a sum of $967,000 should have been issued by the\\nPrudential, while 11,226 policies for $1,030,655 remained in force\\nat the end of the year. Comparing this result with the fact that\\nat the close of the preceding year only 4,816 policies for $443,000\\nremained in force, we have a substantial gain in business of more\\nthan 100 per cent. During a year, in many respects a most dis-\\nastrous one from a life-insurance standpoint, the new system of\\nlife insurance had continued to make progress, although all the\\nold-line companies operating in New Jersey actually suffered a\\nmaterial decrease in their amount of insurance in force. In\\nmarked contrast to the success of the Prudential, according to\\nthe official report of the Insurance Department of New Jersey,\\ntwenty-six companies operating in the State on the level-premium\\nplan decreased in business from 19,266 policies in force at the end\\nof the year 1876 to 17,339 policies in force at the close of the year\\n1877.\\nThe total income of the Prudential during 1877 had reached\\n$30,868, while the expenses and claim disbursements amounted\\nto $24,175. On the basis of a gross valuation the assets of the\\nCompany were $26,906, against which there were liabilities of", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0129.jp2"}, "130": {"fulltext": "IOO\\nHISTORY OF THE PRUDENTIAL.\\n$20,791, showing a small but sufficient surplus. The business of\\nthe Company, at the end of the year, consisted of 11,226 policies,\\ndivided as follows, according to the three branches into which the\\nbusiness transactions were divided\\nBUSINESS OF THE PRUDENTIAL INSURANCE COMPANY\\nOF AMERICA.\\nDecember 31, 1877.\\nNO.\\nAmount.\\nSickness Branch,\\n10,627\\n594\\n5\\n$1,027,751 00\\n2,304 00\\n600 OO\\nAnnuity Branch,\\nTotal,\\n11,226\\n$1,030,655 00\\nIt is quite clear that the sickness and annuity branches of\\nthe Company s business had assumed only small proportions, and\\nthe bulk of the business was in whole-life policies for sums pay-\\nable at death. The result of the year s experience had therefore\\nbeen emphatically in favor of the transaction of a whole-life\\nbusiness, and indicative of only a limited demand for sickness\\ninsurance and, further, indicative of no commercial demand for\\ndeferred annuities on the plan offered by the Company.\\nThus far the business of the Company had been transacted\\nin the basement of the State Bank building, 812 Broad Street,\\nbut the increase in clerical work demanded larger quarters, and\\nthe offices of the Company during the early part of 1878 were\\nmoved to 215 Market Street. As an indication of the economy\\nnecessary to be practiced at this time, I may add that the new\\nquarters, which were three times as large as the old, were secured\\nat a rental of only two-thirds of what had been paid for the\\nformer offices.\\nThe success of the Prudential gradually attracted the atten-\\ntion of other companies, and, but for the prevailing financial\\ncrisis, other attempts in the direction of organizing Industrial\\ncompanies would no doubt have been made. But money seeking\\ninvestment was not likely to be attracted to new life-insurance ven-\\ntures at a period when the whole business was practically under a", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0130.jp2"}, "131": {"fulltext": "Zttf\\nHOME OFFICE OF\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA,\\n187S-1883.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0131.jp2"}, "132": {"fulltext": "", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0132.jp2"}, "133": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l877- 79. IOI\\nshadow and partly in disgrace, and thus the Prudential remained\\nalone in the field for some time to come. The subject, however,\\nwas kept so fully before the insurance companies, through the me-\\ndium of the insurance press, by comments on the great success of\\nthe English Prudential and the limited success of the American\\ncompany of the same name, that it was only a question of time\\nin fact, of only a few months when improved financial conditions\\nwould make possible the launching of new enterprises in the field of\\nIndustrial insurance. A half-hearted effort was made in the early\\npart of the year, by the John Hancock Mutual Life Insurance\\nCompany of Boston, which attempted to transact what it called\\na Prudential business on the monthly-premium payment plan,\\noffering insurances for sums as low as $250 but the experiment\\nwas not a success.\\nIt is difficult to explain why the monthly-premium payment\\nplan should so invariably have proven a practical failure, but\\nthe bare fact remains that the people do not seem to care\\nfor this kind of insurance, even though the plan is actually the\\ncheaper in comparison with the weekly plan of general Industrial\\ninsurance.\\nAll efforts of this kind, however, had their value, in that\\nthey made clear the attitude of the public in its preference for life\\ninsurance on the weekly-premium payment plan, and it was for-\\ntunate that every possible species of workingmen s insurance was\\ntried either before or at the same time that Industrial insurance\\nwas passing through the early stages of its development in this\\ncountry. If the new plan of insurance had points of weakness,\\nor if the same was ill- adapted to American conditions, the sooner\\nit was found out the better. Certainly, nothing would have been\\nmore disastrous to the cause of genuine life insurance for working\\npeople than the failure of Industrial insurance, once the system had\\nassumed vast proportions. From the standpoint of public policy,\\nas well as from the standpoint of the individual policy-holder, it\\nwas of the utmost importance that Industrial insurance should be\\nsubjected to every test, difficulty and trial, so that, if failure was\\ninevitable, it should take place before the system had grown into\\none of considerable magnitude. It is not too much to say that\\nno form of life insurance or other financial undertaking has ever\\nexperienced more difficulties and been subjected to more trials,\\ntesting its inherent worth, than was Industrial insurance, as", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0133.jp2"}, "134": {"fulltext": "102 HISTORY OF THE PRUDENTIAL.\\npracticed by the Prudential during the early years of the Com-\\npany s operations.\\nAs the business of the Prudential increased from year to\\nyear, more and more intelligent public consideration was given to\\nthe subject, and, as an indication of the public recognition of the\\nvalue of the new system of insurance, I can not do better than\\nquote the following extract from a long article in the Insurance\\nWorld of April, 1878, as an illustration of the conception and\\nappreciation of the subject at this period\\nWe think that this system of insurance among the poor if worked up,\\nwould become as popular here as in England some of our leading compa-\\nnies should set aside a good sum for the purpose of testing it. The agents\\nnow in the field could have it under their care, appointing the collectors in\\nevery workshop, street or village, whose business would be to take risks,\\ncollect moneys every week or two weeks, and pay it over to the agent.\\nThe small sums insured, payments made, and the absence of bother, would\\nsoon recommend it; the poor would take hold of life insurance as they have\\nnot yet done^ and millions of insurance would be the result.\\nThe principal value of the article is to be found in the\\nearnest plea for insurance for small amounts and premiums pay-\\nable on the weekly plan, and, as the Insurance World well said,\\nthat If this plan were once placed before the public, millions of\\ninsurance would be the result.\\nWhile the Prudential had been successful in introducing\\ngenuine Industrial insurance on the plan of the British Prudential\\nto the working population of the large manufacturing cities of\\nNew Jersey, other companies, like the John Hancock Life Insur-\\nance Company of Boston, had failed to make a success of the\\nplan of monthly-payment insurance while the Metropolitan\\nhad made but a very limited success of its Bund or Union\\narrangement with various organizations attempting to transact an\\ninsurance business on the weekly-payment plan. In reference to\\nthe Bund plan of the Metropolitan, the position of the company\\nwas well stated in an article in the Spectator for May, 1878, from\\nwhich I quote as follows\\nThe Metropolitan has met with better success in doing so-called indus-\\ntrial insurance than any other company in the United States. It has done\\nthis through the agency of a powerful social organization of Germans an\\naid which no other company has been able to secure for such a purpose.\\nIn this work the company has undoubtedly extended the benefits of life\\ninsurance among a worthy class of people, where, without this or some", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0134.jp2"}, "135": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1877- 79- io 3\\nsimilar agency, but little life insurance business could be done. Small\\nshopkeepers, mechanics with small incomes, laborers and others who\\nwould not ordinarily be induced to look enough at the subject to apprehend\\nthe benefits of life insurance, or to believe that its benefits were within\\ntheir reach, have been approached by means of this organization which\\nconfers substantial benefits upon its members aside from the life insurance\\nprivileges extended to them and have been persuaded to protect their\\nfamilies by such an amount of life insurance as they could pay for without\\nserious inconvenience.\\nThe Spectator properly speaks of this form of insurance as\\nso-called Industrial insurance, for an attempt to transact life-\\ninsurance business on the weekly-payment plan does not, as such,\\nrepresent Industrial insurance as it is understood by those who\\nmanage the business at the present time. As has been pre-\\nviously pointed out, an effort to transact an insurance business on\\nthe weekly-payment plan had been made as early as 1847, by the\\nMutual Benefit of Newark, and in 1868 by the American Popular\\nLife and other companies but these efforts failed, in that no\\nprovision had been made for the collection of the premiums, the\\ninsurance of persons at all ages, and the adjustment of amounts\\nof insurance to the premiums as a unit, instead of, as is the prac-\\ntice in Ordinary insurance, the adjustment of the premium to the\\namount.\\nWhile writers on the subject of life insurance for the masses\\nrecognized more or less the great value and success of the British\\nPrudential in developing in Kngland its system of Industrial\\ninsurance, there were many who were skeptical as to the question\\nwhether the system would ultimately prove successful in the\\nUnited States. Among others, the Spectator, then, as now, one\\nof the leading insurance publications in this country, in an article\\non the success of the British Prudential, expressed the belief that\\nthe British form of workingmen s insurance was not likely to\\nprove successful among the people of this country, for, it was\\nargued, they would not insure for small sums, nor would they\\nbe willing to pay premiums in weekly instalments, as is the\\npractice, and one of the essential principles of workingmen s\\ninsurance on the Industrial plan. I can not do better than quote\\nbriefly from the article in the Spectator for May, 1878, as follows\\nIt is not surprising that the report recently made by the Prudential\\nAssurance Company of London has attracted a great deal of attention and", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0135.jp2"}, "136": {"fulltext": "104 HISTORY OF THE PRUDENTIAL.\\nelicited extended comment in the United States. The report shows that\\nthe company has met with very great success in what it calls its Industrial\\nBranch, and certainly success in this branch of its business means valuable\\nservice rendered to a large and needy class of people, who if they did not\\nmake this or some similar provision would leave their families in poverty\\nand generally in pauperism. No words can exaggerate the value of the\\nwork this company is doing among the laboring people. It promotes tem-\\nperance, frugality, thrift and all the kindred mortal virtues, and saves tens\\nof thousands from a life of pauperism and crime, and from a pauper s or\\nfelon s death.\\nBut those who look upon the success of this company as something which\\ncan be equalled or even imitated in the United States ignore some patent\\nfacts. And any company which undertakes that class of business in the\\nUnited States expecting to meet with success comparable with this will cer-\\ntainly be disappointed. The failure of the efforts which have hitherto been\\nmade in this country, in the direction of so-called Industrial Insurance, is\\nnot attributable to a want of intelligence as to methods nor to a want of\\npersistence on the part of officers and agents (albeit these defects have\\ncharacterized the efforts), but to the fact that such insurance is not adapted\\nto the population of the country.\\nAnd this naturally leads to the consideration of a field which life\\ninsurance in the United States has not hitherto cultivated as much as it\\nought to do, and in which good results may be produced. Pretty much all\\nthe efforts of companies and agents have been made among those who\\ncould afford or could be induced to take policies for large sums. Many\\nsolicitors regard time spent in talking about a policy for less than\\n$10,000 as time wasted; and $5,000 has been the minimum sum worth\\nany consideration at their hands. Of course, the temptation to seek\\nthose and only those who can afford to pay several hundred dollars\\nper annum for life insurance is strong, and the ambition to get ap-\\nplications for large policies is a worthy one, but companies and agents\\nmust thereafter look for the most of their business among another class\\nof people, as well as among the same class with reduced incomes and\\nmodified estimates of their ability to pay and of the requirements of their\\nfamilies.\\nThere are in this country many thousands who need life insurance and\\nwho can afford small policies say, from r ,000 to $2 ,500 who have never\\nbeen solicited by competent men. The solicitors who have been sent to\\nthese persons have been beginners in the work who had not learned how to\\npresent the advantages of life insurance or the merits of the company they\\nrepresented or those who, though not beginners, were incompetent from\\nlack of intelligence or lack of industry, and the result has of course been\\nfailure. If a competent solicitor, one who has hitherto been able to take\\napplications for large policies, would go among these people and work\\nwith as much persistence and enthusiasm as he has customarily employed,\\nand with entire frankness, he would find the result profitable to himself and\\nany really good company he chose to represent.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0136.jp2"}, "137": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1877-79. 105\\nOn careful examination of this article an experienced life\\nunderwriter will at once notice that the plea of the Spectator for\\nan extension of the principles of life insurance to mechanics and\\nothers for policies of from $1,000 to $2,500 was really a plea for\\nwhat, in course of time, became known as special adult\\nbusiness or Intermediate insurance, as transacted to-day by\\nIndustrial companies in all parts of the country. This form of\\ninsurance could not be written on any considerable scale until the\\nvast population unacquainted with insurance principles had been\\neducated by slow degrees, first, in the habit of systematic saving\\nsecond, in a true appreciation of the beneficence of legitimate life\\ninsurance, even in small amounts as they are returned to policy-\\nholders by the methods of the weekly-payment plan. Life insur-\\nance as practiced by the Ordinary life companies during the\\nlater seventies and early eighties was really class insurance, open\\nonly to men of considerable income and means. Industrial insur-\\nance, however, did appeal to the industrial population to an extent\\nno doubt surprising to those who did not consider the system\\napplicable to the United States. And nowhere, perhaps, was this\\ntendency more clearly recognized than in a later number of the\\nSpectator, published during August, 1878, and in which the truth\\nwas stated, that life insurance is about descending from a\\nwholesale to a retail business. The early error on the part of the\\nSpectator is easily explained by the paucity of general information\\non the subject at the time, and the unostentatious manner in\\nwhich the problem of Industrial insurance was actually being\\nsolved in Newark, less than ten miles distant from New York.\\nIn justice to the Spectator it must be said that it was not the\\nonly insurance journal which, at a critical moment, seemed rather\\nto oppose the development of Industrial insurance in the United\\nStates for, as a matter of fact, even the Monitor, which had\\nat various times done much to call public attention to the prin-\\nciples and practice of Industrial insurance, made unfavorable\\nreference to the same in its November issue in 1878. In the\\nwords of the Monitor, l the facts leave it more than ever open to\\ndoubt whether Industrial insurance can be successfully carried on\\naccording to the Ordinary methods of life insurance, and, rather\\nthan approving of the British plan of dealing directly with the\\npolicy-holders, the Monitor expressed the opinion that The\\ncompany, to be economical, can not deal directly with individuals.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0137.jp2"}, "138": {"fulltext": "106 HISTORY OF THE PRUDENTIAL.\\nIt must work through and deal with subordinate organizations,\\nwhich shall themselves furnish the membership, and relieve this\\ngreat item of cost. If this be true, Industrial insurance can only\\nbe successfully worked through the Bund system, such as has\\nbeen adopted by some of the American companies.\\nFortunately, this advice on the part of the Monitor was not\\nheeded, for at the very time one of the leading organizations, a\\nwell-known German insurance and relief society, with nearly\\n7,000 members in different cities, was rumored to be in difficulties,\\nand it was not long afterwards when the concern went out of\\nexistence, its obligations being assumed by a regular Ordinary\\nlife company.\\nHowever discouraging such remarks as the preceding must\\nhave been to Mr. Dryden and his associates, the progress of the\\nPrudential was never for a moment seriously hindered, though\\nthe difficulties and discouragements would easily have brought\\ninstitutions resting on a less substantial basis to an early end.\\nAt a time when Industrial insurance was being actively\\nplaced before the public, practically every other form of insurance\\nfor workingmen had either been tried or was now being put for-\\nward, either on the plain basis of a business undertaking in the\\nname of assessment insurance, or on the semi-business basis of\\nso-called fraternal-insurance organizations. A writer on the\\nsubject, who seems to have given considerable attention to this\\nside of the question, stated that there were then in the United\\nStates, approximately, 200,000 persons insured in Masonic Orders,\\nOdd Fellows Associations, or other forms of fraternal insurance.\\nOne of the more prominent and important of these fraternal\\nassociations was The United Brethren Mutual Aid Association of\\nLebanon, Pa., which by 1878 had reached a membership of some\\n13,000. After an existence of twenty-seven years the society\\nfailed in 1896 in consequence of inherent defects which must\\nsooner or later prove the downfall of all similar institutions. The\\npathetic side of such failures has seldom been better brought out\\nthan in the following letter from Salem, Oregon, published in\\none of the insurance journals during 1896\\nWhen I was a young man I was induced to join the United Brethren\\nMutual Aid Society, which, at that time, was considered the strongest\\nfraternal order in existence. I have faithfully paid my assessments for\\nnearly a quarter of a century, and now in my old age, when I most need", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0138.jp2"}, "139": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1877-79. io 7\\ninsurance and am unable to get it in a regular life insurance company, I find\\nmyself left without any insurance whatever because this order, that I\\nplaced my reliance in, went into the hands of a receiver March 17, 1896.\\nji seems almost like a criminal act to induce people to place\\ntheir faith in institutions of this kind.\\nP. C. Hetzi^r.\\nIf Industrial insurance had served no other purpose it would\\nhave full justification for its development in offering a safe and\\nsubstantial substitute for these so-called co-operative or fraternal\\ninsurance associations.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0139.jp2"}, "140": {"fulltext": "io8\\nHISTORY OF THE PRUDENTIAL.\\nCHAPTER VIII.\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA,\\n1879-1880.\\nAfter a period of three years and two months of actual\\nbusiness operations, The Prudential, on January 1, 1879, was still\\nthe only company transacting Industrial insurance in the United\\nStates, and, while satisfactory progress had been made, no other\\ncompany had attempted to adopt the plan of The Prudential.\\nThe number of policies in force, which had been 1 1,226 on Decem-\\nber 31, 1877, had increased to 22,808 policies by the end of 1878.\\nThe insurance in force had been more than doubled during the\\nyear, and that, too, in spite of the fact that the business operations\\nof the Company were confined to the State of New Jersey.\\nThe business being now restricted to the insurance of sums\\npayable at death, more publicity was given to the premium rates,\\nand the following are abbreviated copies of the tables in use at\\nthis time\\nINFANTILE RATE TABLE.\\nTabids of Benefits Payable for a 3-Cent Weekly Premium.\\nNo Higher Premium can be Taken.\\n(First used April 2, 1877.)\\nAge Last Birthday.\\nAfter Three Months.\\nAfter One Year.\\nI\\n$IO\\n00\\n$11\\n00\\n2\\nII\\n00\\n12\\n00\\n3\\n12\\n00\\n13\\n00\\n4\\n13\\n00\\n14\\n00\\n5\\n14\\n00\\n15\\n00\\n6\\n15\\n00\\n18\\n00\\n7\\n18\\n00\\n22\\n00\\n8\\n21\\n00\\n28\\n00\\n9\\n25\\n00\\n35\\n00\\n10\\n33\\n00\\n46\\n00\\n11\\n45\\n00\\n60\\n00\\n12\\n60\\n00\\nIf the child dies within three months from the date of the contract, no\\ninsurance will be payable.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0140.jp2"}, "141": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1879- 80. IO9\\nIt will be noted that under this table the Company limited\\nthe premium on policies for persons under the age of thirteen to\\nthree cents, while no benefit was payable until the child had been\\nthree months insured. This practice during the early years of\\nIndustrial insurance is another indication of the conservative and\\ncautious spirit which has been such a marked characteristic of\\nthe managers of The Prudential Insurance Company of America.\\nADULT RATE TABLE.\\nThe Prudential Insurance Company of America. 1879.\\nweekly premiums.\\nTwenty-five\\nAGE.\\nFive Cents.\\nTen Cents.\\nCents.\\nFifty Cents.\\n13\\n|H7 75\\n15\\n114 OO\\n20\\n103 OO\\n$206 OO\\n25\\n90 50\\n181 00\\n$452 50\\n30\\n79 00\\n158 00\\n395 00\\n35\\n67 75\\n135 50\\n338 75\\n40\\n56 75\\n113 50\\n283 75\\n45\\n45 50\\n91 OO\\n227 50\\n$455 00\\n50\\n37 00\\n74 00\\n185 00\\n370 OO\\n55\\n29 75\\n59 5o\\n148 75\\n297 50\\n60\\n23 25\\n46 50\\n116 25\\n232 50\\n65\\n17 OO\\n34 00\\n85 00\\n170 OO\\n70\\n12 50\\n25 00\\n62 50\\n125 00\\n75\\n9 5o\\n19 00\\n47 50\\n95 00\\nHow carefully these tables had been calculated is illustrated\\nby the fact that to-day, after twenty years, the rates are practi-\\ncally the same, while the benefits have been increased in the\\ndirection of more liberal concessions, with special reference to\\npaid-up policies, cash-surrender values, etc. The only material\\nchanges or increases in the amounts of benefits which have been\\nmade are to be found under the infantile table, where larger\\namounts are now paid for the same unit of premium. This is due\\nlargely to the increased duration of infantile life, or, conversely,\\nto the diminished mortality of children under ten years of age\\nwhich has taken place during the past twenty years.\\nThat the difficulties, disadvantages and even dangers of the\\nnew experiment in life insurance were fully realized by outsiders\\nis incidentally made clear by some remarks addressed to the offi-\\ncers of the Company, and especially to Mr. Dry den, at a banquet", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0141.jp2"}, "142": {"fulltext": "IIO HISTORY OF THE PRUDENTIAL.\\nand annual reunion of the officers and agents of The Prudential\\nin January, 1879 and it may not be out of place to give space\\nto a brief abstract of the remarks of Br. Burnett, who spoke as\\nfollows\\nIn conclusion, gentlemen directors, allow me to give my most agree-\\nable testimony to the thorough work done in this office. The Prudential\\nInsurance Company of America is skillfully managed on an efficient busi-\\nness basis. Its financial affairs are transacted with rigid economy, united,\\nwhen the interest of the Company demands it, with a most liberal tact.\\nThere is nothing niggardly here, although every item of expense is sub-\\njected to the closest scrutiny. Gentlemen, your work is well done.\\nNever was a Captain more ably supported by a lieutenant than is our\\nPresident by our most efficient Secretary. As long ago as June 9, 1873, when\\nI had the pleasure of examining the Hon. John Whitehead, the first appli-\\ncant for a policy in The Widows and Orphans Friendly Society, out of which\\nThe Prudential arose, he being the President of the Society at that time,\\nand Mr. John F. Dry den was the second applicant Jor $1 ,000 in the same\\nSociety our Secretary was already revolving in his fertile brain the idea of\\nThe Prudential Company in America, founded on the same principles as\\nthe great Prudential of London. He often conversed with me upon the\\nsubject, and prophesied its coming formation and its coming success. His\\nwhole soul appeared to be bound up in the idea, and I rejoice that the\\nCompany has, as its representative in this capacity, a gentleman of rare\\nexecutive ability with a life-love for his work, a true and an honest man\\nGod s noblest work.\\nThis view of the success of The Prudential, increasing public\\nappreciation of this form of insurance, the officially attested facts\\nindicating the progress and financial solvency of the Company,\\nall accessible to the managers of other insurance institutions,\\nmade it clear that the time was not far off when Industrial insur-\\nance would be undertaken on a larger scale and by other com-\\npanies with an ample capital and an established agency force\\nlikely to prove of material aid in developing new territory.\\nThe opportunity for new Industrial insurance companies was\\napparent and recognized by many of the insurance journals of\\nthe period. Thus, in December, 1878, the Insurance World of\\nPittsburg, Pa. called attention to the fact that Industrial\\ninsurance, notwithstanding the expense, is a growing necessity\\nin our workshops and factories. Some of our large companies\\nmight reap a harvest in this direction. The Travelers, if we\\nmight make the suggestion, is a company well adapted to take\\nhold of this work. Thus, by December, 1878, the growing", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0142.jp2"}, "143": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l879~ 8o. Ill\\nnecessity for Industrial insurance was becoming recognized out-\\nside of the city of Newark, and in Boston I find that there was\\nin existence, in 1879, The St. Peter s Workingmen s Benefit\\nClub, in a manner a typical American Friendly Society, with\\n73 members, in which dues were paid weekly at a rate of 10 cents\\nper member, for insuring $5 a week in sickness, $30 at the death\\nof a member, and $15 at the death of a member s wife. As an\\nindication of the necessity for public education in matters of\\ninsurance and savings, I can not do better than quote the remarks\\nfrom the Massachusetts Labor Report for 1879, published in\\n1880, in which it was stated that the great multitude of our\\nworkingmen, for whom almost nothing is done except by way of\\nrelief when they fall into distress, represent the field to-day for\\nthe best work.\\nOfficial reference is made to the subject in the annual report of\\nthe Massachusetts Insurance Department for this year, in which\\noccurs the statement that the people are not satisfied with present\\ndevelopments or conditions, and facts seem conclusively to prove\\nthe increasing popularity of what are termed Prudential, In-\\ndustrial, Mutual Benefit, Mutual Relief, Co-operative,\\nand other plans of insurance, some of the latter having no scien-\\ntific basis or financial stability.\\nManifestly, the question of Industrial insurance was now act-\\nively before the public, and neither Insurance Commissioners nor\\nthe insurance press missed an opportunity to make reference to\\nthe increasing need for this form of insurance in all parts of the\\ncountry. In the Insurance Times for April, 1879, I find a lengthy\\narticle on the subject, from which I make a brief quotation\\nThere may be an attraction in placing policies for large amounts on\\nthe lives of persons who are likely to be prompt in the payment of\\npremiums at considerable intervals. But if life insurance be a system\\nbenevolent in its spirit and beneficent in its workings, the prime object\\nshould be the diffusion of its blessings among the masses the good of the\\ngreatest number, not the great good of the few. No consideration of\\npresent trouble and vexation should stand in the way. Will it pay is the\\nonly practical and proper question as to any class or condition of life, fust\\nas low in the scale of society as the effort can be made self-sustaining, should\\nthe insurance manager be willing to go.\\nThe last remark is especially significant. As I have pre-\\nviously stated, Industrial insurance companies have never made", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0143.jp2"}, "144": {"fulltext": "112 HISTORY OF THE PRUDENTIAL.\\nit their business to go low down in the scale of human beings\\nfor the purpose of placing their policies. This would not be\\ndesirable from a business standpoint as regards a profitable prog-\\nress, since the high mortality prevailing among the lowest poor\\nis in itself a sufficient discouragement to their insurance but a\\nstill more serious disadvantage in transacting business among\\npaupers, or the lowest poor, is that the requirements of the\\nbusiness for the continuance of the policies are not such as to\\nmake it possible to transact business among them on a profitable\\nbasis. It can not be too often pointed out that a distinction\\nshould be drawn between paupers and the poor or lowly, who\\nstill in their deepest poverty maintain a determined struggle for\\nexistence upwards and onwards towards a higher and a better life.\\nIt is something very considerably to the credit of the industrial\\npopulation, or that large portion which work for small and often\\nuncertain wages, that they have, nevertheless, within the limit\\nof their means, if but for a single five-cent premium, made a\\nprovision on their own account against life s contingencies, and,\\nas it has been so eloquently said by Mr. Dry den, against a fate\\nworse than death.\\nFor some curious reason the Insurance Times seems to have\\nknown very little of the progress of The Prudential even as late\\nas April, 1879, for in a lengthy article on the subject, in which\\nonce more the value and importance of the system is pointed\\nout, the editor concludes that The time is ripe for this\\ngreat and beneficent undertaking. Some one will soon step for-\\nward to secure the profit, if not the laurel. The movement\\nought to be controlled by the large life insurance companies,\\nwhose abundant means, previous success and matured system\\nwould inspire confidence. They have the facilities for organizing\\na new clerical force, and for managing the details of the business\\nin an economical way. Which of them will be the pioneer in\\nAmerica The company first in the field is sure of a great and\\nprofitable success. The moment it announces its intentions it\\nwill receive a God-speed from the newspaper and press generally,\\nand from every true philanthropist.\\nTo these words of just appreciation of the necessity for\\nIndustrial insurance for the industrial population, the Insurance\\nTimes of April, 1879, adds some further comments, as to the\\nprobable results of the introduction of this form of insurance", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0144.jp2"}, "145": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1879-80. 113\\ninto the United States, which subsequent events have fully\\njustified\\nNow the industrial insurance will seize on this circumstance in the\\nlives of the lowly. It will become a tie to bind a man to his family. He\\nwill not only feel that he is doing something beyond what the law will com-\\npel him to do, but he will be reminded month after month, or week after\\nweek, as the insurance man appears, that he is bound by a tie that will\\nrequire more than ordinary selfishness to break. It is a silken tie, but one\\nthat may last for life. Nay It may be strong even when he sleeps in\\ndeath. For he is rearing a monument of esteem and affection in the heart\\nof his family that may have more real grandeur than a cenotaph of marble.\\nWhat will be the effect of this increase of family affection Unques-\\ntionably higher morals. There will be an additional motive \u00c2\u00bbto lead a good\\nlife. Home will become attractive. The tavern and bar-room will lose\\ntheir attractions. The society of the family will be preferred to the society\\nof the vicious. Those that have failed will be reclaimed. Those that are\\ntempted may be confirmed in good purpose.\\nThis improvement in the social relations may cause, or it may be caused\\nby another benefit of industrial insurance. The man will become more\\nregular in his business habits, in the employment of his time. It will not\\nrequire the mathematics of the actuary to demonstrate that the parties\\nassured will, on the average, earn more difference in money than the\\namount of their premiums. The regularity of the instalment payments\\nwill tend to make men more methodical. What makes them more method-\\nical will improve their finances. The removal of anxious feeling as to\\nthe future welfare of their families will tend to make them more efficient.\\nAnd they will not only earn more, but they will spend less on things of no\\naccount. Great philanthropists have often said that they had none the\\nless money for their benevolence. Their habits of life are more productive.\\nGiving doth not impoverish. There is he that scattereth and yet\\nincreaseth. Industrial i?isurance will, in a thousand ways, and by a\\nthousand circumstances, acting and re-acting on each other, promote at\\nthe same moment the moral welfare of the assured and improve their\\npecuniary condition. The network of social relations, and of the various\\ninfluences that affect individual mind and action, are so interwoven that\\nthe whole system grows and expands imperceptibly and inscrutably.\\nTouching one must strike the other, too.\\nWith the improvement in morals and in material interests will come\\nthe elevation of the man as a member of the body politic. He will not\\nonly be lifted higher in the scale of society, but in many cases the mere\\nconsumer will be converted into a producer. It would require no fertile\\npen to picture the public benefits of industrial insurance. The decrease\\nof crime, the stoppage to a great extent of the drain necessary to provide\\nthe benevolent institutions required by destitution and infirmity, the\\nsaving to the State in the cost of maintaining its criminal jurisdiction and\\nsupporting its reformatory and penal establishments, the addition to its\\ntax-paying population, the improvement of the public health, and the", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0145.jp2"}, "146": {"fulltext": "114 HISTORY OF THE PRUDENTIAL.\\nincrease of longevity, are only some of the public benefits that will grow\\nout of this beneficent system.\\nThese just and prophetic utterances were made by a writer\\nfamiliar with the results which Industrial insurance had already\\nachieved in England and it is not too much to say that seldom\\nhas prophecy been more fully realized than in the case of Indus-\\ntrial insurance to-day, from the workingman s standpoint, at\\nleast, the most satisfactory method of providing for the contin-\\ngencies of life, and of securing widows and orphans -against\\npauperism and want in many forms.\\nThe article from which I have quoted at length was no\\ndoubt largely instrumental in calling the attention of insurance\\ncompanies to the increasing importance of Industrial insurance,\\nand, in fact, the same number of the I?isura?ice Times* contains\\na reference to the fact that several New York life-insurance\\ncompanies were contemplating the adoption of the plan of\\nIndustrial insurance, while one, the Provident Savings Life As-\\nsurance Society, had actually organized an Industrial insurance\\ndepartment, under the supervision of an English gentleman\\nfamiliar with the methods of the British Prudential. The Provi-\\ndent Savings was, therefore, the first of a number of regular\\nOrdinary companies to follow the lead of The Prudential in trans-\\nacting an Industrial business on the plan of the British Prudential.\\nThe Provident Savings, however, failed to recognize all of the\\nessential principles, and seems never to have entered seriously and\\nenergetically upon the transaction of this form of insurance. The\\ncompany never attempted to push this class of business even in\\nthe very beginning, and after a few }^ears the Industrial branch\\nwas discontinued.\\nClosely following the organization of an Industrial depart-\\nment on the part of the Provident Savings, came an attempt on\\nthe part of some of the officers of the New York Life, who\\nhad associated with themselves Mr. Bassett, the first President\\nof The Prudential Friendly Society, for the purpose of organiz-\\ning the Industrial Insurance Company of the United States.\\nThe new company proposed to issue policies from ages one to\\nseventy-five, and furnish insurance in sums ranging from $50 to\\nInsurance Times, April, 1879, P- 2 3 2", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0146.jp2"}, "147": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1879-80. 115\\n$500 to the poorer classes, receiving the premiums in weekly\\nor monthly instalments. The payments were to range from\\nthree cents to fifty cents a week, but, for reasons which can not\\nnow be ascertained, the company did not assume a corporate\\nexistence, although an effort seems to have been made to organ-\\nize the same on a substantial basis. Both Mr. Beers and Mr.\\nFranklin, as officers of the New York Life, were among the\\nincorporators, but it would appear that the effort was only a half-\\nhearted one, probably due more to Mr. Bassett s influence than\\nto a strong inclination on the part of the officers of the New\\nYork Life. In making reference to this effort to organize a new\\nIndustrial company, the Spectator, in its October issue of 1879,\\nreferred to The Prudential and the results which had been accom-\\nplished as follows\\nThe Prudential, of Newark, has been extremely successful thus far, and\\nwe have no doubt but the application of the same principle to a more\\nextended field will meet with equal success. It is but justice to state, in\\nthis connection, that The Prudential, of Newark, is largely indebted to its\\nSecretary, John F. Dryden, for the success which it has realized. His\\nability and indefatigable industry have been incessantly devoted to the\\nfurtherance of this system of insurance, of which he was the original\\npromoter in this country. Having been so successful in New Jersey, the\\nCompany is about to commence business in New York State.\\nBefore I deal with the extension of the business of The\\nPrudential to other States than New Jersey, I must briefly\\nnotice an effort to establish an Industrial insurance company in\\nMassachusetts, by the John Hancock Mutual Life Insurance\\nCompany of Boston, which, as has been stated, had commenced\\nthe issue of monthly policies on what it called The Prudential\\nplan, as far back as January, 1878 but it was in this year,\\nin August, 1879, that it commenced the issue of regular\\nIndustrial policies on the weekly -premium payment plan, identi-\\ncal in most respects with the methods and practice adopted by\\nThe Prudential of Newark, after the model of the Prudential of\\nEngland. This effort on the part of the John Hancock proved a\\nsuccess, and the company is to-day the third largest Industrial\\ninsurance company in this country.\\nAt the same time that the Provident Savings and the John\\nHancock were making efforts to extend Industrial insurance,\\nanother large company had had the question under consideration", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0147.jp2"}, "148": {"fulltext": "n6\\nHISTORY OF THE PRUDENTIAL.\\nfor some time, and seems to have been actively engaged in the\\nstudy of Industrial insurance in England through its president,\\nwho, immediately upon his return, took steps to organize an\\nIndustrial branch, out of which in time developed the largest\\nIndustrial insurance company of America, The Metropolitan\\nLife Insurance Company of New York.\\nThe first Industrial policy of the Metropolitan was issued on\\nthe 17th of November, 1879, or just four years after The Pruden-\\ntial had commenced actual business operations, on the 10th day\\nof the same month in 1875. Thus, by the close of the year there\\nwere four companies actively engaged in the business of Industrial\\ninsurance, and it may be of more than passing interest to give\\nthe results accomplished, as shown by the returns of the business\\nin force December 31, 1879\\nINDUSTRIAL INSURANCE IN THE\\nUNITED STATES. 1879.\\nNo.\\nAmount.\\nAverage Policy.\\nProvident Savings,\\nJohn Hancock,\\nMetropolitan,\\n43,715\\n1,947\\n9,327\\n5,143\\n$3,866,913 00\\n258,033 00\\n951,000 00\\n516,618 00\\n$88 00\\n133 00\\n102 00\\n100 00\\nTotal,\\n60,132\\n$5,592,564 00\\n$93 00\\nThis table shows that there were in force in 1879 in The\\nPrudential 43,715 policies, while the four companies together\\nhad over 60,000 policies in force. While only four companies\\nare included in the above table, there was still another,\\nThe Germania L,ife Insurance Company of New York, which\\nalso during the month of November had commenced the\\ntransaction of an Industrial business, but for which the returns\\nare not available for the end of the calendar year, 1879.\\nThus by January 1, 1880, five companies were in the field,\\nand the history of Industrial insurance thereafter is no longer\\nexclusively the history of The Prudential Insurance Company.\\nBy a curious coincidence the first Industrial policy of the Germania\\nwas also issued on the 17th of November, 1879.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0148.jp2"}, "149": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1879-80. 117\\nThe object of Mr. Dryden s efforts had been accomplished\\nIndustrial insurance had been proven a success, the business\\nhad been established on a substantial and scientific basis,\\nand all the companies which followed The Prudential fol-\\nlowed its lead in placing the Industrial business on a sound\\nfinancial foundation, and for this reason there has never been\\na single failure of a legitimate Industrial insurance company\\nin the United States. To this is due the fact, in marked con-\\ntrast to the history of the thousands of attempts at pseudo-\\ninsurance transacted under various names, that not a single\\ndollar has ever been lost to a policy-holder in an Industrial\\ncompany on account of financial insolvency, or the shameful\\nbetrayal of a sacred trust.\\nNear the close of the year 1879 The Prudential had taken\\nsteps to increase its capital to $100,000, to provide the necessary\\ndeposit to enter the State of New York. Men of exceptional\\nability had been induced to enter the service of the Company and,\\namong others, Mr. John F. Collins, who had been the Secretary\\nof the Republic L/ife of Chicago, was placed in charge of the\\nCompany s business in Philadelphia, while Mr. George H.\\nThornton, ex-President of the John Hancock Mutual L/ife,\\nwas given charge of the office of the Company in the city of\\nNew York. The Philadelphia Underwriter in making mention\\nof the extension of the operations of the Company, referred to\\nthe opening of an office in Philadelphia, stating that We trust\\nthat under the lead of the efficient gentlemen and their coadju-\\ntors, who now direct the affairs of the Company, its career may be,\\nover a large extent of territory, as nobly efficient as it has been\\nin Newark and vicinity\\nThe Insurance Monitor, in November, 1879, in referring to\\nthe admission of The Prudential to the State of New York,\\nreferred to the Company as follows\\nThe Prudential Life Insurance Company of New Jersey has been\\nadmitted to the State of New York, and has taken offices in the Astor\\nHouse, where the headquarters of the company will henceforth be. This\\ninstitution has been, for several years, quietly at work in New Jersey, and\\nthe amount of business which it has placed upon its books is something\\namazing. It is the first practical illustration of what can be done in\\nPrudential life insurance that has yet been furnished by an American\\ninstitution, and we shall look with great interest for its future develop-\\nment.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0149.jp2"}, "150": {"fulltext": "Il8 HISTORY OF THE PRUDENTIAL.\\nBefore the Company had been admitted to the State of New-\\nYork its affairs had been thoroughly investigated under the\\ndirection of the Secretary of the State of New Jersey, by so\\nhigh an actuarial authority as Mr. David Parks Fackler. I\\nquote from the Spectator of November, 1879, a brief statement\\nin reference to this examination\\nRecently the stockholders of the company paid in an additional\\n$100,000, and now propose, as soon as the details are arranged, to prosecute\\nbusiness in the States of New York and Pennsylvania. The sum of $100,000\\nhas been deposited with the New Jersey State Treasurer, and, at the request\\nof the company, its affairs have been thoroughly investigated, Secretary\\nof State Kelsey employing D. P. Fackler, the well-known insurance\\nactuary, to value its liabilities and to critically examine not only the\\nassets of the company, but its methods of doing business. The reports\\nupon both heads are exceedingly complimentary to the management of\\nthe company. The Prudential is conducted upon precisely the same\\nplan as the Prudential of London, one of the largest and wealthiest life\\ncompanies in the old country. Hundreds of instances might be mentioned\\nwhere a policy in The Prudential has saved the insured from being buried\\nin a pauper s grave at the expense of the public. It will be seen that\\nthe purposes of the company are beneficent in the highest degree, and we\\nhave no doubt but it will meet with continued success in its enlarged\\nsphere of usefulness.\\nAs has been stated, by the first of January, 1880, The Pru-\\ndential had 43,715 policies in force, for a sum of $5,866,913 of\\ninsurance protection. From the beginning the Company had acted\\nupon a principle, from which it has never deviated during the\\ncourse of more than a quarter of a century of Prudential history,\\nand I can not do better than quote Mr. Dryden s views on this\\npoint, from the annual letter to the field force, dated January 2,\\n1900, in which I find reiterated what had so often been expressed\\nin earlier official communications By word and pen we have\\nmade it known that The Prudential seeks only to surpass its own\\nrecord. This policy of conservatism and prudence has char-\\nacterized the development of the Company from the date the first\\npolicy was written, on November 10, 1875, and how early and\\nfully this policy was appreciated by the public is indicated by a\\nstatement in the Insurance World of 1880\\nThat the subject of industrial insurance has been so much neglected in\\nthe light of its success elsewhere, is a source of considerable surprise.\\nHowever, within the last couple of years the subject has received more", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0150.jp2"}, "151": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1879-80. 119\\nfavorable attention. A few of the regular life companies have been push-\\ning an industrial branch with a reasonable amount of success, whilst one\\ncompany, The Prudential, of Newark, has been making a specialty of this\\nclass of insurance, and by not endeavoring to do too much at once, but to\\ncover thoroughly each field as it slowly extends its operations, bids fair in\\na few years to become a household word with our working classes.\\nThis prediction on the part of the Insurance World has\\nbeen more than fulfilled during the later years of Prudential\\nhistory, and it is not too much to say, without vanity or\\nvainglorious pride, that the name of The Prudential and\\nits motto, The Prudential has the strength of Gibraltar,\\nare to-day household words in America from Maine to Cali-\\nfornia.\\nBy 1880 the subject of Industrial insurance had attracted\\nsufficient attention to receive special consideration in the annual\\nreport of the Massachusetts Insurance Commissioner. The Com-\\nmissioner called the attention of the Legislature to the successful\\nintroduction of the system by several companies authorized to\\ntransact business in Massachusetts, stating that Though\\nsomewhat experimental in its present stage of development in\\nthis country, its success has thus far exceeded all expectation.\\nBeing especially adapted to the poor and laboring classes, its\\nmaterial and timely relief, so promptly furnished in seasons of\\npressing need, is proving itself a welcome boon to multitudes\\nof grateful beneficiaries. However, a weak point was referred\\nto by the Commissioner, which, though fully provided for by\\nthe managers of The Prudential, seemed to require legislative\\naction. In the words of the Commissioner, The present\\nlaws of the State fail to provide a proper standard of reserve\\nfor this plan of insurance, a very large portion of its policies\\nnot coming within the rules of valuation applicable to other\\ninsurance. With this end in view, a bill to regulate the busi-\\nness had been introduced into the Legislature, but failed of\\npassage but, as far as The Prudential was concerned, it had\\nfrom the beginning provided an adequate reserve for all its\\npolicies, and this practice has been rigorously adhered to up\\nto the present time. One important point had been gained,\\nhowever, and that was that by 1880, after a little more than four\\nyears of actual business operations on the part of The Prudential,\\nthe business had increased sufficiently in extent to be officially", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0151.jp2"}, "152": {"fulltext": "120 HISTORY OF THE PRUDENTIAL.\\nrecognized as a distinct branch of legitimate life-insurance prac-\\ntice. One other problem, however, had attracted the attention\\nof the Insurance Commissioner, as a serious question confronting\\nthe Company, and that was the valuation of policies on the lives of\\npersons under ten years of age. In a special report on the subject,\\nthe Deputy Commissioner of Insurance of Massachusetts, under\\ndate of August 30, 1880, stated that In attempting to apply the\\nprovisions of the general insurance laws to the regulation of the\\nbusiness of Infant Prudential Insurance,* we are met at the outset\\nwith the fact that for the valuation of such policies no standard\\nis either fixed or provided for, and therefore, so far as the general\\nlaw is concerned, the inference might be that this form of policy\\nis not recognized as a life-insurance contract, but the charters of\\nthe companies operating this plan of insurance empower them\\nto do insurance upon lives without reference to ages, and thus\\nplace beyond question the legitimacy of the business.\\nThe value of this official reference to Industrial insurance\\nlies in the fact that, according to the highest authority on insur-\\nance interests, the insurance of persons of young ages was fully\\nas legitimate as the insurance of adults. The essential point in-\\nvolved was that the so-called infantile policies were policies on per-\\nsons under the age of say thirteen, and no reserve was required,\\nsince the mortality at the younger ages diminishes constantly\\nfrom age o until ages 13 to 15 are reached. After this age the\\nThe term Infant Prudential Insurance is a misnomer and equally\\nmisleading with another frequent expression, viz., Child Life Insurance.\\nThere is no such business as Child Insurance, per se, since not a single\\ncompany confines its operations exclusively to the insurance of children,\\nand the expression has no more justification than there would be in speak-\\ning of Wife Insurance because the companies, as part of their regular\\nbusiness, accept risks on women as well as on men. The term Child\\nInsurance or Child Insurance Companies has of late years been fre-\\nquently employed by opponents to this system of insurance, for the delib-\\nerate purpose of misleading the public into the belief that the Industrial\\ncompanies make a specialty of, or confine their operations exclusively to,\\nthe insurance of children under the age of thirteen. As a matter of fact,\\nthe proportion of children insured with the large companies is practically\\nidentical with the normal proportion of persons under the age of thirteen in\\nthe United States. In The Prudential the proportion of deaths at ages one\\nto fifteen, during the period i89i- 98, was 23.4 per cent, against a propor-\\ntion of 26.9 per cent, for the city of New York.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0152.jp2"}, "153": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l879- 8o. 121\\nmortality gradually increases to the oldest attainable age, and to\\nadjust this factor in an equitable manner The Prudential from\\nthe beginning had followed the practice of the English Prudential\\nAssurance Company, and had devised a table by which the pre-\\nmiums remained level while the amounts payable at death increased\\nfrom age i to age 13, after which the amounts remained the same\\nfor life, subject in later years to increased benefits or dividends,\\nor surrender-value privileges, as the case might be. To illustrate\\nthis point, I reproduce in full the first infantile table used in\\nthe United States by The Prudential Insurance Company of\\nAmerica\\nFIRST INFANTILE RATE TABLE USED BY THE PRUDENTIAL.\\nTable of Benefits Payable for 3 Cents a Week.\\nNo Higher Premium Can be Taken.\\n(Benefit payable if child dies after three months and within one year after\\npolicy has been issued.)\\nAge Last Birthday When Policy Was Issued.\\nBenefits Payable if Child Dies After\\nthe Policy has been Issued.\\nFor 3 months,\\n1 year,\\n11 2 years,\\n3\\n4\\n6\\n8\\n9\\n10\\n11\\n1\\n2\\n3\\n4\\n5\\n6\\n7\\n8\\n9\\n10\\n11\\n$10\\n$11\\n$12\\n$13\\n$14\\n$15\\n$18\\n$21\\n$25\\n$33\\n$45\\nII\\n12\\n13\\n14\\n15\\n18\\n22\\n28\\n35\\n46\\n60\\n12\\n13\\n15\\n17\\n20\\n24\\n29\\n37\\n47\\n60\\n14\\n16\\n18\\n21\\n25\\n30\\n38\\n48\\n60\\n17\\n19\\n22\\n26\\n32\\n39\\n48\\n60\\n20\\n23\\n27\\n32\\n40\\n49\\n60\\n25\\n28\\n33\\n40\\n49\\n60\\n30\\n34\\n40\\n5o\\n60\\n35\\n40\\n50\\n60\\n40\\n50\\n60\\n50\\n60\\n60\\n12\\nThis table, according to Mr. Dry den, in a statement made\\nbefore the Massachusetts Legislature in 1895, was the only-\\ninfantile table used by the Company for eight years, but at the\\nexpiration of that period it was found, after carefully testing", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0153.jp2"}, "154": {"fulltext": "122 HISTORY OF THE PRUDENTIAL.\\nthe matter, that the laboring man needed more insurance for\\nhis children, and that higher premiums would have to be\\naccepted to meet the needs and wants of the industrial masses\\nand with this end in view tables were prepared on which five-\\nand ten-cent premiums were accepted, though the general plan\\nand arrangement of the table were not changed, being the same\\nin theory as well as in practice at the present day.\\nThe entire subject of Industrial insurance, with special\\nreference to valuations and reserves, was referred to a special\\ncommittee of Insurance Commissioners, who in their report\\nrecommended that for the purpose of computing reserves on\\npolicies issued at the ages under twelve years the valuations\\nshould be as for renewable term policies, no charge being made\\nfor reserve upon policies running on weekly or monthly premi-\\nums, and, further, that policies issued upon the plan set forth\\nfor sums under $500 of insurance shall not be held subject to\\nthe provisions of non-forfeiture acts, because of the almost\\ninfinitesimal amount of the benefit thereunder or to such laws\\nas require notice of the falling due of premiums to be sent to the\\npolicy-holder, as the frequency of these payments makes the\\nlabor and expense of such notices impracticable.\\nIn consequence of these recommendations, by October, 1880,\\nIndustrial insurance had a recognized standing before the Insur-\\nance Commissioners of the different States, and a high sense of\\njustice seems to have dictated the resolution that the many intri-\\ncate problems resulting from the practice should be dealt with\\nby the companies in their own way, in full confidence that the\\nlatter would deal equitably with their policy-holders, in the light\\nof their own experience and in consequence of the increasing com-\\npetition in the number of companies engaged in the business.\\nAs the business was extended, its technical side naturally\\nreceived increasing attention. From the beginning, serious at-\\ntention had been given to one of the most important questions\\nwith which The Prudential has had to deal, and which even at\\nthe present time represents one of the most complex problems\\nin Industrial insurance, namely, the question of forfeiture of\\nbenefits on contracts which have been voluntarily surrendered\\nby the insured. As has been stated, the Committee of the\\nInsurance Commission Convention had recommended that Indus-\\ntrial policies should not be subject to non-forfeiture laws, since", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0154.jp2"}, "155": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1879-80. 1 23\\nthe small amounts at risk would not warrant the application of\\nnon-forfeiture principles to Industrial policies neither was there\\nneed for legislation on the subject, since the companies engaged in\\nthe business, acting on competent actuarial advice, had done what\\nthey could to prevent the lapsing of policies, first, by holding\\nagents personally responsible for such lapses,* and, second, by\\ngiving to lapsed policy-holders not only a period of grace of\\nfour weeks, but every opportunity to revive lapsed policies with-\\nout fines or other expense, and subject only to an examination or\\nevidence of the health of the applicant at the time of reinstate-\\nment, to the effect that applicant was not an impaired risk. The\\nPrudential, however, early recognized the need of energetic action\\nin reference to lapsed policy-holders, and during the early part\\nof 1880 issued a circular letter, which was sent to policy-holders\\nin default or arrears for premiums\\n[Form No. 146]\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\n1880.\\nM\\nPolic No\\nThis is to notify you that I called this day to collect your Premiums\\nnow weeks in arrears.\\nUnless the same are paid when I call again, on next,\\nthe rules of the Company will compel me to lapse your Policy.\\nVery respectfully,\\nAgent.\\nAgents are paid a commission for writing new insurances, but only in\\ncase an actual increase is made in the weekly collectible premiums. Thus,\\nif an agent lapses two policies for, say, twenty cents of weekly premiums,\\nand writes three new policies for thirty-five cents weekly premiums, he\\nwill be paid a commission on only fifteen cents of new premiums. By this\\nmethod it is vitally to the interest of every agent to keep every policy in\\nforce, since every lapse represents a direct financial loss.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0155.jp2"}, "156": {"fulltext": "124 HISTORY OF THE PRUDENTIAL.\\nShould a policy have lapsed regardless of this notice of warn-\\ning, a further notice was sent to the lapsed policy-holder, offer-\\ning an opportunity for revival of the same without loss or cost to\\nthe insured, provided the same was in good health at the time\\napplication for revival was made\\nNewark, 1880.\\nI have to inform you that our Agent reports the premium on the\\nabove Polic as last paid for the day of\\n1880, and the Polic ha therefore been lapsed.\\nA lapsed Policy may be revived upon paying the premiums in arrears,\\nand furnishing satisfactory evidence of the good health of the person upon\\nwhose life the Policy was issued.\\nUnless a lapsed Policy is so revived, all benefit under the same is for-\\nfeited. Should you wish to continue the insurance, please take this card\\nand your Premium Receipt Book to the Agent (or bring them to this office),\\nand pay the premium.\\nI remain, very truly yours,\\nJohn F. Dryden,\\nSecretary.\\nIt is thus quite clear that the Company made every reason-\\nable effort to keep the insured from lapsing his policy, or, if such\\nlapse had taken place, to induce the lapsed policy-holder to revive\\nthe policy by payment of arrears. It is easy, of course, to find\\nfault with this perhaps somewhat crude arrangement, but it was\\nthe best that could be made at the time without placing in jeop-\\nardy the interests of persistent policy-holders, the consideration\\nof whom must always outweigh that of those who, for some\\nreason or other, default in their contract obligations.\\nWhat was true of the lapse question was equally true of the\\nquestion of granting partial immediate benefits. On an Indus-\\ntrial policy only a single week s premium had been paid to\\nsecure the policy, and since, in view of this fact, a single five-\\nor ten-cent premium made the Company responsible for a con-\\nsiderable sum, it had been at first the practice to deduct, in case\\nof death, the unpaid part of the annual premium, computed on\\nthe basis of fifty-two weekly premiums payable during the\\nyear. This practice had not been satisfactory to the insured,\\nand the general provision in adult policies was that, of the sum", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0156.jp2"}, "157": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1879-80. 125\\ninsured for under the policy, no benefit should be payable if death\\noccurred during the first three calendar months following the\\ndate of issue of the policy, one-fourth of the amount if death\\noccurred after three calendar months and within six calendar\\nmonths, one-half of the sum insured for was payable if death\\noccurred after six calendar months and within one year, while\\nthe full amount of the policy was not due until the policy had\\nbeen in force one complete year. This precaution was justified\\nand made necessary by the fact that no medical examination was\\nrequired on policies for sums of less than $200, while only a super-\\nficial medical examination was required for sums above that\\namount. No doubt, in consequence of increasing competition,\\nThe Prudential found it necessary, during January, 1880, to\\nchange this plan and grant immediate benefit for one-half the\\namount stated on the face of the policy\\nNewark, N. J., January 23, 1880.\\nDear Sir By virtue of a resolution this day passed by the Board of\\nDirectors, all Adult Policies hereafter issued by this Company will be\\nplaced in immediate benefit for one-half the amount stated on the face of\\nthe Policy.\\nAll Infantile Policies will also be put into immediate benefit from day\\nof issue, instead of at the expiration of three months as heretofore.\\nYou are authorized to inform the members in your Agency that the\\nCompany will, without expense to the insured, if desired, issue a new\\npolicy containing the stipulation above set forth, upon the policy being\\nforwarded to this office for cancellation.\\nIf the member prefers to retain the policy already issued, the Com-\\npany will treat Adult Policies as in one-third benefit for the first six months\\nand two-thirds benefit the last six months of the first year.\\nInfantile Policies already issued will also be treated as in immediate\\nbenefit.\\nI trust this action of the Board of Directors will be another evidence\\nto you that The PrudenTlax, while it is determined to take no hazardous\\nstep, will strive to deal with its members in a spirit of the utmost liberality\\nconsistent with safety.\\nJohn F. Dryden,\\nSecretary.\\nThis concession to the policy-holders was doubtless prompted\\nby the increasing competition and consequent excessive rivalry\\namong the agents. The business was new and, as regards adverse\\nselection, much had yet to be learned. For a time the more", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0157.jp2"}, "158": {"fulltext": "126\\nHISTORY OF THE PRUDENTIAL.\\nliberal benefit provisions prevailed, but subsequent experience\\nproved that a somewhat more restrictive policy was necessary\\nfor the protection of the Company and its policy-holders.\\nPartly in response to increasing competition, largely because\\nof an increasing demand, The Prudential in 1880 commenced the\\nissue of a new form of Industrial policy for the round sum of\\n$500, with premiums differently adjusted, but payable on the\\nweekly plan. A copy of this table is given below, together with\\nthe explanatory statement that, in case of death during the first\\npolicy year, one-half of the amount was payable, while the full\\namount was payable after the policy had been in force a complete\\nyear\\nFIVE-HUNDRED-DOLLAR ADULT POLICY OF THE PRUDENTIAL\\nINSURANCE COMPANY OF AMERICA.\\nAge Next\\nWeekly\\nAge Next\\nWeekly\\nBirthday.\\nPremiums.\\nBirthday.\\nPremiums.\\n20\\n$0.24\\n43\\n$0.50\\n21\\n\u00e2\u0080\u00a225\\n44\\n\u00e2\u0080\u00a252\\n22\\n.26\\n45\\n\u00e2\u0080\u00a255\\n23\\n.26\\n46\\n\u00e2\u0080\u00a257\\n24\\n.27\\n47\\n.60\\n25\\n.28\\n48\\n.62\\n26\\n.28\\n49\\n.65\\n27\\n.29\\n50\\n.68\\n28\\n\u00e2\u0080\u00a230\\n5i\\n.70\\n29\\n\u00e2\u0080\u00a231\\n52\\n\u00e2\u0080\u00a274\\n30\\n\u00e2\u0080\u00a232\\n53\\n\u00e2\u0080\u00a277\\n31\\n\u00e2\u0080\u00a233\\n54\\n.80\\n32\\n\u00e2\u0080\u00a234\\n55\\n.84\\n33\\n\u00e2\u0080\u00a235\\n56\\n.88\\n34\\n.36\\n57\\n.92\\n35\\n\u00e2\u0080\u00a237\\n58\\n.96\\n36\\n.38\\n59\\n1. 01\\n37\\n.40\\n60\\n1.08\\n38\\n.41\\n61\\nLIS\\n39\\n.42\\n62\\n1.22\\n40\\n\u00e2\u0080\u00a244\\n63\\n1.28\\n4i\\n.46\\n64\\ni-35\\n42\\n.48\\n65\\n1.47\\nOne-half benefit first year and full benefit after one year.\\nNoah F. Blanchard,\\nPresident.\\nJohn F. Dryden,\\nSecretary.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0158.jp2"}, "159": {"fulltext": "", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0159.jp2"}, "160": {"fulltext": "", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0160.jp2"}, "161": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1879-80. 127\\nThis table was a decided boon for employees or wage-\\nearners of a higher grade, engaged in remunerative industrial\\noccupations, since it made possible insurance on the plan of\\nweekly payments, combined with the collection of the pre-\\nmium from the house of the insured, for sums as high as\\n$1,000, for men who, on account of their occupation or for\\nother reasons, were not likely to obtain insurance with Ordinary\\ncompanies. It was also the first step in the direction of what\\nin later 3^ears became known as Industrial-Ordinary insurance.\\nIt was a first step in that slow and difficult process of insur-\\nance education of the masses, through the medium and methods\\nof Industrial insurance.\\nWith the growth of the business, the legal aspect of Indus-\\ntrial insurance, the relation of the Company to its policy-holders,\\nthe opportunities for misunderstanding and misconstruction of\\npolicy terms, as well as the occasional instances of fraudulent\\npractices on the part of agents and policy-holders, made it neces-\\nsary that the law department of the Company should be reorgan-\\nized on a more satisfactory basis, and accordingly Mr. Kdgar B.\\nWard, since 1875 a Director and since 1876 the Attorney of the\\nCompany, was this year, under date of February 9th, elected\\nCounsel and, subsequently, Second Vice-President. It is largely\\ndue to Mr. Ward s efforts that the Company has had few legal\\ndifficulties, few contested claims and practically no important\\nlawsuits. As a member of the Finance Committee Mr. Ward\\nhas given much of his time and devoted much of his ability to\\nthe investments of the Company during the past twenty years,\\nand the financial interests of The Prudential have been so ably\\nprotected that no life company can boast of a better record of\\nsafe and remunerative investments than The Prudential Insur-\\nance Company of America. The Company s proud claim to\\nThe Strength of Gibraltar has its foundation in the con-\\nservative manner in which its finances have been managed,\\nand it is but proper that full credit should be given to\\nMr. Edgar B. Ward, as one of the founders of Industrial\\ninsurance in America.\\nThe question of life insurance for children for small sums\\nsufficient to pay the funeral expenses, and to provide for the cost\\nof the last illness, received public consideration this year not only\\nin the insurance press, but in many of the newspapers of the", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0161.jp2"}, "162": {"fulltext": "128 HISTORY OF THE PRUDENTIAL.\\nperiod.* I can not do better than quote from the Weekly Under-\\nwriter of July 24, 1880, an article on this subject of exceptional\\ninterest\\nWe have noticed recently, in several journals, an implied donbt of the\\npropriety of permitting the practice of that part of industrial life insurance\\nwhich deals with the infantile population, and a case is cited, in Baltimore\\nwe believe, where there were suspicions of infanticide in connection with\\nthe death of a child insured in one of these companies. Experience makes\\nsad work of our theories sometimes, and the theory that murder will be\\ncommitted on helpless babes for the small sums for which they are insured\\nhas no basis of fact to sustain it.\\nWe might fairly go further, and say that aside from the facts there is no\\nreason to believe that the natural love of parent for child, which beats as\\nstrongly under the coarser vest as under the costliest, can be stifled and\\nchanged to a criminal action for a sum of money which, at best, merely\\nprovides a decent funeral for the dead child.\\nIt must be understood that industrial policies average less than one\\nhundred dollars and that in the case of infants, or children under four\\nyears, they do not exceed one-fifth of that sum, and that they are guarded\\nagainst criminal intent in their inception by very materially limiting the\\nbenefits under them, for a number of months. The parents who would\\nmurder a child for the insurance would murder it to avoid the burden of\\nsupporting it, the lifting of which would prove a far greater relief than the\\nreceipt of ten or fifteen dollars of insurance money. Opinions, however,\\nAn earlier attack on the practice of insuring the lives of young chil-\\ndren had been made in the Trenton True Anierican under date of March 26,\\n1878, on the basis of an article in the Pall Mall Gazette in which charges\\nof child murder and neglect for insurance money had been made in the usual\\nmanner without evidence or instances of authenticated facts. In com-\\nmenting on the article the True American said\\nSuch a paragraph as this almost destroys one s faith in human nature.\\nIt is difficult to conceive the deep depravity to which the facts commented\\nupon bear witness. But since it does exist, it seems to us that the Courts\\nshould prevent its accomplishing its purpose by holding all policies of\\ninsurance obtained by parents on the lives of their children invalid, as\\nagainst good morals and public policy. It is not only the inducement\\nwhich inhuman parents, devoid even of that instinct which leads the brute\\ncreation to care for its young, find in insurance on their children to ill-\\ntreat them or put them out of the way, but it is the tendency to cause them\\nto neglect their children in their sickness, and, moreover, the demoralizing\\neffect produced by parents speculating on the lives of their children. The\\ninsurance of children by parents is a reversal of the entire object of life\\ninsurance, it ought to be forbidden by law, and the Courts should stamp\\nit out as a dangerous incentive to crime. (Trenton True America?i,\\nMarch 26, 1878.)", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0162.jp2"}, "163": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1879-80. 129\\nare of very little use in the presence of statistics, and, fortunately, we are\\nnot compelled to rely upon opinion in this case.\\nThis same charge was brought against the business by the Friendly\\nSocieties Commissioners in England, who, commenting on the report of\\na select committee of the House of Commons, state they can not agree\\nwith the opinion expressed by the House of Commons committee, that\\nthe instances of child murder with a view of obtaining money from a burial\\nsociety are very few. The Committee of Management of the Royal Liver\\nFriendly Society, one of the largest of these societies we believe with\\nthe exception of the Prudential the largest immediately on becoming\\naware of these opinions expressed by the commissioners, resolved to make\\na complete investigation of their experience, which was done under the\\ndirection of Mr. Sprague, the eminent English actuary. His report, made\\nin 1875, is before us with the figures, giving that society s experience,\\nthe observations covering 122,696 lives. His deduction from the figures\\nis\\nAn examination of these figures proves conclusively that the sus-\\npicions of the commissioners are unfounded as regards the children insured\\nwith the Royal Liver Society. If any appreciable number of such children,\\nresiding, for example, in Liverpool, were destroyed by their parents or\\nother persons in charge of them, for the sake of obtaining the insurance\\nmoney, it is clear that the mortality among the children whose lives were\\ninsured in the Liverpool district would exceed that among the children\\nbelonging to the general population of Liverpool. But instead of this the\\nexact contrary is the case. The rate of mortality among the insured\\nchildren is very greatly less.\\nMr. Sprague s testimony, or rather the testimony of his figures, does\\nnot stand alone. Any person who reads the history of the Prudential\\nAssurance Company can not accuse its manager, Mr. Henry Harben, of\\ncarelessness in arriving at conclusions. Every step in the progress of that\\ncompany has been marked by the most painstaking care and the most\\nlaborious study. In recording its experiences on infant lives, Mr. Harben\\nsays\\nThe records of the policies issued under this table have been most\\ncarefully observed, and while the numbers of lives admitted are counted\\nby millions, the experience of the company completely negatives the idea\\nthat malfeasance generally is practiced, for in the twenty years during\\nwhich the practice of infantile assurance has been carried on, no such case\\nhas been known to have occurred, and only two in which the circumstances\\nwere of a distinctly suspicious character.\\nThis would seem to close the case as far as the business in Great\\nBritain is concerned. It may fairly be presumed that the companies\\nengaged in industrial insurance in the United States have given this\\nsubject some thought before engaging in it. Certainly, all the arguments\\nfor the views of those who consider infantile insurance provocative of\\nmurder are stronger in England than in the United States. Among our\\npopulation children are not felt to be the burden they are in more crowded\\ncommunities. We have not yet arrived, as England has, at a point where", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0163.jp2"}, "164": {"fulltext": "130 HISTORY OF THE PRUDENTIAL.\\na restriction of the birth-rate is discussed as a question of moment. Oppor-\\ntunities for parents to become proud of their children are more plentiful\\nhere than in Europe.\\nIf, then, we find as an actual fact that no such calamity as child\\nmurder follows infantile insurance among the crowded and squalid popula-\\ntion of London and Liverpool and Birmingham, there is little reason to\\napprehend it in New York or Boston or Philadelphia and no cause for\\ndoubting the wisdom of a scheme which promises the benefits of life insur-\\nance in small quantities to those who are unable to buy in large quantities.\\nThis plain statement of the merits of the case in the Weekly\\nUnderwriter is deserving of the most serious consideration on the\\npart of those who would find fault with the practice of Industrial\\ninsurance companies in accepting risks on the lives of young\\nchildren for small amounts.\\nThe Prudential had, from the beginning, carefully observed\\nthe local conditions affecting the business, with special reference\\nto that part or branch which concerned the insurance of children at\\nyoung ages, and by 1880 it was demonstrated, by the vital statistics\\nof the city of Newark, that instead of there having been an increase\\nin the mortality of children since the commencement of Industrial\\ninsurance, there had actually been a material decrease, so much so\\nthat, while the number of deaths at ages one to nine, inclusive,\\nhad been 1,058 during 1876, there had been 934 deaths during 1877,\\n722 deaths during 1878, 618 deaths during 1879, and only 520\\ndeaths during 1880. This was in a city where The Prudential\\nhad transacted the larger part of its business, and where a con-\\nsiderable number of children over the age of one had been insured.\\nFrom that day to this the mortality of children, not only in the city\\nof Newark, but in all the cities in the State of New Jersey where\\nIndustrial insurance is transacted, has materially decreased. It\\ncertainly stands to reason that if the insurance of children had\\nexerted an unfavorable influence on the duration of child life this\\nconsiderable decrease in the mortality would have been impossi-\\nble in a State where, at the present time, the larger portion of the\\nchild population is insured in Industrial companies. The subject\\nhas received further attention during later years, and will be\\nreferred to again in its proper place.\\nBy slow degrees the opinion of the insurance journals and\\nintelligent public opinion in general changed to a uniform ap-\\nproval of the system of Industrial insurance. It was becoming\\napparent that the new form of life insurance was unlikely to prove", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0164.jp2"}, "165": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1879-80. 131\\na dangerous element as regards the mortality of children, or an\\nundesirable factor in competition with Ordinary companies, but\\nrather, to the contrary, it was evident that the general diffusion of\\ninsurance knowledge and principles among the masses was likely\\nto increase very materially the general demand for life insurance\\non the Ordinary plan. A very clear and comprehensive view of\\nthe matter is to be found in an article in the Insurance Times for\\nMarch, 1880, from which I quote\\nIn this way a poor man may provide an adequate burial fund for a mem-\\nber of his family, which the companies agree to pay almost at once. They\\nhave a paid-up capital, and an accumulated surplus, giving security to\\nevery one. How widely such companies differ from the loose co-operative\\ncompanies, will be evident to the most casual observer. The Prudential\\ncomplies with the law, makes a lawful contract, and engages to fulfill its\\ncontract according to law. It has capital to fall back upon, and voluntarily\\nsubmits to all the conditions which the law imposes. On the other hand,\\nthe co-operative companies are a law unto themselves, and they submit to\\nno other law. They have no legal contract to bind them and if they\\nplease to pay, they pay and if they do not please to pay, they keep the\\nfunds that have been committed to them. Any Prudential company is\\nbetter than such rotten associations as these. Happy will it be for the\\nStates if the Prudential companies should drive the co-operative companies\\nout of the country.\\nHow far the Industrial insurance companies succeeded in\\ncounteracting the evil of the increasing number of assessment\\ninsurance societies, it is as yet too difficult to state, for, not only\\nare the statistics of fraternal insurance incomplete and largely\\nmisleading, but the subtle evil which underlies these institutions\\nhas become too widely disseminated to become easily eradicated.\\nIt may with perfect truth be stated of those who originated and\\npromoted the thousands of so-called fraternal or mutual-benefit aid\\nsocieties, as Dr. Hodgkin once said of certain English Friendly\\nSocieties in a little volume on Health, published in 1841,\\nthat whilst none but an accomplished mathematician would\\nthink of producing an almanac in which astronomical predictions\\nshould be given, almost any set of men, who withdraw from the\\ntap-room to the comparatively quiet parlour of an inn, seem to\\nthink themselves qualified, with the assistance of the landlord s\\narithmetic, to devise the plan of a Benefit Society. It is the\\nplain truth that the majority of benefit societies or secret\\norders containing in their charters an insurance provision, or aim-\\ning at the transaction of an insurance business, have been founded", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0165.jp2"}, "166": {"fulltext": "13^ HISTORY OF THE PRUDENTIAL.\\nby men ignorant of, or indifferent to, the principles of life insur-\\nance, the elements of finance and the law of human mortality on\\nwhich the business is founded.\\nHowever much Industrial insurance, as practiced by The\\nPrudential, may have fallen short in meeting the needs and wants\\nof the industrial population, it has at least accomplished one\\nof the principal objects for which it was organized it has paid\\nthe claims which have matured, and the companies will always be\\nable to meet their obligations, founded, as they are, on scientific-\\nally constructed tables of mortality and finance. No Industrial\\ninsurance company in this country has ever failed and none is\\never likely to fail, except on account of possible dishonesty,\\nwhich must be taken into account in all financial operations\\nbut the companies can never fail on account of inherent weakness,\\nfalse principles, or erroneous practice, in view of the soundness of\\nthe basis on which the business rests.\\nI have previously pointed out that by November, 1879, the\\nMetropolitan Life Insurance Company of New York had also com-\\nmenced the transaction of Industrial insurance. Contrary to the\\ncourse followed by The Prudential, the Metropolitan imported a\\nlarge number of superintendents, assistants and agents from\\nEngland, and at once extended its operations over a large num-\\nber of the States, making possible the more rapid extension of\\nthe business, which gave the company a lead which it has main-\\ntained up to the present time. The Metropolitan had for many\\nyears transacted an Ordinary business, had a large capital, a well-\\nequipped office force and local offices in many parts of the country,\\nenabling it, with the assistance of a large number of men expe-\\nrienced in the Industrial business, to at once take the position of\\nnumerical leadership, which it has successfully maintained for\\nthe past twenty years.\\nDuring the year 1880 The Prudential had continued to make\\nconsiderable progress, and by December 31, 1880, there were\\n87,462 policies in force for the sum of $7,347,892. Of this\\nsum the larger proportion was confined to the State of New\\nJersey, the operations in New York and Pennsylvania being\\nas yet very limited in extent. The results obtained were satis-\\nfactory to the Company, which even at this early date followed\\nits maxim to be satisfied with an improvement from year to\\nyear of its own previous record.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0166.jp2"}, "167": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1881-84. 133\\nCHAPTER IX.\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA,\\n1881-1884.\\nDuring the early stages of all commercial development,\\nexcessive and often unfair competition is inevitable. Men\\nanxious to succeed in any given direction, partly ignorant of\\nthe means and largely ignorant of attainable results, will ever\\nand again fall short, and give undue weight to factors and ele-\\nments of least importance, and but small attention to factors\\nand elements of most importance. Nations, as well as individu-\\nals and corporations, will enter into war with each other, which,\\nbut for a saving remnant of common sense, would often prove\\nmutually destructive. With a field open to all, and with bound-\\nless opportunities, men ana companies, during the early days of\\nIndustrial insurance, struggled more against each other than\\nthey struggled for the essential interests of each and all, Indus-\\ntrial insurance companies, no more than Ordinary insurance\\ncompanies or fraternal societies, or business enterprises of any\\nkind but it is something considerably to the credit of The\\nPrudential that, from the first, it never concerned itself with\\nthe success or efforts of other companies, being satisfied to\\nattain its own place in the business world in its own way. In\\nthe beginning it discouraged agents from methods of unfair\\ncompetition, from making attacks on other companies and other\\nmethods of insurance, and to this policy it has remained faithful\\nup to the present time. For a number of years, however, the\\nCompany was drawn into the vortex of a competitive struggle,\\nwhich did not come to an end until about 1884.\\nAs an evidence of the increasing local approval of the\\nCompany and its methods, I quote the following extract from the\\nSunday Call of December 18, 1881\\nTo say anything in this city in praise of The Prudential Insurance\\nCompany, whose office is at No. 215 Market street, is like carrying coals\\nto Newcastle.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0167.jp2"}, "168": {"fulltext": "134 HISTORY OF THE PRUDENTIAL.\\nEverybody in Newark knows this company and knows its honorable\\nrecord. It has paid so many claims here that it would probably be difficult\\nto find a person in our industrial population who has not had come under\\nhis own personal observation the benefits derived from insuring in this\\ncompany. Who is there in Newark who does not know of a relative or a\\nfriend whose necessities have not thus been relieved in that saddest of all\\nhours, when the dark shadow of death enters the door? It is no wonder\\nthat the company has such a marvellous hold upon the confidence and\\ngood-will of our people.\\nWith more than 35,000 policies in force upon the lives of persons in\\nNewark, who pay their premiums weekly to the agents of The Prudential\\nwith the regularity of clockwork, that company will continue to exercise\\na powerful influence over the social well-being of our people. Besides its\\nfair record The Prudential has the prestige of being the first to introduce\\ninto this country the present and only plan of industrial insurance, which\\nhas proven a permanent success. In addition to this the company is\\nsound, and is managed with tact, prudence, and in a spirit of fairness that\\nmakes the interests of its policy-holders safe.\\nAnd, as further evidence of the increasing influence of the\\nCompany beyond the large cities of the State, I give an extract\\nfrom the Metuchen Inquirer of October 20, 1881, as follows\\nThe plan of insurance offered by The Prudential Insurance Company\\nplaces insurance within the reach of all, rich or poor. For years the poor\\nman was shut out completely from the benefits of life insurance. The\\nestablishment of The Prudential Insurance Company, of Newark, N. J.,\\narose entirely from the necessity of giving the poor man some 7neans of\\nproviding for those from whom death would separate him, and at a slight\\ncost, payable in instalments, so arranged as to fall due weekly, and at a\\nrate which brings the desired benefits within the reach of all, no matter\\nhow poor the man may be, who wishes to make such provision for the\\nfuture. The company, by always paying the claims brought against it, has\\nwon the entire confidence of the public. No man can hesitate a moment\\nto secure the means of providing a decent burial for himself or of a member\\nof his family, or of leaving behind him means of supporting his dear ones,\\nat so trifling a cost. Men, women and children, even infants of one year\\nof age, can be insured in this model organization, and the weekly payments\\nrequired are so small that any one can afford to pay them. Thousands\\ntake this means of securing themselves from receiving a pauper funeral.\\nIt, however, was not only from the local press that Industrial\\ninsurance received unqualified endorsement. Among others, the\\nSuperintendent of Insurance of the State of New York referred\\nto the subject in his annual report for 1881 in the following\\nmanner\\nThis class of insurance is somewhat new, and is yet an experiment in\\nthis country, but thus far it seems to meet with success which promises", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0168.jp2"}, "169": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1881-84. 135\\nwell for its future growth and prosperity. Its scope and plan involve\\ninsurance on the lives of laboring men and their families for small sums\\nranging from a few dollars upwards, and the payment of premiums in\\nweekly sums of a few cents. Success in this branch of business is only\\nattainable by the issuance of a vast number of policies and their diffusion\\nin the large cities among the masses of people. One company in New\\nYork, the Metropolitan, has issued, during the past year, more than two\\nhundred thousand of these policies. As the ability of the class of people\\nwho take these policies depends entirely upon their steady employment,\\nand upon their habits of prudence and economy, there are, naturally,\\nnumerous lapses, a number for which the average of the ordinary business\\nis no proper criterion. The companies which appear to be successfully\\nprosecuting this class of business have uniformly afforded every facility\\npossible to enable the lapsed policies to be renewed again upon just and\\nequitable terms, and, so far, there have been no complaints of policy-\\nholders in that direction. But such companies may not always be in the\\nhands of men who will be governed by these honorable principles, and the\\nprotection to which their policy-holders are equitably entitled should be\\nmade a matter of legal regulation. The law under which these companies\\nact is the general life insurance law of the State. While this law does not\\nprohibit the issuance of such policies, or the payment of premiums in these\\nweekly sums, it is not believed that such a system was contemplated when\\nthe law was passed. It seems, therefore, that some provision should be\\nadopted prescribing more particular regulations and requirements to this\\nclass of business.\\nThe superintendent seems to have fully recognized the merits\\nof the business, while at the same time conscious of technical diffi-\\nculties, one of which, the question of reserves, has been previously\\ndealt with. On the question of lapses he pointed out that forfeit-\\nures in Industrial insurance could not be compared with forfeit-\\nures in Ordinary insurance, for, as a moment s consideration will\\nshow, the policy-holder in an Ordinary company has, at the most,\\nfour chances to lapse his policy during the year, while the Indus-\\ntrial policy-holder has fifty-two chances to cancel his policy for\\nsome cause or other, and, again, while the policy-holder in an\\nOrdinary company has usually paid at least one quarter s premium\\nof some material consequence, the Industrial policy-holder\\nwill, in most cases, have paid nothing at all, or but a few dimes,\\nfor which he will have received from six to eight weeks of\\ninsurance protection. There was, however, no need for special\\nlegislation on the subject, for, as was well said by the Weekly\\nUnderwriter, It does not follow, as a political axiom, that\\nbecause a particular business has not been legislated upon, there-\\nfore legislation is needed. There are a great many enterprises", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0169.jp2"}, "170": {"fulltext": "136 HISTORY OF THE PRUDENTIAL.\\nthat succeed very well without special legislation, and Industrial\\ninsurance is fully as likely to succeed without legislation as\\nwith it.\\nOn one point, however, considerable difficulty was experi-\\nenced on the part of The Prudential in entering the State of\\nNew York. It would seem that the authority of the Company to\\ndo business in the State of New York had not been renewed for\\n1 88 1, and that the Company had made no application for a license\\nthat year. In the Spectator for April, 1881, however, there is an\\narticle which would indicate the difficulty, in that it was purely a\\nquestion of license fee which The Prudential s New York repre-\\nsentative ought to pay. In the words of the Spectator\\nThe laws of New York and New Jersey are reciprocal in effect. Indus-\\ntrial insurance is especially peculiar in the numerous solicitors required to\\nconduct it successfully, each agent, as compared with Ordinary life-insur-\\nance representatives, handling a very small amount of money. And here\\nis where the difficulty arose when the Company first entered the State.\\nThe Insurance Department at length determined, under recommendation\\nof the Attorney-General, to construe Industrial superintendents and assist-\\nant superintendents of The Prudential in New York as corresponding with\\nOrdinary life-insurance agents, and under the New Jersey law charged\\nthem $22 each for the State license fee. The New Jersey Legislature, at\\nits last session, amended the license law by providing that agents and\\nsolicitors of Industrial companies should be taxed $2 each. Of course,\\nthis had a corresponding effect upon The Prudential s licenses in New York.\\nBut the New York Department goes further, and disregarding its previous\\ndecision, claims that $22 should be paid by each of the Company s solicitors\\nfor last year. The Prudential, of course, feels aggrieved, and is looking\\ntowards a more equitable arrangement that shall recognize a difference be-\\ntween its small army of solicitors and its superintendents of districts.\\nThe latter it is willing to pay for at the rate of $22 each, but to pay that\\nsum for each solicitor would be a high price to pay for the privilege of\\ndoing business in the State. The Company has a large and growing busi-\\nness in New York, and will doubtless renew its power to continue business\\nin any event.\\nThe point involved was a most serious one, since excessive\\nlicense fees would very largely increase the expense-rate of the\\nCompany. The matter however was equitably adjusted and the\\nCompany resumed business.\\nFrom the very beginning, as I have had more than one occa-\\nsion to point out, the managers of The Prudential had given\\nthoughtful consideration to the large number of technical ques-\\ntions and problems which were constantly pressing for solution.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0170.jp2"}, "171": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1881-84. 137\\nReference has been made to the question of reserves, to the ques-\\ntion of immediate benefit, to the insurance of children, to the\\nsurrender value of policies, etc., but during the early part of 1881\\na new problem presented itself, which the Company dealt with, as\\nin all other matters, solely on the basis of facts as they were avail-\\nable for the purpose of aiding the Company in arriving at an equit-\\nable decision. Thus far negroes had not been seriously considered\\nas applicants for Industrial insurance, but with the increasing\\nextent of the business the colored population had also become\\nconsiderably interested in the subject, and was now in increasing\\nnumbers availing itself of this opportunity to provide for the\\ncontingencies of life. Careful investigations, including the\\nCompany s own experience, and data collected for a large num-\\nber of American cities, pointed to an excessive mortality among\\nthis element of the population, so much so that it became\\napparent that unless the Company adopted a restrictive course\\nit would soon find itself in difiiculties because of inordinate\\nlosses experienced on this class of policy-holders. Under date\\nof March 10th, therefore, the Company issued a circular to\\nsuperintendents and agents on the subject of colored risks, of\\nwhich the following is a copy\\nNewark, N. J., March 10, 1881.\\nTo Superintendents and Agents.\\nThe following changes will be made with respect to colored persons\\n(Negroes), applying for assurance in this Company, under policies issued\\non and after the week commencing Monday, March 28, 1881. (This\\napplies to all Applications taken during the week commencing Monday,\\nMarch 21st.)\\n1. Under Adult Policies the sum assured will be One-Third less than\\nnow granted for the same weekly premium.\\n2. Under Infantile Policies the amount assured will be the same as\\nnow, but the weekly premium will be increased to Five Cents.\\nThese cha?iges are made in consequence of the excessive mortality pre-\\nvailing in the class above named they do not apply to other persons.\\nPolicies issued prior to March 28th will not be affected by this regulation.\\nRate tables for use with Colored Applicants will be duly sent you.\\nAgents using Infantile Applications in which the question of Race\\nis not asked, should write on the lower margin on the back of the applica-\\ntion the word white or colored as the case may be unless this is\\ndone the application will be returned for correction.\\nJohn F. Dryden,\\nSecretary.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0171.jp2"}, "172": {"fulltext": "138\\nHISTORY OF THE PRUDENTIAL.\\nThe following is an abbreviated copy of the first rate table\\nused for colored adult applications\\nADULT RATE TABLE FOR COLORED RISKS.\\nFirst used Aprii, 4, 1881.\\nweekly premiums.\\nTwenty- Five\\nAges.\\nFive Cents.\\nTen Cents.\\nCents.\\nFifty Cents.\\n13\\n$78 00\\n15\\n76 00\\n20\\n68 00\\n$136 00\\n25\\n60 00\\n120 00\\n$300 OO\\n30\\n52 00\\n104 00\\n260 00\\n35\\n45 00\\n90 00\\n225 OO\\n40\\n37 00\\n74 00\\n185 OO\\n45\\n30 00\\n60 00\\n150 OO\\n$300 OO\\n50\\n24 00\\n48 00\\n120 OO\\n240 OO\\n55\\n19 00\\n38 00\\n95 co\\n190 OO\\n60\\n30 00\\n75 00\\n150 OO\\n65\\n22 OO\\n55 00\\n70\\n40 OO\\nThis action on the part of The Prudential was fully justified\\nby the available statistical information on the subject. Reference\\nto any health report of a Southern or Northern city covering the\\nyears 1 880-1 881 will clearly prove that the generaj death-rate of\\nthe colored population was about 50 per cent, in excess of the\\ndeath-rate of the white population.\\nThus, for instance, according to the health report for Savan-\\nnah, Ga., the average annual death-rate of the white population\\nwas 38.6 per 1,000, while for the colored population the rate was\\n51.7 per 1,000. For New Orleans the white rate had been 31.3\\nper 1,000, against the colored rate of 40.2 per 1,000. For Mobile\\nthe white rate had been 24.6 per 1,000, against the colored rate of\\n39.7 per 1,000, and this difference in the mortality rate of the two\\nraces held true for all the other cities for which information was\\navailable. In view of these facts, taken in connection with the\\nactual experience of the Company, the action of The Prudential\\nwas not only justified, but necessary for its own safety and in\\nequity to the white policy-holders, who as a class are subject to a\\nmortality less than two-thirds as high as the rate prevailing among", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0172.jp2"}, "173": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l88l- 84. 1 39\\nthe colored population. The position assumed was, therefore,\\njustified by the available facts, and the Company has not receded\\nfrom this course, although, under laws since passed, life-insurance\\ncompanies are now compelled in most of the States to grant equal\\nbenefits for the same premiums to both races, in defiance of the\\nlaws of mortality and ordinary business conduct. Since that date\\na large amount of information on the subject of negro mortality\\nhas been collected, but no subsequent investigation has proven\\nthat the Company s position in the matter was erroneous or\\nunjustified or overcautious, and, while the Company at the\\npresent time accepts applications from negroes and issues policies\\nwithout rating, it does not solicit this class of risks, and has,\\ntherefore, comparatively few colored persons as policy-holders\\non its books.*\\nThe question of expenses in conducting the business of\\nIndustrial insurance received due consideration, especially in the\\ninsurance journals of the period, largely in consequence of a\\nsuit of the British Prudential against the Western Provident,\\nreferred to at considerable length in the Insurance Monitor under\\ndate of September, 1881. During the trial of the case some very\\ninteresting evidence relative to the Industrial expense-rate was\\nbrought out in the examination of Mr. Arthur H. Bailey, the well-\\nknown actuary, who testified that the lapsed policies were a serious\\nJina?icial loss to the Industrial companies, the more so in view of the\\nfact that, since profit which the companies might have expected\\nto make from the premiums payable in succeeding years would,\\nof course, be lost in case of the lapse of the policy. In further\\nexplanation of this interesting point in life-insurance practice, I\\nquote from the Spectator of September 1, 1881, a contribution\\nevidently from the pen of Mr. Dryden\\nThere has, at one time or another, been a great deal of nonsense said\\nabout The Prudential and its system of insurance, by those who do not\\nunderstand it. Nobody can suppose that a policy for $50, upon which pre-\\nmiums have to be collected at the member s house fifty-two times a year,\\ncan be taken care of at as low a rate of expense as a policy for |5,ooo, upon\\nwhich the premium is payable but once annually, and that in advance. In\\nFor a full discussion of the entire subject of negro mortality, see the\\nwriter s work on The Race Traits and Tendencies of the American Negro,\\nMacmillan Co., New York, 1896.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0173.jp2"}, "174": {"fulltext": "140 HISTORY OF THE PRUDENTIAL.\\nevery branch of business the small buyer pays higher for his goods than the\\nlarge one. It is an inevitable result of the laws of trade and commerce.\\nNevertheless, the poor man must buy in small quantities or he can not buy\\nat all. The question is, Shall he be enabled to buy in such quantities as\\nhis limited means permit? Some years since, Henry Harben, the then\\nSecretary of the [British] Prudential, read a paper upon his company\\nbefore the Institute of Actuaries. At its close this very phase of the\\ncompany s business came up. Such eminent actuaries as Messrs. Brown,\\nBailey, Walford, Sprague and others participated in the discussion, and\\nthere seemed to be no dissent from the views uttered by some of them,\\nthat the expense was entirely proper, was inseparable from the business,\\nand that if the laboring man wanted exceptional privileges he must expect\\nto pay for them. This is the true and sensible view to be taken of this\\nmatter.\\nThe suggestion of The Indicator, that insurance should be established\\nand carried on by the co-operation of employers, has been again and again\\ntried and proved a failure. No success can be obtained except through the\\naid of a well-organized and systematized agency department. The men\\nemployed for this work must be paid. Some years ago The Prudential\\nmade the experiment, in one of our large districts, of offering a rebate to\\nthose of its members who would go to the office and pay their premiums.\\nThe experiment was a failure and had to be abandoned. The effort of the\\ngovernment to introduce insurance among the working classes in England\\nutterly failed. Managers of a company like The Prudential have every\\ninducement to keep the expenses down to the lowest point possible, and\\nwe think it fair to assume they do so. We believe the Prudential has been\\nan inestimable blessing to the workingmen of England, and that the com-\\npanies engaged in the same line of business here will prove of like advan-\\ntage to our people.\\nJ. F. D.\\nThe position taken by Mr. Dryden may be summed up in\\nthe statement that the expense was entirely proper and insepa-\\nrable from the business, in view of the fact that the premiums\\nhad to be collected from the house of the insured, that the neces-\\nsary supervision and auditing of amounts required a much larger\\namount of clerical labor, and that the general methods of con-\\nducting the business differed widely from the methods prevailing\\nin Ordinary insurance, where each transaction required less labor\\nand was subject to less expense than was the case in Industrial\\ninsurance.\\nHowever much may be said on the question of expense, it is\\none which has never hindered the development of the business, it\\nis one which has been subject to considerable modification, and\\nwhich will undoubtedly be materially improved upon in the course", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0174.jp2"}, "175": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1881-84. 141\\nof the years, as the business becomes older and the agency staff\\nbecomes more permanent.\\nIt must be plain to any one familiar with the history of\\nindustrial progress, that a new business experiment like Indus-\\ntrial insurance was not likely to escape bitter antagonism and\\nsome decided opposition. Naturally, dissatisfied policy-holders\\nand especially dissatisfied agents, as well as others opposed to the\\nextension of Industrial insurance principles, were only too ready\\nto supply newspapers with information or expressions of opinion\\nadverse to the business, and among the first to give space to an\\nopen attack, with special reference to the lapse and expense-rates,\\nwas the Philadelphia Sunday Times, which, under date of June\\n26, 1 88 1, contained a lengthy discussion of some phases of Indus-\\ntrial insurance, which were ably answered in an article in the\\nWeekly Underwriter of September 17, 1881, as follows:\\nWhether or not so-called Industrial insurance will secure a per-\\nmanent foothold in the United States we regard as not yet settled, but we\\nshould be very sorry if, through the intemperate advocacy of its friends,\\nor the ignorant assaults of its opponents, it failed to have its chance of\\nsuccess. We have contented ourselves with noting its progress, from time\\nto time, with not sufficient knowledge of its internal workings to venture\\nto pronounce a verdict upon it. But there are others, with even less\\nknowledge than we possess, who are not so reticent. One of our daily\\nexchanges has condemned it for its expenses, and the companies practicing\\nit for the gains made from lapses or, in other words, for the sums taken\\nfrom poor people, who get only a few weeks or months of temporary insur-\\nance for their money. The mistake must not be made of measuring the\\nbusiness in these two respects by the conditions which attach to ordinary\\nlife insurance. Industrial premiums are very properly loaded much\\nheavier, and a business of thirty per cent, loading is no criterion for one\\nof one hundred per cent. Nor are the lapses of a business among merchants,\\nlawyers, ministers, etc., a proper standard for lapses among working\\npeople subject to every rise and fall of trade and everything affecting day\\nwages. As a matter of fact, the lapses in this business are far more likely\\nto ruin the companies than the assured, and the enormous expenses are\\ninseparable from a business which consists of house-to-house collection of\\nnickels, and which is being rapidly extended. Our own fear has been, not\\nthat the poor people who pay the nickels would suffer, but that the com-\\npanies engaged in an endeavor to collect them would endanger their\\ncapital. Every policy that lapses must be a loss to the company, and with\\nan industrial class as shifting as is our own there must be many lapses.\\nThe problem for the underwriter who will be successful in industrial insur-\\nance is, it seems to us, to secure persistence in paying by the assured. That\\ndone, the way is easy. But a company only retaining at the close of the", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0175.jp2"}, "176": {"fulltext": "142 HISTORY OF THE PRUDENTIAL.\\nyear a little more than one-half of the business of the year, can not be said\\nto have solved it. Yet the Prudential of London, with eight millions of\\nannual income, ample accumulations and a sufficient surplus, represents,\\nin its five millions of present members, but one policy-holder retained for\\nevery three that have lapsed. Either the machinery is defective or there\\nmay be, in the nature of the people or their business, something which\\nwill necessitate still larger premiums than are now charged. If the trouble\\nis in the machinery, the managers now in charge of the business will\\nremedy it without unnecessary delay if it is in the people, they will\\nprobably sacrifice some capital before it is remedied. At any rate, we\\nbelieve in giving them a fair chance to work out their problem, undeterred\\nby fulsome flattery or ignorant criticism. The result is worth attaining,\\nand we have no doubt the means to attain it will be found.\\nThere is in this article the same clear conception of the busi-\\nness as brought out in Mr. Dryden s letter on the same subject\\nin the Spectator of September ist. I have given space to these\\nexpressions of opinion on the part of qualified writers so as to\\nbring out as clearly as possible the views of the companies\\nengaged in the business. On the question of lapses the last word\\nhas not as yet been said, and, in fact, few arguments worthy of\\nthe name have found their way into public prints outside of the\\ninsurance publications. A moment s reflection will make it clear\\nthat many of the millions of so-called insurance represent only a\\nbookkeeper s statement of business on which little or nothing had\\nbeen paid, and, rather than being a gain to the company, indicate\\na serious loss and a material hindrance to the largest possible\\ndevelopment of Industrial insurance.\\nBy December 31, 1881, The Prudential had increased its\\nbusiness to 133,582 policies for the aggregate sum of $10,959,948.\\nThe four companies now transacting the business had, in the\\naggregate, 367,473 policies in force. One company, the Provident\\nSavings, discontinued the writing of new Industrial business\\nduring the year, and no longer makes returns in its annual\\nreports of the Industrial business in force. Of the total business\\nof The Prudential 56.5 per cent, was in force in the State of New\\nJersey, 24.0 per cent, in the State of New York, while 19.5 per\\ncent, was in force in other States, largely in Pennsylvania.\\nReferring to the extension of the business of The Prudential\\nto the city of Paterson, the Paterson Press of April 22, 1882,\\nexpressed itself emphatically on the subject of Industrial insur-\\nance, and concluded an article of a column and a half as follows", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0176.jp2"}, "177": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1881-84. 143\\n1 We strongly recommend recourse to this excellent system of\\ninsurance by every person of moderate means, for with such a\\nplan there is really no excuse for any person not maintaining his\\nindependence providing out of his own resources for a proper\\ninterment at death, for the payment of debts he may owe, for\\nleaving to his survivors something to take the place at least\\ntemporarily of a productive life, for defraying those expenses\\nwhich attend sickness and death of any member of the family\\nexpenses which, at one time or another, are absolutely certain to\\ncome to all. In the words of the Trenton True American,\\nThe press in all the principal cities of this country were\\nemphatic in their commendation of the plan.\\nAmong other elements of the population the Germans had,\\nfrom the beginning, been extensive patrons of Industrial insur-\\nance naturally of a thrifty disposition, they had readily availed\\nthemselves of this form of providing for contingencies, and, in\\nresponse to a distinct demand, The Prudential, as far back as 1876,\\nhad issued special explanations in German, and supplied its\\nagents with applications in the German language, tending to\\nmake the aims and objects of Industrial insurance more easily\\nunderstood. Hence the attitude of the German press, in a manner\\nmost critical of all social institutions and forms of saving and\\ninvestment of non-German origin, seems of sufficient interest to\\nwarrant a quotation from the Carlstadt Freie Presse, under date\\nof July 1, 1882, in a free translation as follows\\nWe have an overabundance of all sorts of sick-relief and aid associa-\\ntions, but neither one form nor another offers that degree of absolute\\nsecurity which is necessary for the working population in case of need.\\nThe confidence of the public in these forms of co-operative or fraternal\\nassociations, in consequence of the bitter experience in our own village,\\nhas been so shaken and disturbed that we welcome the work of a company\\nlike The Prudential, which does away with the most serious objections\\nmade against the former type of burial or sickness associations.\\nNaturally, such emphatic approval as this, founded on sub-\\nstantial reasons, must needs have done much to influence the\\nGerman population in becoming, in increasing numbers, the\\npatrons of the Industrial system of The Prudential, and at the\\npresent time the Germans stand third in rank of nationalities\\nwhich patronize the Industrial business of The Prudential.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0177.jp2"}, "178": {"fulltext": "144 HISTORY OF THE PRUDENTIAL.\\nThat public approval was not confined to the secular press is\\nillustrated by the following extract from Our Church Paper,\\ndevoted to Christian interests as viewed by the Congregation alists\\nof Newark, in its issue for April, 1882\\nThe Prudential Insurance Company, of this city, has had a history in\\nsome respects phenomenal. The Company is only six years old, yet it has\\nissued over 300,000 policies and paid more than 4,000 death claims. It\\nissues burial-fund policies upon the weekly-premium plan, the premiums\\nbeing collected weekly by agents, at the residences of the assured. This\\ninstitution is not organized as a benevolent society, but it would be hard to\\nfind an association doing a ivork of greater good.\\nAnd in the same publication, under date of May, 1882, oc-\\ncurred a further endorsement of the plan of The Prudential,\\nwhich also seems worthy of a place in this summary of public\\nopinion on the work of The Prudential at this early period of its\\nhistory\\nIf ever a company was started which deserved the sympathy and co-\\noperation especially of the working classes, it is The Prudential. Almost\\nalone, with a reasonable prospect of success, has it undertaken the solution\\nof the great insurance problem of the day, how to provide a life-insurance\\ncompany for those of moderate means which shall be deserving of the\\nname. In the face of obstacles of no ordinary character, it has made\\nastounding progress and secured a magnificent clientage.\\nThe concensus of public opinion was, however, most clearly\\nexpressed in a quotation in the Newark Register of January, 1882,\\nnamely, that The Prude?itial Insurance Company, of Newark,\\nis emphatically the poor maji s best and most reliable friend\\nNew problems and questions of practice were constantly\\narising which demanded the most careful consideration. The\\nbusiness was new, and much was expected of it which was not\\nwarranted by the plain policy contract between the insured and\\nthe companies. The notion still remained with many that life\\ninsurance was more of a charity than a business, and many\\nwriters on the subject of insurance still speak of it as a benevo-\\nlence, when it is purely a matter of contract and of business.\\nFortunately, as I have had occasion to point out more than once,\\nMr. Dryden had early recognized the practical difficulties and dealt\\nwith them in a manner satisfactory to the policy-holders. Mr.\\nNoah F. Blanchard, who had been President of The Prudential", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0178.jp2"}, "179": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l88l- 84. 145\\nfrom May, 1879, died on May 11, 1881, and on the 23rd of the\\nsame month Mr. Dryden was elected President of the Company.\\nIn reference to Mr. Dryden s election, the Spectator of June 2, 1881,\\nproperly said that If the growth of The Prudential is due in any\\nimportant part to the individual efforts of one man, that man is\\nJohn F. Dryden, and the Board of Directors pays him a deserved\\ncompliment in giving him the Presidency. Of Mr. Blanchard\\nthe Spectator of May, 1881, stated that Throughout his life he\\nhad been a man of great activity and excellent health, identified\\nwith The Prudential from its inception and always manifesting a\\nlively interest in its progress. His management of The Prudential\\nwith Secretary John F. Dryden was a great success, during his\\nadministration the Company having achieved in large part the\\ngood reputation it now bears.\\nDuring the early part of 1882 The Prudential had been made\\nthe object of an attack in the newspapers on account of the sale\\nof stock by a number of the stockholders, who, no doubt, were\\ndissatisfied with the small returns which had thus far been real-\\nized. Certain unscrupulous parties, endeavoring to injure the\\nreputation of the Company, had caused sensational reports to be\\ncirculated in the newspapers, and I can not do better than quote\\nan article on the subject from the January number of the Spectator\\nfor 1882, which fairly explains itself\\nOn Saturday morning, the 31st ultimo, an article appeared in the New\\nYork Star y in which an attempt was made to throw discredit upon The\\nPrudential, of Newark, by making it appear that a number of stockholders\\nand directors were dissatisfied with the management of the Company, and\\nhad for that reason sold their stock. On the evening previous an attempt\\nwas made to smuggle the same article into all the New York dailies, but\\nnone except the Star noticed it. The Star at once had the subject investi-\\ngated, and in its next issue did all it could to repair the injury by contra-\\ndicting the whole substance of the previous article. The animus of this\\ndisgraceful trick is obvious, and taken in connection with the fact that,\\nstarting less than six years ago, the Company has built up a business upon\\nwhich the annual premium income is more than $400,000 the largest of\\nany company in New Jersey, except the Mutual Benefit Life its utter\\nsenselessness is manifest. We have heretofore spoken in strong terms of\\nsuch methods by rival companies and their agents. Allan Bassett, who is\\nprominently referred to in the article in question as the former president,\\nwas forced to resign that position by the Board of Directors, in May, 1879.\\nFor a time thereafter he was the agent of the New York Life, at Newark,\\nbut quite recently resigned to become the agent of a competing company\\nin the special feature of industrial insurance there. He signalized this", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0179.jp2"}, "180": {"fulltext": "146 HISTORY OF THE PRUDENTIAL.\\nchange by publishing a card in which an attempt was made to make it\\nappear that he had just resigned the presidency of The Prudential to be-\\ncome an agent for an older and stronger company. This attempt utterly\\nfailed, and the present exploit is only another attempt in the same direc-\\ntion, equally silly.\\nThe Prudential is a vigorous, sound, ably-managed company, justly\\nentitled to the fullest confidence of the public, and that the sales of stock\\narose from no doubt of this is clearly shown by the following certificate of\\nthe gentlemen who sold a part or the whole of their stock\\nNewark, N. J., January 3, 1882.\\nThe undersigned, having recently sold stock of The Prudential Insurance\\nCompany, hereby certify that such sales were entirely business transactions,\\nand should not be construed as evidence of our lack of confidence in the\\nsolvency of the Company. We believe the Company is sound and worthy\\nof the confidence of the public.\\nT. B. Mandeviu,e, Wiujam H. Murphy,\\n940 Broad Street FRANKUN MURPHY,\\nBenjamin Atha, Wiujam Whitty,\\nJames G. Barnet, E. A. Wilkinson.\\nContinuing, the Spectator said\\nThe Prudential is doing a splendid work. It was the first company to\\nbring the benefits of life insurance within the reach of our working classes\\nupon the English plan of weekly payments made directly to the company.\\nThere had been other attempts to do something in this direction through\\nthe cumbrous and objectionable machinery of the Hildise Bund or other\\nsocieties, through which policies were issued to the members upon quar-\\nterly payments, but they utterly failed, and it remained for The Prudential\\nto solve the problem of insurance for the working poor, which it has done\\nwith astonishing success, and all attempts to throw discredit upon it or\\nits management deserve the contempt of all right-thinking men. The\\nfield is large enough for all, and therefore any competing company, if\\nself-respecting, should refrain from assaults which can not injure The\\nPrudential as much as they hinder the growth of the business in the estima-\\ntion of the public.\\nThe year 1882 had been full of new problems, and the strug-\\ngle for success had been intensified by a most unfortunate devel-\\nopment of an unfair competition and inter-company warfare.\\nThe business of the Company had increased to 196,007 policies in\\nforce for an aggregate sum of $15,738,973, and the corresponding\\ngrowth of other Industrial companies had been such that the\\ntotal number of Industrial policies in force in the United States", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0180.jp2"}, "181": {"fulltext": "", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0181.jp2"}, "182": {"fulltext": "HOME OFFICE OF\\nTHE) PRUDENTIAL INSURANCE) COMPANY OF AMERICA,\\n1883-1892.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0182.jp2"}, "183": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l88l- 84. 147\\nnow exceeded half a million, being 587,875 policies for $56,374,710\\nof insurance.\\nPublic approval of the new form of insurance continued, and\\nfrom many sources there is evidence of an increasing respect for,\\nand kindly interest in, the work of The Prudential. Among\\nothers, the Insurance and Commercial Magazine, in its issue of\\nDecember 31, 1883, referred to the subject of Industrial insurance\\nin the following language\\nOf all things poor people desire to avoid, is a charity burial of one\\nof their children.\\nBy Industrial Life Insurance, as one of the Commissioners of Insur-\\nance truly said, children are insured for a premium of five cents a week,\\nfor an amount that provides a fair burial fund, payable immediately after\\ndeath is reported, when of all times most needed.\\nAt this time, when the usual small weekly income is interrupted or\\nused up for medical expenses, the little insurance money comes in as a\\nsort of God-sent blessing to the poor, stricken family.\\nThe amount to be realized, forty or fifty dollars, is too small to tempt\\ninfanticide or criminal practice, and never has, even in England, where so\\nextensively practiced and the little weekly premiums are not missed from\\nthe small weekly income.\\nThe tendency of Industrial insurance is only good, and in England,\\nwhere so extensively practiced for the last thirty years, commands the\\nuniform praise of the press, the pulpit, and the informed public.\\nWe understand there are over seven million families interested in it\\nin England, and we see no reason why a like number should not become\\ndirectly connected with it in this country.\\nThe growth of the Company had been such that during the\\nyear it became necessary to once more remove the offices, and on\\nApril 1, 1883, the home office was removed to the Jube Building,\\n878-880 Broad street, Newark. This building was occupied by\\nthe Company for a number of years, when increasing growth and\\ndevelopment made another and still more important removal\\nnecessary, to which reference will be made further on.\\nThe effect of the business, which was now sufficiently well\\nestablished, made itself felt in other directions, and public atten-\\ntion was drawn to the matter in an article in the Newark Daily\\nJournal, January 19, 1883, i* 1 which it was stated that The\\nbeneficial effects of this system of insurance are well known.\\nSince The Prudential has been in operation the proportionate\\nnumber of burials at the expense of the city has been very ma-\\nterially lessened, and the Overseer of the Poor and undertakers", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0183.jp2"}, "184": {"fulltext": "148 HISTORY OF THE PRUDENTIAL.\\nwill testify to this. People who before had no means to bury\\ntheir dead now find it in the comfortable sums provided by their\\nsmall weekly payments as premiums on policies in The Prudential.\\nA policy in The Prudential is an absolute safeguard against a pau-\\nper s burial and the amount obtained often bridges over for a\\nconsiderable period the chasm of necessity caused by the death of\\nany member of the family.\\nThis emphatic statement of the direct relation of Industrial\\ninsurance to public welfare was further supported by the pub-\\nlished returns of pauper funerals and general pauperism in the\\ncity of Newark, which indicated a very material reduction in both\\nitems of public expenditure since the introduction of the system\\nof family insurance.\\nAdditional proof of the value of Industrial insurance as a\\nmethod of teaching the habits of thrift in other directions is\\nfound in the statement of an Industrial agent in The Chronicle,\\na New York insurance publication, under date of November 15,\\n1883 I soon found that my premium increase would be small\\nunless I was able to teach the poor people thrift, and I often had\\nto instruct them in the matter of saving the pence until I called,\\nin order to keep the policy in force, and also to teach the better-\\nto-do classes how to secure the benefits offered them for their\\nsmall weekly pence.\\nThis view of the mission of the Industrial agent pre-\\nvails extensively among the industrial population. It is not\\ntoo much to say that the Prudential agent is, in the majority\\nof instances, the true friend of those with whom he comes in\\ncontact. Few men more thoroughly learn to understand the\\nways and means of the wage-earning population, and few have\\nbetter opportunities to extend the teachings of the gospel of\\nthrift to those who need it most for the improvement of their\\nsocial and economic conditions. Teaching the people thrift in one\\ndirection has been accepted, by many who have studied the\\nsubject, as equivalent to the teaching of thrift habits in other direc-\\ntions, and those who, through the Prudential agent, receive their\\nfirst instruction and encouragement in the direction of systematic\\nsaving must needs, in the course of the years, become better citi-\\nzens, better producers and better off in material good things in\\nconsequence of their relationship to an Industrial insurance com-\\npany.", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0184.jp2"}, "185": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l88l- 84. 149\\nAs a rule, exceptional caution had been used in selecting\\nmen for the position of Industrial agents. Security for the\\nfaithful discharge of their duties was required, and inquiry was\\ninvariably made of applicants for positions as to past records\\nin former employments. Still, it is perfectly natural that occa-\\nsionally, or even frequently, unworthy men would succeed in\\nsecuring positions which, for self-evident reasons, offered many\\nopportunities for dishonesty and fraud. The Prudential had\\nalways dealt severely with men of this class, and had never hesi-\\ntated to institute criminal prosecution for larceny or fraud. The\\nhandling of small sums of money incident to the conduct of the\\nbusiness was naturally an exceedingly difficult matter to manage,\\nand Industrial insurance companies had found it necessary to\\nmake examples of agents detected in obtaining fraudulent com-\\nmissions or appropriating premiums to their own use. Once\\ndischarged, such agents would often connect themselves with\\nother insurance organizations, usually bogus sick-benefit societies\\nor so-called insurance associations. In other instances they would\\nbecome connected with newspapers as reporters, and furnish all\\nsorts of sensational matter founded on isolated instances, or on\\npure imagination. One of the methods was to send anony-\\nmous communications to newspapers, containing charges against\\nthe companies, among others the intimation that children\\nwere insured for the purpose of realizing improperly at their\\ndeath.\\nThe Pittsburg Dispatch of April 11, 1883, contained reference\\nto such a letter, but in explanation the paper stated that, For the\\ninformation of the author of the letter referred to, it may be said\\nthat the companies thus engaged are recognized in the commercial\\nand insurance world as both substantial and legitimate, and such\\nmen as ex-Postmaster-General James and others are interested\\nin them. They issue no policies on lives of infants under one\\nyear of age. The highest policy issued on children under six is\\n$60, and under eleven $123.\\nThe subject of life insurance for children had by this time\\nattracted attention in other parts of the country, and, among\\nothers, General Butler, in an address made at Spencer, Mass.,\\nduring the latter part of 1883, as candidate for the Governorship\\nof the State, made a bitter attack on Industrial insurance and\\nmany other forms of life insurance. The subject was discussed", "height": "3983", "width": "2552", "jp2-path": "historyofprudent00hoff_0185.jp2"}, "186": {"fulltext": "150 HISTORY OF THE PRUDENTIAL.\\nin an article in the Weekly Underwriter* in which the errors\\nof Governor Butler were set forth, making clear his absolute\\nignorance of the business and his self-evident perversion of the\\nfacts, the article concluding with the statement that If he had\\nmade the speech in Boston a large number of his hearers could\\nhave told him that companies do not charge twenty-five cents\\na week for infantile insurance, and that they do not take a\\npremium above five cents a week, and do not insure children for\\nany larger sums than $100. They give no insurance at all for\\nthree months after the issue of the policy, and for the balance\\nof the year from $10 to $14 in case of death. It may be that\\nthere are among Mr. Butler s constituents men who would\\nmurder a baby one year old for $10, but we do not believe it\\nand so far from its being a fact that fathers in England have over\\nand over again murdered their children, there has never been an\\nauthenticated case of the kind.\\nThe views of the Governor were also further referred to in\\nthe Standard of November 3, 1883, a Boston insurance publica-\\ntion, the article concluding with the statement that Governor\\nButler is lawyer enough to know that assertion is a good way from\\ntruth, and that impressions can never be substituted for facts.\\nIt is charitable to believe that he has gotten the impression in\\nsome way that this thing is done in England, but it would be\\nwell, before he makes such bold statements to the citizens of\\nMassachusetts, for him to find one well-authenticated case of such\\na murder.\\nThe unfortunate aspect of the affair was the newspaper\\nnotoriety given to the business, and the influence such remarks\\nnaturally had on public opinion, especially among a class of people\\nutterly unfamiliar with the practice of Industrial insurance, and\\non account of their wealth and social position, ignorant of the\\nactual manners and morals of the industrial population. It has\\nremained so to the present time, and the opposition to the business\\nis to be found among the rich and well-to-do, or those otherwise\\nout of touch with the working people and while millions of\\nIndustrial policies on children s lives are held to-day by\\nworking people and others, this fact has never had the slightest\\ninfluence on the opinion of those who are opposed to this form of\\nVol. 29, p. 229.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0186.jp2"}, "187": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1881-84. 151\\ninsurance.* As has previously been stated, from the very begin-\\nning The Prudential had carefully observed its experience on\\ninfantile lives, and no case of even abuse or indifference had come\\nto the notice of the Company, to say nothing of an authentic case\\nof the murder of a child for insurance money nor is there such\\na case on record to this day, although millions of children have\\nbeen insured for many years in the United States.\\nIndustrial insurance had continued to make considerable prog-\\nress during the year, and by December 31, 1883, The Prudential\\nhad 273,917 Industrial policies in force, for the sum of $23,053,935\\nof insurance protection. The aggregate number of Industrial pol-\\nicies in the United States now exceeded 877,000, while the total\\namount of Industrial insurance in force was almost $88,000,000.\\nThe business could now be considered completely established,\\nand the question of ultimate success was now no longer open to\\na doubt.\\nThe subject was referred to in the New York Insurance\\nReport for 1884, as follows\\nThe rapid growth of industrial insurance indicates that the advantages\\nit offers are being presented with characteristic energy by the companies\\nthat are making it a specialty. The subject presents for serious considera-\\ntion several phases that are important, both in the protection afforded the\\npolicy-holders and the probable result of the efforts to establish the success\\nof the undertaking. The reserve to be charged has been the subject of\\ndiscussion by actuaries and at several conventions of State Insurance\\nofficials. A plan was agreed upon, and has been observed with but slight\\nmodification for the past three years. It is admitted that the large number\\nof lapses and the great expense of obtaining and retaining the business\\nare elements that do not enter into Ordinary life insurance transactions.\\nIn fact there is no precedent to guide the companies. The operations of\\nthe Prudential, of London, are familiar, it is true, yet the State control\\nThis also holds largely true of charitable and reformatory or correc-\\ntional societies, of which it has well been said, in a report on The\\nUnemployed in Massachusetts, that The ordinary charitable institution\\nas now constituted is not in touch with the industrial conditions. Such\\nsocieties are organized for the relief of pauperism. They are so well\\naccustomed to deal with the degraded or particularly unfortunate class\\nthat they necessarily lose a certain sort of tact and generous discrimination\\nwhich is needed in dealing with men and women who, under ordinary\\nconditions, are steady wage-earners.\\n(Final report on the Unemployed. House Document No. 50, p. xiv.\\nBoston, 1895.)", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0187.jp2"}, "188": {"fulltext": "152 HISTORY OF THE PRUDENTIAL.\\nsurrounding the American companies restrains them to certain methods\\nthat are diametrically the opposite of the freedom and judgment that have\\npermitted and fostered the great success of the foreign company. It may\\nbe assumed, therefore, that the superintendent will use the widest latitude\\nof discretion consistent with safety in building tip and encouraging this\\nplan for family insurance. It is a work of supererogation to refer in detail\\nto the benefits conferred by the London company on the industrial classes\\nof Great Britain, where its policy-holders number one-seventh of the popu-\\nlation there is equal promise of benefit and success in the United States.\\nThe time for experimenting, it is true, has not passed, and there must be\\nto some extent a different procedure in securing business compared with\\nthe operations in London. It is evident, however, that many points have\\nbeen obtained by our companies from the foreign office, and supplemented\\nsuccessfully by the intuitiveness that discerns the faults and creates their\\nremedies. The companies prosecuting the business in this State have in\\nfive years procured a membership equal to that of the [British] Prudential\\nwhen it had twenty-eight years experience. What can be prophesied of\\ntheir future? The details connected with the collection of the weekly\\npremiums and the verification of the work of the collectors are provided for\\nand guided by a well-nigh perfect system. The increase each year in the\\nnumber of people employed by the companies in their outside work indi-\\ncates the popularity of the business. There is not recalled a single com-\\nplaint made of any of the companies during the year, and, with a constitu-\\nency in this State that is quite formidable and growing daily, this fact is\\nremarkable.\\nIt is significant to note, in this reference to the business, the\\nstatement on the part of the Insurance Superintendent, that\\nThere is not recalled a single complaint made of any of the\\ncompanies during the year, and, with a constituency in this State\\nthat is quite formidable and growing daily, this fact is remark-\\nable. To those familiar with the manner in which the business\\nhad been managed, and with the prudent and conservative\\nmethods which had been employed in extending the business,\\nthe fact referred to was not remarkable, for special efforts had\\nbeen made to give complete satisfaction to those most vitally\\ninterested in the business that is, the Industrial policy -holders.\\nThe New York Tribune, also, in an article on Industrial\\ninsurance, dated July 10, 1884, concluded with the statement\\nthat Some sentimental objections have been raised against\\nIndustrial insurance. The most serious charges are that it is\\nused speculatively and induces infanticide. These objections are\\nfully disposed of by the fact that actual experience proves them\\nto be groundless.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0188.jp2"}, "189": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l88l- 84. 153\\nThe charge of child-murder, for the purpose of obtaining the\\nsmall amount of insurance to be realized at the death of the child,\\nhardly received serious attention at this early period. The quota-\\ntion from the Tribune and the quotation from the Pittsburg\\nDispatch clearly indicate that the charge was not considered\\nworthy of consideration, but hostility to the business manifested\\nitself from another direction, in an attempt made during the early\\npart of 1884, by a negro member of the legislature of Massa-\\nchusetts, to force companies to accept colored risks at the same\\nrates as those charged the white population. As has been pointed\\nout, this method of discrimination was based on a very careful\\ninvestigation of the subject, and was fully supported by a large\\nbody of official statistics. It was well said by the Weekly U?ider-\\nw? itcr, that if the proposed measure does become a law, its\\nsuccess will be due to sentimental consideration alone.\\nUnfortunately, such sentimental considerations have very\\nmaterially influenced legislators at all times and on all subjects,\\nand during the next few years laws were passed, in nearly all the\\nleading States, compelling Industrial companies to accept negro\\nrisks at the same rates as those charged the white population.\\nFortunately, the companies can not be compelled to solicit this\\nclass of risks, and very little business of this class is now written\\nb}^ Industrial companies, and practically none by The Prudential.\\nThe Prudential was the first company to discriminate against\\nnegroes, as stated in Mr. Dryden s letter of March 10, 1881, and\\nin this attitude the Company was fully supported by the Insurance\\nCommissioner of Massachusetts, who, in his report for 1884, stated\\nthat This was not a distinction on account of color, but on account\\nof the difference in longevity between the two races, apparently\\nsupported by mortality statistics. That the distinction was dic-\\ntated by race prejudice is not conceivable. The whole structure\\nof life insurance rests upon a calculation of the probabilities of\\nlongevity and a just proportion of insurance charge to the risk\\ntaken, and to compel a company to insure for the same rates dif-\\nferent classes of people with different prospects of longevity would\\nbe to establish a grossly unjust discrimination against the longer-\\nlived class in favor of the shorter-lived class.\\nThe progress of the Company during the year 1884, while\\nnot as great as during the preceding year, had nevertheless been\\nconsiderable. The actual increase in policies was 50,877 against", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0189.jp2"}, "190": {"fulltext": "154 HISTORY OF THE PRUDENTIAL.\\n77,910 during the preceding year. The financial and industrial\\ndepression of the period 1 882- 86 had made itself felt in Indus-\\ntrial insurance, as well as in all other business operations. The\\nbusiness of the Company had been extended into new territory,\\nand offices had been opened in the District of Columbia and\\nBaltimore, Md.\\nDuring the early part of the year, Dr. Leslie D. Ward, the\\nMedical Director of the Company, and Mr. Dry den s associate in\\nthe founding of the Company, had been elected Vice-President in\\nplace of the Hon. Henry J. Yates, ex-Mayor of Newark, who was\\nelected Treasurer of the Company. As Medical Director Dr. Ward\\nhad, from the beginning, shown exceptional executive skill and\\nability in managing the field operations of the Company, and while\\nstill occupying his former position, devoted himself with energy\\nto the outside developments of the Company s interests.\\nDr. Ward has during late years been the executive manager\\nof the Company s field force, and it is not too much to say that\\nmuch of the success which the Company has achieved has been\\nthe result of his exceptional ability and devotion to the interests\\nof the Company and to the promotion of its welfare.\\nVarious concessions and improvements in policy provisions\\nwere introduced at about this time and communicated to the field\\nforce under date of July 31 1884, in the following circular letter\\nPOLICY CONDITIONS AND CONCESSIONS. 1884.\\nFirst. All unnecessary verbiage has been omitted. The contract is\\nplain and straightforward, and can be easily understood by any one.\\nSecond. Every restriction upon residence or liberty to travel has been\\nremoved.\\nThird. The insured may engage in any occupation except military\\nor naval service in time of actual war.\\nFourth. The policy is incontestable after two years.\\nThe above concessions will be extended to all policies heretofore\\nissued.\\nA change in benefits and rates was made under date of\\nOctober 6, 1884, when the infantile rates were very slightly\\nreduced, and immediate benefits of one-quarter during the first\\nsix months, changed to no benefit during the first three months,\\none-quarter benefit during the second three months, and one-half\\nbenefit after the policy had been six months in force. A new", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0190.jp2"}, "191": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l88l- 84. 155\\nclause was inserted, by which the Company assumed only one-\\nhalf liability of any amount that might be due in case of death\\nfrom consumption during the first policy year. A suicide clause\\nhad been inserted in the policy, which made the policy void if\\ndeath from this cause occurred during the first three policy\\nyears. All restrictions as regards occupations were done away\\nwith, excepting military service, and an intemperance clause which\\nhad been early inserted in the policy was also eliminated. These\\nchanges in method were an indication of the careful supervision\\nof the Company s interests, aiming rather at full justice to all\\npolicy-holders than undue liberality in the direction of impaired\\nlives, or an otherwise undesirable class of insurance applicants.\\nThe actual business operations during 1884, as nas been stated,\\nhad, however, been much hindered by the existing industrial de-\\npression, and it is something very considerably to the credit of the\\nCompany and the efforts of its managers that as large an increase\\nas has been referred to had actually been made. The effect of\\nthis depression on the insurance business is referred to in the\\nNew York Insurance Report for 1885, from which I make\\na brief quotation\\nThe prosecution of the industrial insurance business during the year\\nhas been greatly hampered by the unfortunate situation of the laboring\\npopulation, who, through a lack of employment and because of the numer-\\nous strikes, have not been in a condition, as a rule, to procure this protec-\\ntion for their families.. In the face of these difficulties the companies have\\nbeen active in their canvassing methods, with quite creditable results. The\\ndetail of their transactions is enormous, and needs unremitting attention.\\nWith almost an army of workers the opportunities for wrong-doing are\\nnumerous, but the system adopted by the several corporations serves to\\nprevent irreparable injury. When the benefits and advantages to the\\ndependents of our industrial citizens, arising from membership in these\\ncompanies, are thoroughly understood, the work of the corporations will\\nbe an experiment no longer, for the protection thus guaranteed will be\\nregarded as a necessity. The Superintendent is in hearty sympathy with\\nthis endeavor, by corporate action, to promote the welfare of our poorer\\npeople, and he has but encouragement to offer the promoters of the plan.\\nBy December 31, 1884, The Prudential had secured for itself\\nan enviable position in the world of finance and insurance. With\\nalmost 325,000 policy-holders, old and young, with an aggregate\\ninsurance liability of $28,545,000, with assets of $752,878 and a\\ncapital of $115,000, the Company could now claim rank as one of", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0191.jp2"}, "192": {"fulltext": "156 HISTORY OF THE PRUDENTIAL.\\nthe leading insurance companies of the United States. This\\nresult had been accomplished in the short space of nine years,\\nnine years, however, of the most determined struggle and effort\\nto make Industrial insurance a success in the United States.\\nIn commenting on the success of The Prudential and the\\nannual balance-sheet for the year 1884, the Spectator referred\\nto The Prudential and its methods and results in well-earned\\nwords of praise: The Prudential was the pioneer industrial\\ncompany, and has educated the American public to the advan-\\ntages to be derived from small life or burial-fund insurance\\non the weekly-payment plan. The Prudential now\\noperates in a number of States, over a wide field, and by the\\npolicy of scrutiny and good management maintained by the offi-\\ncers each department, per se, is made to show a profit. The closest\\nsupervision is kept over the superintendents, assistant superin-\\ntendents and agents, who are summarily dealt with for grievances\\nreported and proved by policy-holders but, on the other hand,\\nThe Prudential bears a reputation for liberally treating its agents\\nand employees, and for religiously studying their interests.\\nThe Prudential is essentially the people s company,\\nfurnishing, as it does, the facilities whereby even the poorest\\ncan obtain insurance to relieve their wants in times of dire\\nnecessity.\\nIn a brief sketch of the history and progress of the Company,\\nin commemoration of the tenth anniversary, published in the\\nSpectator during the year 1885, Mr. Dryden contributed some\\nvery interesting facts pertaining to the early history of The Pru-\\ndential, most of which have been taken account of in the earlier\\nportion of this work. Among other interesting facts, however,\\nMr. Dryden stated that, on the first of January, 1885, the field\\nforce of The Prudential was estimated at 1,500, of which 34 were\\nsuperintendents, 150 assistant superintendents and 1,200 agents,\\nthe balance being inspectors and special agents. The office force\\nconsisted of 55 male and 64 female clerks, besides the official staff.\\nIt has well been said that success in Industrial insurance\\nis very largely a question of supervision and attention to detail,\\nand it is difficult to convey an accurate idea of the magnitude of\\nthese transactions to those who are not personally familiar with\\nthe office management of Industrial companies. Everything\\nThe Spectator, January, 1885.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0192.jp2"}, "193": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l88l- 84. 157\\npossible has been done to reduce clerical labor, waste and ex-\\npenses to a minimum by method and system and the employment\\nof special counting, calculating and other machines. In many\\nof the most important improvements in policy contracts, such as\\nthe granting of dividends and paid-up policies, it has often been\\na most serious question as to how to provide for the necessary\\nclerical labor in a manner at once efficient and yet economical.\\nHaving to deal with millions of policy-holders, the question has\\noften been rather the expense of the necessary office transactions\\nthan the actual amount involved in the payments. Since these\\nexpenses or difficulties are largely inherent in the business, the\\nbest talent and ability has been devoted to the solving of prob-\\nlems with which Ordinary life companies have never been called\\nupon to deal.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0193.jp2"}, "194": {"fulltext": "158 HISTORY OF THE PRUDENTIAL.\\nCHAPTER X.\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA,\\n1885-1888.\\nWhile the growth of the Company had been rapid and consid-\\nerable, only a beginning had been made. New offices were opened\\nas fast as the necessary agency and management force could be\\ntrained for the positions, and the Company rapidly extended its\\noperations westward, having entered Ohio first, and then, in suc-\\ncession, all the other States of the Middle West. The first office\\nin Ohio was opened in Cleveland, on June 29, 1885, and very soon\\nother cities were added to the Western department of the Company s\\nbusiness. From the start The Prudential had held firmly to the\\ntheory that for permanent business progress it would be better for\\nthe Company itself to develop an agency staff and the necessary\\nforce of district managers, than to go outside of its own office for\\nnew field material. Hence the Company made conservative\\nprogress, and developed a force of employees whose loyalty can\\nnot be matched by any organization of men in this country.\\nWhile something was sacrificed to this policy of The Prudential,\\nthe Company has never had cause to regret its position in this\\nmatter, and is satisfied with the results.\\nThe business of Industrial insurance continued to receive\\nconsiderable attention during the year, especially from experts\\nfamiliar with life-insurance problems, and, among others, Mr.\\nAugust F. Harvey, one of the leading actuaries of the time,\\nmade an investigation into the practice and results, the conclusion\\narrived at being communicated to the Weekly Underwriter, May\\n23, 1885, as follows\\nI also made inquiry into some matters connected with the industrial\\nbusiness. It is comparatively new here, but the results of the trial, so far,\\nfavor its excellence and its permanency. The great advantage to persons\\nof very limited means of being able to carry a moderate insurance for a low\\nweekly cost, collected at their homes, extends beyond the mere conve-\\nnience of the matter to the individuals concerned. The system relieves\\nsuch beneficiaries from their worst anxiety the dread of burials at public", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0194.jp2"}, "195": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1885-88. 159\\nexpense and has actually, in many of the more populous quarters of the\\nlarge cities, where extreme poverty prevails, had a marked influence in\\nthe reduced number of calls for aid in the public press it promotes small\\nsavings in people of higher advantages and encourages a thrift among the\\nbetter classes who patronize the Company, which has its effect in the in-\\ncrement of the public wealth. I inquired particularly with reference to\\nthe public assertion, that the plan of furnishing insurances on infant lives\\nwas to invite child-murder, or such neglect as to bring its fatal results\\nwithin the category of crime. If the statement is true in any degree, the\\nfoundation for it is so limited that it has not been particularly noticed.\\nMr. Harvey s conclusions were practically identical with\\nthose of Mr. Thomas B. Sprague, the President of the Institute\\nof Actuaries of England, who had also extensively investigated\\nthe subject, and, as a result, expressed himself in favor of the\\nbusiness, stating that, from the standpoint of public policy, the\\nsystem of Industrial insurance was fully deserving of the public\\nsupport, which had come to it in increasing amount, as the\\nbeneficence of the plan became more widely known to the indus-\\ntrial population. Irrespective of these expressions of approval\\nand confidence on the part of the most competent actuaries, The\\nPrudential made its own observations and investigations, and\\ncontinued to examine carefully its own experience in every direc-\\ntion, and on this basis of fact and knowledge the Company rests\\nits side of the argument.\\nFrom year to year the business of the Company had increased,\\nand at the close of 1885 the total number of Industrial policy-\\nholders had increased to 422,671. A corresponding increase had\\nbeen made in the assets, which now exceeded $1,000,000, with a\\ncomfortable surplus of $323,037. With such results obtained\\nduring so short a period as ten years, the Company could well\\nafford to look hopefully into the future and view, with but a\\nsmall degree of apprehension, the frequent attempts made to dis-\\nturb the progress of the business by newspaper attacks, unwar-\\nranted and unfair competition and unwise legislation, attempting\\nto interfere with the operations of the Industrial companies on\\ngrounds of sentiment and prejudice.\\nMention has been made of the passage of a law in Massa-\\nchusetts, compelling Industrial companies to grant equal benefits\\nto white and colored applicants. Following the Massachusetts\\nprecedent, a similar bill was introduced by a negro member into\\nthe Rhode Island legislature during March, 1886, which also\\nbecame a law. The Prudential at this time transacted no business", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0195.jp2"}, "196": {"fulltext": "l6o HISTORY OF THE PRUDENTIAL.\\nin Rhode Island, the Industrial business in that State being\\nconfined to the operations of one or two companies.\\nIn the adjoining State of Connecticut, Industrial insurance\\nseems to have been further advanced, and considerable attention\\nto the subject is given in the annual report of the Insurance\\nCommissioner for 1886. Considerable space was devoted to the\\ndiscussion of the business in general, and to the special require-\\nments as regards the valuation of Industrial policies. I quote\\nthe following remarks from Commissioner Williams s report, as\\nillustrating the views of one who had evidently made himself\\nthoroughly familiar with the subject\\nFour of the twenty-seven companies whose transactions are consolidated\\nin the statistics already given prosecute chiefly the business known as In-\\ndustrial insurance. Policies average but little more than $100 in amount,\\nand the premium is paid weekly. Five or ten cents a week, according to\\nthe age, will purchase an assurance of $100 for persons not past middle life,\\nand thus a small provision for the future is brought within the reach of all\\nwho are insurable. The great body of workers dependent on slender daily\\nwages ought to avail themselves of this plan, and not only great private\\nbut public benefit would result therefrom. The business is new in this\\ncountry, but is extending rapidly.\\nTo these straightforward words of official approval of the\\nbusiness of Industrial insurance, from the standpoint of public\\npolicy, Commissioner Williams added the further service of a\\nspecial recommendation in reference to the valuation of Indus-\\ntrial policies, based on a special report on the subject made by\\nthe Actuary of the Department, Mr. Sprague. Thus by 1886\\nthe business had secured not only further official approval, but\\nat the same time further official recognition as a distinct form of\\nlife insurance, demanding separate consideration on account of\\nits inherent peculiarities and its essential difference from the\\nOrdinary plan of life insurance. The recommendations were\\naccompanied by a valuable table of weekly annuities and assur-\\nances applicable to the Industrial method of insurance for persons\\nof all ages from o to 99.\\nThe subject of Industrial insurance received additional con-\\nsideration this year in the annual report of the Insurance Com-\\nmissioner of Massachusetts, from which I also make a brief\\nabstract\\nThe term industrial or prudential is employed to distinguish a\\nclass of insurance for small amounts for weekly premiums of a few cents", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0196.jp2"}, "197": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1885-88. 161\\neach, such as persons of humblest means, dependent upon the wages of\\ntheir labor or other limited income, can spare from their urgent necessities.\\nThe provision such insurance makes is only for the relief of immediate\\nfamily needs created by the death of the insured, and when effected on the\\nlife of an infant of unproductive age and condition can properly provide for\\nlittle more than decent burial charges. Ordinarily the life of an infant of\\ntender years can not be deemed to have an insurable value, and for a parent\\nto speculate a profit from the death of his offspring is repugnant to the\\nnatural feelings and to public morals. But a provision by insurance for\\nthe cost of sacred decencies to the relics and memory of the dead is worthy\\nand legitimate.\\nThe Massachusetts Commissioner also referred to the fact\\nthat the Germania Life Insurance Company had discontinued the\\ntransaction of Industrial business, but had made an equitable\\narrangement with the policy-holders, by which the premiums were\\ncollected in the manner originally agreed upon. The last\\nIndustrial policy written by the Germania was dated Decem-\\nber 27, 1886, and this closed the second unsuccessful attempt\\non the part of an Ordinary company to transact an Industrial\\nbusiness, the Provident Savings having previously abandoned a\\nsimilar effort. The principal reason on the part of these com-\\npanies for discontinuing the Industrial business must needs have\\nbeen the fact that the business was exceedingly unprofitable dur-\\ning the early years of operation, and it must have been real-\\nized that it could only be made successful by the application of\\nexceptional ability and industry 7 The Prudential Insurance\\nCompany of America, like other Industrial companies, including\\nthe Prudential of England, had passed through a period of\\nfinancial difficulties, but by careful management and unremitting\\nindustry it had now reached a position where ultimate success\\non a large scale was only a question of a few years.\\nApart from the words of encouragement and approval of Indus-\\ntrial insurance companies by actuaries and insurance officials, and\\nthe general public approval as manifested in the increasing num-\\nber of policy-holders, evidence is not wanting to show the indi-\\nvidual appreciation of the beneficence of the business. As a per-\\ntinent illustration of the value of Industrial insurance from the\\nstandpoint of public policy, I give space to the following letter\\nsigned by one of the Sisters in charge of the Troy Hospital, of Troy,\\nN. Y. It would seem that a young woman by the name of\\nElizabeth Flynn had died in the hospital, on the 5th of April,", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0197.jp2"}, "198": {"fulltext": "1 62 HISTORY OF THE PRUDENTIAL.\\nfrom pneumonia. Some seven months before she had been pru-\\ndent enough to take out an Industrial policy with The Pru-\\ndential, paying a weekly premium of only five cents. The\\nIndustrial policy would seem to have been the only means of\\nproviding for a respectable funeral. The letter will indicate\\nthe favorable view of Industrial insurance held by the Sister\\nSuperior\\nPoor Miss Flynn, before she died, requested that I should look after the\\ninterest of her policy and to see that she had a respectable burial, all of\\nwhich I have done. I think this branch of insurance is an excellent thing\\nfor poor people, especially so when the Company is so prompt when called\\nupon for settlement. There is no trouble about it. When Elizabeth died\\nI notified the superintendent at room 3, Harmony Hall. He came imme-\\ndiately for the necessary information, and has given me a check for the\\namount the policy called for. I feel interested and would not hesitate to\\nrecommend the Company and its system to all who are desirous to make a\\nprovision for themselves or their families.\\nSister Angeune, Troy Hospital.\\nAs another instance of the value of the system of Industrial\\ninsurance, I give space to an item which came to public notice\\nduring the year 1885, and which I quote from the Insurance\\nRecord of June of that year\\nIndustrial life insurance is permeating the entire community. At the\\nrecent fire at Sullivan Company s printing and binding establishment in\\nCincinnati, seventeen young ladies were working upon the fifth floor of\\nthe bindery. Of these, fifteen were burned to death. Of the fifteen^ seven\\nhad industrial policies. Their total insurance amounted to $1,102. Some\\nof the policies were recently issued and were thus not in full benefit, but\\n$641 was the amount due, and this was paid the day the proofs of death\\nwere received. The total premiums on the seven policies amounted to 50\\ncents a week. The gross sum received on all the policies was $18.15.\\nIt is self-evident that such instances as these had a measur-\\nable effect in promoting the growth of Industrial insurance\\namong the industrial population, a population ever confronted\\nby contingencies leaving practically no choice between insur-\\nance and decent interment or improvidence and the pauper s\\ngrave.\\nThe actual extent of the public benefit already achieved\\nduring the short period of the Company s operations is illustrated", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0198.jp2"}, "199": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1885-88. 1 63\\nin the following table, showing the claim payments made by The\\nPrudential during the first ten years of its history\\nPAYMENTS MADE TO POLICY-HOLDERS BY THE PRUDENTIAL\\nINSURANCE COMPANY. 1876- 1885.\\nPayments to\\nPolicy-holders.\\n1876\\n1877\\n1878,\\n1879,\\n1880,\\n1881,\\n1882,\\n1883,\\n1884,\\n1885,\\n1876-1885,\\n$1,958 00\\n5,296 00\\n11,338 00\\n23,013 OO\\n57,256 00\\n111,508 00\\n157,706 00\\n222,083 OO\\n322,382 OO\\n418,622 OO\\n$1,331,162 OO\\nIt will be observed that during the first decade of business\\noperations more than $1,331,000 had been disbursed in claim pay-\\nments, rarely exceeding $100, often as low as $15, and sometimes\\nas high as $500. By 1885 the annual disbursements had exceeded\\n$400,000, which for the time represented a vast sum to be disbursed\\nin insurance claims among a population not previously provided\\nfor in this manner. Much of the success of the Company must be\\nattributed to its method of paying claims within twenty-four hours\\nafter proofs have been received at the home office, and often imme-\\ndiately upon the presentation of facts which leave no doubt that\\nthe claim, on office examination, is in all respects satisfactory.\\nThe Companjr, from the beginning, had acted on the principle\\nthat where the money was needed it was needed at once, but\\nat the same time no safeguard was left out of consideration for\\nthe full protection of the best interests of the Company and its\\npolicy-holders.\\nA critical period in the Company s history had been reached,\\nwhich required the most careful consideration and executive\\nskill in devising means to provide for the increasing demands\\nin directions not anticipated when the Company was estab-\\nlished, ten years before. Large numbers of the Company s", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0199.jp2"}, "200": {"fulltext": "164 HISTORY OF THE PRUDENTIAL.\\npolicy-holders had gradually become educated in life-insurance\\nprinciples, and the tendency of life insurance towards small\\namounts had been considerably extended upward, that is,\\ntowards a class of people somewhat better off in material good\\nthings and able to pay larger premiums, insuring for larger sums\\non the weekly-payment plan. The average amount of Industrial\\npolicies, as well as the average premium, was observed to be\\ngradually increasing, tending to confirm this view, and it had\\nbecome clear to the officers of the Company as early as 1880,\\nas was later so ably pointed out by Mr. Charles Booth in his\\nwork on Pauperism and the Endowment of Old Age,\\nthat Provision in this way that is by Industrial insurance\\nagainst death has become very general in recent years and I am\\ntold that the amounts insured with such companies as The Pru-\\ndential tend continually to increase, showing that something\\nbeyond mere funeral expenses is thought of. Here we have an\\nactive and natural growth of thrift which it will be wise to leave\\nalone, except in so far as its action can be facilitated or its benefits\\nmade more secure.\\nAlready in 1880 a new policy had been offered, by which it\\nwas possible to insure for even sums of $500, but the present\\ndemand was rather for a form of insurance providing not only a\\nburial fund, but, at the same time, a fairly substantial support for\\nthe surviving members of a family; hence this year the Company\\noffered to the public a Special Adult policy, which among\\nother provisions contained what was, for the time, a most liberal\\nand novel concession to Industrial policy-holders, namely, a non-\\nforfeiture or extended insurance clause, to take effect after the pol-\\nicy should have been in force for a period of at least three years.\\nBy 1886 the Company was therefore able to take the first step\\nin the direction of non-forfeiture provisions in Industrial insurance\\npolicies, which had been contemplated and aimed at in Mr. Dry-\\nden s early efforts, but which, on the best actuarial advice, were not\\nexpedient at the time, in the absence of actual experience gained\\nby Industrial companies. Reference is made to the new policies\\nand slight changes in the table of Industrial rates, in the follow-\\ning letter to the field force, dated January 4, 1886\\nAfter mature consideration, the Board of Directors have decided to in-\\ncrease slightly the Benefits under our present table, and hereafter policies\\np. 156.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0200.jp2"}, "201": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1885-^88. 165\\nwill be issued according to the schedule hereto annexed. Claims under\\npolicies hitherto issued will in future be adjusted according to the new\\ntable. We hope our members will see, in this voluntary action on the part\\nof the Company, an evidence of that fair and liberal spirit with which it has\\nbeen our aim in the past, and in which for the future we expect to deal with\\nour policy-holders.\\nThe Board has also authorized the issuance of Adult Policies for amounts\\nfrom $500 to $1,000, under a Special Table of rates somewhat more favor-\\nable to the insured than the $500 Table previously issued. You will find\\nthis Table of benefits also hereto annexed. Applications for these policies\\nmust be upon a special form which will be sent you. A special Medical\\nexamination will be required, for which the Company will pay $1. Policies\\nunder this table will be issued with the following condition\\nIf after the payment of the weekly premium hereon for three or more\\nyears this Policy shall become void by reason of default in payment of pre-\\nmiums, the Company agrees to issue a paid-up policy for the sum hereby\\ninsured, for a term of as many weeks as the number of times the full legal\\nreserve upon this Policy at the time of forfeiture contains the premium for\\nsaid sum insured, at the age of the insured at the time of the lapse, accord-\\ning to the published rates of the Company for Special Industrial whole-life\\npolicies provided that the Policy shall be surrendered to the Company and\\napplication made in writing for such paid-up policy within sixty days after\\ndefault in the payment of premiums hereon.\\nThis new form of policy and the important concession of\\npaid-up insurance constituted a further distinct step in the direc-\\ntion of extending the Industrial insurance system to the masses\\nand the development of what, for want of a better name, I have\\nelsewhere called Industrial-Ordinary that is, insurance for any\\namount, small or large, with premiums payable on any plan,\\nand designed to meet the demands of all the various elements\\nof the American population. The business, after ten short years,\\nhad outgrown the earlier conceptions it had been modified\\naccording to American experience, and had been strictly adapted\\nto the social and economic conditions of a rapidly improving\\nIndustrial population, where the poor of to-day are the well-to-\\ndo of to-morrow and the rich of later days.\\nTaking into account the facts of the Company s own experi-\\nence, The Prudential had placed the Special Adult policy on the\\nmarket, and, as a further evidence of rapid adjustment to improved\\nconditions and specific demands, commenced the issue of regular\\nOrdinary life policies on plans identical with those of the leading\\nOrdinary level-premium companies of the time. The first Ordi-\\nnary policy was written on January 19th of the year 1886, and", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0201.jp2"}, "202": {"fulltext": "166 HISTORY OF THE PRUDENTIAL.\\nby the end of the year 427 of such policies, for a sum of $585,500,\\nwere in force on the books of the Company. The Industrial\\nbusiness by the close of 1886 had reached 548,433 policies,\\ninsured for $59,328,627. The actual increase in business had\\nbeen over 125,000 policies, or at a rate of 29.8 per cent, over the\\nnumber in force at the end of the previous year. A corresponding\\nimprovement had been made in the finances of the Compan}?-,\\nand the assets now exceeded $1,425,000, with corresponding lia-\\nbilities of over $1,019,000, leaving a substantial surplus of over\\n$406,000.\\nBy January, 1887, The Prudential operated in eight States,\\nincluding Missouri, where an office had been opened in the city\\nof St. L,ouis. In commenting upon the progress made by the\\nCompany, Mr. Dry den, at the annual reunion of officers and\\nagents, at the Academy of Music, made mention of the fact that\\nThe policy of The Prudential has been to make haste slowly,\\nand it is only a few years ago that we ventured outside of the\\nState now its agents are in eight States in the Union, and,\\namong others, we have in Pennsylvania a membership of 140,000,\\nin New York 180,000, in New Jersey 185,000 of the latter\\n70,000 policies are in force in the city of Newark.\\nThe work of The Prudential had now become sufficiently\\nknown to attract public attention, and one of the New York news-\\npapers, under date of February 6th, contained a full description\\nof the system and objects of The Prudential, from which I make\\na few brief extracts\\nIf you were to go into any of the many little towns and villages which\\nlie thickly clustered together in the vicinity of Newark, N. J., and were to\\ntalk with the families of limited means, or if you were to make a canvass\\nof the homes of the industrial classes in the great manufacturing city just\\nnamed, you could insure for yourself the discovery of at least one subject\\nof common interest to all with whom you came in contact, by mentioning\\nthe name of The Prudential Insurance Company of America. Here is an\\ninstitution which, though but eleven years old, has taken a firm hold upon\\nthe confidence of the people for whose benefit it was established, and which\\nis doing splendid and beneficial work in all the territory upon which it has\\nentered a territory, however, which, as you will presently see, is by no\\nmeans limited to the region I have mentioned. In recent Sunday chats I\\nhave described two novel and successful schemes of insurance. Theschcme\\nof Industrial life insurance as exemplified in this great insurance company\\nof Newark, N. J., can scarcely be called novel, inasmuch as it has been in\\nsuccessful practice for nearly a dozen years and was founded upon equally\\nsuccessful experience in London, England but the subject is one which", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0202.jp2"}, "203": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l885~ 7 88. 167\\nI do not think is as widely understood or appreciated as it should be, and\\nwhich is deeply interesting.\\nOn Broad street, in Newark, N. J., stands a spacious, handsome and\\nsubstantial building, exclusively devoted to the business of The Prudential\\nInsurance Company of America. In 1875, when, in the face of great dis-\\ncouragement, this Company was organized, a small office adequately accom-\\nmodated the transaction of its business. To-day the fine structure on\\nBroad street is becoming too small for the transaction of that business.\\nOther insurance companies talk about millions, but they are millions of\\ndollars, not of policy-holders. Can you point to any other company in the\\nUnited States that had issued anything like this number of policies This\\nis truly a company of the people, for the people. How does it differ from\\nother companies? Simply in this, that it is designed not as a means\\nwhereby a man, in sufficiently affluent circumstances to be able to pay the\\nheavy premiums charged by other insurance companies, can arrange to\\nleave a fortune to his heirs, but simply for the immediate benefit of poor\\nfamilies into which death enters as a doubly great affliction, bringing not\\nonly the pangs of bereavement, but the misery of debt. It is a system\\nwhich enables even the poorest families to provide for the decent burial of\\neach member of such families. It is a feature of The Prudential Insurance\\nCompany that death claims are paid within twenty-four hours after proofs\\nof death are presented. Granted that a company of this description is\\nhonestly and honorably conducted, its blessings to the great army of wage-\\nworkers must be admitted. That the affairs of this Company are so con-\\nducted is proved by the fact that it has been admitted into the insurance\\nfield of eight different States, New Jersey, New York, Pennsylvania,\\nMaryland, Delaware, Ohio, Illinois and Missouri, and also into the District\\nof Columbia. This fact alone, under the strict and just insurance laws\\nexisting in these States, should be a sufficient guarantee of the soundness\\nof the system and the standing of the Company, but the figures found in\\nthe last annual statement of the Company speak for themselves.\\nIt is to Mr. John F. Dry den, now the President of The Prudential,\\nthat the United States is indebted for the establishment here of this plan\\nof Industrial insurance which had proved to be such a blessing to the work-\\ning people of England. He organized the Company and then, with the\\nconsent of the Board of Directors, went to England, where he made a\\nthorough study of the system of Industrial insurance. I regret that space\\nwill not allow me to describe in detail the systematic and splendidly organ-\\nized manner in which the business of this Company is conducted. Over\\n2,000 persons are employed at headquarters and in the field.\\nIs there any wonder that this system of insurance is popular with the\\npeople, and that the number of policies issued exceeds a million and a half\\nThe success of the Company, no doubt, attracted the atten-\\ntion of other insurance managers, and a number of attempts were\\nmade this year to establish new Industrial companies among\\nothers, the American Life Insurance Company of Philadelphia", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0203.jp2"}, "204": {"fulltext": "1 68 HISTORY OF THE PRUDENTIAL.\\nmade a short and unsuccessful attempt, while a more satisfactory-\\neffort was made by the People s Insurance Company of Norwich,\\nConn., organized by some of the leading citizens of that State.*\\nActual business operations were commenced by the latter company\\nin 1888, and continued with a fair degree of success for a num-\\nber of years but after having given the business a sufficient\\ntrial, the company discontinued operations, reinsuring its risks in\\none of the leading life companies. Few experienced underwriters\\ncould properly estimate the enormous difficulties in the way of\\nsuccess in the operation of an Industrial company. Few could\\nrealize that it required exceptional talent and exceptional aptitude\\nto make this branch of the insurance business a success. The ques-\\ntion has often been asked why it is that there are so few companies\\nlike The Prudential, the Metropolitan and the John Hancock, f\\nthat have succeeded on a large scale. The answer is that, while\\nthere are to-day some ten or eleven other Industrial companies\\noperating successfully on a small scale, it is only through men of\\nexceptional ability and by the most arduous efforts that Industrial\\ninsurance can be made a profitable and secure business enterprise.\\nFortunately for the good name of the business, the companies\\nwhich organized unsuccessful Industrial branches, or which had\\nbeen organized for the distinct purpose of transacting an Indus-\\ntrial business and had failed, discontinued their efforts in an\\nhonorable manner. Not a single dollar has ever been lost to\\nan Industrial policy-holder on account of the failure of a legiti-\\nmate Industrial company. The peculiar difficulties confronting\\nthose who would undertake new enterprises of this kind are well\\nstated in an article in the Spectator for December, 1887, which, in\\naddition, contains some pointed references to other aspects of the\\nbusiness, which may properly find a place in this summary\\nMr. David A. Wells, the well-known political economist and writer\\non taxation, was one of the incorporators of this company.\\nf Among the smaller Industrial companies, The Life Insurance Com-\\npany of Virginia, with its home office at Richmond, Va., has been excep-\\ntionally successful in the Southern States. This company had been\\norganized as an Ordinary company in 187 1 and met with but very modest\\nsuccess until, in 1887, an Industrial department was added, which by slow\\ndegrees has reached proportions of considerable magnitude. The first\\nIndustrial policy of the Life Insurance Company of Virginia was issued in\\nApril, 1887, although a few so-called Prudential policies had been issued\\nin the cities of Richmond and Petersburg during the years 1880- 87.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0204.jp2"}, "205": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1885-88. 169\\nstatement of historical facts pertaining to the origin and growth\\nof The Prudential Insurance Company\\nThe peculiar features of industrial companies are such as to almost\\npreclude the possibility of combining them with other forms of life insur-\\nance successfully. The number of agents required in the field for canvas-\\nsing and collecting purposes is equivalent to a small army. Each one of\\nthese is selected because of his special qualifications to deal with the class\\nof persons insured, for they have to be handled with much tact, and the\\nagent must possess a good knowledge of the condition of each one of his\\nclients, ascertaining his earnings, habits, etc. Furthermore, the agent\\nmust be punctual, and appear promptly to receive his premium at the\\ntime specified in each instance, or he is liable to be disappointed. Hun-\\ndreds of men have undertaken to do this work and given up in despair\\nafter a few days or a few weeks experience, being wholly unqualified to\\ndeal with the working people. The amount of good accomplished by\\nthese industrial insurance companies is not to be measured solely by the\\namount of money paid to the beneficiaries under the policies issued, for it has\\nbeen the means of introducing frugality where previously reckless extrav-\\nagance had reigned. The money to pay the premiums is often saved from\\nthe beer or the tobacco allowance of the man, while the women, who have\\nbecome familiar with the usefulness of the system, practice all sorts of\\neconomies to save enough from their household expenses to pay the\\nrequired weekly premium. The companies are overwhelmed with letters\\nfrom persons who have been benefited by this plan, testifying to the\\nmanner in which they have been relieved from the direst distress by the\\nreceipt of the money secured to them by one industrial policy. It is a\\ngood thing for the community that this form of insurance has come into so\\ngeneral favor, for it is imparting ideas of economy and prudence among\\na class of persons who sadly need such teaching.\\nThe business progress of The Prudential during the year\\n1887 had been exceptionally satisfactory. The net increase in\\nIndustrial policies in force was 188,476, equal to 34.4 per cent.\\nThe assets of the Company had increased to almost $2,000,000,\\nwhile the surplus had increased to $487,078. Some progress had\\nbeen made in the Ordinary branch, showing an increase from\\n427 policies in force at the close of 1886 to 735 policies, for the\\nsum of $945,000, in force at the close of the year 1887.\\nIn commenting upon the twelfth annual statement of the\\nCompany, published during the early part of 1888, the New York\\nTribune repeated its former words of approval of Industrial\\ninsurance, stating that\\nThe Prudential is an invaluable help to the poor and middle classes.\\nIt paid in death claims, during the year 1887 alone, nearly one million of", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0205.jp2"}, "206": {"fulltext": "170 HISTORY OF THE PRUDENTIAL.\\ndollars. In addition to this great benefit it is working a revolution among\\nthe working classes in fostering habits of thrift and foresight, which\\nredound to their profit in numerous ways. That they appreciate their\\nrelation to it is shown from the fact that about three-quarters of a million\\nof persons hold policies in this Company.\\nMention has been made of the improvement in policy condi-\\ntions made by the Company during the preceding years. The\\nmost important concession made to policy-holders was the addi-\\ntion of a paid-up or surrender-value clause in the Special Adult\\npolicy issued for the first time during 1886. However desirable\\nit would have been to have extended this provision to regular\\nIndustrial policies, it was inexpedient to make such a concession\\nat that time, partly because the business was in its initial stage\\nand partly because the necessary experience for such an impor-\\ntant concession had not been gained. This step, however, must\\nbe regarded as proof of the Company s honest intention to deal\\nequitably with all its policy-holders, and it is something very con-\\nsiderably to the credit of The Prudential that this important con-\\ncession was made before the State Legislatures had attempted to\\nforce Industrial companies to grant surrender values on Industrial\\npolicies. I recall these facts in view of an attempt made during\\nthe early part of 1888, in the State of New Jersey, to pass a bill\\ncompelling Industrial companies to grant non- forfeiture privileges\\nafter a policy had been in force for only two years. It will be\\nrecalled that, as far back as 1880, a special committee of Insur-\\nance Commissioners had reported adversely on the proposition to\\ncompel Industrial companies to grant surrender values. The\\nmerits of the case are best set forth in the following quotation\\nfrom the Insurance World, which will make clear the Company s\\nside of the argument, at the time when this attempt was made to\\nburden the business of The Prudential with legislation adverse to\\nthe best interests of its policy-holders\\nThe rapid strides made by the companies doing Industrial business has\\nbrought its natural result in awakening the attention of the legislators, and\\na bill has now been introduced in the New Jersey Legislature to render in-\\ndustrial policies non-forfeitable after they have been in force for two years.\\nThe absurdity of this lies in the fact that most of these policies average less\\nthan $150 each. The net reserve at the end of the second year at age\\ntwenty-five would be 12.28 per thousand by the American Experience 4^\\nper-cent. table. A policy for $150 on the ordinary life plan would accumu-\\nlate in two years a reserve of $1.93 only. But Industrial insurance is only", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0206.jp2"}, "207": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l885~ 88. 171\\nterm insurance in fact, and the reserve would be so infinitesimally small\\nthat a good actuary with a powerful glass would scarcely be able to distin-\\nguish it. In fact the paid-up insurance would hardly be large enough to\\npay the fare of the individual who should go to collect it.\\nThe subject was also referred to in the annual report of the\\nInsurance Commissioner of Ohio for 1888, to which the Chronicle\\nof New York, under date of July 26th, replied in the following\\nmanner\\nWe think a number of reasons can be given why the granting of sur-\\nrender values to Industrial policy-holders after the time mentioned by the\\nOhio Commissioner would be impracticable, not to say inexpedient. Some\\nof the reasons may be briefly mentioned. The average Industrial policy is\\nsmall, probably not much more than $100. The reserve on a policy for this\\namount is very small indeed at the end of two years in fact, it would not\\namount to a large sum at the end of ten years, whatever the age of the in-\\nsured. The expense of actuarial calculation of the surrender value and the\\ndeduction of a proper surrender charge would make the equitable surren-\\nder value in many cases an infinitesimal sum. In short, the cost of valu-\\ning Industrial policies as suggested by Mr. Kemp would very likely be\\nheavy enough to offset any possible benefit the lapsing policy-holder might\\nderive. Moreover, the lapse tendency in Industrial insurance is very\\nstrong. The Prudential, whose experience the Ohio Commissioner quotes,\\nlost over 320,000 policy-holders last year by lapse. Undoubtedly the major-\\nity of these lapses were on policies that had been in existence less than two\\nyears still a considerable number of the policies had probably reached that\\nage. The chief obj ect of Industrial insurance is to furnish a burial fund. A\\nmatter worthy of careful thought is the question whether whatever forfeit-\\nure there is in this plan of insurance might not better remain what it now\\nis, a slight inducement toward persistence. Industrial insurance is trans-\\nacted on the stock principle. There are no dividends, and the premiums,\\nwhile necessarily relatively large, are not excessive when the tremendous\\ncost of weekly collections is taken into account. The opinion which Mr.\\nKemp appears to hold about the ratio of profit in the Industrial business in\\nOhio will probably be modified in a few years, when this kind of insurance\\nhas been prosecuted longer in his State.\\nWithout discussing at length so involved and complex a\\nquestion as the Company s practice in dealing with lapsed Indus-\\ntrial policies, I need only repeat, what I have stated in the begin-\\nning, that Mr. Dryden and his associates had fully considered this\\nquestion before a single policy had been issued, and the subject\\nreceived constant attention during every year of the Company s\\nearly existence. After sufficient experience had been gained\\nThe Prudential was the first Industrial company to grant not", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0207.jp2"}, "208": {"fulltext": "172 HISTORY OF THE PRUDENTIAL.\\nonly paid-up policies, but also cash-surrender values to Industrial\\npolicy-holders.\\nAttempts were made this year to create a class sentiment\\nagainst Industrial insurance by sensational newspaper articles on\\nthe subject of life insurance for minors. The year previous,\\narticles had appeared in St. Louis newspapers reflecting upon\\nthe practice of Industrial companies, while this year they were\\nconfined to a few newspapers of Philadelphia.\\nThis agitation, no doubt, was largely the result of an effort\\non the part of the Seventh Ward Charity Organization Society\\nof Philadelphia, which had petitioned the Pennsylvania Legis-\\nlature to secure legislative prohibition of the life insurance of\\nchildren, on the ground that mothers were likely to murder their\\nchildren for the purpose of obtaining the small amounts of insur-\\nance receivable at death. The argument in favor of adverse\\nlegislation on the subject of life insurance of children, from the\\nviewpoint of the Philadelphia Charity Organization Society,\\nwas well answered in a brief article in the Standard of Boston,\\nunder date of November 3, 1888, as follows\\nA Philadelphia charity organization declares its intention of memorial-\\nizing the next Pennsylvania Legislature to abolish infant insurance. This\\nidea was doubtless fed and fired by the half-baked newspaper articles that\\nhave followed one or two sporadic cases of maltreatment of insured infants.\\nAdopting momentarily, for the sake of argument, the low view of human\\nnature evidently held by these Philadelphia philanthropists of small\\nresearch, a little painstaking would have taught them that infant insurance,\\nas carried on by the reputable companies, is so arranged as to offer no\\nincentive for manifestations of avaricious cruelty or crime. But even if\\nthis were not so, we have greater faith in our fellow-beings than to believe\\nthem capable of such horrible practices for the ignoble pittances they would\\nsecure.\\nI have made mention of these fragmentary evidences of the\\nincreasing opposition to the practice of Industrial companies\\nin accepting small risks on the lives of children for burial pur-\\nposes, to account for more recent and more determined oppo-\\nsition to this branch of the business, to which reference will be\\nmade later on.\\nWhatever might then or now be said or thought of Indus-\\ntrial insurance from the standpoint of public policy or of the\\nindividual policy-holders, this much is certain it is this form\\nof life insurance for the masses which alone has survived in the", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0208.jp2"}, "209": {"fulltext": "the: prudential ins. co. of America, i885- 88. 173\\nstruggle for existence, has accomplished what it set out to do, has\\nincreased in extent of operations from year to year, with never a\\ncheck or evidence of diminishing popularity, and represented at the\\nclose of 1888 a more formidable array of figures and facts in its\\nown support than could be marshalled in behalf of any other form\\nof life insurance or investment in America. While, previous to the\\norganization of The Prudential, a large number of efforts had been\\nmade to organize insurance companies or societies for the benefit\\nof the industrial population, not one had succeeded in reaching a\\nsufficient degree of popularity or of financial security to survive\\nmore than a score of years at the most. But these efforts had not\\ncome to an end with the organization of an Industrial company,\\nthey had not been seriously hindered by the growth of Industrial\\ninsurance in all parts of the country, but in a measure, and\\ncontrary to expectation, an increasing number of ventures in all\\ndirections had been made to compete with the legitimate form\\nof Industrial life insurance by methods offering cheap insurance to\\na large element of the population still unfamiliar with insurance\\nprinciples, and unfamiliar with the past history of unsuccessful\\ninsurance enterprises. Among a large number of pseudo-life-\\ninsurance efforts made during the early years of Industrial insur-\\nance history, I have already made mention of some, and space is\\nnot at my command to deal exhaustively with this subject. Near\\nthe close of 1888, however, the operations of pseudo or bogus\\nimitations of Industrial companies had increased to such an\\nextent that the State Department of Insurance of New Jersey\\nfound it necessary, in an open circular, to warn the public to\\nbeware of the Industrial Association of America, with offices at\\nNewark, N. J. According to the Investigator, October 13, 1888,\\nThis fraud is evidently attempting to trade on the high commer-\\ncial standing and long-established reputation of The Prudential\\nInsurance Company of America. The similarity of names would\\nbe traded on to the advantage of the fraud and disadvantage of\\nthe legitimate corporation.\\nAn apparently honest but rather curious effort in the direc-\\ntion of workingmen s insurance for burial purposes was made\\nthis year, at Camden, in the State of New Jersey, by the United\\nStates Funeral Directing Company, which proposed to operate\\non a plan entirely new and different from any other method of\\ninsurance provision against contingencies. A somewhat similar\\neffort in this direction had been made as far back as 1873, in", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0209.jp2"}, "210": {"fulltext": "174 HISTORY OF THE PRUDENTIAL.\\nRichmond, Va., and, no doubt, in other cities also, but without\\nsuccess. The object of the Camden company was to provide\\nfor a decent interment at a cost of from $30 to $100, but after a\\nbrief experience the attempt was discontinued. The reasons for\\nfailure are that life insurance on the Industrial plan, after the\\ninitial stage has been passed, aims at more than mere provision\\nfor burial expenses. Persons will begin by insuring for five-cent\\npremiums for burial purposes, but after a year or more increase\\ntheir premiums to secure a sufficient sum to pay the cost of the\\nlast illness later on, by further increase in premiums, provi-\\nsion will be made for dependents, and in this manner a more\\ncomplete purpose, as in Ordinary insurance, is secured or\\nlargely realized. Hence, the failure of the Funeral Directing\\nCompany came not unexpectedly to those who had made a\\nthorough study of Industrial insurance underwriting.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0210.jp2"}, "211": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l889~ 9I. 175\\nCHAPTER XI.\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA,\\n1889-1891.\\nThe difficulties which had been experienced during 1888 had\\nnot materially hindered the progress of the Company, and by\\nthe close of the year there were over 850,000 Industrial policies\\nin force. In addition there were now, in the Ordinary branch,\\n915 policies in force, indicating a slight but substantial increase.\\nThe growth of the Company made necessary the serious consid-\\neration of the erection of a home-office building, and during the\\nyear a plot of ground on Broad street was purchased for the\\npurpose of erecting thereon, in course of time, a substantial\\nstructure. The Insurance Times, in its issue of December, 1888,\\nquotes from the Newark Daily Journal the following reference\\nto the real estate transaction\\nIn a few years The Prudential Insurance Company will erect, at the\\ncorner of Broad and Franklin streets, a building that will be an ornament\\nto the city. The plot of ground owned by the Company has a front of 89\\nfeet on Broad street, and it runs back 160 feet to an alley. It is proposed\\nto have a large open court in the middle of the plot, with an entrance from\\nthe alley for carriages, and the building to rise on four sides to a height of\\nsix or more stories. But the managers will not decide upon any plan\\nuntil after the finest buildings in this country and Europe have been\\ninspected, the aim being to construct an edifice that will meet all the\\nrequirements of the rapidly increasing insurance business. Plenty of\\nlight and air will be needed for the army of male and female clerks and\\nother employees, for the Company has so prospered since its organization,\\nthirteen years ago, that over 800,000 payments are now recorded weekly at\\nthe home office in Newark on life-insurance policies. The Company\\nemploys several thousand clerks and agents, and is extending its business\\nto the growing towns in all the States and Territories.\\nFor reasons which need not be dwelt upon, the Company,\\nvery soon after this transaction, did not consider the property\\nsufficient for its purpose, and during the early part of 1889 one", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0211.jp2"}, "212": {"fulltext": "176 HISTORY OF THE PRUDENTIAL.\\nof the most desirable pieces of real estate in Newark, in the\\nheart of the city, with a frontage of 70 feet on Broad street,\\nwas purchased for the sum of $275,000, as a site for the home-\\noffice building, to be constructed during the next few years.\\nAccording to Insurance under date of February 8, 1889, It is\\nthe intention of the Company to erect on this lot a substantial\\nand handsome building for the accommodation of its own vast\\nand growing business and affording large room for rental pur-\\nposes. The work of construction will not be begun for some two\\nyears, for the Company s lease of its present quarters has still\\nfour years to run, and after the plans are fully matured something\\nlike two years will be taken for carrying them out. The Pru-\\ndential has never been in a hurry from the beginning. It was very\\nparticular about foundations. And it built to stay.\\nA further reference to the purchase of the property and the\\nproposed home-office building of the Company occurs in the\\nInsurance Critic for March, 1889\\nThe Prudential Insurance Company of America, which so successfully\\nconducts the business of industrial life insurance from its home office at\\nNewark, has recently purchased a valuable and central site in that city, with\\nthe design of erecting thereon a commodious and handsome office build-\\ning, that shall be an architectural ornament to the place. The property\\nis situated at the corner of Broad and Bank streets, and was bought from\\ntwo owners the larger part from Justice Joseph Bradley, of the United\\nStates Supreme Court, for $275,000, and the balance, known as the Wiss\\nproperty, for $38,000, the entire outlay being $313,000. The frontage is\\n70 feet on Broad street, 265 feet on Bank street, and 140 feet on Library-\\ncourt, and the entire plot contains 25,000 square feet. The new edifice will\\nbe built on the portion purchased from Justice Bradley, and will be so con-\\nstructed that an extension in harmony with the main design can be erected\\nwhen the growing business makes it necessary. The general\\ndesign is to put up a nine-story, fire-proof building, in size 70 by 231 feet, to\\ncost about $500,000. All the conveniences and improvements devised by\\nmodern skill and art will be introduced. It is believed that the favorable loca-\\ntion and the interior attractions will occasion a large demand for offices in the\\nspace on the several floors not required by the company itself for the trans-\\naction of its business. The company will make use of the larger portion\\nof the building in its own work. When it entered its present home office,\\nless than six years ago, its clerical force for the office was below fifty it\\nnow employs two hundred and twenty-five clerks. At first it rented out\\nthe two upper floors, but increase of business soon compelled it to occupy\\nthe entire edifice, from basement to attic, to hire the basement in the\\nadjoining building for the construction of additional vault room, and to\\nplace its local agency force in other parts of the city. The company s", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0212.jp2"}, "213": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1889-91. 177\\nemployees are now numerous enough to form a circle of society by them-\\nselves. They have organized a literary and musical association, which\\nholds regular semi-monthly meetings. The Prudential Old Guard in-\\ncludes those who, having served the company faithfully and continuously\\nfor certain periods, are presented with certificates and badges, bronze\\nbadges for five years service, silver badges for ten years, gold badges\\nfor fifteen years, and gold badges with a diamond set in each for twenty\\nyears. The members [of the Old Guard] receive also special consideration\\nin their business dealings with the office. The company s growing business\\nand increasing clerical force show the need of enlarged accommodations.\\nThe building to be erected will also be a monument to the prudence and\\nforethought of the company s large clientage. Nearly a million people\\nhold its policies, and of this great number about one hundred thousand are\\nin Newark and its near vicinity.\\nThe plans of the Company with respect to the proposed\\nbuilding were carried out practically in accordance with the pre-\\nceding outline, ground was broken in September, 1890, the new\\nbuilding was completed during the early part of 1892, and actual\\npossession was taken on May 1, 1892. So rapid, however, was the\\ngrowth of the Company, and so promising its future, that steps\\nwere taken to purchase more real estate than was required at that\\ntime, and during the latter part of 1889 an additional portion of\\nreal estate was purchased contiguous to that previously acquired.\\nThe subject will be further referred to under its proper date.\\nThe good work of the Company had continued to be appre-\\nciated, and volumes could be filled with the expressions of public\\napproval to be found in the records and archives of The Pruden-\\ntial. One of the earliest friends of the Company, when the busi-\\nness was in its infancy, had been the Metuchen Inquirer, cordially\\napproving of the then new and untried plan of Industrial insur-\\nance, when the same was first made known to the people of New\\nJersey. I can not do better than quote from an issue of this\\nsame paper, during the early part of 1889, a few words of further\\ncommendation of the results of Industrial insurance, as observed\\nin this community\\nThe total amount paid in claims to relatives of deceased policy-holders\\nhas now reached nearly $4,000,000. The benefit derived from these pay-\\nments is incalculable, because it may be said that in many, if not in the\\nmajority of cases, these policies were the only available asset which the\\nrelatives of the deceased had at the time of their death. That the masses\\nare coming fully to realize the great value of Industrial insurance in a\\nstrong, reliable company is shown from the fact that The Prudential has\\nnow about 900,000 policies in force. They paid over 13,000 claims in 1898.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0213.jp2"}, "214": {"fulltext": "178 HISTORY OF THE PRUDENTIAL.\\nThe Prudential had not only made many friends from the\\nbeginning, but it had never forfeited the good-will of any one\\nthoroughly familiar with its object and results as an agency for\\nthe improvement of the condition of the industrial population.\\nThis view is fully and ably set forth in a lengthy article on the\\nCompany s business operations during the year 1888, in the\\nBaltimore Underwriter of January 21, 1889, from which I make\\na brief extract, as a further proof of the increasing public\\napproval of the Prudential form of life insurance in America\\nWhile The Prudential is thus showing what can be done by intelligent\\nand energetic effort in the upbuilding of a great providential institution, it\\nserves at the same time as a leading exponent of a system most admirably\\nadapted to the special needs of the industrial classes. It is teaching with\\nall the force of a singularly successful example it is educating the wage-\\nearners of the country to the importance of thrift and the cumulative value\\nof small savings it shows them how the benefits of life insurance can be\\nbrought to their own doors, and be made available and secure for them, no\\nmatter how humble their means or how enforced their economy. Before\\nthe introduction of the industrial system, the largest class in every com-\\nmunity, the class more than all others needing the protective care of life\\ninsurance, was practically denied its advantages. Thousands, through the\\nconvenient methods and the ready adaptation of The Prudential, have real-\\nized the value of its help in time of need, and they in turn naturally advertise\\nit among their friends, and make its name a familiar household word.\\nAnother clear and comprehensive expression of approval on\\nthe part of a public journal not connected with insurance inter-\\nests, but which had been among the first to recognize the impor-\\ntance of extending the principles of life insurance to the masses,\\nis to be found in the Boston Herald of September 2, 1889. From\\nalong article on the subject of Industrial insurance and how\\nthe poor may provide a burial fund, I make the following\\nextracts, as a further illustration of the increasing intelligent\\nrecognition of the methods and results of life insurance on the\\nIndustrial plan\\nOne of the most surprising developments of modern life insurance is in\\nthe direction of what is called industrial or burial fund insurance. This\\nfeature, which is of comparatively recent growth, has been forced upon the\\ninsurance companies by the necessities of families of small means. Its\\nprimary object is to provide a modest sum for funeral expenses, and is radi-\\ncally different from ordinary life insurance.\\nThis class of insurance may be called a growth of the times, and\\nthe increasing demand for it is one of the most encouraging features in the", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0214.jp2"}, "215": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1889-91. 179\\nindustrial world at the present time. But a few years ago it was nearly im-\\npossible for one to obtain a policy of insurance for less than $1,000. Few\\ncompanies would grant insurance on the lives of women, and no company\\nwould insure children. Up to the time of the introduction of the plan of\\nindustrial insurance into this country, the average amount of life insurance\\npolicies in force in the United States was $2,500. The efforts of most com-\\npanies were, and still are directed toward securing large individual risks, and\\nthe manner in which the heavy risks that have been placed in recent years\\nare exploited shows the estimation placed upon this class of business by\\ninsurance companies. Not only were policies of less than $1,000 seldom\\nissued, but premiums were not accepted oftener than quarterly. Naturally\\nthis high cost of insurance cut off from participation therein those who most\\nneeded the protection. In fact, the vast majority of the community were\\nunable to procure insurance, and would have been unable to pay the pre-\\nmiums, even if secured. To them, policies for small amounts with fre-\\nquent payments of premiums are a necessity. This need was supplied by\\nthe scheme of industrial insurance, the plan for which has been largely\\ndrawn from English sources.\\nAmong the objections that have been raised against industrial insur-\\nance at various times has been that of the temptation to infanticide but this\\nargument has been so frequently met by official statistics and reports from\\nEnglish and American sources, that only the ill-informed now hold or ad-\\nvance such theories. The plan early adopted by the companies, and uni-\\nformly pursued since, of granting an increasing insurance for a uniform\\nperiod, so that as the child advances in years the benefits increase, reach-\\ning the maximum at about the age when the child becomes a possible\\nwage-earner, and thus a contributor to the family funds, has done much to\\nlessen any possible danger that might come from this direction. As a mat-\\nter of fact, the cases of infanticide for the sake of insurance money are ex-\\nceedingly rare indeed, much more uncommon than similar cases in ordi-\\nnary life insurance, where the temptation is greater.\\nAnother criticism is based on the great number of policies lapsed. The\\ncritics evidently forget that the conditions are radically different from those\\nattending ordinary life insurance. So many things affect the connection of\\nthe policy-holders with the companies, such as the great variety of ages,\\nthe small incomes of those who carry the insurance, and the fact that these\\nincomes are liable to sudden shrinkage or entire loss. All these causes,\\nand many others which might be named, have so much effect upon the\\nquestion that it is not strange that the ratio of lapses should be very\\nlarge.\\nOther objections raised are the trifling amount of benefit paid and the\\nlack of insurable interest of the parents in the lives of children, who com-\\npose the bulk of the risks exposed. But these objections are answered by\\ncalling attention to the fact that the benefit is intended to be only of the\\nnature of a burial fund, that it is as large as the one carrying the insurance\\ncan afford to pay premiums upon, and that the desire of a parent to properly\\nand decently bury a dead child, without relying either upon public or pri-\\nvate charity, may well be a substitute for an insurable interest.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0215.jp2"}, "216": {"fulltext": "l8o HISTORY OF THE PRUDENTIAL.\\nThe dangers which are connected with this plan of insurance, so far as\\nthe policy-holders are concerned, are largely those which are inseparably con-\\nnected with insurance of whatever nature.\\nFrom the little paper printed for The Prudential Insurance Company,\\nand from other industrial insurance literature which is accessible, it\\nappears that the industrial companies endeavor to minimize the lapses\\nas much as possible they help the member avoid them by granting\\nhim a grace, so that every little disturbance may not invalidate his\\ninsurance, and they make it a vital consideration to the agent to make\\nthe lapses as small as possible. The idea adopted seems to be that a busi-\\nness worth doing is worth keeping. A member never secedes, the reve-\\nnue from whose policy a company would not far rather have maintained,\\nfor the lapses are not on business which has been in force for a few years,\\nbut upon business in the early stages of its existence before it has covered\\nexpenses or yielded any margin of surplus.\\nInsurance Commissioner Merrill has the following to say of the indus-\\ntrial business in his report for 1889 This branch of life insurance, com-\\nparatively new to this country, has had in other lands a development which\\nbest attests the public want thereby met. That it has its limitations and its\\ndangers its most earnest advocates attest, but there is a field within which\\nit may properly, and with careful restrictions, commendably work.\\nToo much credit can not be awarded to those companies that have, in\\nthe face of innumerable obstacles, carried the blessings of life insurance to\\nthe poor and lowly, and made it possible for even the women and children\\nto share in the advantages of the indemnity it secures.\\nTo these words of approval and advice little need be added\\nin further explanation. It would be well, indeed, for the best\\ninterests of the people if public journals would at all times give as\\nfair and open an expression, supported by official and other\\nproof, of matters affecting directly the interests and welfare of the\\nwage-earners of the State but, unfortunately, very often sensa-\\ntional newspapers will try to discourage public confidence in\\nfinancial institutions by ill-advised criticisms or unwarranted\\nassertions. It is something very considerably to the credit of\\nthe Boston Herald that it maintained consistently its attitude in\\nfavor of workingmen s insurance for so long a period as from\\n1853 to 1889.\\nThe success of The Prudential was, no doubt, largely respon-\\nsible for the organization of a new Industrial insurance company\\nin the city of Newark during the year 1889, under the name of\\nThe United States Industrial Insurance Company. What has\\nbeen said of The People s Insurance Company of Norwich applies\\nequally well to this company, which, after struggling against\\nenormous difficulties extending over a period of a little more", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0216.jp2"}, "217": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1889-91. l8l\\nthan eight years, withdrew from the business and reinsured its\\nrisks, under date of June 24, 1896, with the Metropolitan Life\\nInsurance Company of New York.\\nAs it was well pointed out at the time, it is not only an ex-\\nceedingly expensive matter to establish an Industrial insurance\\ncompany, but practically an almost impossible undertaking in\\nview of the great difficulty in obtaining the required body of men\\nable to manage local agencies with even a fair degree of success.\\nAs a rule, new Industrial companies in the beginning unwisely\\nattempted to obtain their agents and managers from the existing\\nIndustrial companies, who, in turn, would attempt to twist\\npolicies by transferring business from the older companies to the\\nnew, this in turn leading to inter-company warfare, which natu-\\nrally caused strife and bitterness and unnecessary waste of money,\\nto which must be added a not inconsiderable degree of hindrance\\nto the development and best interests of the companies and their\\npolicy-holders. Other companies have been started since that\\ndate, but, as a rule, their early experience has been very much\\nalong these lines. Thus, during the same year, an Industrial\\ncompany was organized in Cincinnati by the name of the West-\\nern and Southern, which also, at first, for a short period at least,\\ngave considerable trouble to the agents of The Prudential. After\\na while, however, these difficulties were overcome, and the West-\\nern and Southern has now quite a large number of policy-holders\\nin some of the principal cities of the Middle West.\\nThe business operations of The Prudential during the year\\n1889 had been exceptionally successful, and at the close of the\\nyear the Company had 1,099,312 Industrial policies in force for\\nthe sum of $117,357,415 of insurance protection. The premium\\nincome during the year had reached the, for the time, enormous\\nsum of almost $4,500,000, while the amount paid in losses was\\n$1,300,000. The net gain in Industrial insurance during the\\nyear had been 249,248 Industrial policies, or equal to 29.3 per\\ncent, increase over the preceding year. In Ordinary insurance\\nthe Company had made considerable progress, doubling the\\nnumber of policies, the increase being from 915 in force at the\\nclose of 1888 to 1,839 i n force at the end of 1889. Corresponding\\ngains were made in assets and surplus, indicative of the healthy\\nand solid growth of the Company during the year.\\nThe progress of the Company, in both departments of the\\nbusiness, continued during the year 1890. An important step in", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0217.jp2"}, "218": {"fulltext": "1 82 HISTORY OF THE PRUDENTIAL.\\nadvance was made during this year, in that a concession was\\ngranted to the policy-holders by the addition of a five-year divi-\\ndend provision to the holders of Special Adult policies.\\nIn a general way the year was rather an uneventful one from\\nan insurance standpoint, and the only matter deserving of more\\nthan passing notice was an attempt in the State of New York to\\nprohibit the insurance of children under ten years of age. A\\nbill to this effect had been introduced and referred to the Com-\\nmittee on Insurance, which gave an extended hearing to both\\nsides of the controversy, and I can not do better than quote\\nthe following passage in reference to the subject from the Spectator\\nof March 13, 1890\\nThe insurance committee of the Legislature has given a hearing to\\nthose who are interested in the bill recently introduced to prevent the\\nassurance of the lives of children under ten years of age, or what is more\\nusually termed infantile assurance. There have been at various times\\nattempts made to excite public distrust of this kind of assurance by the\\ncry that such assurance is an incentive to child murder. This cry has been\\nsounded more frequently, however, in England than here. Inquiries offi-\\ncially made in England have shown that there is very little basis for the\\ntruth of any such statement. While it is possible that occasionally\\ndepraved and dissolute parents have been led to commit child murder for\\nthe sake of a small amount of assurance, yet such cases are so rare as to\\namount to nothing when the large number of children so assured is con-\\nsidered. We do not believe that in this country it would be possible to\\nsubstantiate a single case of child murder as resulting from this cause. On\\nthe contrary, however, it could be abundantly shown that infantile assur-\\nance has done a world of good among the poorer classes. Thousands of\\nchildren are assured in the various industrial companies for small amounts,\\nand this is regarded in the light of a burial fund, to secure for the child in\\ncase of its death a decent Christian burial. There is nothing the poor so\\ndread as the possibility that they or their children may be buried in Potter s\\nField or by the hand of charity. Next to the poor-house a pauper s grave\\nis their greatest aversion. They therefore hail with alacrity this form of\\nassurance, which provides a burial fund for themselves and their children,\\nand they will pinch and starve themselves, almost, in order to keep this\\nassurance alive by the payment of the small weekly sums required. The\\nagents of the industrial companies tell many a pitiful tale of the privations\\nthat poor families endure rather than default in the payment of the pre-\\nmium which secures them this fund to save them from a pauper s grave.\\nIt is so small on the average as to preclude the possibility of its being a\\ntemptation to them to commit murder, much less a murder of their own\\noffspring, but is sufficient to secure Christian burial in case of death.\\nPresident Dryden, of The Prudential Insurance Company of Newark, and\\nVice-President J. R. Hegeman, of the Metropolitan, with others representing", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0218.jp2"}, "219": {"fulltext": "", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0219.jp2"}, "220": {"fulltext": "(L^MM", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0220.jp2"}, "221": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l88c)- 9I. 183\\nindustrial assurance, have appeared before the committee and given\\nsuch explanations as will probably result in the defeat of the bill. Cer-\\ntainly there is no occasion for any such measure, depriving so many\\nthousands of this highly-prized form of insurance, until there is some\\nevidence that it has been abused, as has been so frequently suggested but\\nnever proven.\\nThe Legislative Committee was evidently impressed with the\\nplain statement of the facts as presented by the Industrial com-\\npanies, and after a full hearing no further action was taken. It\\nwas only a few years later that complete legislative sanction was\\ngiven to the business by the incorporation of a table into the new\\ninsurance code of the State, fixing the maximum amounts which\\nchildren under thirteen years could be insured for, in a manner\\npractically identical with the methods of The Prudential and\\nother Industrial companies.\\nDuring the year an epidemic of la grippe caused an exces-\\nsive mortality among the general population and proved a serious\\ndrain on the funds of the Industrial companies. A large num-\\nber of claims due to this cause were paid by The Prudential, and\\ncorresponding relief was afforded to large numbers who would\\notherwise have been compelled to rely upon public or private\\nsupport for the payment of medical and funeral expenses.\\nA new Industrial company was organized this year at Iyouis-\\nville, Ky under the name of the Sun Iyife, by Mr. M. W. Adams,\\nformerly connected with The Prudential Insurance Company.\\nThe new company was, from the beginning, under energetic\\nmanagement, and has succeeded in making a success of the busi-\\nness, especially among the white population in the Southern States.\\nA vacancy having occurred in the position of Secretary,\\nMr. Forrest F. Dryden, only son of the President of the Com-\\npany, was this year, under date of October 10th, elected to the\\nidentical position so ably filled by his father from the commence-\\nment of the Company s business operations to the date of his\\nelection to the Presidency. For the purpose of obtaining a\\nthorough training in the field service of the Company, Mr.\\nForrest F. Dryden entered one of the Company s districts as an\\nInspector under date of October 4, 1888, and in the usual course\\nobtained his promotion to a Superintendency under date of Feb-\\nruary 4, 1889. Having shown unusual executive ability, Mr.\\nDryden, on January 14, 1890, was advanced to the position of\\nAssistant Secretary, and, on October 10, 1890, elected to the", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0221.jp2"}, "222": {"fulltext": "184 HISTORY OF THE PRUDENTIAL.\\nresponsible position of Secretary, which, office he holds at the\\npresent time.\\nAt the close of the year 1890 The Prudential had 1,228,332\\nIndustrial policies in force, insuring to the industrial popula-\\ntion an amount of protection in excess of $135,000,000. The\\nfinancial condition of the Company was excellent, the surplus\\nhaving been increased to $1,343,874. The relative increase in\\nbusiness had been less than during the preceding years, partly\\non account of the continued efforts on the part of new Industrial\\ncompanies to interfere with the business of The Prudential by\\nimproper methods and unfair competition. These difficulties,\\nhowever, were gradually overcome as the nature of the business\\nand the elements of success were becoming more thoroughly\\nunderstood by new organizations entering the field of Industrial\\ninsurance.\\nAs an evidence of the efforts on the part of the managers of\\nThe Prudential to do complete j ustice to their policy-holders, as\\nwell as to the agents of the Company, a new scale of terms to\\nagents was issued during the early part of the year, indicative of\\nthe most careful consideration of all the interests involved in the\\ncomplex question of adequate agency compensation. The table\\nof Industrial rates was slightly altered in that weekly premiums\\nin excess of twenty cents were accepted at the older ages, where\\noccasionally a demand was made for a policy for a larger sum\\nthan could be insured for under the existing table of rates. Other-\\nwise, the table of rates and benefits remained the same as estab-\\nlished in 1887.\\nDuring the year 1891 a number of legislative attempts were\\nmade to disturb the business of the Company and interfere with\\nthe practice of Industrial insurance, but, as a rule, the plain\\nstatement of facts supplied by the companies sufficed to meet\\nthe objections made against certain details connected with the\\nbusiness. Efforts to prohibit the insurance of children were\\nmade in Illinois, Massachusetts, Ohio and New Jersey, but not\\none of the bills introduced for this purpose became a law. In\\nNew Jersey a further attempt was made to compel Industrial\\ncompanies to grant surrender values after two years premiums\\nhad been paid, while in the State of Illinois a bill was intro-\\nduced to compel insurance companies to make their policies\\nincontestable after six months. Neither of these efforts met\\nwith success, the view of the companies prevailing, that should", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0222.jp2"}, "223": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1889-91. 185\\nexperience warrant the adoption of such measures the companies,\\nfor purely commercial reasons, if for no others, would on their\\nown account grant such privileges as the condition of the busi-\\nness would warrant. In a few States efforts were made to force\\nIndustrial companies to grant the same benefits to colored persons\\nas those granted to whites, and in the State of New York a\\nbill to this effect passed both houses of the Legislature. The\\nSpectator of February 5, 1891, in commenting upon the pass-\\nage of this bill, well said that There will probably be less\\neffort on the part of agents to write applications on colored\\nlives, and further referred to the subject in the following\\nwell-timed remarks upon the bill during its early stage in the\\nAssembly\\nA bill has been introduced in the New York Senate, having in view the\\nprevention of discrimination by life assurance companies against persons of\\ncolor, and is similar in character to that passed by the Ohio and Massachusetts\\nLegislatures. Legislation of this kind is harmful in the extreme, because\\nit defeats its own end, it being impossible to force any company to make\\na bid through its agents for colored risks, and so those persons, who\\nwould otherwise be able to secure assurance at rates equitably adjusted to\\nthe greater mortality which statistics show prevails among individuals of\\nAfrican extraction, are practically debarred from its advantages, because no\\nagent will solicit them for assurance if his company is compelled to grant\\na contract in which the terms are so manifestly against them. The color\\nline is not drawn simply because the applicants are negroes the world is\\ntoo progressive for that but a distinction is made on account of the fact that\\ncompanies can not afford to grant policies at the same rates to colored as to\\nwhite applicants, and any legislation which is intended to force them so to\\ndo is practically tyrannous. Fire insurance companies are not prohibited\\nfrom charging higher premiums on frame than brick or stone-built prop-\\nerties, and yet they are in just the same position as life assurance\\ncompanies that adjust the difficulty of increased mortality amongst\\nnegroes, by fixing a rate at which they can safely, and with equal chance\\nof profit as from whites, grant them assurance. There is no more sense\\nin passing such a bill as referred to than there would be in passing\\none to prevent life assurance companies rejecting applicants who were\\nconsumptives.\\nThe business year of 1891 had been satisfactory to the man-\\nagers of The Prudential, showing a fair increase in the Ordinary\\nbranch, while in the Industrial branch 1,360,000 contracts were\\nin force at the close of the year. The Company was taking\\nits time in the writing of new business, more serious attention\\nbeing given to the improvement of the condition of the business", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0223.jp2"}, "224": {"fulltext": "186 HISTORY OF THE PRUDENTIAL.\\nalready on its books. This, in the practice of Industrial insur-\\nance, is a most important factor and element of success, and no\\nIndustrial company has shown more solicitude towards its* per-\\nsistent policy-holders than The Prudential, and to the Company s\\nsense of equity and fairness must be attributed a large degree of\\nits wonderful success not only during the early years of business\\noperations, but much more so during more recent times.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0224.jp2"}, "225": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1892-93. 187\\nCHAPTER XII.\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA,\\n1892-1893.\\nThe new year 1892 was destined to prove a most important\\none in the annals of Industrial insurance. The Prudential Insur-\\nance Company this year issued a new Industrial policy, which\\ncontained a provision granting paid-up insurance to its policy-\\nholders after the premiums had been paid for a period of five\\nyears. A circular letter to the agents and policy-holders explain-\\ning this voluntary concession on the part of the Company was\\nissued under date of January 1, 1892, from which I make a brief\\nquotation\\nThe first of our new Plans is the addition of a Paid-up Policy Clause to\\nthe present forms of Industrial contracts. The paid-up clause will be oper-\\native after five years premiums have been paid on the original policy.\\nThe amount of the paid-up policy at the end of a certain number of years\\nis plainly indicated in a table which will be printed on the back of each\\nIndustrial policy issued after the first of January, 1892. The amounts in\\nthe table are computed according to the New York Non-forfeiture Law,\\nwhich is used by the New York State companies in computing paid-up\\npolicies under Ordinary Whole-Life contracts. The paid-up policy, as its\\nname indicates, is not subject to the payment of any premiums, and will be\\npaid in event of the death of the person insured, provided it occurs within\\nthe period of his (or her) Expectation of Life at the time the paid-up policy\\nis taken out.\\nThe Company has further to announce that all policies at present out-\\nstanding will be entitled to a paid-up concession, after five years from this\\ndate or, in other words, whether they contain a paid-up clause or not, will\\nbe entitled to a paid-up concession.\\nIn commenting upon the liberal policy of The Prudential,\\nthe Insurance Monitor under date of January 2, 1892, voiced\\nthe unanimous opinion of the insurance press in the following\\nwords\\nThe opening of the new year marked an important step in advance in\\nindustrial insurance. To the Prudential must be given the credit of", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0225.jp2"}, "226": {"fulltext": "1 88 HISTORY OF THE PRUDENTIAL.\\ninaugurating the new departure. Hereafter surrender values in the form\\nof paid-up policies will be granted to all applicants above the age of thirteen\\nwhose contracts have run for five years, such policies to run for the term of\\ntheir life expectation.\\nThe great importance of this voluntary concession lies in the fact that\\nit anticipates and effectually meets what might, in the near future, prove a\\nserious menace to the business. Industrial insurance has its stronghold\\namong the masses, whose political influence is all powerful. Sooner or later\\na legislative agitation would have been started in the ostensible interest of\\nthe poor man to compel surrender values. The matter would have been in\\nthe hands of incompetent legislators, whose notions of surrender values\\nwould be in all likelihood damaging to the best interests of the business.\\nThe action of the Prudential will almost inevitably be followed by the rest,\\nand there will be no occasion for legislative interference. In fact, since\\nwriting the above we have learned that the Metropolitan and one or two\\nother companies expect to take a similar step.\\nBut we suggest to all the companies that they act in harmony in this\\nmatter. Industrial insurance is still in its early stages, and it would be\\nexceedingly unwise to inaugurate a competition as to which can promise\\nthe largest benefits to be piled up as a future liability.\\nI can not omit a further tribute to the Company and its liberal\\npolicy towards its policy-holders, as additional evidence of the\\nready recognition of The Prudential s sense of justice in dealing\\nwith its patrons, and its sense of prudence in dealing with a\\nproblem which required for its successful solution and settlement\\nnot only the highest actuarial skill, but also an experience which\\ncould be furnished only by the actual business operations of\\nthe Company. The following reference to The Prudential\\nappeared in the American Exchange and Review of April, 1892,\\nhaving been copied from the Philadelphia Intelligencer\\nIt appears to have been a very difficult matter to introduce the feature\\nof surrender values in industrial life insurance in this country. In the first\\nplace, the amounts of the industrial policies are so small that even the\\nmost liberal allowances as surrender values would be represented by such\\ninsignificant amounts of paid-up insurance, or for so short extensions to\\nthe life of lapsed policies as to leave but very little life insurance benefit\\nremaining to the assured. But the principal difficulty in this matter, no\\ndoubt, has been the exceedingly high proportion of cost that must accom-\\npany the granting of surrender values or extensions in industrial life insur-\\nance. The trouble and expense consequent upon extending the time or in\\ngranting paid-up surrender values on a policy for but $50, generally speak-\\ning, is as great as for a policy of $50,000 from this it can be judged that,\\nwhile the ratio of expense attending surrender values, etc., in a business\\nof policies for large amounts is hardly appreciable, yet such similar amounts", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0226.jp2"}, "227": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l892- 93- 189\\nof expense attending the granting of surrender values, etc., on the exceed-\\ningly small amounts in industrial insurance, would pretty much swallow\\nall up in the cost. Nevertheless, industrial insurance in itself is possibly\\nthe greatest, as it is the grandest representation of the important results\\nthat have been obtained by attention to small things so, on this very\\naccount, it has looked something like a reproach against the industrial\\nlife insurance companies that they have not granted surrender values or\\nextensions on lapsed policies, no matter how small such paid-up amounts\\nor how short the periods of the extension of the life of the policies these\\nconcessions would result in. However, The Prudential Company of Newark,\\nwith its twenty years of the largest experience as to the possibilities of\\nindustrial insurance, has carefully considered the difficulties of granting\\nsurrender values in this branch of the business, and finding, in its case at\\nleast, this concession could be made to its patrons, has incorporated it in\\nall its policies of five years standing and if this may be considered a long\\ntime before a surrender value can be earned, nevertheless this action of\\nThe Prudential is exceedingly valuable as an example that no doubt will be\\ninfluential in bringing about, in the industrial branch, the study and allow-\\nance of all that can be permitted in this important matter, and therefore it\\nis due the Prudential that it should be given all the credit belonging to\\nthe industrial company first to introduce the important feature of sur-\\nrender values in the industrial life policy.\\nStill another decided step in advance was taken this year by\\nThe Prudential, in that an Industrial Endowment policy was\\nplaced on the market, reference to which was made in Mr.\\nDry-den s letter of January 1st, as follows\\nThe second departure is the addition of Endowment Policies to the\\nforms of contracts now issued by the Industrial branch of the Company.\\nPolicies will be issued payable at the end of 15, 20, 25 or 30 years, or at\\ndeath, if prior to the end of the period selected. Circulars are sent you\\nherewith, showing the amount of the policy that may be purchased by a\\ncertain weekly premium.\\nEndowments will also be entitled to paid-up policies after five years\\npremiums have been paid. The amount of the paid-up will be in propor-\\ntion to the number of premiums paid on the policy. For example, if the\\nEndowment is for $1,000 and for 15 years, the paid-up policy after five\\nyears will be for one-third of the face value of the policy after ten years,\\nfor two-thirds of the face of the policy.\\nThe question of Industrial Endowments had been discussed\\nfor a number of ears in the insurance journals, but it was one\\nwhich required for its proper treatment years of experience. The\\nsubsequent experience with this class of policies has proven that\\nEndowments, in the true sense of the word, and in a practical", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0227.jp2"}, "228": {"fulltext": "190 HISTORY OF THE PRUDENTIAL.\\nform, are hardly possible under trie existing conditions of the\\nIndustrial method of insurance. In Endowment insurance a\\nlarge part of the premium represents an investment feature,\\nwhich can hardly find a place in an Industrial policy, providing\\nfirst for the payment of funeral expenses and the cost of the last\\nillness. The increased cost of Endowment insurance must neces-\\nsarily at all times prove a serious hindrance to success, while, on\\nthe other hand, it may be argued that it is not desirable that\\nthe primary purpose of Industrial insurance should be defeated\\nby a secondary one, which would often be the case were the\\namounts receivable to be paid to the insured during his or her\\nlife- time, and which, being small, would rapidly be consumed for\\nliving expenses, leaving little or nothing at death to meet the\\ncost of burial and last illness.\\nImmense and permanent progress had been made in the ex-\\ntension of insurance principles to the masses. Millions were now\\ninsured who, previous to the advent of Industrial insurance, had\\nnot even a conception of insurance principles and practice, and\\nmillions had been provided for by a policy adequate to meet the\\nobjects for which the business had been established.\\nFew writers on Life Insurance Progress have recognized this\\ndevelopment of life insurance more clearly than Mr. D.N. Holway,\\nwho, in an article in the Arena of 1892, referred to Industrial\\ninsurance as follows\\nIt forms the A, B, C of American Life Insurance. All the members\\nof a family insure each for a small amount secured by weekly payments.\\nIn this way they mutually protect each other. The amount of death\\nclaims paid under this form of insurance in 1891 was $7,725,000 upon\\n63,900 policies. Aside from the direct and incalculable benefit which\\nthe bestowal of this large amount among so many households afforded, the\\neducational process whereby this vast number of people (over 4,000,000) are\\ntaught the value of self-sacrifice for the benefit of others, and to fully real-\\nize that there is a system whereby they can surely do it, is of immeasurable\\nvalue to the future of the republic. Instead of being a blind force of un-\\neducated power, they become conservatives because they represent prop-\\nerty.* They range themselves on the side of law and order. To many of\\nthem is thus exemplified for the first time the beautiful sentiment that\\nIt may not be out of place here to recall a passage in Mr. Mackay s\\nbook, The English Poor, in which this tendency of the wage-earning\\nmasses towards economic independence is fully and ably set forth: The\\nfirst lesson in thrift, the first inducements to rely on property, the first", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0228.jp2"}, "229": {"fulltext": "", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0229.jp2"}, "230": {"fulltext": "PRESENT HOME-OFFICE BUILDINGS OF\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA,\\nFIRST OCCUPIED, MAY I, 1892.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0230.jp2"}, "231": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l892- 93. 191\\nhas come down the centuries, Bear ye one another s burdens, and they\\nfind pleasure in expressing it in this practical way. As these persons rise\\nin the social scale and become supervisors, inventors and proprietors in the\\nworld s great affairs, they will increase their insurance, and thus become\\npatrons in an enlightened sense of the companies which practice the ordi-\\nnary methods. There is therefore no clashing of interests between the\\ntwo plans of conducting the business, but rather a mutual helping of each\\nother forward toward an ever enlarging success.\\nLargely no doubt in consequence of the liberal concessions\\nmade to its policy-holders and the consequent material improve-\\nment in the Industrial contract as a permanent form of insurance\\nprotection, The Prudential made exceptional progress in new-\\nbusiness during the year 1 892. The net increase in Industrial poli-\\ncies in force reached almost 300,000, equal to 21.6 per cent, over\\nthe preceding year. The total number of Industrial policies had\\nreached 1,653,465, while in the Ordinary department 8, 120 policies\\nwere in force. In the finances of the Company corresponding\\nprogress had been made, and the surplus to policy-holders now ex-\\nceeded $2,200,000. The successful ending of the year s business\\noperations proved a fitting climax to the removal of the home\\noffice from the building which it had occupied since 1883 to the\\nnew home-ofiice building on the corner of Broad and Bank streets.\\nUnknown as a business method less than seventeen years before,\\nThe Prudential had developed Industrial insurance to such an\\nextent that by 1892 the largest office building in the State of\\nNew Jersey was required for transacting the business of the\\nCompany. In honor of the event a celebration took place during\\nthe latter part of November, referred to in the Standard of Boston,\\nunder date of December 3, 1892, in the following words\\nThe Prudential L,ife Insurance Company of Newark gave a treat to its\\nagents located within a radius of 100 miles of the home office Thursday and\\nFriday. The affair was in the nature of a house-warming, the first since\\nmotives to refrain from consuming wages on the day they are earned, arise\\nfrom the desire of men to provide against the uncertainties of an unknown\\nmorrow, and for the inevitable period of sickness and old age. Our poor\\nlaw and the ubiquitous philanthropist have done their best to prevent the\\npoor man from the necessity of yielding to this desire. But\\nthe individualistic instinct is not so easily killed, and notwithstanding the\\nsnare, there is among the poor a latent, steady and withal effectual tendency\\nto return to the true type of individual independence and self-assertion.\\n(P- I3-)", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0231.jp2"}, "232": {"fulltext": "192 HISTORY OF THE PRUDENTIAL.\\nthe Company s building on Broad street had been occupied. The festivities\\nwere inaugurated with a banquet at Delmonico s Thursday night, at which\\nall the officers and their immediate attaches participated.\\nThe influx of agents did not begin from the suburban districts until\\nyesterday morning, and by 11 o clock there were fully two thousand sta-\\ntioned in front of the Broad street edifice, having been brought to the city\\nby the early trains. The insurance excursionists were primed for a good\\ntime, having fine military bands with them that served to arouse all Newark\\nwithin a distance of three miles of the Prudential office. After an inspec-\\ntion of the building, during which President Dryden addressed the visitors\\nfrom the monster balcony within that overlooks the entire office on the\\nground-floor, the agents were ordered to fall in and the march was taken\\nup to Saenger-Fest Pavilion in Caledonian Park. On the way they were\\nreviewed by Mayor Haynes. The agents sat down to an elaborate ox-roast\\non reaching their destination. Another speech was made by President\\nDryden at the park after the repast, and the delegates returned to their\\nhomes in the evening pronouncing the affair a monster success.\\nThe proportions which the business of The Prudential had\\nassumed by January 1, 1893, made it not only desirable but\\nnecessary that the capital stock of the Company should be con-\\nsiderably increased. Accordingly during the early part of the\\nyear new stock was issued, which increased the capital of the\\nCompany to $2,000,000.\\nIn compliance with a distinct demand the Company this year\\nthrough its Ordinary department placed a Child s Endowment\\npolicy on the market, to enable parents to make a provision for\\nthe education, support or assistance of children at the age of\\neighteen years and over. Similar efforts had previously been\\nmade in this direction in this country, but no substantial results\\nhad been attained. As far back as 1853, Dr. E. J. Tilt had\\ndiscussed the question of life insurance for children at consider-\\nable length and furnished tables of rates which, no doubt, were\\nadopted by some of the companies transacting insurance at that\\ntime,* but the inherent difficulties in making Child s Endowments\\napplicable to the Industrial population are such that it is doubtful\\nwhether this form of insurance is ever likely to become very\\npopular in this country. The Child Endowment policies of The\\nPrudential are issued for sums as low as $100, with premiums\\npayable quarterly, semi-annually and annually.\\nElements of Health, and Principles of Female Hygiene, pp. 134, 135.\\nLindsay Blakiston, Philadelphia, 1853.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0232.jp2"}, "233": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l892- 93- 193\\nCHILD S ENDOWMENT. (With Interest.)\\nPremium Rates per $100.\\nAmount of Policy with profits payable at age stated, and all Premiums\\nreturned With Four Per Cent. Compound Interest in event of\\nprevious death.\\nPayable at Age 18.\\nAge Nearest\\nBirthday.\\nAnnual.\\nSemi-Annual.\\nQuarterly.\\nI\\n$5 08\\n$2 64\\n$1 35\\n2\\n5 49\\n2 85\\n1 46\\n3\\n5 96\\n3 10\\n1 58\\n4\\n6 50\\n3 38\\n1 72\\n5\\n7 12\\n3 7o\\n1 89\\n6\\n7 85\\n4 08\\n2 08\\n7\\n8 71\\n4 53\\n2 31\\n8\\n9 75\\n5 07\\n2 58\\nIn the event of the death of the child before the expiration of the\\nEndowment period, all the premiums paid on the policy are returned to\\nthe parent or guardian with compound interest at the rate of four per cent.\\nIn compliance with a request from the United States Review\\nof Philadelphia, Mr. Dryden this year contributed a valuable\\nand interesting paper on Industrial Insurance as an Educator.\\nThe article is too long to be reproduced in full, but the essential\\npoints are brought out in the following quotations\\nIndustrial insurance does not cease its efforts for the education of the\\npeople at the time when the policy is taken, for it must be remembered\\nthat the premium is not sent to the Company by the insured, but that the\\nagent calls at the house of the policy-holder week after week. This tends to\\nkeep the subject before the mind, and very frequently questions are asked\\nand the subject is broached by neighbors who are calling at the time the\\ncollector is announced, and, moreover, the literature of the Company is\\nleft regularly as the agent calls, so that the person is kept informed in\\nregard to the various phases of life insurance, the different arguments for\\nit, illustrations of its value, and also of the disadvantages of being without\\nit so that the tendency is to continually deepen the impression which was\\nmade at the time the policy was taken.\\nOne feature of this work merits particular attention, namely, its effect\\nupon the young. In consequence of the industrial agent s work, boys and\\ngirls grow up in an atmosphere of insurance. They come to look upon it", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0233.jp2"}, "234": {"fulltext": "194 HISTORY OF THE PRUDENTIAL.\\nas a matter of course to think of it as something to be provided, the same\\nas every other necessary of life, regularly and constantly. They hear the\\nsubject discussed by their parents after the agent has called they know\\nwhen a decision is reached and in many cases understand that it involves\\nself-denial, and they appreciate its importance accordingly. They see the\\npolicy and premium receipt-book and know what they are and they see\\nthe money paid out. In answer to innumerable questions the parents\\nexplain to them the reasons for the outlay and the advantages of it and\\nthis is done, not in the parlance of the agent, but in the language of the\\nparent, which is the expression of a mode of thought very little different\\nor but slightly removed from that of the child. Thus, the boy or girl\\ninvoluntarily and intuitively imbibes insurance.\\nIt may be said that this process of education is confined to a certain\\nclass, and that it is circumscribed in its influence that it works amongst\\nthose whose surroundings, mode of life and limited sphere in which they\\nmove make it impracticable, if not impossible, for them to do much\\ntowards extending the education thus gained. This is not the country in\\nwhich to hold such a theory. It is here that the poor boy of to-day becomes\\nthe millionaire of a few years hence that the cabin of the canal-boat is\\nexchanged for the White House, and the rail-splitter becomes President.\\nThe history of this country teaches, as clearly as anything else, that the\\nmasses amongst which the work of Industrial insurance is done produce\\nmany men who are a power in society. There are boys who are now in\\nfamilies where industrial policies are held, some of them carrying insurance\\non their own lives, who are fast approaching the editorial chair, and it will\\nnot be very long before some of those who are now taking their first lesson\\nin insurance from an industrial policy and premium receipt-book, will be\\nseated in the State Legislatures or in the halls of Congress.\\nThis view of Mr. Dryden is fully supported by the increasing\\npopularity of the system of Industrial insurance among the\\nnew generation who have become familiar with this form of\\ninsurance during their earliest infancy, and perhaps in no case\\nhas the educational value of Industrial insurance been more\\nfully recognized than in the article of Mr. Hoi way in the Arena,\\nwhere he properly refers to it as the A, B, C of American\\nlife insurance.\\nThese views found their further support in the very con-\\nsiderable progress that had been made by Industrial companies\\nin the Ordinary field. The larger proportion of Ordinary risks\\non the books of Industrial companies represent a class of people\\nwho would not generally be solicited by the agents of regular\\nOrdinary companies. To illustrate this fact I may state that\\nthe average amount of an Ordinary policy written by the three\\nleading Ordinary life companies during 1898 was $2, 138 against an", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0234.jp2"}, "235": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l892- 93. 195\\naverage policy of only $1,120 written by The Prudential in its\\nOrdinary department. That this extension of Ordinary insurance\\nprinciples to the masses is the direct result of Industrial insurance\\nwill not be questioned by any experienced life underwriter.\\nThe commercial and financial depression of the year 1893\\nbrought about such widespread distress among the wage-earning\\npopulation in consequence of the numerous failures and the stop-\\npage of work in a large number of industries that it was but natural\\nto expect that, among those insured with Industrial companies,\\nmany would find it difficult to pay the weekly premiums on their\\nIndustrial policies. As soon as the gravity of the problem\\nbecame apparent, steps were taken by The Prudential to miti-\\ngate the inevitable distress as far as it was possible for the\\nCompany to do this in justice to the best interests of all the\\npolicy-holders and the future welfare of the Company. Accord-\\ningly, under date of November 1, 1893, a circular letter was issued\\nby the Company over the signature of Mr. Dry den, in which lapsed\\npolicy-holders were granted concessions without a parallel in life-\\ninsurance history. The circular letter is referred to at length in\\nan article, in which the most important sections were incorporated,\\nin the Baltimore Underwriter under date of November 20, 1893,\\nand which I therefore quote in full\\nUnder the operation of the forfeiture system in case of lapses of policies\\nfor non-punctual payment of premiums, so much hardship was occasioned,\\nthat the life companies -were forced by public complaint to adopt more\\nliberal measures. Enforcement of the stipulations of an iron-clad contract,\\nthough strictly legal, was not considered by the sufferers as even-handed\\nor equitable. It might be just, but it was anything but generous. Hence\\nthe non-forfeiture features which have been conceded from time to time,\\nand which have abolished the provisions and restrictions to which reason-\\nable objection was made.\\nIn line with this growth of liberal spirit, and in view of the straitened\\nand pinched condition of the great army of the unemployed during a long\\nperiod of financial stringency, of closure of mills and factories, and of\\nstrikes against reduction of wages, The Prudential Insurance Company of\\nAmerica has issued a very important and noteworthy circular, a copy of\\nwhich will be found on another page. The constituency of industrial in-\\nsurance is mainly drawn from the humble classes of life, to whom in a\\nperiod of non-employment the payment of five or ten cents a week out of\\nslender savings may mean serious privation. When the savings are ex-\\nhausted and no wages coming in, they are obliged to lapse their policies,\\nand lose thereby the provision made for the rainy day. With the experi-\\nence before them of such sad results of hard times, the managers of the", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0235.jp2"}, "236": {"fulltext": "196 HISTORY OF THE PRUDENTIAL.\\nPrudential have come forward to befriend distressed policy-holders in the\\nmost effective way. Three concessions are made as follows\\n1. If the policy has been in force as an adult policy for five years or\\nmore at the time premiums ceased to be paid, a paid-up policy will be\\ngranted in accordance with the terms and conditions of the provision for\\npaid-up policies published on the back of regular industrial policies now\\nissued by the company.\\n2. In lieu of the foregoing, policy-holders who have paid premiums for\\none full year or more at the time of lapse may take out a new policy at\\nthe present age, and the same will be put in full immediate benefit.\\n3. Proofs of death may be filled out and submitted in the usual way in\\nany case of death happening between June 1st last and November 6, 1893,\\nif policy has been in force for five years or more on the life of the insured\\nand has been lapsed since June 1st last, in consequence of the hard times.\\nIf the claim is correct in every respect, except with regard to the policy\\nbeing lapsed for the cause aforesaid, it will be recognized and paid in ac-\\ncordance with the terms and conditions of the provision for paid-up policies\\nheretofore referred to.\\nThese offers of restoration will not only be welcome to the thrifty on\\nthe lapse list, who can ill afford to lose what they have paid in, and who\\nfeel keenly such deprivation of the provision against future contingen-\\ncies, but they will be hailed with satisfaction by all who are interested\\nin the successful working of the industrial insurance system, which they\\nregard as virtually and substantially the best form of organized charity\\nyet devised. Not the least in gratitude to the managers will be the field\\nworkers, for the double reason that it will give them especial pleasure to\\nengage in the work of restoration, and that it will give them a handle and im-\\npetus in canvassing for new business, the value of which is beyond estimate.\\nThe value of these important concessions can not be esti-\\nmated in mere dollars and cents. It far exceeds the actual\\ncost of these concessions to the Company which was liberal\\nenough to make them, for they have done much, if not most, to\\nmake clear to policy-holders and the outside world that, although\\nThe Prudential is not a charitable or philanthropic agency in the\\nsense that these terms are usually understood, it is nevertheless\\na Company ready to deal liberally and equitably with its policy-\\nholders to the extent of its ability in an hour of emergency or\\nneed. It would be easy to fill pages with letters of gratitude\\nwhich reached the Company in large numbers, expressing the\\nappreciation of those who, contrary to their expectations, did not\\nforfeit their insurance in consequence of the critical times during\\nthe latter part of 1893 and the early part of 1894.\\nI can not do better than quote from the New York Insur-\\nance Journal for November, 1893, tne statement that When", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0236.jp2"}, "237": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l892- 93. 197\\nwe consider the magnitude of the concession, which may embrace\\nmany thousand policy holders, so widespread is what we may\\nterm industrial idleness, that the proposition may be well de-\\nscribed as unexampled in the history of life insurance, and\\nprobably reaches that extreme of security that is compatible\\nwith the fundamental principle upon which the institution is\\nfounded, that of reproductiveness and self-support. But under the\\npressure of such circumstances, and in behalf of such a clientele,\\nwe question if sentiment would be open to reproach should it be\\nfound to have made a slight trespass upon actual foresight.\\nAt the time when the concession was made the Company\\nhardly expected the financial stringency to continue as long as\\nsubsequent experience proved to be the case, and hence an ex-\\ntension of the concession was made necessary under date of\\nDecember 10th, and communicated to the public and the field\\nforce in the following words\\nThe first of the concessions of November 1, 1893, gave to the holders of\\nAdult policies on which the premiums had been paid for five or more years\\nthe privilege of applying for a Paid-up policy, in accordance with the terms\\nand conditions of the provision for Paid-up policies printed on the back of\\nthe present Regular Industrial policies of the Company. Until further\\nnotice this concession will be continued by the Company.\\nIf ever an unwarranted charge had found its own refutation\\nit was true in this case. The accusation which had so often been\\nbrought against Industrial insurance companies, namely, that they\\ndesired, encouraged and profited by lapses, was here disproved by\\nthe practice of The Prudential, which did all that in safety could\\nbe done to reinstate lapsed policy-holders and to make forfeitures,\\nwhich could possibly be avoided, unnecessary by a prudent\\nliberality. This view was so well expressed in an article in the\\nWeekly Underwriter of November 11, 1893, that I can not do\\nbetter than conclude these references to the concessions of 1893\\nwith the following quotation\\nNo business can long endure which takes advantage of technicalities\\nto grind the face of the poor. While life insurance can not be conducted\\nwithout premiums, and while rules must be maintained which are known to\\nbe sound business rules in ordinary times, there are exigencies in the lives\\nof individuals and corporations, when the highest regard for the welfare\\nof each demands a temporary departure even from principles which are\\nregarded as fundamental. Insurance companies do not thrive on the profits\\nfrom lapsed policies, as many ignorant people suppose, but on the steady\\nand long-continued payment of premiums. This is especially true of", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0237.jp2"}, "238": {"fulltext": "198 HISTORY OF THE PRUDENTIAL.\\nindustrial insurance, where it takes years of hard work to build up a pay-\\ning business.\\nIt must be apparent to the careful student of Industrial\\ninsurance history that, from the date of the organization of The\\nPrudential, Industrial insurance had not only made constant and\\nmaterial progress in the extension of its operations, but that\\nthere had also been a corresponding increase in the public\\nappreciation of its beneficence, not only from the standpoint of\\nthe individual policy-holder, but also from the standpoint of the\\ntaxpayer and citizen interested in the diminution of public\\nburdens. It is rather curious to observe that, in the face of these\\nfacts, attempts continued to be made to interfere with the legiti-\\nmate functions of the business. While some of the most impor-\\ntant attempts at adverse legislation have been referred to, others\\nwere made in different parts of the country, which, however, as\\na rule, proved equally unsuccessful. Wherever the business was\\nwidely known, as in New Jersey, New York, Pennsylvania or\\nMassachusetts, it was naturally only a question of publicity\\nand argument to make clear the absurdity and iniquity of the\\nunfounded charges against the business. A successful attempt\\nat adverse legislation was made this year in a western State,\\nwhere The Prudential had only recently commenced business\\noperations, and where, therefore, an extended knowledge of the\\ntrue objects and results of Industrial insurance was out of the\\nquestion. A bill was introduced in the Colorado legislature\\nduring the early part of 1893, at the suggestion of the Colorado\\nHumane Society, to prohibit the insurance of children under\\nten years of age.\\nA brief hearing was given before the Insurance Committee\\nof the Legislature, and in response to a request for information,\\nwith special reference to the question of insurable interest,\\nthe following facts and comments were placed before the Com-\\nmittee*\\nIt may be asserted that a parent has no insurable interest in the life of\\na child. We contend that the industrial classes have the moral and legal\\nAn interesting case bearing on this point was tried in Anderson, Ind.,\\na few years ago, in which the value of a child s life, its earning capacity,\\netc., were brought to the attention of the jury in a suit for damages for\\nfatal injuries. According to the court records the value of a child s life,\\nat age four, was given as #149.50; at age seven, as $600 at age ten, as\\n$980 at age fifteen, as $2,600 and finally at age eighteen, as $4,200.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0238.jp2"}, "239": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l892- 93- 199\\nright to insure their children, for it is well known that these children con-\\ntribute to the support of their families at very early ages, so early, in fact,\\nthat in New York, Connecticut, and other States laws have been passed\\nmaking thirteen the minimum age at which children should be employed\\nin manufacturing establishments. Meanwhile, they are supported, edu-\\ncated, and taught a trade in that view.\\nThere is a just and reasonable expectation of advantage or benefit from\\nthe continuance of their lives, and it logically follows that a proper justifi-\\ncation inheres in the parent to protect that benefit while his child is insura-\\nble, and before sickness, accident or other causes interpose.\\nAs to its legality, the highest tribunal in the land, the Supreme Court of\\nthe United States, has gone farther than is here indicated by announcing that\\n11 it is not necessary that the expectation of advantage or benefit should be\\nalways capable of pecuniary estimation, for a parent has an insurable inter-\\nest in the life of his child, a child in the life of his parent, a husband in the\\nlife of his wife, and the wife in the life of her husband.\\nIn Warnock vs. Davis, U. S. S. C, it was held that the natural affec-\\ntion in cases of this kind is considered as more powerful, as operating more\\nefficaciously to protect the life of the insured than any other consideration.\\nAgain, in re Phoenix Life Company vs. Bailey, U. S. S. C, it was held\\nthat there is an insurable interest if it appears that the relation, when of\\nconsanguinity or of affinity, was such as between the person whose life was\\ninsured and the benefit named in the policy as warrants the conclusion that\\nthe beneficiary had an interest, whether pecuniary or arising from depend-\\nence or natural affection, in the life of the person insured.\\nUnfortunately for the best interests of the people, the bill\\nwas permitted to become a law. Those who were most interested,\\nin its passage had no opportunity to express themselves and had\\nno means whereby they could make public their views. It is true\\nthat the Insurance Department of the State expressed itself in\\nfavor of Industrial insurance, it is true that a number of the\\nmore intelligent and influential members of the Legislature argued\\nfully the people s side of the case, but the fact that the business\\nwas new, that it was represented in only two or three counties of\\nthe State, and that the majority of the members were absolutely\\nunfamiliar with the subject, outweighed the argument in favor of\\nthe companies side of the case. How far the members of the\\nLegislature were misled by foolish and absolutely untrue state-\\nments on the part of those who were not in favor of the bill is\\nbest illustrated by an article in the Denver Times, from which I\\nquote the following passage\\nThe system has been driven out of almost every city in the Union\\nwhere it attempted to do business, and has drawn upon itself the sworn", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0239.jp2"}, "240": {"fulltext": "200 HISTORY OF THE PRUDENTIAL.\\nhostility of societies for the prevention of cruelty to children, since it has\\nproved to be the cause of much abuse to youths of tender age. Not a word\\ncan be said in its favor, and much can be charged to its account as an open\\navenue to fraud and crime.*\\nThe system had not only not been driven out of a single city\\nin the United States, it had not only never been prohibited in\\nthis country or in England, but, on the contrary, it had been\\nrapidly extended into all parts of the country, into Canada, into\\nAustralia and even into the Cape Colony of South Africa. Wher-\\never the English people are developing industrial communities,\\nthis form of insurance, either in the form of Friendly Societies\\nor of Industrial companies, is rapidly increasing in popularity\\nand public appreciation. There was therefore no warrant for\\nthe statements made by the Denver Times, and they can only\\nbe explained as having been put forward for partisan reasons.\\nOnce on the statute book, the Colorado law naturally became\\nvery difficult of repeal, and, though an effort in this direction\\nwas made during the session of 1899, to which reference will\\nbe made further on, the attempt failed because of the work of\\na small minority, who once more had neither public opinion nor\\na single iota of fact to support their antagonism to the business.\\nA very interesting and valuable contribution to life-insur-\\nance literature was made this year by Dr. Edward H. Hamill,\\nthe Medical Director of the Company, who, at the Insurance\\nCongress of the Chicago World s Fair, read a paper entitled\\n1 Observations Regarding Risks Declined by The Prudential\\nInsurance Company of America, i888- 92. By an entirely\\nnovel and original method, Dr. Hamill had succeeded in keep-\\ning a record of the mortality of rejected lives in the Industrial\\ndepartment of the Company s business, and for the first time in\\nlife-insurance history actual information pertaining to this class\\nA still more pertinent illustration of the perversion of facts pertaining\\nto the business of Industrial insurance, on the part of those who are op-\\nposed to the insurance of children, is to be found in the Seventeenth Annual\\nReport of the American Humane Association, where it is stated that The\\nPrudential Insurance Company had children insured in Colorado for sums\\nas high as $25,000. As a matter of fact the Company had not then and has\\nnot now a single policy in force, on a child under ten years of age, for one-\\nhundredth part of the sum mentioned.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0240.jp2"}, "241": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, iSo^- o^. 201\\nof risks was supplied for a number of cases large enough to\\nwarrant the conclusion that the medical examination of Indus-\\ntrial risks was sufficiently accurate and satisfactory to protect\\nthe best interests of the Company. The Prudential Insurance\\nCompany is the only life company in existence collecting infor-\\nmation of this kind, and the investigation having been con-\\ntinued, the data are now much more complete and of greater\\ndetermining value.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0241.jp2"}, "242": {"fulltext": "203 HISTORY OF THE PRUDENTIAL,\\nCHAPTER XIII.\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA,\\n1894-1896.\\nDuring the early part of 1894 The Prudential Insurance\\nCompany made an important change in its Industrial contracts,\\nas to the amount of benefit payable during the first few months\\nof policy duration. It had been the early practice of the\\nCompany to grant full benefit under Industrial policies after a\\nperiod of three months of policy duration, but in 1877 this prac-\\ntice was changed and the benefit was made one-quarter of the\\ntotal amount of insurance when the policy had been less than\\nsix months in force. Subsequent experience proved that this\\nprovision was somewhat too liberal, largely because of the fact\\nthat a considerable amount of adverse selection was possible\\nunder the rules of the Company, by which at that time no\\nmedical examination or inspection was required on policies for\\nless than $200. Accordingly, under date of October 6, 1884, a\\nfurther change was made and no benefit was payable during the\\nfirst three months of policy duration in other words, if the\\npolicy-holder died during the first three months, nothing was to\\nbe paid by the Company. After a little more than ten years\\nexperience, it was once more decided to make a change by pro-\\nviding a more liberal feature, and this year (1894) a provision\\nwas incorporated in the Industrial policy by which only one-\\nthird of the total amount of insurance insured for under the\\npolicy was payable if death occurred during the first six months\\nof policy duration. This concession of an immediate benefit\\nwas a decided step in advance, since hardship often resulted\\nin cases where death occurred during the early period of policy\\nduration.\\nDue largely, no doubt, to the many liberal concessions which\\nhad been made by the Company to its policy-holders, the year\\n1894 proved to be the greatest business year in the Company s", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0242.jp2"}, "243": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1894-96. 203\\nhistory. In consequence of the after effects of the panic of 1893,\\nan increased proportion of the industrial population was forced to\\nconsider more seriously the question of a small life-insurance pro-\\nvision against contingencies likely to occur at any time. Private\\ncharity, ever ready to help, assist and ameliorate the condition of\\nunfortunates at the hour of death, is naturally very much re-\\nstricted during years of panic and widespread financial or\\nindustrial depression. Hence, during 1894 large numbers who\\nwould otherwise have relied upon private charity or public sup-\\nport realized the necessity of individual provision by life-insur-\\nance methods against the contingency of death, the expenses of\\nthe last illness and the immediate support of dependents. It\\nhad well been said by the Spectator, under date of March 22,\\n1894, that The more the view of the Industrial companies\\nbeing charitable organizations is advanced, the less likely are\\nmany people to take out policies for they would not accept\\ncharity and would resent the appearance of the agents if they\\nhad the wrong idea of the business. Neither The Prudential\\nnor any other Industrial company ever attempted to create the\\nimpression among the industrial population that Industrial com-\\npanies were charitable institutions. Rather to the contrary, the\\nagents of the Company had, from the very beginning, preached\\nthrift and independence to those with whom they came in contact\\nin the discharge of their regular duties as canvassers and collectors.\\nIt is to these causes that I would attribute the immense suc-\\ncess of the Company during the year 1894, when under ordinary\\nconditions a decrease in business should have been expected rather\\nthan an increase. In the Industrial department during the year\\n1894, The Prudential issued 1,696,847 policies for an aggregate\\nsum of $205,128,000, while in the Ordinary department 12,245\\nnew policies were issued for an aggregate amount of $13,873,000\\nof life-insurance protection. The results attained in the Indus-\\ntrial department were so far out of proportion to what had pre-\\nviously been achieved that it is doubtful whether the record of\\n1894 will be exceeded during any business year in the near\\nfuture. This view of the success of 1894 is brought out in a dis-\\ncussion on the outlook for the year in the Spectator of January\\nn, 1894, from which I quote as follows\\nThe statements of the various industrial companies will be published\\nin a short time now, and then it will be seen what remarkable progress, in", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0243.jp2"}, "244": {"fulltext": "204 HISTORY OF THE PRUDENTIAL.\\nface of the prevailing depression, has been made. And this brings us to a\\npoint on which it is right to dwell a little. The history of industrial insur-\\nance in Great Britain shows conclusively that in time of stringency, when\\nthe outlook of the people who had to depend on their day s earnings to\\nsupply the day s needs was unfavorable, the companies made large increases.\\nThe reason for this is obvious to the thinker, the agents field of operation\\nin certain lines was narrowed because they could not get money where\\nmoney was not, and so they canvassed the class of people who were less\\naffected by the hard times, and there found their opportunity. The lessons\\nof the times had been impressed on the minds of the public those who in\\nthe season of prosperity turned a deaf ear to the agent s entreaties saw\\ninstances every day where the life insurance would have remedied the\\ntrouble brought on families by the death of some one who contributed to\\nthe funds of the household, and when the agent called again his argument\\nhad more telling effect. This is the first time since the inception of the\\nbusiness here that those interested have had to deal with financial panics of\\nmagnitude, and it is to be hoped that a very long period will elapse before\\na like experience is forced upon us. The field men have discovered their\\nopportunities for doing effective work now, and the extraordinary volumes\\nof business turned in of late indicate the possibilities of the present year\\nif labors be rightly directed and continued.\\nAnother element of considerable importance in making for\\nthe increasing growth and prosperity of the Company was, no\\ndoubt, the publication, during the early part of the year, of the\\nreport of the Commissioner of Banking and Insurance of the\\nState of New Jersey on the financial and general condition of\\nthe Company. Without going into the details of this report, I\\nconfine my remarks to a brief reference to the subject as pub-\\nlished in one of the Newark (N. J.) newspapers during 1894:\\nIt will be seen that the Commissioner endorses unqualifiedly the\\nmethods of The Prudential. This could not be otherwise, for the business\\nhas always been conducted in such a way as to merit the approval of all\\nwho have known anything about it. Not only so, but the Company s deal-\\nings with its policy-holders have been more than fair. It has been liberal\\nin the extreme, as was shown both last November, when it made such\\nliberal concessions to its policy-holders who had been compelled to cease\\npaying their premiums, and also in January of the present year, when it\\nintroduced several new features, every one of which was of great advantage\\nto the insured. The amount of good which this Company has done can not\\nbe indicated in any report and, in fact, it is almost impossible to ascertain\\nwhat it has accomplished unless one should be able to interview every one\\nto whom a claim has been paid. In this way a mass of testimony to the\\nadvantages obtained by Prudential policy-holders would be secured which\\nwould fill volumes.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0244.jp2"}, "245": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l894~ 96. 205\\nStill another powerful factor influencing public opinion is\\nto be found in the publication this year of a special report of the\\nDeputy Superintendent of Insurance of the State of New York,\\non his examination of another great Industrial company, the\\nMetropolitan I^ife Insurance Company, of New York. Mr.\\nMichael Shannon, as Deputy Superintendent of Insurance, made\\nspecial reference to three important aspects of the practice of\\nIndustrial companies, and from the report I quote, first, his views\\nas to the expense-rate in Industrial insurance\\nIt may not be inappropriate for me to allude, as a plain matter of jus-\\ntice to this business, to the fact that industrial insurance being, as before\\nsaid, distinctive and essentially unlike in practice that of the other life-\\ninsurance companies, ratios and comparisons based upon the records of the\\nlatter may be deceptive and misleading. It is obvious, for example, that in\\nthe matter of expense no just comparison is possible. In the ordinary\\ncompanies the premiums are due once, twice, or four times a year, and a\\nlarge proportion of them, in answer to notices, is sent by the assured direct\\nto the company, or to its local office or agent. Under the industrial plan\\nthe premiums are invariably called for, by the agent, at the expense of the\\ncompany, fifty-two times a year, and even more frequently, When death\\noccurs, the proofs are prepared by the company s representative at the\\ncompany s cost, and the proceeds of policies are taken in the same way to\\nthe beneficiary. In these, as in all its features, the difference is as obvious\\nas between any wholesale and retail business. The multiplication of ma-\\nchinery here means the multiplication of expense, and that expense falls\\nto the company.\\nTo these remarks on the vexed and complex question of the\\nmanagement expenses of the business, I add the following re-\\nmarks from Mr. Shannon s report in regard to lapses\\nCriticism is sometimes thoughtlessly or ignorantly made in the matter\\nof lapses. Why do so many withdraw Investigation shows that lapses in\\nthis form of insurance are of quite a different nature from those in the or-\\ndinary lines. When a policy-holder withdraws from a [Ordinary] company,\\nusually he stays out permanently. He takes his paid-up policy, or his sur-\\nrender value, or forfeits his insurance altogether, as the case may be, and\\nthat ends the relation. But a vast proportion of those who lapse in the in-\\ndustrial come back. Numberless causes conspire to force them out, such as\\nwide-spread commercial depression, the shutting down of mills and factories,\\nthe failure of employers, strikes and other labor disturbances, and enforced\\nidleness from various causes. When they resume work they revive their\\npolicies, which they can do within a year, or apply for new ones. Thus\\nthey come and go thus the process repeats itself. Nor will the fact be\\noverlooked that the opportunity to lapse occurs once, twice, and at the", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0245.jp2"}, "246": {"fulltext": "206 HISTORY OF THE PRUDENTIAL.\\nmost four times a year, in the ordinary companies, while the occasion pre-\\nsents itself fifty-two times a year in the industrial.\\nTo this straightforward statement of another complex aspect\\nof the business of Industrial insurance, Mr. Shannon added the\\nweight of his official opinion in reference to the expediency of\\ninsuring the lives of children, which I quote in full as follows\\nStill another reference to which I deem it almost unnecessary to allude,\\nand which I do only to give this report the utmost comprehensiveness. I\\nallude to the imputation (occasionally put forth by those who can not have\\ngiven the records of the business any investigation) that the embracing of\\nsmall infantile insurances in the industrial plan is subversive of public\\npolicy in brief, that it leans toward possible infanticide. This is a mon-\\nstrous charge that no person should make without proof. The facts are\\nthat the proportion of infantile claims paid during the last year was but\\n4.3 per cent, of the total amount. This matter has been before the legis-\\nlatures of various states, and before numerous humane societies. Com-\\nmittees have been appointed to investigate. Searching and exhaustive in-\\nquiries have been made, and in no single instance has the imputation been\\nsustained. Carefully collated statistics prove that the mortality among the\\ninsured minors is less than the mortality of the general infantile population.\\nOut of more than twenty millions of industrial policies issued in this coun-\\ntry, but one case coming under this indictment has occurred, and that was\\nthe instance of a mother who did away with all her family, including the\\nhusband upon whose life she depended for support That was manifest\\ninsanity.\\nAcross the water professional agitators have, from time to time, influ-\\nenced parliamentary investigations, but in every instance the conclusion has\\nbeen that no legislation or other interference was in any wise necessary or\\nexpedient. The State of New York has put its seal upon this matter by\\nspecifically providing for the business of infantile insurance in its insurance\\ncode. Like action has been taken in the Dominion of Canada.\\nMr. Shannon s remarks with reference to the expense-rate,\\nthe lapse-rate and the insurance of children are fully applicable\\nto The Prudential Insurance Company, as well as to all other com-\\npanies transacting an Industrial business. Where such unanimity\\nof unqualified official opinion prevails, it would seem little short of\\ncriminal indifference on the part of those unfamiliar with the\\npractice and results of Industrial insurance to continue in attempts\\nto interfere with the business in one respect or another.\\nThe efforts in opposition to Industrial insurance may be\\ndivided into three distinct groups first, those relating to the", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0246.jp2"}, "247": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1894- 96. 207\\ndiscrimination made against negroes, in granting to them only\\ntwo-thirds of the benefits granted to white policy-holders second,\\nthose relating to the practice of the companies in accepting small\\nrisks on the lives of children for burial purposes and the cost of\\nthe last illness third, those relating to miscellaneous matters\\ndealing with the practice of the companies as regards lapses, sur-\\nrender values, immediate benefits, etc.\\nThe opposition to the companies practice as regards discrimi-\\nnation against negroes originated partly with the sentimental ele-\\nment of the population, acting on the unwarranted assumption\\nthat the companies made this distinction on account of color\\nprejudice, when, as a matter of fact, the distinction was based\\nsolely on the observed difference in mortality between the two\\nraces, pointing to an inordinate disease prevalence and an exces-\\nsive death-rate among the colored population.\\nAs regards the practice of insuring the lives of children, pro-\\nhibitive measures had, almost without exception, been introduced\\nat the instance of individuals connected with societies for the pre-\\nvention of cruelty to children or other so-called humanitarian\\nbodies. There had never, in a single instance, been proof of\\nabuses actually connected with this branch of the business no\\ncases had been produced tending to show that children had actu-\\nally been murdered for the insurance payable at their death, or that\\nthey had, in any manner or way, been ill-treated with this end in\\nview. Arguments in favor of prohibiting the business had almost\\ninvariably been based on English references to the subject, where,\\nagain, cases which were brought forward as facts were, as a rule,\\nfabrications or imaginary instances of neglect. The companies, on\\ntheir side of the argument, had presented facts tending to prove\\nthat insured children lived longer than uninsured children, and\\nthey further could point to their vast experience as proof that, out\\nof the millions of years of child life which had been observed by\\nIndustrial companies, not a single instance of foul play or murder\\nfor insurance money had ever come to their notice and they\\ncould add the statement, which holds good to-day as it did then,\\nthat never in the history of an Industrial company had a case\\nbeen proved where a parent had been convicted by a jury for\\nhaving deliberately murdered a child for the sake of the few\\ndollars receivable at its death for burial purposes. Nevertheless,\\ncontinued efforts were made in 1894 to prohibit the insurance", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0247.jp2"}, "248": {"fulltext": "208 HISTORY OF THE PRUDENTIAL.\\nof children in the States of Connecticut and Tennessee, as well\\nas in other States, but after a fair presentation of the facts no\\nlaws restricting the companies from transacting this form of in-\\nsurance were passed during the year, nor have any such laws\\nbeen passed since that time.\\nIn Colorado, where such a law had been passed in 1893, The\\nPrudential had at once discontinued writing insurance on the\\nlives of children under ten, although the decision had been ren-\\ndered by a district court in the city of Denver that the law itself\\nwas unconstitutional. If the question is asked why The Pru-\\ndential Insurance Company did not carry this point to a higher\\ncourt, or possibly to the United States Supreme Court, the\\nanswer is that the Company prefers to abide by the will of the\\npeople, and if the majority of the Legislature decide that this\\nform of insurance shall not be transacted, the Company is willing\\nto abide by the decision. Evidence is not wanting tending to\\nshow that after the law had been passed many of the more intel-\\nligent members of the Legislature recognized the inexpediency of\\nthe measure, and it may not be out of place in this connection to\\nquote a remark from the annual report of the Insurance Super-\\nintendent of Colorado for 1894, in which the view that the trans-\\naction of this form of insurance is not detrimental to public policy\\nis fully accepted by one qualified as Insurance Superintendent to\\nexpress an opinion on the subject\\nThis kind of insurance is making vast strides and has almost reached\\nthe billion-dollar mark in amount of risks written. It is particularly the\\npoor man s field of patronage, and vindicates the superior intelligence and\\ndiscernment of the working class. The companies handling Industrial in-\\nsurance rank high, and a breath of suspicion or distrust has never touched\\ntheir financial fabric. As to the claim that Industrial insurance encourages\\nchild-murder and prompts the murderer s hand to despoil tender youth of\\nlife, we insist proof has never been brought forward sufficient to show that\\ncrime committed to secure insurance on a child s life has been nearly so\\nfrequent as crime committed to secure insurance placed on adult lives in\\nold-line companies.\\nAs regards so-called discrimination against negroes, further\\nefforts were made this year to pass laws to prohibit companies\\nfrom making such discrimination. An effort had been made in\\nNew Jersey during 1893, an( i a bill to this effect had been passed,\\nwhich, however, had been vetoed by the Governor. In opposing", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0248.jp2"}, "249": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l894~ 96. 209\\na measure to this effect introduced in the Legislature during the\\nearly part of 1894, The Prudential Insurance Company presented\\nfigures and facts tending to show that the Company would not be\\nwarranted in granting the same benefits to colored policy-holders\\nas to whites. The Actuary of the Company furnished data from\\nthe Company s own experience, making clear the excessive mor-\\ntality prevailing among colored risks, and it was shown that\\ninstead of discriminating against the negroes, the Company had,\\nin fact, been more liberal towards this race than towards the\\nwhite population. The Company, however, could not feel war-\\nranted in granting similar benefits to both races without doing an\\ninjustice to its white policy-holders, who would be compelled to\\npay for an unwarranted liberality towards negro applicants. The\\nbill, unfortunately, passed both houses of the Legislature, and\\nwas approved by the Governor. The views of the Company on\\nthis subject were fully set forth in a letter dated September 5,\\n1894, to the editor of the Indicator, over the signature of the\\nVice-President of The Prudential\\nThe Prudential began to issue policies November 10, 1875. From that\\ndate to April 1, 1881, the applications of colored persons were considered\\nby the Company on the same terms and conditions as the applications of\\nwhite persons. In the early part of 1881 it was discovered that the number\\nof claims paid by the Company on the lives of colored persons, as com-\\npared with the total number of claims, exceeded the proportion which the\\ncolored business of the Company bore to its whole business. This led to\\nan investigation into the Company s mortality experience amongst the two\\nclasses of risks (white and colored and, although at this early period of\\nthe Company s history the number of colored persons on the books of the\\nCompany did not compose a body large enough to furnish data for an ex-\\ntended research, positive evidence was found, from the data at hand, that\\nthe rate of mortality amongst colored persons insured in The Prudential\\nwas considerably above the rate which obtained amongst white persons in-\\nsured in the Company. While the office investigation was being carried on,\\nhealth reports were obtained from nearly all of the large cities east of the\\nMississippi. In a number of these reports it was found that the mortality\\nwas recorded by white and colored lives. A tabulation of the contents of\\nthe reports which gave the mortality by races confirmed the conclusion\\narrived at from the office experience.\\nAs the result of its investigations the Company decided to use a special\\ntable of benefits (amounts insured) for colored persons. In the case of adults\\n(ages 12 to 70) this table gave one-third less benefit to a colored person\\nthan was granted for the same premiums to a white person of equal age. In\\nthe case of infants (ages 1 to 12) the tables gave to colored infants forty per\\ncent, less benefit than the amounts granted to white infants.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0249.jp2"}, "250": {"fulltext": "2IO\\nHISTORY OF THE PRUDENTIAL.\\nSince 1881 the mortality of the Company has been carefully tabulated\\neach year by white and colored risks. Each tabulation has confirmed the\\nfirst investigation of the Company, and nothing has been discovered in our\\nexperience which has led us to modify the tables of rates determined upon\\nat that time.\\nThe following table shows the amounts which The Prudential has paid\\nin claims for each $1,000 of insurance exposed to risk of death on white and\\ncolored lives for the ten years beginning with 1884 and ending with 1893\\nLOSS IN CLAIMS PER $1,000 OF INSURANCE EXPOSED TO RISK.\\nAi i, Ages, 1-70.\\nYear.\\nWhite Persons\\n$15 27\\n16 04\\n17 90\\n16 59\\n16 60\\n15 45\\n17 11\\n16 71\\n17 91\\nColored Persons.\\n1884,\\n1885,\\n1886,\\n1887,\\n1888,\\n1889\\n1890,\\n1891,\\n1892,\\n1893\\nAverage 10 years,\\n17 34\\n$18\\n75\\n22\\n47\\n24 44\\n21\\n49\\n21\\n68\\n21\\n43\\n21\\n49\\n21\\n44\\n21\\n32\\n21 89\\n$16 96\\n521 63\\nBut the high mortality amongst colored persons is not the only objec-\\ntionable feature to the writing of life-insurance policies on their lives. We\\nfind, from our office statistics, that policies on colored lives lapse in far\\ngreater ratio than policies on white persons, and that the highest percentage\\nof lapse comes within a very few weeks of the issuance of the policy. In fact,\\nthe greater portion of the colored business issued by The Prudential is not\\ncontinued on the books of the Company long enough to recoup the Com-\\npany for the initial expenses of getting the business. In many cases those\\nwho continue their policies do not seem to value them or lay much stress\\nupon their possession. Numerous instances are found upon our books\\nwhere policies on colored people have been lapsed and revived a dozen or\\nmore times.\\nAs pertinent to this question, we might state here that within the past\\ntwo or three years several States have passed laws compelling life-insurance\\ncompanies to consider applications of colored persons on the same terms\\nand conditions as the applications of white persons. Such legislation has\\nbeen enacted notwithstanding that all the evidence pointed to the fact that\\nthe passage of these so-called anti-discrimination laws would constitute a\\nserious menace to the life-insurance companies in case there should be a\\nwidespread demand among negroes for life-insurance policies. In the States", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0250.jp2"}, "251": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l894~ 96. 211\\nwhere such legislation has been enacted The Prudential will receive the\\napplication of a colored person under certain rules. Its agents, however,\\nare forbidden to canvass for such applications, and no commissions whatever\\nare paid on premiums collected from colored persons. In those States\\nwhich allow discrimination between the two races, and in which The Pru-\\ndential may consider applications from colored persons under its rules, we\\nhave recently issued instructions that our agents shall write only a small\\npercentage of their whole business amongst colored persons.\\nThis letter is not intended as an expression of opinion, personal or\\notherwise, with regard to the moral or the social conditions of the colored\\nrace. It is intended as a statement of the facts and conclusions which\\ncause The Prudential to take the position which it does with respect to the\\ncolored race as insurance risks. Neither are any of the objections herein\\nstated, except as to mortality, directed against that class of colored persons\\nwho are possessed of intelligence and thrift, and whose social and moral\\nlives are such that they are a credit to the community in which they reside.\\nIt may be that if this class could be separated from the colored race as a\\nwhole the mortality amongst them might be considerably less than among\\nthe entire body but we are quite sure that the mortality, even amongst the\\nbest of colored lives, would not compare favorably with the mortality\\namongst the whites.\\nLeswe D. Ward,\\nVice-President The Prudential Insurance Company of America.\\nIn consequence of the New Jersey law, passed in 1894, The\\nPrudential Insurance Company to-day makes no effort to obtain\\ncolored risks at rates which it feels would be prejudicial to the\\nbusiness as a whole. In this respect, however, the Company\\ndiffers from some other Industrial companies, which still continue\\nto solicit colored risks in more or less large proportions. With\\nThe Prudential this question has never been a matter of opinion,\\nbut a matter of thorough study, investigation and observation, and\\nuntil facts to the contrary are forthcoming, tending to prove that\\nthe mortality of the colored race more nearly approximates the\\nmortality prevailing among the white population, the Company\\nis not likely to change its practice in dealing with this class of\\nrisks.\\nAn effort was also made in 1894, i n e State of New\\nJersey, to pass a law compelling Industrial companies to grant\\npaid-up policies in event of lapse after three years. It has been\\npointed out that The Prudential had already voluntarily conceded\\nto its policy-holders a five-year paid-up policy, and the Company\\nopposed the measure on the ground that Industrial policies did", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0251.jp2"}, "252": {"fulltext": "212 HISTORY OF THE PRUDENTIAL.\\nnot warrant surrender privileges during the first few years of\\npolicy duration, in consequence of the large initial expense in\\ntransacting this form of insurance. The effort did not prove suc-\\ncessful in 1894, b u t another attempt was made during 1895, when\\na bill to this effect became a law.\\nAs has previously been pointed out, the Company, during\\n1894, na( l made enormous progress in the extension of its busi-\\nness operations, having gained an exceedingly large proportion of\\nnew policy-holders, increasing the total number of Industrial\\npolicy-holders by the 31st of December, 1894, to 2,256,014, for\\nan aggregate amount of insurance protection of $259,840,000.\\nThe net increase in policy-holders had been 314,481, equal to\\n16.2 percent, over the preceding year. Here again it may be\\nproper to refer to a point so easily misunderstood by those who\\nhave not made an extensive study of insurance methods. It will\\nbe observed, on comparing the net increase in business in force\\nwith the vast amount of new business written during the year,\\nthat, while over a million and a half of new policies had been\\nwritten, only a net increase of a little over 300,000 policies had\\nbeen made. This enormous difference is to be explained on the\\nground that in Industrial insurance every policy issued is counted\\nfor actuarial purposes, irrespective of the fact whether any\\nmoney has been paid on the same or not. While the agent is\\nrequired to collect the first premium, very often this is not done\\nand the majority of policies which lapse for non-payment are\\nnew policies of less than six weeks duration.\\nA large number of lapsed policies in Industrial insurance\\nare merely a bookkeeper s statement made for actuarial pur-\\nposes, and do not represent a material pecuniary loss to the\\npublic, but rather a considerable loss to the companies.\\nHence, the very large amount of new business written and\\nlapsed during 1894 may at least be said to point to indirect\\nbenefits in the nature of insurance education, in that over a\\nmillion people were made familiar with Industrial policies and\\nIndustrial insurance literature, even though they did not at the\\ntime consider it to their interest to keep the policies in force.\\nThey lost practically nothing in the few premiums which, in\\nmost cases, had been paid, and at least they had had an insurance\\nprotection extending over a period of the six weeks or more\\nthat the policy had actually been in force, since four weeks", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0252.jp2"}, "253": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l894~ 96. 213\\ngrace is allowed on every Industrial policy, and every possible\\nopportunity is given for revival or reinstatement. The companies\\ncan not be charged with a lack of liberality in dealing with this\\nclass of policy-holders, or a lack of good judgment in attempt-\\ning to extend as rapidly as possible its business operations in\\nall parts of the country where offices have been opened.\\nIn few instances has the good work of the Company been\\nmore emphatically recognized than in the New York Independent\\nof December 13, 1894, where I find it stated that The\\nPrudential Insurance Company of America has, to our way of\\nthinki?ig, done one of the most noble works of any corporation in\\nthe land. It is excellently well managed, and is rapidly increas-\\ning its business.\\nThe year 1895 found the Company in an excellent financial\\nposition, with over $13,000,000 of accumulated assets, with a\\nsurplus of almost $3,000,000, and a rapidly extending Ordinary\\nbusiness, now reaching proportions exceeding the business\\ntransactions of a large number of companies established for\\nmore than thirty or forty years.\\nThe year proved, in many respects, one of the most\\nremarkable in life-insurance history. A large number of bills\\nadverse to the interests of the insurance business were intro-\\nduced into the Legislatures of many States. The Industrial\\nbusiness was seriously attacked, partly on account of policy\\nconditions relating to surrender values,* largely on account of\\nthe practice of Industrial companies in accepting small risks\\non the lives of children. As has previously been stated, an effort\\nhad been made in the State of New Jersey in 1894 to compel\\nIndustrial companies to grant a surrender value after three years\\nof policy duration. The effort had failed, but a new attempt\\nAlthough Paid-up policies had been granted by The Prudential and\\nother Industrial companies since January 1, 1892, even as late as 1896 a\\nreport published by the New York University Settlement Society contained\\na bitter and unwarranted attack on the business of the Industrial companies,\\nconcluding with the statement that there are no Paid-ups in Industrial\\ninsurance. Even the most superficial investigation or inquiry at the\\noffices of the companies would have made it clear that every policy issued\\nsince 1892, and by retroaction all policies issued previous to that year,\\ncontained a clause granting a surrender value in the nature of Paid-up\\ninsurance.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0253.jp2"}, "254": {"fulltext": "214 HISTORY OF THE PRUDENTIAL.\\nmade during the early part of 1895 proved successful, and a bill to\\nthis effect became a law. Referring to this species of legislation,\\nthe Insurance Monitor, under date of April 1st, well said that\\nThe object of this law was to compel the payment of surrender values\\nby industrial companies at the end of three years. It originated in 1893\\nas so many insurance measures have originated with a member who had\\nonce been employed as an industrial agent, and who had had a personal\\ngrievance with his company. This man did not claim to have any such\\nknowledge of the business as would enable him to decide what surrender\\nvalues could safely be paid. But the surrender value- of New York, which\\nexpressly relieved industrial companies from its operations, was copied in\\nnearly all its essential features, and made applicable to this class.\\nThe legislative committees were shown, not merely by figures furnished\\nby the company, but by figures in the archives of the State, that there was\\nabsolutely no such fund in the possession of the companies as was assumed\\nin the bill from which the surrenders could be paid. They were shown that\\nany payments made must be taken from funds which, if they belonged to\\nthe policy-holders at all, were the property of those who had been longer\\ninsured. They were shown that all the objects aimed at in the bill had\\nalready been accomplished by competition, and that it was an attack on the\\ninterests of those longer insured. They were shown that the bill was directed\\nagainst the institutions of their own State in the interest of outsiders.\\nThese committees and legislators were appealed to by some of the most\\ninfluential men of New Jersey not to do this unjust thing. It was openly\\nconfessed by members of their own body that not a single sufficient reason\\nhad been shown for its passage.\\nIn compliance with the law, The Prudential, under date of\\nJune 24th, issued the following circular letter for the information\\nof its agency force and the general public\\nPAID-UP POLICIES.\\nAll policies issued after July 1st will be subject to Paid-up Policies after\\nthree years premiums have been paid, provided written demand is made for\\nthe Paid-up Policy within three months from the date of lapse.\\nIn the case of Life Policies, Paid-ups will be issued either for the Whole\\nof Life or for the Expectation of Life, as the person insured may elect.\\nTables of Paid-ups per $100 of original insurance under the latter plan will\\nbe printed in the policy, as per present practice. In the case of Endowments,\\nPaid-up Policies will be for proportioned parts, as at present but the period\\nafter which a Paid-up may be obtained will be reduced from five to three\\nyears.\\nThis concession will apply only to policies issued on and after July 1, 1895.\\nIn the same circular letter it was stated that all policies issued\\nafter July 1st would be incontestable after two years, and a further", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0254.jp2"}, "255": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l894~ 96. 215\\nconcession was made with respect to immediate benefits under\\ninfantile policies, which I quote as follows\\nIMMEDIATE BENEFITS.\\nIt has been decided, with respect to the Immediate Benefit conces-\\nsion, to modify the Infantile contract to this extent That the sum payable\\nin case of death within three months from date of policy will be shown by\\nthe following table. After three months the present benefits will be payable.\\nThe benefits in the Colored Infantile Policy will be reduced in proportion.\\nThe benefits in the Adult Policy will remain the same\\nTABLE OF BENEFITS\u00e2\u0080\u0094 FIRST THREE MONTHS OF INSURANCE.\\nFor a Weekly Premium of Five Cents.\\nAGES.\\n2\\n3\\n4\\n5\\n6\\n7\\n8\\n9\\n10\\n11\\n12\\nInfantile White,\\n$8\\n$10\\n$11\\n$13\\n$15\\n.517 $20\\n$22\\n$25\\n$30\\n$35\\nMention has been made of an earlier concession to the policy-\\nholders of The Prudential on policies designated as Special\\nAdult business. Dividend additions had been provided for poli-\\ncies of this class issued during the years 1890- 93, of which the\\nfirst fell due during the early part of 1895. Accordingly, under\\ndate of January 2nd, the Company issued the following circular\\nletter relative to this class of policies\\nDIVIDEND ADDITIONS ON SPECIAL ADULT POLICIES.\\nAt the end of each fifth year from the date of this policy, if in force, the\\nsum hereby insured will be increased by an amount to be determined by\\nthe Company, and based on the surplus earnings from similar Special In-\\ndustrial policies. Each Addition so made shall be considered as part of this\\npolicy, and subject to the same conditions and agreements.\\nIn compliance with this agreement, we have this day decided to add\\nThree (3) per cent, to the original amount insured under all Special Indus-\\ntrial policies issued in the year 1890 which contain the above condition, the\\nincrease to apply on the fifth anniversary date of the policy, and not before.\\nFor example, a policy of $1,000 will be increased to $1,030, and a policy of\\n$500 to $515.\\nAlthough the evidence furnished by the documents from\\nwhich I have quoted illustrates The Prudential s spirit of lib-\\nerality in dealing with its policy-holders and its sense of caution\\nin the management of the business, with special reference to", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0255.jp2"}, "256": {"fulltext": "2l6 HISTORY OF THE PRUDENTIAL.\\npossible undesirable conditions, it is difficult to understand the\\nlarge number of attempts at adverse legislation made during a\\nyear when the business of Industrial insurance had reached a\\nsufficient degree of magnitude to be fully understood by legisla-\\ntors, as well as by professional agitators and others opposed to\\nthe business of Industrial insurance. It is something very con-\\nsiderably to the credit of the intelligence and honesty of the\\naverage legislator that, although numerous attempts were made\\nto interfere with the Company s practice in accepting risks on\\nthe lives of children, no laws of this nature were actually enacted.\\nSuch attempts were made in Missouri, Idaho, Illinois, Michigan,\\nGeorgia, Tennessee and Massachusetts. Of these numerous\\nattempts it is only the last two which require special mention.\\nIn Tennessee an effort was made during 1895 to prohibit the\\ninsurance of children under twelve years of age. The Insurance\\nCommittee of the Legislature gave a number of hearings on the\\nsubject, and convincing facts were presented by the companies,\\non the basis of which it was not considered expedient to legislate\\nadversely to the business. Without going extensively into an\\ninteresting phase of insurance legislation, I may add that, in\\nresponse to a circular of inquiry addressed to a large number of\\nwell-known practicing physicians, charitable agents and health\\nofficers in the cities of Tennessee and Kentucky, asking for an\\nexpression of opinion on the subject of insurance of minors,\\nnumerous replies were received, all more or less strongly in favor\\nof the system. The letters were presented to the Tennessee\\nLegislature, and I quote a few of the characteristic statements\\nto show what experienced and intelligent men thought of the\\nbusiness at the time. Dr. Edwin Hawes, agent of the Louisville\\nCharity Organization Society, expressed the emphatic opinion,\\nbased on personal experience, that The result of my investi-\\ngation was that I became thoroughly satisfied that Industrial\\ninsurance was a great blessing to the people. It has enabled\\ngreat numbers, under my own observation, to bury their dead\\nwithout having to call on the public for help as dependents on\\nthe city authorities. I have never heard of a single case where\\nthere was the least cause of suspicion of foul play in the sickness\\nor death of an insured child. Dr. Thomas L. McDermott, Presi-\\ndent of the Louisville Academy of Medicine, stated that In my\\nexperience, which is large, I have nothing to say but to commend", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0256.jp2"}, "257": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l894- o,6. 217\\nthe insurance of children, especially among the lower classes, as\\nit really furnishes the means of securing medicines, burial, etc. I\\nhave not, in a single case, seen anything wrong in the management\\nof these cases. Dr. R. L. Vaught, Professor of Anatomy, Chatta-\\nnooga Medical College, stated that I have been engaged in the\\nactive practice of medicine in the city of Chattanooga for eight\\nyears, and among the people I have served professionally have been\\nmany who carried what is known as Industrial insurance upon\\nthe lives of their children, and I have never yet known of a case\\nof abuse or neglect of such children by reason of a desire upon\\nthe part of the parents to secure the insurance money. Among\\nothers approving of the system were Dr. W. P. White, Health\\nOfficer of Louisville Dr. F. S. Reynolds, County Health Officer\\nof Memphis, and Mr. Thomas H. Taylor, Chief of Police of the city\\nof Louisville. Mr. Taylor said that During the whole of my\\nincumbency in office I have never known or heard of a case where\\nparents or others were either charged or suspected of abuse or mal-\\ntreatment of their children for the purpose of getting the proceeds\\nof insurance on their lives. If such had been the case in this city,\\nI feel sure it would have been brought promptly tQ my attention.\\nInfluenced, no doubt, by the large body of evidence furnished\\nby the Industrial insurance companies, the Legislature of Tennes-\\nsee, after careful investigation, refused to interfere in any manner\\nwith the business of Industrial insurance.\\nThe attempt made in Massachusetts this year to prohibit the\\ninsurance of children under ten years of age was, however, un-\\nquestionably the most determined effort ever made to interfere with\\nan essential and integral part of the business of Industrial insur-\\nance companies. An organized and unusually determined effort\\nwas made by certain members of the Society for the Prevention of\\nCruelty to Children, and lengthy hearings were granted by the\\nLegislature to both sides of the controversy.* Among others,\\nThe opposition to the insurance of children, on the part of this\\nsociety, was in marked contrast to an earlier view expressed in the annual\\nreport for 1891, where it was stated that We find in English reports that\\nparents are charged with insuring the lives of their children in order, by\\nneglect, if by no worse crime, to destroy the child to secure the insurance.\\nWe have taken pains to inquire into this practice here, but have found no\\nevidence of such intent, although many insure their children s lives and use\\nthe proceeds, in case of death, to provide for funeral expenses. (p. 11.)", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0257.jp2"}, "258": {"fulltext": "2l8\\nHISTORY OF THE PRUDENTIAL.\\nMr. Dryden appeared before the Insurance Committee and pre-\\nsented a comprehensive statement of carefully collected data and\\nstatistics tending to show that, as far as the Company had been\\nable to learn, there was no evidence that the business was detri-\\nmental to public policy, but that, to the contrary, there was an\\nabundance of proof tending to show that Industrial insurance\\nwas, in all respects, an agency making for the promotion of thrift\\nand the general welfare of the industrial population.*\\nMr. Dryden first called attention to the fact that the actual\\nmortality experience of The Prudential, during the eleven years\\n1 883- 93, of children aged one to nine had been more favorable\\nthan the expected mortality by the life table on which the Com-\\npany s rates were based\\nCOMPARISON OF THE PRUDENTIAL MORTALITY EXPERIENCE\\nWITH FARR S ENGLISH LIFE TABLE.\\nAges i to 9.\\nAge.\\nPrudential Experience,\\nEleven Years.\\nEnglish Life Table\\nNo. 3.\\n(1883-1893.)\\nI\\n61.55\\n65-59\\n2\\n30.35\\n36.14\\n3\\n20.35\\n24-33\\n4\\n15-23\\n17.92\\n5\\nH.85\\n13-53\\n6\\n9.04\\n10.75\\n7\\n6.92\\n9.16\\n8\\n6.IO\\n7.69\\n9\\n5-40\\n6-57\\nIt will be observed that, at every age under consideration,\\nthe mortality experience of The Prudential was lower than that\\nshown, by Farr s Table No. 3, to obtain among the general popu-\\nlation. Mr. Dryden pointed out that it could not be argued that\\ninsured children represented selected lives, since the Company\\ndid not make use of medical examinations for children under the\\nThose interested in the history and practice of Industrial insurance\\ncompanies should address the Secretary of the Company for a copy of Mr.\\nDryden s Statement, which forms one of the really important and perma-\\nnently useful contributions to Industrial insurance history.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0258.jp2"}, "259": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l8o4- 96. 219\\nage of ten years. Rather to the contrary, a higher mortality\\nof insured children should be expected, since the children of the\\ngeneral working population were subject to a much higher death-\\nrate than the well-to-do or the rich. The argument was further\\nsupported by abundant statistical data for Massachusetts and\\nother New England States, showing that there had been a very\\nmaterial decrease in the mortality of children since the introduc-\\ntion of Industrial insurance.\\nTo clear away a very serious misunderstanding met with\\namong those who had not studied carefully the question of Indus-\\ntrial insurance, Mr. Dryden pointed out that the average amount\\npaid on claims on policies under the age of nine had only been\\n$24.74. I copy, in part, the table presented by Mr. Dryden to\\nshow the average amount paid on claims at various ages during\\nthe period i890- 94\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\nClaims Paid During Five Years (1890 to 1894) on Infantum\\nPolicies, Ages i to 9.\\nAge at Death.\\nNumber of\\nAmount of\\nAverage\\nClaims.\\nClaims.\\nClaim.\\nI- 2\\n3,934\\n$76,645 00\\n$19 48\\n2- 3\\n5,772\\n114,725 OO\\n19 88\\n3- 4\\n4,091\\n91,768 00\\n22 43\\n4- 5\\n3 o78\\n78,064 00\\n25 36\\n5-6\\n2,417\\n73,895 00\\n30 57\\n6-7\\n2,011\\n72,422 00\\n36 01\\n7-8\\n1,607\\n68,529 00\\n42 64\\n8-9\\n1,203\\n61,050 00\\n50 75\\n9-10\\n984\\n58,984 00\\n59 94\\nIn commenting upon the table Mr. Dryden well said that\\nAt the tender ages, when there would be danger, if danger\\nexisted, which we deny, the amount is so small as to be\\ninsufficient for burial expenses, to say nothing of medical\\nattendance, medicine, and other necessary disbursements in\\nsuch cases.\\nThe cost of funerals varies with different localities. Customs and\\ncircumstances have much to do with the actual outlay, and it is very\\ndifficult to discuss the question of funeral expenses of children, on the", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0259.jp2"}, "260": {"fulltext": "220\\nHISTORY OF THE PRUDENTIAL.\\nAdditional proof that the insurance of children was not det-\\nrimental to child life was furnished by a table supplied by Mr.\\nDry den, which shows the comparative mortality of adults and\\nchildren as to the expected and the actual loss for each group\\nof risks\\nMORTALITY EXPERIENCE OF THE PRUDENTIAL INSURANCE\\nCOMPANY OF AMERICA.\\nComparison of Infantum and Unexamined Adui/t Policies. Policies\\nin Force Less than One Year.\\nExpected and Actual Eoss on each $1,000,000 Exposed to Risk of Death.\\nClass of Risks.\\nExpected Eoss,\\nFarr Table No. 3.\\nActual Eoss.\\nRatio\\nAct. to Exp.\\nAdult,\\n$12,741 OO\\n15,617 OO\\n$13,447 OO\\n13,046 OO\\n105.5\\n83.5\\nFrom this table it is quite clear that, while the actual mor-\\ntality of adults exceeded the expected mortality in the ratio of\\n105.5 t\u00c2\u00b0 every $100, the ratio of infantile claims was only 83.5\\nto every $100 of expected loss. Hence, as far as the Com-\\npany s experience was able to disclose possible detrimental\\nconditions, it had clearly been proven, on the basis of actuarial\\ntestimony of unquestioned value, that the practice of the com-\\npanies was not adverse to the interests of insured children or the\\ngeneral population. Mr. Dry den concluded his argument with a\\nbasis of statistics, but it may be of interest to the reader to learn that in\\nthe city of Newark, N. J., the cost of burial, including the grave and what\\nis usually looked upon as the common decencies, is $25 at age one, $35\\nat age five and $50 at age ten. These amounts correspond very closely\\nwith the average sums paid at the death of insured children in the expe-\\nrience of The Prudential. In the city of New York the lowest cost of\\nfunerals for children under the age of four is stated to be from $12 to\\n$18, but the actual average cost is no doubt higher, at least where a little\\nmore than the barest necessity is provided. If to these items is added\\nthe cost of the last illness and the extra expenses incident to a death in\\na family, it will be apparent that the amounts paid by Industrial compa-\\nnies, at the death of children, are not more than sufficient to meet the actual\\ncost of burial and last illness.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0260.jp2"}, "261": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l894~ 96. 221\\nnumber of quotations from an exceptionally able work on The\\nEnglish Poor, by Mr. Thomas Mackay, to-day recognized as one\\nof the highest authorities on English Poor Law administration\\nand the social and economic conditions of the people.* Mr. Mac-\\nkay considered the subject of Industrial insurance in an entire\\nchapter of the work referred to, but I must needs limit myself\\nto a few brief extracts which will indicate the results of his ex-\\ntensive personal investigations\\nIt is not too much to say that the country owes a great debt of gratitude\\nto these institutions. They have kept alive, during a very dark period of\\nworking-class history, some small interest in the principle of insurance,\\nsome respect for this valuable expedient of survival amid the dangers of\\ncivilized life.\\nThe philanthropists complain that these insurances rarely provide any-\\nthing more than a funeral benefit. But, we ask, have not these very philan-\\nthropists been parties to the conspiracy which has taught men that the\\nState will give a pension to their wives and children when they die By a\\nmiracle the poor man s abhorrence of a pauper funeral has survived the\\nmachinations of the philanthropist. On this not too hardy instinct of inde-\\npendence the commercial companies have had to work.f\\nWith a fatuity which is almost incredible, well-meaning philanthropists\\nhave endeavored to disparage the work of these societies, because forsooth they\\nadapt themselves to the necessity of the case and collect the premiums\\nweekly by house-to-house visitation.\\nAs has previously been stated, the subject was considered in\\nall its bearings, the facts were fully set forth, the members of the\\nLegislature were fully informed as to the merits of the contro-\\nversy, and the proposed law prohibiting the insurance of children\\nunder ten failed of passage by the overwhelming vote of 149\\nmembers in favor of Industrial insurance against 23 members\\nopposed to it. The conclusion is therefore warranted that this\\nvote, following as it did upon the most extensive investigation\\never made into Industrial insurance in this country, is a positive\\nendorsement of the entire scheme of Industrial family insurance\\nPublished by John Murray, London, 1889.\\nt We need measures which shall increase individual responsibility\\nrather than diminish it measures which shall give us more self-reliance\\nand less reliance on society as a whole. We cannot afford to countenance a\\nsystem of morals or law which justifies the individual in looking to the\\ncommunity rather than to himself for support in age or infirmity. (Arthur\\nT. Hadley, Economics, p. 63.)", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0261.jp2"}, "262": {"fulltext": "222 HISTORY OF THE PRUDENTIAL.\\nas it is carried on at the present day. That Mr. Dryden s remarks\\ncarried weight with those who were anxious to consider with\\njustice and fairness both sides of the controversy is perhaps best\\nillustrated by the following extract from the Insurance Herald\\nunder date of May 30, 1895\\nOf the literature which the contests evoked the statement of President\\nJohn F. Dryden, of The Prudential, made before the Committee of the Massa-\\nchusetts Legislature is the most valuable contribution to the general knowl-\\nedge of industrial insurance and its progress that has yet been made. It is a\\ncomplete answer to the sentimental charges that have been trumped up\\nagainst the practice of insuring each child in the general scheme of family\\ninsurance. President Dryden s statement has been issued in pamphlet form,\\nand a copy of it should be placed in the hands of every official connected\\nwith public and private charity organizations. These bodies could perform\\nno greater work for the general good than to spread the practical gospel of\\nindustrial insurance among the poor as the stepping-stone to self-reliance\\nand proper pride. By a careful study of the pamphlet they would them-\\nselves perceive the great benefit that industrial insurance is conferring upon\\nthe American people. Mr. Dryden deserves the thanks of all his colleagues\\nThe large majority vote cast in favor of the system of family in-\\nsurance, and against a measure tending to prohibit an integral part of the\\nbusiness, is of special significance in this case. It has well been said of\\nsuch public approval, when expressed by the vote of a decisive majority,\\nthat To responsible politicians the course to be pursued will depend\\nmainly on fluctuating conditions of public opinion. Restrictions will be\\nimposed, but only when and as far as they are supported by a genuine\\npublic opinion. It must not be a mere majority, but a large majority\\na steady majority a genuine majority representing a real and earnest\\ndesire, and especially in the classes who are most directly affected not a\\nmere factitious majority such as is often created by skillful organization and\\nagitation by the enthusiasm of the few confronting the indifference of the\\nmany. In free and democratic States one of the most necessary but also\\none of the most difficult arts of statesmanship is that of testing public\\nopinion, discriminating between what is real, growing and permanent, and\\nwhat is transient, artificial and declining. As a French writer has said,\\nThe great art in politics consists not in hearing those who speak, but in\\nhearing those who are silent. 1 (William Edward Hartpole Lecky, The\\nMap of Life, p. 140. Longmans, Green Co., New York, 1899.) To these\\nwords of Mr. Lecky the writer would add that the masses, who as a rule\\nhave been silent when the most unwarranted charges have been made\\nagainst their intelligence and morality, will not fail to assert themselves in\\na manner wholly unexpected by those whose slight knowledge of the\\npeople forbids a more intelligent appreciation of the efforts and struggles\\nof the working people.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0262.jp2"}, "263": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l894~ 96. 223\\nfor his clear, direct and forcible demonstration of the public value of the\\nscheme of family insurance which he represents in his great company.\\nA further endorsement of the practice of Industrial com-\\npanies is to be found in the annual report of the Insurance\\nCommissioner of Connecticut for the year 1895, where it is\\npointed out that\\nCharges of gross neglect and even murder of children, for the sake of\\nthe insurance upon their lives, are of too serious a character to be over-\\nlooked. These charges, however, are as easy to make as they are difficult to\\nprove, but until they are supported by proof they should have no influence\\nupon our judgment. I do not know of any facts which prove such a con-\\nclusion, and I have been unable to find any case where a child has been\\nmurdered for the sake of the insurance upon its life. On the other hand,\\nthe testimony is that such insurance makes the parents thrifty and provident,\\nand statistics show that the rate of mortality among insured children is less\\nthan the rate among children generally.\\nOther valuable contributions with special reference to the\\ninsurance of children were made this year by Dr. Hugh R.\\nJones, in his prize essay on the Perils and Protection of Infant\\nLife, published in the Journal of the Royal Statistical Society,\\nVol. LVII. Dr. Jones concluded his observations with the\\nremark that I have briefly reviewed the more important evi-\\ndence existing on the subject. I have weighed, as carefully as\\nI am able, all the information I have gathered. I have discussed\\nthe subject with medical men resident in districts where insur-\\nance prevails extensively, and my own conclusion is that the\\nevils of child insurance have been unnecessarily exaggerated.\\nThe incentive to child-neglect and child-murder is\\nnot the prospective receipt of insurance money.\\nCases of neglect are more frequent, into which the element of\\ninsurance does not enter, than those upon which it is supposed to\\nexercise influence. Other valuable papers on child life insur-\\nance were read by Mr. J. Moon and Mr. W. H. Aldcroft, before\\nthe Insurance Institute of Manchester, England, which also form\\nvaluable contributions to our knowledge of the subject.*\\nFew men have had better opportunities to study scientifically the\\nvarious aspects of the question of life insurance for minors than Mr. David\\nParks Fackler, for many years the Actuary of the New Jersey Insurance\\nDepartment, Consulting Actuary to many life-insurance companies and one", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0263.jp2"}, "264": {"fulltext": "224 HISTORY OF THE PRUDENTIAL.\\nThe concensus of opinion of those who investigated the\\nsubject most carefully, and who relied upon the only basis of\\nfact which should be taken into account in any legislation upon\\nthe subject, that is, the statistical evidence supplied either by\\nthe companies or the government, was therefore in favor of the\\npractice of the companies, and it may be asserted with confidence\\nthat legislators and others will continue to take into considera-\\ntion the evidence and the body of facts on which the Industrial\\ncompanies rest their side of the argument.\\nThe business progress of the year 1895 was no doubt,\\npartly interfered with by the large number of attempts at ad-\\nverse legislation to which reference has been made. There was\\nalso a natural reaction after the previous year s operations, and\\nthe increase made in policy-holders during the year 1895 was\\nmaterially below the average. However, while many other com-\\npanies experienced a decrease in the total amounts of insurance\\nin force, The Prudential succeeded not only in holding its own,\\nbut in adding almost 75,000 Industrial policy-holders to its already\\nlarge number of patrons. Noting briefly the condition of the\\nCompany under date of December 31, 1895, tne annual report\\nstates that the total number of policy-holders had now reached\\n2,330,741, for an aggregate amount of $268,414,100 of Industrial\\ninsurance protection. In the Ordinary department the number of\\npolicy-holders had increased to 30,893 for $34,716,055 of insur-\\nance protection. The finances of the Company were in an\\ntime President of the Actuarial Society of America. Under date of March\\n19, 1895, Mr. Fackler addressed a long letter on the subject to the editor\\nof the Weekly Underwriter, from which I make a brief extract:\\nI well remember how much concern I myself felt some fifteen years\\nago, when infantile insurance was first introduced in this country, lest it\\nshould prove an incentive to child murder, as is now claimed periodically\\nby people all over the land.\\nMy own doubts on the subject were purely theoretical, and were\\nentirely dispelled by the a priori considerations that the insurance on poor\\nchildren may often be the means of saving their lives, because when they\\nare very sick their recovery is often only a question of whether they can\\nhave proper medical attendance and nourishing food, and if the parents are\\nvery poor they may fear to incur desirable medical or other expenses, lest\\nthey should prove ineffectual and be followed also by a heavy funeral outlay.\\nBut when the child is insured there is little reason to fear about making the\\nnecessary expenditures, for if the doctor can do no good, all the expenses\\n\u00e2\u0080\u00a2will be covered by insurance.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0264.jp2"}, "265": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, iSo^ oA 225\\nexcellent condition, and considerable progress had been made in\\nestablishing more firmly the business already on the books of the\\nCompany.\\nThe watch- word of The Prudential, as given to the field force\\nin the annual address of the President, was concisely stated in the\\nwords that The business that stays is the business that pays,\\nand more stringent orders than had ever previously been issued\\nwere sent out to superintendents, assistants and agents to put forth\\nevery effort to reduce the lapse-rate and encourage policy-holders\\nto keep their policies in force. The year was one during which\\nmany internal improvements were introduced into the practice of\\nthe Company, which, however, for want of space, can only be\\nbriefly discussed.\\nWith the beginning of the new year The Prudential intro-\\nduced a number of new features in its Industrial policy con-\\ntracts, the most important of which was a radical change in\\nthe table of benefits for ages under ten years. A copy of the\\nnew table is given below, together with the necessary explana-\\ntory information\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\nTabi,e of Infantile Benefits, for a Weekly Premium of 5 Cents.\\nBenefit Payable if Policy has\\nbeen in Force for\\nLess than 3 m os.,\\nMore than 3 mos. but less than 6 mos.\\nMore than 6 mos. but less than 9 mos.\\nMore than 9 mos., but less than 1 year,\\nOne year,\\nTwo years,\\nThree\\nFour\\nFive\\nSix\\nSeven\\nEight\\nAge Next Birthday When\\nPolicy\\nis Issued.\\n2\\n3\\n9\\n4\\n$10\\n5\\n$11\\n6\\n7\\n8\\n9\\n8\\n$12\\n$14\\n$16\\n$20\\n10\\nIT\\n13\\n14\\n16\\n19\\n22\\n28\\n12\\n14\\n16\\n18\\n22\\n26\\n35\\n50\\n15\\n17\\n20\\n24\\n29\\n35\\n50\\n75\\n17\\n20\\n24\\n29\\n39\\n55\\n80\\n120\\n20\\n24\\n29\\n43\\n60\\n\u00c2\u00ab5\\n120\\n24\\n29\\n47\\n65\\n90\\n120\\n29\\n51\\n70\\n95\\n120\\n55\\n75\\n100\\n120\\n80\\n100\\n120\\n100\\n120\\n120\\nTwice the above amounts will be paid for a weekly premium of 10 cents\\nbut no higher premium than 10 cents will be taken.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0265.jp2"}, "266": {"fulltext": "226 HISTORY OF THE PRUDENTIAL.\\nUnder this table higher benefits were payable at the younger\\nages than had been the practice since 1887, when the last rate\\ntables had been adopted, and the somewhat complex and involved\\npoints are best brought out in the following extract from the\\nSpectator of December 26, 1895:\\nThe new infantile table gives larger benefits than under the existing\\nscale, after the age of six years is reached, and finally the benefit increases\\nto $120 at age nine [ten next birthday]. This is the maximum amount\\npurchasable for the five-cent premium. The conditions of benefits during\\nthe first year are such that those who were insured at ages below six and\\nwho are persistent in their payments derive more from their policies, in\\nevent of death, than the one insured later on at the advanced age. Thus,\\nthere is a reward for persistency under this plan which the previous policies\\ndid not give. The companies have done wisely in deciding not\\nto accept a higher premium than ten cents on infantile lives, and must be\\ncongratulated on their decision to make it an object to insure when young,\\nand keep policies in force because of their increasing value. The new\\narrangement as regards infantile policies is made retroactive when the\\namounts insured at the new rate are greater than under present policies.\\nThe Insurance Monitor of 1896 also commented upon the\\nchange as follows\\nWith the beginning of the new year a change was made in the rate\\ntables of the industrial companies almost radical in its character. When\\nthis business was first introduced into this country from England, some\\ntwenty years ago, almost nothing was known of the distinctive mortality\\nprevailing among our industrial classes. The chief reliance was on the\\nexperience of the British Prudential, aided by such general observations on\\nmortality in America as were furnished by the census and the experience of\\nthe ordinary companies.\\nBut neither of these two latter sources could furnish any safe guide for\\na business so exceptional in its character. Besides this, infantile insurance\\nhad never been attempted there was no such thing as a reliable infantile\\nmortality experience in America. Nor was it possible to say what would be\\nthe cost of conducting a business under conditions so widely divergent from\\nthose existing in England.\\nSo it necessarily happened that the original rate tables were largely\\ntentative. But being once adopted and found on the whole to harmonize\\nfairly with existing conditions, they were naturally adhered to with minor\\nmodifications. The question was of less moment than it would otherwise\\nhave been, from the fact that industrial insurance is essentially family\\ninsurance. It takes the children with the parents and the premiums are\\npaid by the old folks. An inequality of rates tends in a measure to adjust\\nitself.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0266.jp2"}, "267": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l894~ 96. 227\\nBut this is true only in a measure, and the extent of the adjustment\\nmust depend on the distribution both of ages and policies in the family-\\ngroup. The companies have now secured an experience which can be relied\\non in the future, and, taking that experience as a basis, a far more liberal\\nrate table has been the result at all infantile ages, while equity has been\\nestablished as thoroughly as in the ordinary branch.\\nA very important point to which brief reference is made in\\nthe Spectator article was the voluntary restriction of premiums\\non lives under twelve to ten cents per week, irrespective of the\\nfact whether the child had been insured with one or more com-\\npanies. The clause which forms part of every Prudential Indus-\\ntrial policy reads as follows\\nThis Policy shall be void if there is in force upon the life of the Insured\\nan Industrial Policy previously issued by this Company, unless the Policy\\nfirst issued contains an endorsement, signed by the President or Secretary,\\nauthorizing this Policy to be in force at the same time or if the person\\ninsured is under twelve years of age next birthday, and is now or may here-\\nafter be insured while under such age in this or any other company, and the\\ntotal premiums on such insurances shall exceed ten cents per week. If for\\nany cause this Policy be or become void, all premiums paid thereon shall be\\nforfeited to the Company except as provided herein.\\nThis clause effectually did away with all reasonable objections\\nto the practice of Industrial companies in accepting small risks\\non the lives of children, as under this provision children could\\nnot be insured for more than a ten-cent premium, granting at\\nthe highest ages a sum only sufficient to meet the reasonable cost\\nof burial and the expenses of the last illness.\\nA new adult rate table was also introduced this year (1896),\\nof which the following is an abbreviated copy, showing, for\\ncertain ages, the amounts to be paid at death in return for certain\\nspecified weekly premiums. It will be observed, on examination\\nof this table, that there are certain limitations at the younger and\\nat the more advanced ages, which make speculative insurance, at\\nthese ages, impossible. Thus, for example, at age fourteen no\\nhigher premium than twenty cents per week will be accepted\\nat age twenty-three the premium limit is thirty cents at age\\nthirty-eight, forty-five cents at age fifty-one, forty cents, and at\\nage sixty-five, thirty-five cents. The table here given in abbrevi-\\nated form is the one now in use by the Company, but the amounts\\npayable are subject to increased benefits, cash dividends and", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0267.jp2"}, "268": {"fulltext": "228\\nHISTORY OF THE PRUDENTIAL.\\nsurrender privileges which materially enhance the value of these\\npolicies\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\nAdui/t Rate Tabi,e.\\nWEEKLY PREMIUMS OF\\nAge Next\\n5\\n10\\n15\\n20\\n25\\n30\\n35\\n40\\n45\\n50\\n55\\n60\\n65\\nBirthday.\\nCts.\\nCts.\\nCts.\\nCts.\\nCts.\\nCts.\\nCts.\\nCts.\\nCts.\\nCts.\\nCts.\\nCts.\\nCts.\\nIO\\n120\\n240\\n15\\nIO3\\n206\\n309\\n412\\n20\\n\u00c2\u00ab7\\n174\\n261\\n348\\n435\\n25\\n76\\n152\\n228\\n304\\n380\\n456\\n30\\n67\\n134\\n201\\n268\\n335\\n402\\n469\\n35\\n59\\n118\\n177\\n236\\n295\\n354\\n413\\n472\\n40\\n50\\nloo\\nI50\\n200\\n250\\n300\\n35o\\n400\\n450\\n45\\n42\\n84\\n126\\n168\\n210\\n252\\n294\\n336\\n378\\n420\\n462\\n50\\n35\\n70\\nI05\\n140\\n175\\n210\\n245\\n280\\n315\\n3\\\\5o\\n385\\n420\\n455\\n55\\n28\\n56\\n84\\n112\\n140\\n168\\n196\\n224\\n60\\n22\\n44\\n66\\n88\\nno\\n132\\n154\\n176\\n65\\n17\\n34\\n51\\n68\\n\u00c2\u00ab5\\n102\\n119\\n70\\n13\\n26\\n39\\n52\\n65\\n78\\n91\\nAnother very important concession made this year to the\\nIndustrial policy-holder of The Prudential was a provision printed\\nin red at the bottom of each policy stating that This Policy,\\nif not satisfactory to the Insured, may be surrendered within two\\nweeks after its date at the office of the Superintendent, whose name\\nappears on the premium receipt book accompanying this Policy,\\nand the premiums paid thereon will be returned to the Insured.\\nUnder this provision it is now possible for prospective applicants to\\ncarefully examine their policies during a period of two weeks, and\\nthen, if not satisfactory, return the same to the Company, receiv-\\ning in full the premiums paid during the period. Considering the\\nlarge number of transactions, it must be self-evident that this con-\\ncession implies a considerable money loss to the Company, volun-\\ntarily incurred to increase the popularity of the business and\\nextend the equitable basis on which The Prudential from the\\nbeginning had transacted this form of insurance.\\nA still further concession was made to policy-holders this\\nyear, in a matter which for many years past had been one of the", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0268.jp2"}, "269": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l894- 96. 229\\nmost difficult questions with which Industrial companies had had\\nto deal. Since October i, 1884, the Industrial policies had con-\\ntained a clause restricting the liability of the Company to one-half\\nof the full amount of the face value of the policy in case the insured\\ndied from consumption during the first policy year. This restric-\\ntion had been made necessary by the fact that no medical examina-\\ntion was required under policies for less than $200, and while the\\napplication signed by the agent contained questions and inquiries\\nwith special reference to the present and past health of the applicant\\nand his or her family history, nevertheless a considerable amount\\nof adverse selection in this direction was experienced among Indus-\\ntrial policy-holders. Similar reasons influenced the Company in\\nits early practice in restricting its liability where death was due to\\nsuicide.\\nIn suicide cases the practice at first had been to void the\\npolicy entirely, but in 1884 this had been changed to a three-year\\nperiod of policy continuance, and this period had been changed\\nto two years in 1895 but, to make the contract as free from\\ntechnical restrictions as possible, the Company this year elimi-\\nnated the suicide clause from the Industrial contract, which is\\nnow practically as free as possible from burdensome restrictions.\\nThus, by 1896 the Company had so far extended its liberal\\npolicy that Industrial policy-holders were practically on the basis\\nof policy-holders in the Ordinary department. Whatever re-\\nmained to be done to improve the contract was accomplished\\nduring the next few years, when further concessions, made prac-\\nticable and possible in the light of more recent experience, have\\nremoved most of the remaining earlier restrictions.\\nWhile the year was one during which few attempts at ad-\\nverse legislation were made in the legislatures of such States as\\nheld annual sessions of their Assemblies, an effort was made in\\nMassachusetts to revive the agitation of the previous year. The\\nage limit under the new bill was only five years, but, according\\nto the Boston Herald of March 3, 1896, It required just about\\nten minutes this morning for the Insurance Committee to hear all\\nwho appeared to offer objections or make suggestions on the bill\\noffered to prohibit insurance on the lives of children under five\\nyears of age.\\nFor the remonstrants, ex-Governor Long stated that he\\ndid not care to say anything upon the bill, as it was apparent", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0269.jp2"}, "270": {"fulltext": "230 HISTORY OF THE PRUDENTIAL.\\nthat the petitioners had practically abandoned the idea of passing\\nit. Among others, the State Insurance Commissioner pointed\\nout the absurdity of the bill as drawn, stating that it would be\\nnecessary to have the same reconstructed if it were to be further\\nconsidered. Another bill relative to the business of Industrial\\ninsurance was introduced in the Massachusetts Legislature\\nrequiring the companies to furnish a large amount of statistical\\ndata, the compilation of which would not only have been very\\nburdensome to the Company, but exceedingly expensive, while\\nthe conclusions to be drawn from such data would in a general\\nway have been of little value. The existing requirements\\nof the State as regards necessary statistical information are\\nsufficiently strict to place before the public all the information\\nwhich can reasonably be demanded of such companies, and this\\nview prevailed with the Legislature, and the attempt of the\\nopposition therefore proved a failure.\\nAlthough the year was a Presidential year and considerably\\ndisturbed on account of the political agitation, the Company con-\\ntinued to make considerable progress in both departments of its\\nbusiness. As one of the electoral candidates, Mr. Dryden re-\\nceived a majority vote as Presidential elector for the State of\\nNew Jersey.\\nThe intimate relation of Industrial insurance to life insur-\\nance on the Ordinary plan was ably set forth by Mr. Dryden in\\nan address at the annual meeting of the Life Insurance Associa-\\ntion of New York\\nThese companies reach, both in their industrial and ordinary depart-\\nments, a class of people not reached by the other companies. The ordinary\\nwork is a natural evolution of the industrial work. Men see the value of\\nlife insurance by reason of the educational power of an industrial policy, and\\nthe next step is an ordinary policy. Life insurance is of the most value\\nwhen most widely distributed, and no other companies compare with the\\nindustrial in extent of distribution. Every time a worthy man is induced\\nto take a life-insurance policy the body politic is helped. These companies\\nare cultivating broadly and soundly among the masses the idea of life-insur-\\nance protection, which will bear fruit for both industrial and ordinary\\ncompanies. Industrial agents may fairly be termed a sort of salvation army\\nin life-insurance work. To the hitherto neglected masses is being carried\\nthe gospel of self-help, protection and a higher life. It is, we think, a fair\\nstatement to say that the industrial companies are doing more to spread a\\nknowledge of and desire for life insurance among those who have the greatest\\nneed of it than all the other companies combined.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0270.jp2"}, "271": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l894- 96. 231\\nA similar reference to the extension of Ordinary insurance\\nby The Prudential and other Industrial companies was made in\\nthe Spectator of January 9, 1896, as follows\\nThe day is probably far distant when the income from the ordinary\\nbranches of the industrial companies will equal that from the industrial\\nbusiness, but there is every reason to think that they will increase the volume\\nof the ordinary business each year. In fact, this is bound to be the case if\\nthe argument held out by these companies that industrial insurance is an\\neducator is correct. They have maintained, and rightly so, that the circum-\\nstances of their industrial policy-holders become better from year to year,\\nand as they rise in the social scale they need the protection of life insurance\\nin greater amount than when first insured. Agents soon learn where they\\ncan place ordinary policies and push this class of insurance to the fore.\\nThe industrial worker of to-day must be able to hold his own in competition\\nwith others, whether it be for industrial or ordinary insurance he is canvass-\\ning, if he is to make a success at his calling.\\nMention has been made of the close and satisfactory rela-\\ntions existing between the executive officers of The Prudential\\nand the large body of agents and district managers scattered all\\nover the land. As stated in the Indicator under date of March,\\n1896, Considering the drawbacks of the year, the results at-\\ntained are complimentary alike to the management and the\\nworkers in the field. The officers have often\\nboasted that no insurance company in the world has in its\\nservice a field staff superior to The Prudential in sterling worth,\\nall-around ability to produce great results and loyal attachment\\nto the Company. These remarks have special application to\\ntwo men who almost from the beginning had been connected\\nwith the Company s progress, had done much to increase the\\nCompany s business operations, and at a critical hour, when ex-\\ntreme competition did much to disturb the relations of agents\\nand officers, remained loyal and faithful to the Company, who\\nlooked upon its employees as its friends, offering the friendship\\nof the executive officers and the Company to every worthy\\nworker in whatsoever capacity. Mr. John F. Collins had\\nentered the service of The Prudential in 1879, when he had\\nalready achieved success and distinction in the general life-\\ninsurance business, having held prominent positions in the\\nexecutive departments of other well-known old-line companies.\\nMr. Collins died on the 29th of March, 1896, and by his death\\nthe Company sustained a loss which it is difficult to express in", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0271.jp2"}, "272": {"fulltext": "232 HISTORY OF THE PRUDENTIAL.\\nwords. While it would be impossible to do Mr. Collins justice\\nin a simple tribute to his memory, it is but proper that brief\\nnotice should be taken of one who in a large measure was instru-\\nmental in the making of The Prudential Insurance Company of\\nAmerica. I quote the following brief extract from a biographical\\nsketch of Mr. Collins, published in The Prudential Weekly\\nRecord of April 6, 1896\\nHis coming to The Prudential Insurance Company of America was, of\\ncourse, his first introduction to the Industrial business, but his ripe knowl-\\nedge, tact, intuition, adaptability and exceptional talent for quickly and\\nrightly judging men and things, conjoined to make him in this new and, at\\nthat time in this country, novel field of labor, the right man in the right\\nplace. To him was confided the opening of Philadelphia. So well did he\\nperform this task that in nine months it was deemed safe to entrust the busi-\\nness there to other hands. That was in 1880. Mr. Collins was chosen to fill\\nthe important position in New York made vacant by the resignation of\\nSuperintendent Thornton. There Mr. Collins remained until his demise,\\nten days ago, and it is but simple justice to his memory to say that to no\\nindividual worker of its entire Field Staff, during all those sixteen years of\\nremarkable achievement, is The Prudential more indebted for its wonderful\\nprogress and prosperity than to the greatly lamented subject of this brief\\nsketch John Fletcher Collins. It was not alone as an efficient, painstaking\\nand eminently successful Superintendent that Mr. Collins served The Pru-\\ndential. In the earlier years of his connection with it the Company fre-\\nquently availed itself of his wide acquaintance and varied experience, and\\ncalled upon him to perform valuable services in affairs entirely foreign to his\\ndistrict duties. From first to last he was a true, brave and gallant defender\\nof its faith and principles.\\nWithin a few months after the death, of Mr. Collins the\\nCompany sustained another serious loss in the death of Superin-\\ntendent Frederick Kichbauer. Mr. Kichbauer had also been\\nconnected with the Company for many years, having entered the\\noffice in 1880 as an agent under Superintendent Fessenden in\\nBrooklyn, which office had then been opened but a short time.\\nWhat has been said of Superintendent Collins was equally true of\\nSuperintendent Eichbauer, who at all times and under all circum-\\nstances had proved himself a most worthy employee deserving of\\nthe complete confidence of the Company, and equal to every task\\nentrusted to his care. I quote a few remarks with reference to\\nMr. Kichbauer s life and work from The Prudential Weekly\\nRecord of June 15, 1896\\nSuch was the talent, diligence and energy displayed by Agent Eichbauer\\nthat two years later he was appointed Assistant Superintendent. Here", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0272.jp2"}, "273": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1894-96. 233\\nagain he displayed such ability and such fidelity to the interests of the Com-\\npany that when, in October, 1885, Superintendent Fessenden died, Mr. Eich-\\nbauer was chosen to succeed him. How well Superintendent Eichbauer\\nmanaged Brooklyn District, No. 1, during the next nine years the conspic-\\nuous ability he displayed as a leader of men and a producer of results his\\nzeal to carry out the wishes of the Company and to promote its cause the\\nmany brilliant victories he achieved along the whole Prudential line, Ordi-\\nnary as well as Industrial, these and other things alike creditable to the\\ndeceased are too well known in Prudential circles to need recital.\\nOn January 1, 1894, Mr. Eichbauer was appointed to take charge of\\nChicago District, No. 1. His brief career in the great metropolis of the West\\nis, like his Brooklyn career, familiar to all. It is to be said of this member\\nof the Prudential Old Guard, that he was noted as a man who could win\\nand hold the esteem and confidence of his subordinates, who was affable\\nand courteous to all, and who was loyal to the Company and his friends.\\nHe will live in the annals of Industrial Life Insurance in America as one\\nwho did a great work in its cause as one of those who, in the service of\\nthis, the Pioneer Industrial Company of America, ably helped to open\\nnew territory when it was decided to extend operations beyond New Jersey\\nand make the system national in scope. The success achieved by Mr.\\nEichbauer in those days when Industrial Insurance was new and by many\\nregarded as of doubtful permanency, cannot but help inspire those who are\\nin the business to strive hard for the greater victories offered now to the\\npushing and the energetic.\\nIn Superintendents Collins and Eichbauer The Prudential lost\\nmen whose place can not be filled in the hearts of those who were\\nfamiliar with their noble traits, and who had evidence of their\\nexceptional ability as life underwriters in the Industrial field.\\nIt. is something considerably to the credit of The Prudential that\\nit should have attracted to its field force men of as high a type\\nas Collins and Eichbauer, in every respect worthy to be honored\\nwith the highest positions in the field operations of Industrial\\ninsurance and the extension of the principles of life insurance to\\nthe masses.\\nAfter twenty years it could now be said of The Prudential\\nand Industrial insurance that the work which Mr. Dryden set out\\nto do in 1875 had been accomplished, and it may not be out of\\nplace to give a brief extract from an article, on the Company s\\ntwenty-year record, from the Insurance Critic, as quoted in The\\nPrudential Weekly Record of November 9, 1896\\nIndustrial life insurance as thus organized, and as applied by The Pru-\\ndential and other companies, is of inestimable value as a provision for the\\ncareful and provident workingman, opening to him a door of opportunity", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0273.jp2"}, "274": {"fulltext": "234 HISTORY OF THE PRUDENTIAL.\\nwhich he may enter for the purpose of making his small savings available\\nto secure a larger sum for the time of need. It is a plan appealing directly\\nto the thoughtful and considerate. A keen sense of personal responsibility\\nand of family duties gives to life insurance a ready access to mind and heart.\\nTo the reflecting and well-disposed toiler, life insurance is a treasure and\\njoy. Of great value is it also as an educator for the development of thrift\\nand forethought among the laboring population in our great cities and other\\ncentres of industry. Its agents have been engaged in very important\\nbranches of mental and moral training, are still doing this work on an\\nincreasingly extensive scale, and in years to come they will carry forward\\nthe instruction and discipline in continuance of the earlier work of the\\nschool. Industrial life insurance is in every way a fountain of good influ-\\nence to the great army of mechanics, artisans and other industrial workers.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0274.jp2"}, "275": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1897-98. 235\\nCHAPTER XIV.\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA,\\n1897-1898.\\nThe year 1897 marks a new era in Industrial insurance.\\nUnder date of January 1st Mr. Dryden addressed a circular letter\\nto the field force, in which the Company s agents were informed\\nthat thereafter Industrial policy-holders would be placed on prac-\\ntically the same basis as Ordinary policy-holders, and that in the\\nfuture Industrial policies would contain a provision for additional\\nbenefits, for cash dividends and for cash-surrender values. I can\\nnot do better than quote the larger part of Mr. Dryden s letter\\nWhen Industrial insurance was introduced in the United States, twenty-\\none years ago, by The Prudential, the Company did not have at its command\\na vast array of statistics upon which to base premium rates, nor were there\\nany long-established precedents upon which the Company could base definite\\nplans as to the future, as was the case in Ordinary insurance. It is true\\nthat Industrial insurance had been practiced in England for a number of\\nyears, but even in 1876 the business in that country was still in an experi-\\nmental state, and the volume of business transacted was small compared\\nwith the immense proportions it has since assumed.\\nThe Prudential practically entered a new and untried field, certainly a\\nnew field in so far as the United States was concerned. In the twenty-one\\nyears during which it has been making a specialty of Industrial insurance, The\\nPrudential has gained a vast experience and has built up voluminous records of\\nthe many details that enter into its business. From time to time, as the Com-\\npany has gained in experience, it has found that various changes could be made\\nwith advantage and that various concessions could be granted to policy-holders.\\nWe can not take the space to refer to these concessions here. They are a\\nmatter of history, and as much a part of the Company s record as the figures\\nwhich go to show its many successes. It may be of interest and of value to\\nthe field force, however, to state that the total cost to the Company to date\\nof the various concessions that have been made from time to time to policy-\\nholders has been nearly $700,000, and hundreds of thousands of dollars will\\nbe paid in the future on account of these concessions. Each new move on\\nthe part of the Company, however, has marked a step from the experi-\\nmental conditions which surrounded Industrial insurance twenty-one years\\nago to the certitude and exactness that marks the business to-day. Any", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0275.jp2"}, "276": {"fulltext": "236 HISTORY OF THE PRUDENTIAL.\\nstep which the Company now takes is not an experiment, but is based upon\\npractical and scientific knowledge of the business and the effect in the\\npresent and in the future of any concession can be measured almost to a\\ncertainty.\\nIn keeping with the wonderful growth of the business has been the\\nincrease in knowledge on the part of the general public as to the benefits\\nwhich are being conferred by Industrial insurance. At the outset the busi-\\nness was hampered by opposition of all kinds. One by one the obstacles\\nraised by ignorance and prejudice have been overcome until, at the present\\ntime, the beneficent influences of the system are found to exert an uplifting\\ntendency in every branch of life. Decreased death rates, increased savings,\\nmore prudence in the home, better care in case of sickness and many other\\nbenefits that go to make better and happier conditions of life, can be traced\\nto Industrial insurance. This is not a statement based upon inference.\\nFacts gleaned from health reports, savings-bank statistics and other sources\\nemphatically prove the assertion.\\nThese remarks on the growth of the business, the extent of its influence\\nand the change from experiment to certainty, are all preliminary to an\\nannouncement of new features in Industrial insurance, which the Directors\\nand Officers of The Prudential wish to announce to you by means of this\\nletter. Before entering upon the details of this new move, we wish to say\\nthat, notwithstanding the liberality and far-reaching effect of the concessions\\nwe have made in the past, the benefits we now propose to grant exceed in\\nliberality and generosity all the other concessions that have ever been made\\nin Industrial insurance. The concessions of the past have cost hundreds of\\nthousands of dollars these new concessions will, in the course of time, cost\\nthe Company millions of dollars, or, in other words, put millions of dollars\\ninto the pockets of our policy-holders and their beneficiaries. In fact, the\\nnew features which The Prudential now introduces into the business mark\\nA NEW ERA IN INDUSTRIAL INSURANCE.\\nThe new features consist of various far-reaching concessions to policy-\\nholders, and will be found in\\nA NEW POLICY CONTRACT.\\nThis policy, for simplicity and liberality to the insured, has never been\\napproached by any Industrial insurance company abroad, and certainly not\\nby any in this country.\\nLet us examine the new policy. Casually glancing at it, we see in bold\\ncharacters the words After Five Years, After Fifteen Years, and other\\nattractive captions. Let us see what each of these means. Under the\\nheading\\nAFTER FIVE YEARS\u00e2\u0080\u0094 ADDITIONAL BENEFITS,\\nwe find that after the policy has been in force for five years the Company\\nwill pay, in case of the death of the insured after five years and within\\nfifteen years, an Additional Benefit or Bonus, in addition to the sum insured", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0276.jp2"}, "277": {"fulltext": "INCORPORATED AS A STOCK COMPANY BY THE STATE OF NEW JERSEY.\\nHS33S \u00c2\u00a95?3SE;\\nQl^ ^UBltltffAy\\nNUSftSBR\\nWhole rltife Poliey.\\nIN CONSIDERATION, of the weekly premium hereinafter stated, which, it is agreed, shall be paid to the Company or\\nto its authorized representative on or before every Monday during the continuance of this Contract, THE PRUDENTIAL\\nINSURANCE COMPANY OF AMERICA AGREES TO PAY, at its Home Office in the City of Newark, New Jersey,\\nunto the executors, administrators or assigns cf the person named as the Insured in this Policy, unless settlement shall be made\\nunder the provisions of article second on*the back hereof, the amount of Benefit provided in the Schedule herein contained and\\nany additions thereto, within twentyfour hours after acceptance at its said office of satisfactory proof of the death of the Insured\\nduring the continuance of this Policy, which is issued and accepted subject to the conditions and agreements printed or the back\\nhereof, which are herebv referred to and made part of this Contract,\\nIF THIS POLICY IS CONTINUED m FORCE,\\nit will become entitled to Additional Benefits, Cash Dividends and Cash Surrender Values, as follows:\\nAFTER FIVE YEARS\u00e2\u0080\u0094 Additional Benefits.\\nIf the Insured shall die after FIVE YEARS from the date hereof, the Company will pay, in addition to the Benefit provided in\\nsaid Schedule, an amount to be determined from the tables of Additional Benefits issued by the Company for the year in which\\ndeath occurs, ___^__\\nAFTER FIFTEEN YEARS\u00e2\u0080\u0094 Cash Dividends,\\nAt the end of FIFTEEN YEARS from the date hereof and at the end of EACH FIFTH YEAR THEREAFTER, this Policy\\nwill be credited with a Dividend from the surplus apportioned by the Company to policies of the same age and kind, payable in\\nCash to the Insured, unless payment shall be made under the provisions of article second on the back hereof,\\nAFTER TWENTY YEARS\u00e2\u0080\u0094 Cash Surrender Values.\\nAt the end of TWENTY YEARS from the date hereof or at the end of ANY FIFTH YEAR THEREAFTER, the Company\\nwill pay to the Insured as a Cash Surrender Value for this Policy the amount fixed by the table printed on the back hereof,\\nprovided this Policy is legally surrendered to the Company within three months after the end of said twenty years or of any fifth\\nyear thereafter.\\nOR, IF THIS POLICY IS LAPSED AFTER THREE YEHRS\u00e2\u0080\u0094 Paid-up Policy.\\nIf this Policy shall become forfeited for the non-payment of any premium after having been in force three full years, and the\\nInsured shall be over thirteen years of age at date of such forfeiture, the Company will grant a non-participating Paid/up Life\\nPolicy in accordance with Chapter 356 of the Laws of 1895 of the State of New Jersey,\\nSchedule Above Referred to.\\nNAME OF THE INSURED\\nBENEFIT, if Insured is not less than\\nten years of age next birthday,\\nIt the Insured shell die within six calendar months from the date hereof, the Com*\\npany will pay only one-fourth of this sum. If the Insured shall die after six months and\\nwithin one year from the date hereof, the Company will pay only one-half of this sum.\\nAfter one year from Its date the Policy will be in force for the full amount.\\nAGE NEXT\\nBIRTHDAY AT\\nOATE OF POLICY\\nWEEKLY\\nPREMIUM\\nTABLE OF INFANTILE BENEFITS\\nFor a Weekly Premium of Five Cents Subject to the Above Te\\nBenefit payable If Policy has been in\\nLeaf than three months.\\nMore than 3 mouths but leaf than 6 months\\nMore than S months but less than 9 mi\\nMore than 9 months but less than 1 ye\\nIB* Kill Blrth-V st DaU \u00c2\u00bbf Poll,,\\nI\u00e2\u0080\u0094 I\u00e2\u0080\u0094 I-\\nis\\nt\u00e2\u0082\u00ac\\nt-l\\nU\\nft\\n\u00e2\u0080\u00a2a\\nt9\\nTO\\n65\\n03\\nno\\nunti will be paid. for\\nIn Witness Whereof, the President and Vice President of said Company .have signed this Policy\\nat its Home Office in the City of Newark, New Jersey, this\\nVice President. \\\\^S President.\\nThis Policy, If not satisfactory to the Insured, may be surrendered within twe week* alter Its date at the office of the SnperintODdent wboae\\nname appears o the premium receipt book accompanying this Policy, and the premiums paid thinon will be returned to the Insturad.\\nfllauiA* Inoostsjau Mass. Form or 8-98.\\nINDUSTRIAL POLICY FORM AT PRESENT IN USE BY\\nTHE PRUDENTIAL, INSURANCE COMPANY OF AMERICA.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0277.jp2"}, "278": {"fulltext": "Conditions and Agreements.\\n.hereto, and thai all claims i\\n1st PRBLIMIKAHT CONDITIO!*.\u00e2\u0080\u0094 No claim will be paid OB this Policy In case of the\\ndeath of the Insured before tbe ^ate hereof, uor unless od said date the Insured la aU\u00c2\u00bbe\\nand in sound bealth.\\n2nd. Facility OF Payment.\u00e2\u0080\u0094 The Company may make any payment provided for in\\nthis Policy to any relative by blood orcoouection by marriage of the Insured, or to any\\nother person appearing to said Company to be equitably entitled to the same by reason oi\\nbaling Incurred expense in any way ou behalf of tbe Insured, for bis or lier burial or tor\\nany other purpose, and tbe production by the Company of a receipt signed by any or either\\nof said personsor of other sufficient proof of such payment to any or either of them shall be\\nrideoce that such Benefits have been p;tid to the person or persons entitled\\nthat all claims under this Policy have been fully satisfied.\\nd may serve in the Milifia Of in\\n:e or for the purpose of preserving\\norder incase of not; but iu time of war, hefore engaging in hnstilitu a written permit\\nmust be obtained from the Company for which an extra premium will be charged weekly\\nuntil the Insured, after such service Is terminated, has passed a medical examination\\nsatisfactory to the Company, in rase of tbe death of the Insured during or after service\\nin war without such permit, the liability of the Company shall be limited to the net reserve\\non this Policy at the time of death of the Inimred, computed according to the legal standard\\nof the State of New Jereey.\\n4th Policy When Void.\u00e2\u0080\u0094 This Policy shall be void if there is in force upon the life\\nof the Insured an Industrial Policy previously issued by this Company, unless the Policy\\nfirst issued contains an endorsement, signed by the President or Secretary, authorizing\\nthis Policy to be in force at the Bame time; or if the said weekly prei\\npaid according to the terms hereof; or if the person\\nthe Army\\nay, and Naval Service.\u00e2\u0080\u0094 The In\\nvy of the UDited States, in time of peai\\nshall\\nunder twelve years of age\\nt birthday~and is now or may hereafter be insured while under such age in this or\\nany other company and the total premiums oq such insurances shall exceed ten cents per\\nCASH SURRENDER VALUES\\nweek. If for any cause this Policy be or become volu, all premiums paid thereon shall be\\nforfeited 10 the Company except as provided herein.\\noth. Payment of Premiums.\u00e2\u0080\u0094 All premiums are payable at the Home Office of the\\nCompany, but may be paid to an authorized representative of tbe Company but payments\\nto be recognized by the Company must be entered at the time of payment in the premium\\nreceipt book belonging with this Policy. If for any reason the premium is not called for\\nwhen due, by an authorized representative of the Company, it shall be the duty of the\\npolicy-holder, before said premium shall be in arrears four weeks, to bring or send said\\npremium to the Home Office of tbe Company or to one of its district offices.\\n6th. Period of Grace.\u00e2\u0080\u0094 Should the Insured die while the premium on this Policy is\\nin arrears for a period not exceeding four weeks, the Company will pay tbe Benents pro-\\nvided herein, subject to the conditions of the Policy.\\n7th. Revival of Policy.\u00e2\u0080\u0094 If this Policy is lapsed for non-payment of premium, it\\nwill be revived within one year from the date, of lapse upon written application and pay-\\nment of all arrears, subject to satisfactory evidence of the sound bealth of the Insured it\\nrequired by tbe Company s rules.\\n8th, AlteEations and Waivers.\u00e2\u0080\u0094 No person, except the President, one of the Vice\\nPresidents or Secretary of the Company; can alter this contract or waive any condition\\nthereof.\\n9th. Limitation. No suit on this Policy shall be i\\nunless brought within six months next after the date of death, of tbe Insured.\\n10th. Incontestability.\u00e2\u0080\u0094 If tbe Insured shall die two or more years after the date\\nhereof, and if all due premiums shall have been paid, aud full proof -of death given to the\\nntainable against tbe Company\\nCompany within three months next after the death of the Insured, this Policy shall be\\nincontestable, except that the Benefits provided herein may be adjusted for misstatement\\nAt end of Twenty Years and of each Fifth Year thereafter If Policy Is continued in force.\\nUli.ce,\\neek, tb\\n3 Cash fc\\nurrendf\\nr Value\\nwill b\\ne three\\nimes tb\\ne amou\\nt in thi\\n9 table.\\nnd BO\\non.\\n8\\n4\\n6\\nJ\\n8\\n9\\n10\\n11\\n12\\n18\\n14\\n15\\n10\\ni;\\n18\\nEnd of\\n20\\nEnd of\\n25\\nEnd of\\n30\\nYears\\nEnd of\\n35\\nYears\\nEnd of\\n40\\nYears\\nis\\n19\\n20\\n21\\n23\\n24\\n26\\n23\\n28\\n29\\n30\\n31\\n32\\n33\\n34\\n35\\nEnd of\\n20\\nYears\\nEnd of\\n25\\nYears\\nEnd of\\n30\\nYears\\nEnd of\\n85\\nYears\\nEnd of\\n40\\nYears\\n80\\n37\\n38\\n31)\\n40\\n41\\n42\\n43\\n44\\n45\\n46\\n47\\n48\\n49\\n60\\n61\\n62\\nEnd of\\n20\\nYears\\nEnd of\\n25\\nYears\\nEnd of\\n30\\nYears\\nEnd of\\n35\\nYears\\nEDd of\\n40\\nYears\\n63\\n64\\n58\\n59\\n1 60\\n61\\n02\\n03\\n64\\n65\\n66\\ni 68\\n69\\n70\\n20\\nYears\\n25\\nYears\\nEnd of\\n30\\nYears\\nEnd of\\n35\\nYears\\n40\\nYears\\n8 7.50\\n8.00\\n9.00\\n9.50\\n10.50\\n11.50\\n12.50\\n13.00\\n14 00\\n11.60\\n15.00\\n15.00\\n15.00\\n14.50\\n14.50\\n14.50\\n14.50\\nSll.60\\n12.50\\n13.00\\n14.00\\n15.00\\n16.00\\n17.00\\n18.50\\n19.50\\n20.00\\n20.00\\n20.00\\n20.00\\n20.00\\n20.00\\n20.00\\n20.00\\nS16.00\\n17.00\\n18.50\\n19.50\\n20.50\\n22 00\\n21.00\\n24.50\\n25.50\\n26.00\\n26.50\\n26 50\\n26.50\\n26 50\\n26.50\\n26.50\\n26.60\\n522.00\\n23.00\\n24.50\\n25.60\\n27.00\\n28.50\\n30.00\\n31.50\\n33.00\\n33.60\\n34.00\\n34.00\\n34.00\\n33.60\\n33.60\\n33.00\\n33.00\\n528.50\\n30.00\\n31.50\\n33.00\\n34.50\\n36.00\\n37.50\\n39.50\\n41.00\\n41.50\\n42.00\\n42.00\\n42.00\\n41.60\\n41.50\\n40.50\\n40.50\\n515.00\\n15.00\\n15T00\\n15 50\\n15.50\\n15.50\\n16.00\\n16.00\\n16.50\\n16.50\\n17.00\\n17.00\\n17.00\\n17.00\\n17.00\\n17.00\\n17( 00\\n820.00\\n20.50\\n20.60\\n21.00\\n21.00\\n21.50\\n21.50\\n21.50\\n22.00\\n22.50\\n22.50\\n22.50\\n23.00\\n23.00\\n23.00\\n23.00\\n23.00\\n526.50\\n26.50\\n26,50\\n27 00\\n27.00\\n27.50\\n27.50\\n27.50\\n28.00\\n28.50\\n2S.50\\n28.50\\n28.50\\n28.50\\n28.50\\n28,50\\n28.50\\n833.00\\n33.50\\n33.50\\n33.50\\n33.50\\n34.00\\n34.00\\n34.00\\n34.00\\n34.50\\n34.50\\n34.50\\n34.50\\n34.50\\n34.00\\n34.00\\n34.00\\n840.50\\n40.50\\n40 50\\n40 50\\n40.50\\n40.50\\n40,50\\n40.00\\n40 00\\n40.00\\n40.00\\n40.00\\n40.00\\n39.50\\n39.00\\n38.50\\n38.50\\n817.00\\n17.00\\n17.00\\n17.00\\n16.50\\n16.50\\n16.50\\n16.00\\n16.00\\n15.50\\n15.50\\n15.00\\n15.00\\n15.00\\n14.50\\n14.00\\n13.50\\n823.00\\n23.00\\n23.00\\n23.00\\n22.50\\n22.50\\n22.50\\n22 00\\n22.00\\n21.50\\n21.00\\n20.50\\n20.00\\n20.00\\n19.00\\n19.00\\n18.00\\n828.50\\n28.00\\n28.00\\n27.50\\n27.50\\n27.50\\n26.50\\n26.00\\n25.50\\n25.00\\n24.50\\n23.50\\n23.50\\n23.00\\n22.00\\n21.50\\n20.60\\n833.50\\n33.00\\n33.00\\n32 00\\n31.00\\n31.00\\n30.00\\n29.00\\n29.00\\n28.00\\n27.50\\n26.50\\n26.00\\n25.50\\n24.50\\n24.00\\n22 50\\n537.50\\n37.00\\n36.50\\n35 50\\n34.50\\nJ4.00\\n33.00\\n32.00\\n31.50\\n30.50\\n30.00\\n29.00\\n28.00\\n27.50\\n26.50\\n25.50\\n24.50\\n813.00\\n13.00\\n12.00\\n12.00\\n11.50\\n11.60\\n10.50\\n10.00\\n10.00\\n9.50\\n9.00\\n8.50\\n8.00\\n7.60\\n7.50\\n7.50\\n7.00\\n6.50\\n817.50\\n17.00\\n16 00\\n15.50\\n15.60\\n15.00\\n13.60\\n13 00\\n12.50\\n12.00\\n11.50\\n11.00\\n10.50\\n10.00\\n10.00\\n9.50\\n9.00\\n8.50\\n820.Q0\\n19.50\\n18.50\\n18 00\\n17.00\\n16.50\\n15.50\\n15.00\\n14,00\\n13.50\\n13.00\\n12.50\\n12.00\\n522.00\\n21.50\\n20.00\\n19.50\\n19.00\\n18.00\\n17.00\\n16.50\\n823.50\\n23.00\\n22.00\\nNote.\u00e2\u0080\u0094 To the Cash Surrender Value, as above, if applied for, will be added the Cash Dividend for the corresponding Five Year Dividend period, 1/ snch Dividend has not\\nalready been paid before this Policy is legally surrendered to the Company. Table of Cash Values after 40 years will be furnished on application.\\nino.\u00e2\u0080\u0094 M.ss.\u00e2\u0080\u0094 Foau cf 8-98.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0278.jp2"}, "279": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l897- 98. 237\\nby the policy. The circular enclosed herewith gives the amount of these\\nAdditional Benefits for the year 1897 in the case of policies on which five\\nyears premiums have already been paid. You will observe that the Addi-\\ntional Benefit on policies issued in 1892 is $1.40 for each $100 of insurance,\\nand that the sum increases steadily with each additional year the policy is\\nin force until, on policies which have been twenty-one years in force, the\\nAdditional Benefit reaches the sum of $5 per $100 of insurance. These\\namounts appear liberal when applied to individual policies, but the full effect\\nand great expense involved in this concession can only be judged when we\\nsay that the Additional Benefits for 1897 are applied to a total of over\\n$130,000,000 of insurance. You will observe that the Additional Benefits\\ncease at the time the first Cash Dividend is paid, as the distribution of profits\\nwhich will be made at that time may prevent the Company from declaring\\nAdditional Benefits thereafter. Under the second heading,\\nAFTER FIFTEEN YEARS\u00e2\u0080\u0094 CASH DIVIDENDS,\\nwe find an agreement to pay to the insured a Cash Dividend on the policy\\nafter fifteen years premiums have been paid and at the end of each fifth\\nyear thereafter. In other words, each policy hereafter issued will participate\\nin profits on the Accumulative Dividend Plan, the first dividend being\\ndeclared at the end of fifteen years, and the subsequent dividends at the end\\nof each fifth year during the further continuance of the policy.\\nWe next find a paragraph headed\\nAFTER TWENTY YEARS\u00e2\u0080\u0094 CASH SURRENDER VALUES.\\nHere we find an agreement to pay, at the end of the twentieth and each\\nfifth year thereafter, a definite cash value upon surrender of the policy. If\\nyou will examine the figures shown by the table on the back of the policy\\nyou will find that the values promised are much the same as those given\\nunder an Ordinary contract, thus proving the liberal tendency of The\\nPrudential in adopting this feature in its new policy.\\nWe next find a paragraph headed\\nPAID-UP POLICIES\u00e2\u0080\u0094 AFTER THREE YEARS.\\nThis condition provides for a Paid-up Policy according to the present tables,\\nbut we have omitted the tables from the back of the policy so that the new\\ncontract may not be obscured by too much type. The amounts of the Paid-\\nups, the period of the Expectation of Life, will be precisely as contained in\\npresent tables. You will notice, however, one important change, and that\\nis that Paid-ups will be given under the new contract after the insured\\nattains the age of 13 instead of age 15 as heretofore.\\nRETROACTION.\\nThe foregoing concessions are so far-reaching and so entirely new in\\nIndustrial insurance that it becomes a serious problem as to whether they can\\nbe applied to existing policies and tne problem is complicated when the", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0279.jp2"}, "280": {"fulltext": "238 HISTORY OF THE PRUDENTIAL.\\nimmense amount of insurance in force at the present time over three hun-\\ndred millions of dollars is considered. A concession on this vast sum of\\ninsurance of even $1 per $100 of insurance would be a matter of three\\nmillions of dollars. Under the new concessions we are brought face to face\\nwith much larger amounts. The application of the benefits given in the\\nnew policies to existing contracts must therefore, of necessity, become a\\nmatter of experiment and of experience, as the Company s entire business\\nhas been in the past. But, we will say that if experience proves that it is safe,\\nthe new concessions will be made applicable to old contracts as fast as the\\nconditions will justify us.\\nDuring the year 1897 Cash Dividends will be paid on policies issued in\\n1877 and 1882, and Additional Benefits will be paid on all policies on which\\nfive years premiums have been paid. The amount of the payment in indi-\\nvidual cases under these two benefits will be found in the circular herewith.\\nThe table of cash dividends on policies issued in 1877 is made up of the\\namount declared for that year, plus the dividend of 1882. This is in keeping\\nwith the principle of the new policy, of paying the first dividend at the end\\nof fifteen years, with an additional dividend at the end of each fifth year\\nthereafter.\\nYou will observe that Additional Benefits, but for a reduced amount, will\\nbe paid on policies issued in 1877 and in 1882, even after the Cash Dividend\\nhas been paid.\\nWe hope to receive certain benefits in return for the important conces-\\nsions which are herein announced. First of all we expect that the new\\npolicy will\\nENCOURAGE AGENTS TO REMAIN\\nin the employ of the Company. The Agents can now offer inducements\\nnever before heard of in Industrial insurance. They can uphold these in-\\nducements by practical results. It will thus be easier to secure new appli-\\ncations and to induce policy-holders to keep up their policies. Besides all\\nthe advantages coming from connection with the Industrial Branch, you\\nwill have the clear-cut, liberal policies of the Ordinary Branch to sell,\\nbacked up by the growth and actual results of that Branch in the past eleven\\nyears. No corps of Agents in this broad country in fact, in the world\\nwill have better or more liberal contracts to sell than the Agents of The\\nPrudential Insurance Company. They will be in a position to insure the\\npoor or the rich, giving each the best insurance that can possibly be ob-\\ntained. Under such conditions as these, and with such opportunities, we\\nbelieve our Agents will be very slow to leave our employ. We hope also to\\nsecure\\nA LOWER LAPSE RATE.\\nOur new policy is so designed that it becomes more valuable to the\\ninsured with each successive payment.\\nWe have dealt with our policy-holders with a degree of liberality which\\nhas never before been known in life insurance. It remains with\\nour policy-holders to show their appreciation by keeping up their policies", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0280.jp2"}, "281": {"fulltext": "INCORPORATED AS A STOCK. COMPANY BY THE STATE OF NEW JERSEY.\\nNUBA^ER\\nQj^ AMJBRTCa^-\\nattovneO,\\nCWviOwnt,\\nPAID-UP LIFE POLICY.\\nIn Consideration of the Application for this Policy, and of the surrender of the former\\nPolicy, No on the life of\\nherein designated as THE INSURED, The Prudential Insurance Company of America hereby\\npromises to pay, at its Home Office in the City of Newark, New Jersey, unto the executors,\\nadministrators or assigns of the Insured, unless settlement shall be made under the provisions\\nof article second hereinafter contained, the sum of\\nBollard.\\nwithin twenty-four hours after acceptance at its said office of satisfactory proof of the dea th\\nof the Insured.\\nThis Policy is issued and accepted subject to the following conditions and agreements:\\nFirst In case the age shall have been misstated in the original\\nPolicy for which this Policy is issued in exchange, the amount insured\\nby this Policy shall be corrected to the amount that would have been\\ngranted if th~ age of the Insured had been accurately stated.\\nSbcond. The Company may pay the sum of money insured hereby,\\nto any relative by blood or connection by marriage of the Insured, or\\nto any other person appearing to said Company to be equitably entitled\\nto the same by reason of having incurred expense in any way on behalf\\nof the Insured for his or her burial, or for any other purpose, and the\\nproduction by the Company of a receipt signed by any or either of said\\npersons, or of other sufficient proof of such payment to any or either of\\nthem shall be conclusive evidence that such sum has been paid to the\\nperson or persons entitled thereto, and that all claims under this Policy\\nhave been fully satisfied.\\nThird. The Insured may serve in the Militia or in the Army or\\nNavy of the United States, in time of peace or for the purpose of pre-\\nserving order in case of riot but in time of war, a written permit for\\nsuch service must be obtained from the Company and an extra premium\\npaid. In case of the death of the Insured from service in war without\\nsuch permit, the liability of the Company shall be limited to the net\\nreserve on this Policy computed according to the legal standard of the\\nState of New Jersey.\\nFourth. No suit on this Policy shall be maintainable against the\\nCompany unless brought within six months after the date of death of\\nthe Insured.\\nFifth.:\u00e2\u0080\u0094 If. full proof of death is given to the Company within three\\nmonths next after the death of the Jnsured, and if ttje foregoing con-\\ndition as to occupation shall have been complied with, this Poficy shall\\nbe incontestable, except that the sum insured may. be adjusted for flUs^\\nstatement of age.\\nIn Witness Whereof, the President and Vice President of\\nsaid Company nave signed these presents at its Home Office in the City of Newark, New\\nJersey, this day of 189\\nffi ftJ^\\nVice President.\\nf yf President.\\nINDUSTRIAL\u00e2\u0080\u0094 Paid-up Life. Form of 1-m.\\nPAID-UP POLICY FORM AT PRESENT IN USE BY\\nTHF, PRUDENTIAL. INSURANCE COMPANY OF AMERICA.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0281.jp2"}, "282": {"fulltext": "", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0282.jp2"}, "283": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1 897-98. 239\\nand continuing their confidence in the Company. If these expectations are\\nrealized, we shall consider that we have received our reward for the conces-\\nsions herein set forth.\\nIt is hardly possible to exaggerate the far-reaching value of\\nthese additional voluntary concessions made by The Prudential\\nInsurance Compan} and it was well stated in The Prudential\\nWeekly Record of January 4, 1897, that From its inception The\\nPrudential has never neglected the lesson taught by its own experi-\\nence. And so to-day the Company issues this new contract and\\nmakes these additional concessions to its old policy-holders because\\nthe experience gained in the past twenty-one years shows that\\nsuch improvements are practical and safe. And it could be\\nsaid with perfect truth that, for simplicity and liberality to the\\ninsured, the new Industrial policy has never been approached by\\nany Industrial insurance company in this country or abroad.\\nWith equal justice the Company could speak of this step in advance\\nas co-operation in the true sense of the word, and of Industrial\\npolicies as profit-sharing contracts, practically identical with\\npolicies issued by Ordinary life companies, placing the man\\npaying a five-cent premium on the same level, as regards benefits\\nand liberal surrender provisions, as one paying a premium of\\n$5,000 annually. For five cents a week a Prudential Industrial\\npolicy provides at present not only for the contingencies of the\\nfuture, but also offers a legitimate reward for the present, because\\nby its terms an equitable distribution of the profits accruing from\\nthis small investment is made in the numerous ways referred to\\nin Mr. Dryden s letter. The financial aspect of so far-reaching a\\nstep in advance may fairly be appreciated when it is stated that\\nthe cost of the voluntary concessions made by The Prudential\\nInsurance Company to its Industrial policy-holders to January 1\\n1897, was approximately $700,000, representing, however, but a\\nsmall fraction of future obligations incurred voluntarily by the\\nCompany.\\nAmong numerous improvements made in the agency admin-\\nistration of the business, one of considerable importance deserves\\nto be mentioned. Under date of January 2, 1897, the Vice-\\nPresident of the Company informed the field force that For\\nsome time past we have experimented with medical inspections,\\nand, finding the plan successful, it has been determined to extend", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0283.jp2"}, "284": {"fulltext": "240 HISTORY OF THE PRUDENTIAL.\\nthe system. The method of medical inspection was briefly out-\\nlined in a circular letter of the Medical Director to the Company s\\nMedical Examiners, from which I make the following extracts\\nA medical inspection is satisfactory when the following conditions are\\nfulfilled\\ni. You should personally see the applicant.\\n2. You should give as near as you can his [or her] correct age next\\nbirthday, regardless of any statement made on the application.\\n3. You should state to the best of your judgment his [or her] present\\ncondition of health.\\n4. You should ascertain if he or she has signed ithe application and paid\\nthe premium.\\nRemember that, whenever you are requested to make an examination,\\nan inspection will not answer. There is a decided difference between an\\ninspection and an examination. In an inspection, judgment is given from\\nthe appearance of the individual as well as from answers to inquiries that\\nmay be made. In an examination the party is not only asked certain ques-\\ntions, but the Examiner is expected to ascertain by percussion and auscul-\\ntation the condition of the heart, lungs and abdominal viscera.\\nUnder this practice all adult applicants are now either med-\\nically inspected or examined, and the former opportunities for\\nadverse selection have, therefore, been correspondingly dimin-\\nished.\\nAmong other changes and improvements in the practice\\nof the Company, a new form of application was issued this year,\\nwhich is reproduced on the opposite page. The only material\\nalteration in the application was in reference to the signature\\nof the parent or guardian of the person to be insured, if applicant\\nwas under the age of fifteen next birthday. The application\\nreproduced is the one at present in use by the Company.\\nA new Manual of Instructions was issued to the field\\nforce, the essentials of which are summarized in the following\\nbrief rules for agents, illustrating the systematic and thorough\\nmanner in which the field operations of the Company are con-\\nducted\\n1. Collect promptly and systematically during the first part of each\\nweek. Collect at least one week s premium at the time of writing an appli-\\ncation.\\n2. Write up your account and transmit your cash on time.\\n3. Report for lapsing all policies four weeks in arrears.\\n4. Canvass persistently and methodically.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0284.jp2"}, "285": {"fulltext": "Form 1.\\nINDUSTRIAL BRANCH.\\nAGEFL.\\nPOLICY Ho.\\nAss t\\nSup t.\\nFob Officb Use.\\nDistrict\\nAPPLICATION\\nFOR INSURANCE IN\\nFob Office Usb.\\nThe Prudential Insurance Company of America*\\nHOME OFFICE,\\nNEWARK\\nN. J\\nestions to be answered by the person whose life is proposed for insurance if age is 15 years NEXT birthday or\\nover, but, if younger, by the Parent or Guardian.\\no\\no I.\\nFULL N A HE OF PERSON TO BE 1 SI RE D 1\\n2. HED.\\nAt o clock, A. St., 1\\nEX. CALL\\nM.. on\\nI\\nIr\\no\\nz\\nNo.\\nStreet.\\nTown.\\nFloor.\\nFront or Rear.\\nRight or Left.\\nuT\\no\\nEC\\n3, DATS OF BIRTH 1\\nMonth. Day. Tear.\\n4. AGE NEXT BIRTHDAY I\\n5, AMOUNT OF INSURANCE)\\n6. WEEKLY PREstrum?\\n_.cfa.\\nui 7.\\ns\\no\\nX\\nPLACE OF BIRTH 1\\n(State or Country.)\\n8. RACE t\\n(White or Colored.)\\n9. SEX 1\\n10. MARRIED OR SINGLE t\\n(If Adult.)\\nII, OCCUPATION I\\n(Omit for lives less than 13 years.)\\nX,2.\\nIs life proposed now in-\\nsured in this Company\\nI f so, state numbers and\\namounts of Policies.\\n.Is life proposed now\\ni insured in any other\\nCompany If so, for\\nwhat amount!\\nHas life proposed ever been\\nrejected or postponed by\\nthis or any other Company\\nIf so, by what Company t\\n1 4-.\\na. What is the present con-\\ndition of health\\nWhen last sick\\nMonth. Tear.\\nOf what Disease I\\nDoes any physical or mental\\ndefect or infirmity exist\\n15.\\nHeight and Weight\\n..ft..\\n-in.\\n~lbs.\\n16. Has either Parent or any\\nBrother or Sister died of\\nConsumption t\\n17. Does Rupture exist\\n18. Is spirituous liquor\\nused!\\nIs opium or any\\nnarcotic used I\\nHas life, proposed ever suffered from Consumption,\\nAsthma, Spitting of Blood, Habitual Cough, Apoplexy,\\nParalysis, Heart Disease, Insanity, Fits or Convulsions,\\nRheumatism, Disease of the Liver or Kidneys, Cancer,\\nUlcers or Accident of any kind\\nState what disease.\\nI HEREBY APPLY for insurance for the amount herein named, and I declare and warrant that the answer* to the above questions are complete and true,\\nand were written opposite the respective questions by me. or strictly in accordance with my directions. I agree that said answers, with this declaration, shall form\\nthe basis of a contract of insurance between me and The Prudential Insurance Company of America, and that the policy which may be granted by the Company\\nin pursuance of this application, shall be accepted subject to the conditionsand agreements contained in such policy. I further agree that no obligation shall exist\\nagainst said Company on account of this application, although I may have paid premiums thereon, unless said Company shall issue a policy in pursuance thereof,\\nand the same is delivered to me.\\ntr Signature of Applicant.\\nOj To be made by the person whote\\n*t life it to be trmred if is yean\\nv old NEXT birthday, or oter, hat, if I\\n*jj fovnger, by the rarent or Guardian,\\n2 Witness.\\nAPPLICANT S MARK NOT ACCEPTED IF ABLE TO WRITE.\\nDated this.\\njday of~.\\nStale relatumehip of per ton vi*\\neijtu, iflifepropoeedit lese Mam\\nIS yeare old NEXT birthday,\\n189\\nAGENTS CERTIFICATE.\\nThis certificate must In all cases be signed by the Agent himself after ths above questions an all answered, aad he has become satisfied that the. life proposed\\nIs a first-class risk, and also by the Assistant Superintendent If application was secured by one.\\nA. Is the Applicant a\\nrelative of yours?\\nState relationship.\\nB.\\nWhat amount of Premiums\\nhave you collected In advance\\nCERTIFY that I have this..\\n.day of_\\nu the Applicant herein named, and I recommend the Companp to accept the- Hat.\\n_189 personally seen and questioned\\nAssistant\\nSsperintfudent..\\ns\u00c2\u00a3 If a policy is already In force in this Company on life proposed, and this application is for additional Insurance, the policy must be s\u00c2\u00abnt to the Home Office\\nattached to the application, which should be marked in ths left hand margin ADDITIONAL. If application is for Increased or decreased Insurance, and ths\\n-existing policy Is to be Ispsed^a lapse schedule containing particulars of the policy a* well as ths policy itself must be attached to the application.\\nINDUSTRIAL APPLICATION FORM AT PRESENT IN USE BY\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0285.jp2"}, "286": {"fulltext": "JVIedieal E^atnliieir s I^cpoft.\\nTo be filled in by a regularly appointed Medical Examiner, when the amount applied for is $260 or more.\\nOBSERVE FOUR IM\\nPORTANT POINTS:\\nI. A PERSONAL EXAMINATION.\\n2. THE AGE NEXT BIRTHDAY.\\n3. THE CONDITION OF HEALTH,\\n4. APPLICANT S SIGNATURE BELOW.\\nI Is question 19, on the other\\nside, answered correctly f\\n5, Height and Weight!\\n(If over 15 years of age.)\\n9. Has either parent, or a\\nbrother or sister died of\\nConsumption\\n2. Does the date of birth given\\nto you agree with that given\\nto Agent!\\n6. Does the applicant appeal\\nto be In good health!\\n3. What do you believe to be\\nthe age next birthday\\n4, KaceT (White or Colored.)\\n7. Is there any physical defect\\nor infirmity f\\n8. Has the applicant ever been\\nrejected by this or any\\nother Company\\nJO. Have you reason Xo suspect\\nintemperate habits, or, If\\nfemale, immoral life!\\nII, Has applicant within the past five years had anv serious\\nIllness or injury: Spitting Blood, Habitual Cough* etc.! I\u00c2\u00a3\\nyes, give date and particulars below.\\n12. Is the Heart diseased I\\n13. Are the Lungs diseased\\n14. Do you detect disease of any kind\\n15. Have you personally examined 16, When!\\nthe applicant i Day Month Year\\n17. Is the life, in your opinion, a first-class, fair average,\\nor poor risk\\nu. REMARKS: Use this space for full particulars, if required.\\nH Signature of party examined, or,\\nZ if too young to write, of person\\n2 applying for Child s Insurance.\\nor, I\\non y\\nI CERTIFY, that the above ans7cers are true ani\\nj that the person examined signed in my presence.\\n.M D.\\njVTEDICnU EXAMINEE S INSPECTION REPORT.\\nTo be filled in by a regularly appointed Medical Examiner, when the amount applied for is less than 8250.\\ner OBSERVE FOUR IM-\\nO\\nft PORTANT POINTS-\\nI.- A PERSONAL INSPECTION\\n2. THE AGE NEXT BIRTHDAY.\\n3. THE APPARENT HEALTH.\\n4. THE APPLICANT S SIGNATURE.\\nuj A. What do you believe to be the actual age\\n|Jj NEXT BIRTHDAY\\nB. IS THERE ANY REASON TO 8U8PECT INTEMPERATE HABITS,\\nOR, IF FEMALE, IMMORAL UFE I\\nC. RACE! (WHITE OR COLORED.\\n_l\\nr-\\nD- Has applicant ever been rejected r\\nE. Did applicant sign thi\u00c2\u00bb application\\nON OTHER 8IOE!\\ntC F. DlDYOU PERSONALLY SEE APPLICANT;\\nQ When f\\nDay Month Year\\nH. Does applicant appear to be in good health!\\n5 I. Was premium paid to agentt\\nJ. DOE8 APPLICANT INTEND TO CONTINUE THIS INSURANCE!\\nREMARKS\\na\\nr- Sionature of party i\\nt* spected. or, if a child, Of r\\ni_ parent or guardian.\\nCERTIFY, that the above answers are correct\\nta and that applicant signed in my presence...\\njr. d.\\nMedical Examiner.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0286.jp2"}, "287": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l897~ 98. 241\\n5. Correctly represent the insurance you offer, and write applications\\nonly on lives you believe to be in good health and of temperate habits.*\\n6. See all applicants personally, and be careful to get correct age next\\nbirthday.\\n7. Permit no application to leave your hands until it has been signed\\nby the applicant in your presence and until it is complete in every detail.\\nIf previous insurance exists, attach first policy to application and forward for\\nendorsement.\\n8. Hand in your applications as early in the week as possible.\\n9. Do not deliver a policy unless you are certain the insured is in good\\nhealth at the date of delivery.\\n10. Read your Instruction Book consult your Assistant study\\nthe forms you must use learn the requirements of your office and your\\nduties as a correspondent.\\nA further change in the agency administration was touched\\nupon in a letter of the President to the field force dated January 29,\\n1897, in which the agents were informed that in view of the very\\ngratifying reduction in defalcations during the year 1896 we have\\nbeen enabled to make better arrangements with the American\\nSurety Company for bonding our agents. It, therefore, affords\\nus pleasure to announce that during the present bond year\\nFebruary 1, 1897, to February 1, 1898 we shall only require $1\\nfor an agent s bond, instead of $2 as heretofore, and no charge\\nwill be made to agents who are members of the Old Guard.\\nThis concession to agents is proof of the increasing efficiency of\\nthe field force, and the high character of the men employed,\\nand it may be added that in another year the Company saw its\\nway clear to do away with bonds and sureties entirely, resting\\nits guarantee of honest and efficient management on the part of\\nits agents on the fact of previous good character and the sub-\\nstantial inducements for men to remain honest in a business\\npursuit assuring to the agent a satisfactory income during\\nRegarding this point the Agents Instruction Book reads as follows\\nAll persons applying for insurance must be seen personally, and\\nquestioned as to their age, health, habits, etc., in order that the Agent may\\nbe able to judge for himself whether they are desirable risks or not. The\\nperformance of this duty by others does not release him from the responsi-\\nbility of personally certifying to the truth of the statements made in the\\nAgent s Certificate, which must in every case bear his signature.\\nUnder no circumstances are you to canvass or submit Applications\\nfrom persons of immoral habits or inmates of houses of ill fame.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0287.jp2"}, "288": {"fulltext": "242 HISTORY OF THE PRUDENTIAL.\\nthe proper performance of his duties. The position of the\\nIndustrial agent had also been materially improved through\\nchanges introduced by the Company in the management of its\\nOrdinary business, by doing away with the separate management\\nof the Ordinary department, and making out of its Industrial\\nagents Ordinary insurance producers. In communicating this\\nchange to the field force under date of February 10, 1897, the\\nPresident wrote as follows\\nIt is now and always has been one of the aims of The Prudential to make\\nthe stay of every Agent in the force a permanent one. The Company is\\naverse to losing the services of good representatives, and has from time to\\ntime instituted such changes in its business policy and in the terms of\\nremuneration to Agents as tended to insure their retention. We have been\\nsuccessful in a large degree with hese measures, but the Company s idea is\\nto make continuous advance in che matter and we now propose taking a\\nstep far in advance of anything yet done.\\nWe shall make a contract with each Agent covering not only the Indus-\\ntrial but Ordinary business as well, so that an Agent devoting himself to both\\ndepartments of the work will gain a double advantage from his labors.\\nThe commission on Ordinary business during the first year, and the\\nrenewal interest afterward, will make gratifying additions to the income\\nsecured from the Industrial business. This action of The Prudential places\\neach member of the Agency staff on practically the same level of position\\nas the General Agents of other companies, but with greater opportunities for\\nwriting and holding business. Under the plans of the Company you are\\nable to offer profit-sharing policies of life insurance for the whole of the\\nfamily men, women and children.\\nThe new Industrial contract is so much like an Ordinary one as to enable\\nyou to appeal to people who have hitherto held aloof from Industrial Insur-\\nance, and in canvassing for the one the opportunity for presenting the merits\\nof the other is bound to come.\\nHaving once determined to make radical changes in the\\npolicy conditions of its Industrial business, the Company still\\nfurther liberalized the Industrial contract by granting a revival\\nprivilege to lapsed policy-holders, under which policies could be\\nreinstated without the payment of arrears, such unpaid premi-\\nums being made a non-interest-bearing lien upon the policy, pay-\\nable only in case of the death of the insured. The subject is\\nfully set forth in the President s letter to the field force dated\\nJanuary 30, 1897:\\nWe have decided to make yet another concession, to go into effect for\\nthe week of February 8th, to policy-holders who have been unable to con-\\ntinue the payment of premiums. We believe that there are instances where", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0288.jp2"}, "289": {"fulltext": "THE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\nHOME OFFICE, NEWARK, N. J.\\nAGENCY APPLICATION AND AGREEMENT.\\nREPORT 0F SUPERINTENDENT.\\nApplicant s full name _ __\\nTo operate at.\\nI. Did you personally interview the applicant? 2. Did applicant respond to an advertise-\\nment, come to the office unsolicited, or was he introduced by an Agent or Assistant? _.\\n3. What is his general appearance?\\n4. Does he reside at the address given in Agency Application _\\n5. Is residence in respectable neighborhood? (To be ascertained by personal visit) _\\n_ _ _ 6. Is applicant married or single _ _\\n7. Is applicant a resident of a boarding-house, does he rent rooms or house, or does he own his own\\nhome? _\\n8. From your personal visit to last employer what recommendation does he make Not to be answered\\nwhere applicant was employed by any other Industrial insurance company) _ _..,\\n9. Did you personally visit the other references, and what recommendations do they make\\n10. Has Agent been provided with Manuals of Instruction\\n11. Does he propose devoting his whole time to the business? If not, state what other occu-\\npation he intends following _ _ _\\nAssigned to Ass t Sup t _\\n_..._ _ _ Sup t.\\nPERSONAL STATEMENT BY THE APPLICANT.\\nTHIS STATEMENT MUST BE FILLED IN, DATED AND SIGNED BY THE APPLICANT HIMSELF.\\nRECORD OF EMPLOYMENT FOR FAST FIVE YEARS\\nNAME OF EMPLOYER\\nDATE OF SERVICE\\nADDRESS\\nKIND OF BUSINESS\\n(last employer)\\nFROM TO\\nFROM TO\\nFROM TO\\nFROM TO\\nREFERENCES\\nOCCUPATION\\nWere yoi ever employed by tnis Company _ If so,\\nstate wnen l\\nWnat capacity.\\nWay Aid yon leave our employ\\nDated this..\\nfere you ever employe! by any other Industrial Co.?._\u00e2\u0080\u009e II\\nso, state wnat Company, _\\nBen _\\nWhere _ _\\nYTnat capacity _.._ _ _\\nWny did yoi leave its employ\\n.Agent.\\n..-day of...\\n../go.\\nINDUSTRIAL AGENT S AGREEMENT AT PRESENT IN USE BY\\nTHE PRUDENTIAL, INSURANCE COMPANY OF AMERICA.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0289.jp2"}, "290": {"fulltext": "AGENT S AGREEMENT,\\nIn consideration of my appointment as an Agent of The Prudential Insurance Company of\\nAmerica, I do hereby agree as follows\\nTHE FOLLOWING CLAUSES RELATE ONLY TO BUSINESS KNOWN AS INDUSTRIAL INSURANCE. BEING THAT\\nON WHICH THE PREMIUMS ARE PAYABLE WEEKLY.\\ni. To canvass for insurance and to collect premiums regularly every week. To keep true accounts as\\nto the business in such books as may be provided by the Company, and to make, on the day required and\\non the forms provided by the Company, each week a true account of all moneys received by me, and to\\nremit at the same time all moneys whatever received by me.\\n2. To fill in and return to the Home Office each week on a Lapse Schedule provided by the Company,\\na list of all the policies upon which four weeks premiums are due.\\n3. That on Monday of each week I am to be debited with the amount of the weekly premiums shown\\non the Life Policy Register, less the total amount of the weekly premiums on policies entered in the\\nLapsed Policy Register for that week and it is agreed that the Company is not bound to prove that I have\\nreceived the premium from each particular policy-holder, but that the amount so shown shall be considered\\nas being absolutely received by me on behalf of the Company. This clause is not to be construed as a\\nwaiver of or interfering with any rights secured to the Company by this agreement in any other respect.\\n4. That in case of my resigning the Agency, or of my being dismissed therefrom, I agree to introduce\\nto my successor in the Agency all the policy-holders in my Agency after such resignation or dismissal,\\nupon being requested so to do by the Company.\\n5. That Official Transfer, as used herein, means the transfer on the Company s books at the Home\\nOffice of policies to or from my Agency during and after my term of service with the Company.\\n6. That in case any policy or policies in my Agency become lapsible under the Company s rules,\\nthrough default in payment of premiums, and I fail to report such policy or policies to the Company for\\nlapse at the time specified in said rules, the arrears in excess of the amount regularly allowed by the Com-\\npany are to be charged to my account.\\n7. That I am to receive a salary amounting to 15 per cent, of the amount of my collections each week,\\nsaid salary to be known as Ordinary Salary.\\n8. That in addition to the amount specified in clause 7 a Special Salary is to be paid to me,\\namounting to fifteen times the net increase of my collectible weekly debit. But should a decrease in the\\namount of my weekly debit occur, a charge of fifteen times the amount of such decrease is to be made\\nagainst my account, which charge can be offset by the production of further net increase in debit or by\\npayment of fifteen times the amount of the decrease in cash.\\n9. To furnish to the Company, if required, a bond, in form and substance as prescribed by the Com-\\npany, to secure the faithful performance of duty on my part as Agent and with such surety as shall be\\napproved by the Company.\\n10. It is expressly agreed that I am not to be entitled to any Ordinary or Special Salary until all the\\nconditions and agreements contained in this contract have been fully complied with by me.\\n11. That the amount of the collectible weekly debit is arrived at by deducting the total amount of the\\nweekly premiums on all policies entered in the Lapsed Policy Register from the total amount of the\\nweekly premiums on all policies entered in the Life Policy Register.\\n12. Should business of any description be transferred to me, no Special Salary is to be paid on the in-\\ncrease in my collectible weekly debit resulting from such transfer, but only on the amount of net increase\\nshown after deducting the amount transferred, and such transferred business, if subsequently lapsed, will\\nnot affect my Special Salary if reported by me for lapse at such time as to admit of the official lapsing for a\\ndate within the period prescribed by the Company s rules.\\n13. Should business of any description be transferred from my Agency, the decrease in my collectible\\nweekly debit resulting from such transfer is not to be charged against my Special Salary, provided the\\nbusiness becomes chargeable, under this agreement, to the Agent to whom it is transferred. It is, however,\\nexpressly agreed that all policies officially transferred from my Agency, either during my term of service\\njrith the Company or after the termination of my employment by resignation, dismissal or otherwise, and\\nreported for lapse at such time as to admit of the official lapsing without charge, under the Company s rules,\\nagainst any Agent who has received the transfer of the policies, shall be charged against my account at the\\nregular Special Salary rate of fifteen times the amount lapsed.\\n14. That if any business is transferred from my Agency, and it is again transferred before the Agent who\\nreceived it from me has held it long enough to become chargeable with it under this agreement, I am to be\\nheld responsible in case of its lapse, unless some one of the Agents who received it in transfer has retained\\nthe business long enough to become chargeable with it under this agreement.\\n15. That I am to be allowed to draw Special Salary only to the amount the character of the new busi-\\nness, after investigation, will in the opinion of the Company warrant.\\n16. That if my weekly collectible debit should decrease in any week, and I should subsequently claim\\nsalary on any future increase of business, it will only be payable upon the net increase from the last date\\nthe Special Salary was allowed.\\n17. That should the arrears on my account be deemed excessive by the Company or my collections below\\nthe percentage of the debit prescribed by the Company s rules the Special Salary may be withheld until\\nthe rules are complied with.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0290.jp2"}, "291": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1 897- 98. 243\\nthe parties formerly insured would like to have the original policies rein-\\nstated or revived, but lack the necessary funds to pay up the arrears.\\nUntil further notice, the following concession will apply in such cases\\nIn the event of the insured under policies on which 52 or more contin-\\nuous premiums were paid, prior to lapse, desiring to revive the policies,\\nthe Company will, if the applicants are unable to pay the whole arrears,\\naccept a policy lien (which will not call for payment of interest) for the\\nwhole of arrears, if necessary, or for such part as they are unable to pay at\\nthe time of applying for revival. This concession applies only to policies\\n13 or more weeks in arrears at time of application for revival. These\\npolicy liens may be cancelled during life-time by the insured, through pay-\\nment of the sum due the Company. They will form liens upon the policies,\\nand the amounts represented shall be deducted from any payment becoming\\ndue under the policies. They will also form liens upon the legal reserve to\\nthe credit of the policies and may be deducted therefrom, before considering\\nany paid-up insurance to which the insured might otherwise be entitled, in\\nthe event of the policies revived being subsequently lapsed. You can ap-\\npreciate that this concession means a great deal to those interested, and we\\nbelieve it will be warmly welcomed by many of those who were obliged to\\ndiscontinue their insurance in The Prudential.\\nThe form used in case of policy liens on lapsed contracts is\\nreproduced as follows\\nINDUSTRIAL POLICY LIEN.\\nPolicy No 189\\nThe undersigned has applied to The Prudential Insurance Company of\\nAmerica for a revival of Policy No. on the life of\\nissued by said Company, and\\nacknowledges that the arrears of premiums on said policy amount to\\ndollars and cents, and\\nagrees that in event of the revival by said Company of the said policy, the\\nsaid amount will be a lien on said policy and will be deducted therefrom\\nif said policy becomes a claim.\\nShould a paid-up policy be issued in lieu of the above mentioned policy,\\nthe said amount of arrears of premiums will be deducted from the legal\\nreserve to the credit of said paid-up policy, or any dividend additions or con-\\ncessions that may hereafter accrue on said policy may be applied, at the\\noption of the Company, to cancel or reduce the amount of this lien.\\nIt will readily be granted that the Company, in taking\\nthese important steps, had practically extended to Industrial", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0291.jp2"}, "292": {"fulltext": "244 HISTORY OF THE PRUDENTIAL.\\npolicy-holders the loan privileges of Ordinary policy-holders,\\nsubject to certain modifications on account of elements inherent\\nin the practice of Industrial insurance.\\nEvery possible effort had been made by the Company to\\nencourage lapsed policy-holders to revive their policies or to\\nassist those in arrears to keep their policies in force. Special\\ninstructions had been issued to agents from time to time, insist-\\ning upon special efForts to keep policies in force in cases where\\npolicy-holders had fallen in arrears, and from an article on the\\nsubject in The Prudential Weekly Record of August 9, 1897, I\\nmake a few extracts to illustrate the anxiety of the Company\\nwith reference to policy-holders in distress\\nA number of complaints have been made of late to us by policy-holders\\nas to the arbitrary methods adopted by the Agents and Assistant Superin-\\ntendents in reference to collection of premiums in arrears.\\nThe Prudential has builded its business upon good business principles,\\nand one of these is the insistence that courtesy be shown to all connected\\nwith it. The Company recognized from the beginning of its career that\\noccasion would arise when the policy-holders might not, for sufficient rea-\\nsons, be able to meet the payment of premiums regularly, and provision\\nfor such contingency was made.\\nWhen policy-holders fall in arrears, point out the danger to them and\\ntry to have the premiums paid up. Do not, however, display harshness.\\nAccept premiums within the limit.\\nWe do not complain if old policy-holders are a little behind. They will\\ncatch up when they can, and if properly treated will clear up the indebted-\\nness at the earliest opportunity.\\nEducate the policy-holders in the matter of paying premiums start\\nright with them use tact, good judgment, courtesy and there will be no\\ncomplaints.\\nTo further encourage lapsed policy-holders to revive their\\npolicies, a new rule was introduced, under date of February 19,\\n1897, under which the Company assumed the expense of medical\\nre-examination in all cases of revivals. Previous to this it had\\nbeen the rule to have the insured pay the cost of the second\\nmedical examination, and occasionally cases had occurred where\\nthe expense had been a bar towards reinstatement, and, rather\\nthan place even so slight a hindrance in the way of policy re-\\nvivals, the Company assumed the entire expense of such medical\\nre-examinations.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0292.jp2"}, "293": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l897- 98. 245\\nAn Intermediate policy was issued for the first time in\\n1 897 in place of the former Special Adult policy, which had been\\ndiscontinued under date of January 1st, in view of the fact that\\nthe new concessions to Industrial policy-holders were of more\\nvalue than the slight reduction in rates which had been the feat-\\nure of the Special Adult table. In communicating to the field\\nforce the views of the Company on this additional innovation,\\nthe President stated that\\nIt is our purpose to issue Intermediate Policies in our Ordinary Branch.\\nThese policies have been prepared to meet a demand which exists for plans\\nof insurance adapted to the requirements of people who, by reason of\\nphysical excellency, personal and family history, financial condition, occu-\\npation, habits and environment, feel that they should be insured on terms\\nsomewhat more favorable than those of the regular Industrial policies. We\\nexpect, therefore, that our representatives will carefully select the risks they\\nplace before us for these Intermediate Policies, and aim to get only those who\\nare more nearly up to the Ordinary rather than the Industrial standard.\\nWe wish it clearly understood that these policies are not intended for\\npurely Industrial risks. We will not accept applications for Intermediate\\nPolicies on persons engaged in the manufacture or sale of intoxicants,* or\\nfrom those employed in an establishment where explosives are manufactured.\\nThe premiums on these policies will be payable quarterly, semi-annually\\nand annually, and will be the same for both men and women.\\nThis class of risks is accepted in the Industrial department, subject\\nto certain restrictions, as stated in the following extract from the Agents\\nInstruction Book\\nSaloon-keepers, bar-tenders and persons engaged in the sale of intox-\\nicants will not be insured for more than $250 or thereabouts, and in all cases\\nthe age will be rated up five years. The Company does not wish any par-\\nticular effort made to get business of this class, but if applicants are taken,\\nfive years must be added to the actual age, and the amount of benefit for\\nthe higher age must be quoted. The highest premium accepted from per-\\nsons engaged in this occupation at the various ages is shown below\\nActual Age.\\nIvIMIT OF\\nWeekly Premium.\\n20 to 26 inclusive,\\n15 cents.\\n20 cents.\\n27 to 34\\n;j: to ?Q\\n25 cents.\\n30 cents.\\n35 cents.\\n40 cents.\\n35 cents.\\n4^ to 47\\n48 to SQ\\n60 to 65", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0293.jp2"}, "294": {"fulltext": "246\\nHISTORY OF THE PRUDENTIAL.\\nAn abbreviated copy of the Intermediate table is given\\nbelow\\nPREMIUM RATES FOR A POLICY OF $500.\\nWhole: Life.\\nAnnual\\nSemi-Annual\\nQuarterly\\nAge Nearest Birthday.\\nPremium.\\nPremium.\\nPremium.\\n20\\n$IO 97\\n$5 70\\n$2 91\\n25\\n12 55\\n6 53\\n3 33\\n30\\n14 22\\n7 39\\n3 77\\n35\\n16 42\\n8 54\\n4 35\\n40\\n19 02\\n9 89\\n5 04\\n45\\n22 52\\n11 71\\n5 97\\n50\\n27 28\\n14 19\\n7 23\\n55\\n33 77\\n17 56\\n8 95\\nIt will be observed, on examination of the extract from the\\nPresident s letter, that applications for Intermediate policies were\\nnot to be accepted from persons engaged in the manufacture or\\nsale of intoxicants or the manufacture of explosives. Many-\\nother dangerous or unhealthy occupations were, however, also\\nprescribed against in the regular instructions sent to agents in\\nreference to this class of policies. Among others, applications\\nwere not to be accepted from coal-miners, potters, asbestos\\nworkers, caisson workers, cement-mill employees, glass-blowers\\nand gatherers, match-makers, mirror-makers, rubber-makers,\\nsmelters, starch workers, white-lead workers, etc., etc. These\\nrestrictions were based entirely on the then existing state of\\nknowledge as regards the accident and disease liability of men\\nemployed in various occupations, and they have been subject to\\nimportant modification as subsequent investigations have made a\\nless restrictive practice possible. Thus, for instance, in conse-\\nquence of a thorough investigation of the facts pertaining to men\\nemployed in American coal-mines, native coal-miners, on account\\nof their lesser liability to fatal accidents, have been removed from\\nthe list of prohibited occupations. A similar investigation into\\nthe mortality of potters brought to light many previously un-\\nknown facts, on the basis of which it was possible to accept the\\nlarger proportion of men employed in this occupation. On\\naccount of the large number of lives under observation in the", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0294.jp2"}, "295": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l897~ 98. 247\\nIndustrial department, The Prudential has gradually accumu-\\nlated a body of exceptionally valuable facts pertaining to the\\nmortality of persons in different occupations, and in the light of\\nits own experience it will be possible in the future, as it has been\\nin the past, to make most important modifications in the method\\nof dealing with applicants engaged in dangerous or hazardous\\noccupations, and possibly with a class of sub-standard lives, now\\nunder special observation by the Medical department.\\nThe Company this year lost by death the service of another\\nfaithful employee, Mr. Thomas Haggart, Superintendent of the\\nDenver District. I quote the following brief biographical sketch\\nfrom The Prudential Weekly Record of September 27, 1897\\nWith great regret we are obliged to announce the death of Super-\\nintendent Thomas Haggart, of Denver, Col.\\nMr. Haggart s career in the Industrial insurance business has been a\\nnotably successful one, and we can, without any exaggeration, say that in\\nhis death the Company loses one of the most faithful, loyal and progressive\\nmen in its entire service.\\nHe was a typical field man nothing suited him better than the varied\\nand arduous work of carrying on a superintendency.\\nHe took the keenest delight in overcoming obstacles and difficulties\\nin personally assisting and helping those of his Agents and Assistants in\\ntrouble.\\nMr. Haggart entered the service of the Company on September 8, 1882,\\nand among the last things he was able to do was to sign for his gold medal\\nfor fifteen years continuous and honorable service.\\nThose of the older men in our service who had the privilege of knowing\\nMr. Haggart will fully appreciate the loss we have sustained, and, while we\\nwere prepared for it, through the long illness that preceded his death, yet\\nthe removal of so prominent a figure in our field operations comes as a\\nshock to one and all.\\nThe results of the business operations during 1897 had been\\nvery satisfactory. The Industrial policy-holders now exceeded\\n2,658,000, while the policy-holders in the Ordinary department\\nnumbered 52,583. The assets had increased to $23, 984,000, and\\nthe liabilities to $1 8, 744,000, leaving a surplus of $5,240,000.\\nIn commenting upon the progress made by the Industrial\\ncompanies during the year, the Baltimore Underwriter referred\\nto Industrial insurance as one of the wonders of the age, and\\nfrom an article of some length I make the following extracts as\\nan indication of the increasing appreciation of this form of", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0295.jp2"}, "296": {"fulltext": "248 HISTORY OF THE PRUDENTIAL.\\ninsurance on the part of those best qualified to judge of its value\\nfrom the standpoint of public policy\\nIndustrial insurance has become one of the wonders of the age. The\\nperiod of its active development in this country dates back only twenty-one\\nyears, yet the capabilities of the accretion of diminutive payments five and\\nten cents a week would be incredible were not the demonstration con-\\nstantly placed before us.\\nWhat it has wrought in such a brief period along the lines of thrift and\\nsaving, what it is doing from day to day in the alleviation of sorrow and\\nmisery in the homes of the poor and the lowly, the children of toil and pri-\\nvation, we shall never know we can only faintly conjecture. It is hard to\\nrealize that in this wonderful business more than seven million policies are\\nin force, that in its work of benefaction it is paying out fifteen millions of\\ndollars annually, and that it gives employment to more than thirty thousand\\nagents.\\nIt is doubtful whether, in the entire history of life insurance,\\nany other single year represents efforts and results destined to\\nbring about such vast and permanent improvements as must\\nnaturally follow The Prudential s policy of liberality outlined\\nduring 1897. In his annual review Mr. Dryden touched upon\\nthese points in his letter to the field force as follows\\nThe year 1897 will be memorable in the history of Industrial Insurance,\\nbecause in that year The Prudential Insurance Company inaugurated a\\nnew era by issuing an Industrial policy containing Cash Dividend and\\nInsurance Dividend [Mortuary Dividend] features and promising liberal\\nPaid-up and Cash-Surrender Values, a policy hitherto unknown in the\\nIndustrial Field. The magnificent amount of insurance written during the\\nyear just past, without any extra effort on the part of the Field Staff, is\\nsufficient evidence that these great concessions have been appreciated by the\\ninsuring public.\\nThe year 1897, however, was marked by still greater liberality on the\\npart of the Company, in that the concessions to the new policy-holders, as has\\nalways been the practice of the Company, were made to apply [equally] to its\\nold policy-holders. Liberal Cash Dividends were paid on policies issued in\\n1877 and 1882, and Additional Benefits in case of death were paid on all policies\\non which five or more years premiums had been paid. In every instance\\nthese dividends have been a voluntary concession not promised by the\\nCompany, not expected by the policy-holder. At the time these policies\\nwere issued, the fact of their eventually earning for their holders substantial\\ndividends was wholly unlooked for.\\nWe have studied very carefully our experience as regards these divi-\\ndends during 1897, and now believe that we can safely offer a similar con-\\ncession for the year 1898. In 1897 the Cash Dividends applied to insurances\\namounting to $2,000,000 in 1898 they will apply to insurances of $3,000,000.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0296.jp2"}, "297": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l897- 98. 249\\nIn 1897 the Additional Benefits applied to insurances amounting to $130,-\\n000,000 in 1898 these insurances will amount to $150,000,000. In addition,\\nthe rate of the 1898 dividends is considerably higher than in 1897. So that\\nthe total amount of cash to be paid in 1898 will be almost double that of the\\npreceding year.\\nThe year just past, both in Industrial and in Ordinary, has been one of\\nwhich the agency force of The Prudential has every right to be more than\\nproud. The character and stability of the great mass of the business placed on\\nour books has been above criticism. The sterling worth and loyalty of our\\nField Force were never more in evidence than to-day. From these two sources,\\nthe nature of the business in force and the high standing of the men who\\nhave written that business, from the fact that The Prudential policy,\\nwhether Industrial or Ordinary, is the best policy for the people, and from\\nthe great impetus gained during 1897 in both branches of the business, we\\nfully expect that from every desirable standpoint the year 1898 will be the\\ngreatest, proudest year of our Company s life.\\nThese extracts will make clear the Company s position and\\nexplain the far-reaching consequences involved in so distinct a\\nstep in advance as the granting of dividends and cash-surrender\\nvalues to the holders of Industrial policies. And it may here\\nbe added that, though only two years have passed since The\\nPrudential first commenced to place Industrial policy-holders on\\npractically the same basis as Ordinary policy-holders, the Com-\\npany s experience has made it clear that it will be possible and\\nexpedient to continue in the future the same course of prudent\\nliberality as has been the Company s practice in the past. How-\\never satisfactory the results accomplished had been, it became\\nmore evident than ever that the Company s work had but just\\ncommenced, and that, in other words, vast opportunities were\\nbeing neglected for the more rapid extension of The Prudential s\\nbusiness operations. While a very considerable number of\\npersons had been insured, the efforts thus far put forward to\\nreach all sections of the community had been less systematic and\\nthorough than was necessary to produce the best results. Ac-\\ncordingly, in the early part of the year it was determined to\\ninaugurate new methods of placing the objects and aims of\\nIndustrial insurance before the public, and by direction of the\\nVice-President a straight canvassing campaign was com-\\nmenced, which has been productive of excellent results. To\\nexplain the meaning of this term it must be understood that in\\nstraight canvassing agents are required to visit every house, and\\nevery floor, and to solicit directly every adult member of the", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0297.jp2"}, "298": {"fulltext": "250 HISTORY OF THE PRUDENTIAL.\\nfamily, whether rich or poor, holding out inducements to insure\\non the Industrial, the Intermediate or the Ordinary plan of life\\ninsurance. I can not do better than quote from the Vice-\\nPresident s letter of February 28, 1898, as follows\\nYour attention is called to a matter of paramount importance to Pruden-\\ntial interests. We refer to the urgent need of more Straight Canvassing.\\nAlthough the debits are well taken care of, and a proper amount of busi-\\nness written on them, the great mass of the population are not approached\\non the subject of Life Insurance by our Agents. Thousands and tens of\\nthousands of people in the different cities are never asked to take out\\nPrudential policies, although they are in need of the protection our plans\\nafford.\\nThe very foundations of the Company were laid by Straight Canvassing,\\nand wherever it extends operations it depends on systematic house-to-house\\nsolicitation to acquire membership in the new territory.\\nThe Prudential must look to its Agency force for business one of the\\nPrincipal duties of the Agent is to canvass. An Agent who is a mere\\ncollector falls short of our requirements. We want those who collect\\npromptly and canvass thoroughly, employing their time to the best advan-\\ntage in forwarding our interests.\\nWe shall insist upon more Straight Canvassing than has been done of\\nlate, for we know it will be productive of much good to all concerned.\\nThe burden of responsibility will not all rest with the Agent. We shall\\nexpect Superintendents and Assistants to do their part the former to advise\\nand plan, counselling and encouraging his subordinates, while the latter\\nshould give practical help to their Agents in the Field by assisting them in\\nthe work of canvassing. The Collections should be finished as soon as pos-\\nsible, so that everybody may go to the Field and display that activity which\\nwill assure satisfactory returns.\\nThe Prudential Field Force are in splendid position for canvassing. They\\nrepresent a sound Company, offering the best forms of policies, Industrial\\nand Ordinary.\\nOur men are backed up by liberal advertising. The name of The Pruden-\\ntial is known through the length and breadth of this land, and if business\\nbe asked for it can be obtained. Straight Canvassing will prove very profit-\\nable if our representatives but measure up to their opportunities. In old or\\nnew Districts the chances for business are good. No Field has been so well\\nworked that more can not be secured.\\nWe trust to see a hearty and lasting response to this call for action that\\nour representatives will awake to the possibilities of the occasion and be on\\nthe alert to grasp all the opportunity afforded to extend the circle of Pruden-\\ntial policy-holders.\\nTo illustrate the thoroughness with which this work of\\nstraight canvassing was carried on, I reproduce below the report\\nrequired of the superintendent on the results accomplished by", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0298.jp2"}, "299": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1897-98. 251\\nboth agents and assistants in addition to their regular duties of\\ncollecting the weekly premiums from the insured\\nLBSUE D. Ward, Esq., Vice-President.\\nDear Sir I would report that Industrial applications, rep-\\nresenting an aggregate in weekly premiums of and\\nOrdinary applications, representing of insurance, were secured\\nin my District on straight canvass during the week commencing.\\nThe Assistant most successful in Industrial was Mr\\nin whose District applications, aggregating in weekly premiums\\nwere written.\\nThe Assistant most successful in Ordinary was Mr\\nin whose District applications, representing of\\ninsurance, were written.\\nThe Agent most successful in Industrial was Mr\\nunder Assistant who secured Industrial appli-\\ncations with weekly premiums aggregating\\nThe Agent most successful in Ordinary was Mr\\nunder Assistant who secured applications,\\nrepresenting of insurance.\\nIn a supplementary letter, the Vice-President pointed out\\nthat By the use of this report we will be able to keep in touch\\nwith the operations in your superintendency in straight canvass-\\ning, and this information will not only be of value to ourselves,\\nbut of advantage to those who show a disposition to meet our\\ndesires in this matter.\\nCoincident with the attempt to extend the business operations\\nof the Company by means of a more thorough canvass of the\\nterritory in which the Company s offices were located, a decided\\neffort was made this year, and continued thereafter, to reduce\\nto the lowest possible minimum the lapse-rate on old and new\\nbusiness. While it can not be too often pointed out that the\\nlarger portion of Industrial lapses is of policies on which practi-\\ncally nothing has been paid, nevertheless more stringent rules\\nwere applied to the conduct of the business in this respect, and\\nmaterial results followed a practice which could not be developed\\nto its present degree until sufficient experience had been gained.\\nAs has previously been pointed out, the lapse-rate of the Indus-\\ntrial business affects much more seriously the welfare of the\\ncompanies than the welfare of the insured, as the majority of", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0299.jp2"}, "300": {"fulltext": "252 HISTORY OF THE PRUDENTIAL.\\nlapses represent a distinct loss to the former. Therefore, by\\ninsisting upon the watch-word that The business that stays is\\nthe business that pays, agents were induced to devote more\\ntime and attention to the writing of business which from the\\noutset gave every indication of being a permanent addition to the\\nCompany s insurance in force. However successful The Pruden-\\ntial has been in this respect, it will nevertheless be at all times\\na most difficult and serious problem to avoid a large number of\\nlapses in the active efforts to materially increase or extend the\\nbusiness. Lapses very largely represent bookkeepers statements\\nmade for actuarial purposes, and are really no financial loss to\\nthe insured, who, for a time at least, have enjoyed a certain\\namount of insurance protection. All lapses during the early\\npolicy years represent a loss to the Company, are detrimental to\\nthe business in general, and constitute a problem to the solution\\nof which the Company s best efforts and thoughts have been\\ndevoted from the day the first application for Industrial insurance\\nwas received, on November 10, 1875.\\nSome of the points previously touched upon in Mr. Dry den s\\nletter of January 1st were reiterated in his address at the Com-\\npany s banquet at the Waldorf-Astoria on February 10, 1898. I\\nmake a few extracts from this address, which forms one of the\\nmost interesting contributions made to the literature of the\\nCompany s history during recent years\\nIn this period of two years the Company has perfected and introduced\\nto the American public an Industrial policy which stands in the very fore-\\nground as the most equitable, the fairest and the best policy for the masses\\nof this Republic. Whether the comparison be limited to companies of this\\nAmerican continent, or to those great companies which we respect across\\nthe sea, it stands far in advance.\\nFor the first time the holder of an Industrial policy under The Pru-\\ndential s system and practice stands practically on an equality with the holder\\nof the Ordinary policy.\\nWe have recently done another thing, the results of which rest with\\nyou and not with us. We have determined to put every Industrial worker\\nupon his honor and forego the requirement for a bond. We say to him in\\neffect that we believe him to be a gentleman and an honest man, and shall\\ntreat him as such until he proves himself unworthy of it.\\nWe stand here to-night, gentlemen, with a record behind us of twenty-\\ntwo years. That is the span of this Company s life. The figures of most of\\nthe companies of the country are not as yet obtainable for this year. Of\\nthe sixty companies mentioned in the Spectator Pocket Index of last", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0300.jp2"}, "301": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l897~ 98. 253\\nyear, fifteen were of the same age or younger than The Prudential. Of\\nthose fifteen but one or two had as large an income for the entire year as\\nThe Prudential had in two weeks.\\nNow I think, gentlemen, that there are some fundamental reasons why\\nthis fact is as it is. In the first place we introduced a system of business\\nhere twenty-two years ago, new to our people, but which met an existing\\nneed. We have tried sincerely and conscientiously to adapt that system to\\nthe condition of our peopl e. We have endeavored to establish underneath\\nall, at the very base of the Company, the underlying principle of equity\\nand right, and have tried to inculcate among our friends and workers the\\nbelief that no matter who the party may be, however humble his position,\\nwhether policy-holder or servant, he shall have fair, liberal and honest\\ntreatment. And upon that line our business must continue.\\nThose who have carefully followed the writer in his survey\\nof the early and present-day conditions, as relating to the\\ngrowth and development of The Prudential, will agree that the\\nwords of Mr. Dryden are fully justified by the facts. I feel\\nsatisfied that this conviction rests equally strong with the millions\\nof policy-holders of the Company, who are to-day, as they have\\nbeen in the past, the most faithful believers in the destiny of\\nThe Prudential.\\nOn February 15, 1898, occurred an event which has since\\nbecome history, and to which, no doubt, must be largely attrib-\\nuted the war of the United States with the kingdom of Spain.\\nIn the explosion of the U. S. Battleship Maine, this country lost\\nthe lives of 253 men whose memory is consecrated to a noble\\ncause. Among the country s heroes few, if any, will ever be\\nheld in higher esteem and more affectionate regard. Of those\\nwho perished in the disaster, seventeen sailors and marines were\\ninsured with The Prudential, holding twenty-one Industrial poli-\\ncies for an aggregate sum of $3,529. It has seemed to me fitting\\nto incorporate into this work the names of those who proved them-\\nselves their country s heroes in peace as well as in war. Those\\nwho hold and believe that peace has its victories as well as war,\\nand who accept the modern dictum of social morality, that those\\nwho provide for themselves and their dependents through the\\nmedium of life insurance are deserving of the highest praise, will\\nreadily concede that the names of those here permanently placed\\non record are deserving of greater honor than those who\\nthoughtlessly shirk one of life s imperative duties by making\\nno provision for life s contingencies on a plan and by a method", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0301.jp2"}, "302": {"fulltext": "254 HISTORY OF THE PRUDENTIAL.\\nfully within the reach of every one, no matter how humble or\\nhow poor*\\nNames of Policy-Holders of The Prudential whose Lives were\\nLost in the Explosion of the U. S. S. Maine, February 15, 1898.1\\n1. C. Hauck, Landsman, Brooklyn.\\n2. W. Hamberger, Landsman, Jersey City.\\n3. E. P. Graham, Coal-passer, Jersey City.\\n4. R. Wilson, Chief Quartermaster, Brooklyn.\\n5. H. J. Gross, Landsman, New York.\\n6. T.J.Jones, 2 Coal-passer, Brooklyn.\\n7. J. H. Dierking, Drummer, Brooklyn.\\n8. T. M. Cole, Bayman, Philadelphia.\\n9. M. F. Harris, Quartermaster, New York.\\n10. T. Clark, Coal-heaver, Newark.\\n11. F. L. Jernee, Coal-passer, Newark.\\n12. F. F. Butler, Machinist, Harrison.\\nJ 3- T. J- Quigley, Plumber, New York.\\n14. A. J. Holland, Quartermaster, Brooklyn.\\n15. H. Auchenbach, Fireman, Sheridan, Pa.\\n16. F. C. Holzner, Seaman, New York.\\n1 7 J- J. Shea, 2 Coal-passer, New York.\\n1 Had three policies. a Had two policies.\\nWhile it was not until April 21st that a state of war was\\ndeclared to exist between the United States and Spain, as early\\nas April 9th Mr. Dryden addressed a circular letter to the field\\nforce with reference to permission to the Company s policy-\\nholders in the army or navy of the United States or the militia\\nto serve in time of war. I quote from the letter the following\\nextracts, to indicate the Company s practice in dealing with war\\nrisks in both departments of the business\\nIn consequence of the present unsettled state of National affairs, a\\nnumber of inquiries have been made as to the course The Prudential would\\ntake with regard to those policy-holders who may serve in the Army or\\nNavy of the United States or the Militia in time of war.\\nThe question is a serious one, in view of the large number of policy-\\nholders of The Prudential who might be affected by an outbreak of war.\\nAfter careful consideration, we have decided as follows\\nAs to all policies, whether Industrial, Intermediate, or Ordinary, which\\nmay be in force at the time of declaration of war, permission is hereby given\\nThe only American sailor killed in the naval battle of Santiago on\\nJuly 3, 1898, George Ellis, Chief Yeoman of the Cruiser Brooklyn, was\\ninsured in The Prudential under an Industrial policy.\\nf Appendix to the Report of the Chief of the Bureau of Navigation,\\np. 11 et seq. Wash., 1898.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0302.jp2"}, "303": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1897-98. 255\\nfor the insured under such policies to serve in the Army or Navy of the\\nUnited States, or Militia of any State of the United States, in time of war,\\nand no written permission for such service need be obtained from the\\nCompany, nor will any extra premium be charged. It will not be necessary\\nto send in any policy for endorsement.\\nIt will be observed, on examination, that permission was\\ngranted by President Dryden to the then Prudential policy-holders\\nto serve in the army or navy of the United States, or the militia,\\nwithout the charge of an extra rate, and to facilitate matters no\\nwritten permission for such service was required. These rules and\\nregulations were supplemented by a circular, dated November 17,\\n1898, with reference to prospective policy-holders in the Ordinary\\ndepartment, but want of space forbids an extended discussion\\nhere of an interesting phase of life-insurance history.\\nAs a further matter of permanent interest, I give below a\\ntable showing the Company s Industrial war mortality experi-\\nence, from February 15, 1898, to December 31, 1899, and includ-\\ning the loss of life caused by the explosion of the Maine\\nWAR MORTALITY EXPERIENCE, 1898 AND 1899.\\nIndustrial Department.\\nLives lost by the explosion of the Maine,\\nDeaths from battle and disease\\nIn the United States, in hospitals and army camps,\\nOn Transports,\\nIn Cuba,\\nIn Puerto Rico,\\nIn Hawaii,\\nIn the Philippine Islands,\\nTotal deaths,\\nNo. OF\\nPolicies.\\n238\\nAmt. of\\nInsurance.\\n21\\n$3,529 00\\n148\\n22,411 00\\n4\\n762 00\\n25\\n3,124 00\\n15\\n2,156 00\\n6\\n637 00\\n19\\n2,889\\n$35 5o8 00\\nAnother aspect of the disturbed state of national affairs\\nresulting from the war with Spain, and directly affecting the\\ninterests of Industrial policy-holders, was the passage of the War\\nRevenue Tax Act on July 1, 1898, providing that policies issued\\non the Industrial weekly-payment plan should pay a Revenue\\nTax of 40 per cent, of the first weekly premium, being equal, in", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0303.jp2"}, "304": {"fulltext": "256 HISTORY OF THE PRUDENTIAL.\\nother words, to a tax of four cents on every ten-cent policy issued\\nby the Company, irrespective of the fact whether the policy was\\nactually placed or not. Ordinary life policies were taxed eight\\ncents for each $100 or fraction thereof of the amount of insur-\\nance. With reference to the Revenue Tax on Industrial policies\\nthe subsequent practice of the Company was outlined in a letter of\\nthe President, dated July 2, 1898, stating that the Company\\nwould bear the entire expense of the war tax on the Industrial\\nbusiness. With reference to Ordinary policies, a letter, under\\ndate of June 28th, informed the members of the field force that\\nthe revenue stamps would have to be paid for by the prospective\\npolicy-holders, but, under date of October 5th, this was modified\\nin the manner that on and after that date, until otherwise\\ndirected, the Company would also pay for the revenue tax on\\nOrdinary policies.*\\n*A tax on insurance, according to Mill Principles of Political\\nEconomy, Book V., Chap. VII.), is a direct discouragement of prudence\\nand forethought, and few have tried to defend it as a means of raising\\nrevenue, except on the ground of political expediency. One of the ear-\\nliest writers on the subject well expressed the views held by economists\\nand life insurance managers that A tax on insurance is a tax not only\\nupon industry, but upon prudence and frugality, and the American system\\nseems to be far worse than that of which we have been so long complaining\\nin Great Britain in respect of Fire Insurance, and which, by such com-\\nplaints, we have recently compelled our Government to a large extent to\\nforego. (Sir S. Morton Peto in Resources of America, p. 377. Lon-\\ndon, 1866.) An equally emphatic statement to the same effect is to be\\nfound in the Insurance Times of 1868 (p. 169) on the Internal Revenue\\nActs of 1862 and 1864 This is probably necessary for the present, although\\nall taxes on prudence are open to serious objection on principle and ought\\nto be dropped as soon as possible. A man may save from his\\nincome and be the better and richer for it, but what statesman would wish\\nto compel citizens to economize in insurance? Charles Sumner, also,\\naccording to the Insurance Monitor of April, 1884, who had examined the\\nsubject in his usual thorough and conscientious manner, well said that\\nthe proposition to tax life insurance was an attempt to impose a tax upon a\\ntax, but this view, unfortunately, has found favor with but few legislators,\\nwho are, generally speaking, either ignorant of, or indifferent to, the fact\\nthat taxes on life insurance are, as a matter of course, paid by the policy-\\nholders. As a pertinent illustration I may add the statement that in 1899\\nThe Prudential paid $448,855 in taxes and license fees, all of which would\\notherwise have been returned to the policy-holders in the form of increased\\ndividends, larger additional benefits, or increased cash-surrender values.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0304.jp2"}, "305": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l897~ 98. 257\\nA very material improvement was made in the payment of\\nIndustrial claims, of which earlier mention would have been\\nmade but for the continuity of events connected with the war\\nmeasures adopted by the Company for the conduct of the business.\\nUnder date of April 4th, the Vice-President of the Company\\ncommunicated to the field force new instructions with reference\\nto the payment of Industrial claims, which I can not do better\\nthan quote in an abbreviated form\\nINDUSTRIAL CLAIM PAYMENTS.\\nThe Prudential was the first Company in this country to pay death\\nclaims immediately upon receipt of proofs of death at the Home Office. We\\nhave now decided, in keeping with the Company s settled policy of doing\\nthe most good in the most practical way, to take a step still further in\\nadvance. Even the slight delay of sending the claim papers to the Home\\nOffice and the time necessary for the check in payment to reach the Field\\nmeans a great deal to the bereaved family in a time of distress.\\nTo overcome this delay we are going to entrust you with the payment\\nof all claims not exceeding $130 on Regular White Industrial policies imme-\\ndiately on completion of the usual proofs of death, and before forwarding\\nthe papers to this office. For the present, claims on colored lives, Endow-\\nment policies and all claims amounting to more than $130 are to be for-\\nwarded in the usual way, and, after examination at this office, if they are to\\nbe paid without further correspondence, we will telegraph you what amount\\nto pay. All doubtful claims must be referred to the Home Office.\\nWe feel confident that you will appreciate the responsibility of this\\nchange and exercise the same care that you would if every dollar you paid\\nout belonged to yourself.\\nThe same forms will be used as heretofore, and must be completed be-\\nfore payment is made. The policy must be produced in every case if a\\nduplicate is submitted, no payment shall be made until you have satisfied\\nyourself that the original is not in existence. Cases where no policy is pre-\\nsented must be referred to this office.\\nCareful investigation must be made as to the insurable interest of\\nclaimant in accordance with R^ule 4 for the adjustment of claims, and doubt-\\nful cases must be referred to the Home Office.\\nAll claims on policies bearing an endorsement other than for additional\\ninsurance, revival lien or change of age, should be sent to the Home Office\\nfor adjustment.\\nInsurance in Other Companies. In case of Infantile policies where\\nthere are other insurances in other companies and the total amount of pre-\\nmium exceeds ten cents, they should be referred to the Home Office.\\nAfter investigation of a claim, if you are perfectly satisfied that it is a\\nvalid one, you may draw a check to the order of the claimant on the form\\nherewith sent you, against our deposit in the bank. The check must be en-\\ndorsed by the claimant and presented for payment in the usual way. The", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0305.jp2"}, "306": {"fulltext": "258 HISTORY OF THK PRUDENTIAL.\\nproofs of death should contain amount paid, date of payment, check number,\\nand, with claimant s receipt attached, be immediately forwarded to this\\noffice.\\nIn addition to explicit instructions governing the immediate\\npayment of Industrial claims to the local representatives of the\\nCompany, a telegraphic code was adopted for use in the payment\\nof claims by telegraph, and it will thus be apparent that the\\nCompany adopted every possible means of improving its relation\\nwith policy-holders in this direction. Under date of November\\n4, 1898, after the system of immediate claim payments for certain\\namounts had had a sufficient trial, it was decided to make the\\nlimitation for such payments $200, instead of $130, which had\\npreviously been the limit. The method adopted met with uni-\\nversal approval among the Company s beneficiaries, and expe-\\nrience, now extending over a sufficient period of time, has made\\nit clear that the step taken was a wise one, and, thus far, there\\nhas not been a single instance in which the Company s liberal\\npractice has been abused.\\nAmong other improvements made in the administration of\\nthe Company s business was a change in dealing with lapses on\\nIndustrial policies in cases where Ordinary insurance had been\\nsecured by the same agent to take the place of the Industrial.\\nIt must be understood that agents are held responsible for lapses\\nto the extent that they are required in all cases to make a net\\nincrease in their business in force, and they have therefore to\\nreplace, without compensation, by new policy-holders, old policy-\\nholders who, for one reason or another, may have lapsed their\\npolicies. This practice is warranted by the inseparable condition\\nof the Industrial field administration, that only by holding the\\nagent personally responsible can unnecessary lapses be avoided,\\nand there is in this practice absolute proof that the Company\\nis sincere in its assertion that at all times everything possible\\nhas been done to avoid lapses and retain policies on the books of\\nthe Company. However, with the development of Industrial-\\nOrdinary insurance, that is, the extension of insurance prin-\\nciples to the more prosperous elements of the population,\\nfrequent instances came to the notice of the Company where\\nIndustrial policies were surrendered for Ordinary policies taken\\nout in their place. To facilitate this form of transfer and place", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0306.jp2"}, "307": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l897- 98. 259\\nno hindrance in the way of a material improvement in his insur-\\nance contract on the part of the Industrial policy-holder, the\\nCompany, under date of March 16th, over the signature of the\\nVice-President, informed the field force as follows\\nINDUSTRIAL-ORDINARY LAPSE.\\nWe have been solicited, on several occasions, to release an Agent from\\nthe lapse of an Industrial policy in cases where Ordinary insurance has\\nbeen secured by the same Agent to take the place of the Industrial.\\nGenerally speaking, an Industrial policy-holder, who decides to take\\nout Ordinary insurance with us, concludes, also, to retain the Industrial\\npolicy in force, looking upon the amount insured thereunder as a burial\\nfund, the new policy being regarded in the light of an estate. This is a view\\nof the matter to be encouraged, for it seems to be the right one.\\nIt may occasionally happen, however, that the lapse of an Industrial\\npolicy is involved in the issue of the Ordinary. While we can not see our\\nway clear to releasing the Agent from the Industrial lapse where the insured\\ntakes out Ordinary insurance on the quarterly or semi-annual premium\\nplan, we shall be willing to grant a release from the lapse of the Industrial\\npolicy, provided the insured takes out the Ordinary insurance under the\\nannual premium plan.\\nYou may instruct your Agents to this effect, urging upon them, how-\\never, the advisability of trying to keep both forms of insurance in force.\\nWith reference to the last sentence it may be explained\\nthat the principal object of an Industrial policy being strictly\\nto meet burial expenses, it has been found by experience that\\nin many cases, where Ordinary insurance is subsequently\\ntaken out by original Industrial policy-holders, the Indus-\\ntrial policy is kept in force as a burial provision, leaving the\\nfull amount of the Ordinary policy for surviving members of the\\nfamily.\\nA change was made this year in the issue of Industrial poli-\\ncies which was also a decided and important step forward, and\\none which marks a still further advance over the methods employed\\nby other companies. It had heretofore been the practice to date\\nnew Industrial policies on the Monday of the week following that\\nin which they were sent out. This practice was changed under\\ndate of March 28th, and the field force was informed by a cir-\\ncular letter from the President that\\nCommencing with the policies sent to the Agent to be included in his\\ndebit for April nth [1898], we shall make the date the Monday of the week", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0307.jp2"}, "308": {"fulltext": "26o HISTORY OF THE PRUDENTIAL.\\nthe applications were approved at this office. Thus in return for applications\\nobtained during the canvass of the week of March 28th, if they reach the\\nHome Office on April 4th, and are there approved, we shall issue the policies\\nbearing date of April 4th, instead of April nth, as under the present plan.\\nThe advantages of this method will be apparent at once. The Agent in\\ncanvassing can promise insurance at an earlier date than now. He can\\nplace his business without the delay which at present occurs, and follow\\nthe same up and keep in closer touch with the applicants, collecting from\\nthem each week as the premiums, if the policies are not granted, will be\\nreturned, while if issued they are in benefit at the earliest practical oppor-\\ntunity.\\nIn consequence of this concession new policy-holders were\\nplaced in immediate benefit for at least a portion of the face\\nvalue of the policy practically from the date application\\nwas made. Only those familiar with the actual operations of\\nan Industrial agency can fully realize the importance of this\\nstep taken by The Prudential in advance of other Industrial\\ncompanies.\\nAn apparently slight, but actually very important, change\\nwas made this year with reference to charges for premium receipt-\\nbooks. It had heretofore been the practice to charge policy-\\nholders for the premium receipt-book which accompanies the\\npolicy, and in which the weekly premiums are entered by the\\nagent, but under date of August 12th the field force was\\ninformed that thereafter no charge would be made for premium\\nreceipt-books, but that the Company would expect agents to use\\nthe same care in ordering and disposing of these books as under\\nthe system formerly in force. When it is considered that the\\nCompany annually makes use of a vast number of such books,\\nthe individual payment, however small, assumes considerable\\nproportions in the aggregate, representing a not inconsiderable\\nloss to the Company, which once more was assumed for the gen-\\neral welfare of the business and the best interests of the policy-\\nholders.\\nWith reference to the payment of Industrial Cash Dividends,\\nit had been the practice of the Company to have the policy-holders\\ncall at the office of the Superintendent and collect personally the\\namounts due as dividends under such policies. To facilitate\\nmatters it was decided, under date of August 4, 1898, to have\\nthese dividends paid at the houses of the insured by the Assistant", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0308.jp2"}, "309": {"fulltext": "THE PRUDENTIAL INS. CO. OE AMERICA, 1897-98. 261\\nSuperintendent, and the views of the Company were outlined in\\nthe following letter of the Vice-President\\nINDUSTRIAL CASH DIVIDENDS.\\nIt is our desire to pay these dividends as promptly as possible and with-\\nout causing any inconvenience to the policy-holders. If this be done, we\\nshall insure the greatest good to The Prudential and its representatives that\\ncan come through the liberal action of the Company.\\nAs a means to this end, you are authorized to have these dividends\\nadjusted by the Assistant Superintendents calling at the home of the parties\\nto whom dividends are payable, and there making the proper settlement.\\nWhenever it is practicable so to do, you should try to save the policy-holders,\\nand others interested, the necessity of visiting your offices. If the parties\\nwish to have the payment in cash, in preference to other method of settle-\\nment, no undue pressure should be brought to bear upon them to change\\ntheir minds. Let the adjustment be made in the manner most satisfactory\\nto the members.\\nWe think, if proper care be exercised to see that our instructions as to\\nthe method of adjusting dividends be carried out, the work can be safely\\nentrusted to the Assistant Superintendents.\\nIf you should find it expedient so to do, you may occasionally use the\\nservices of your reliable Agents, so as to relieve the Assistant Superintend-\\nents when their other duties are pressing.\\nWe shall, of course, expect you to look closely after the matter, so as\\nto fully protect us.\\nThis step is one fully in harmony with the theory of Indus-\\ntrial collections, in that experience has made it clear that working\\npeople are not in a position to leave their homes or workshops for\\nthe purpose of paying premiums or even for the occasional collec-\\ntion of dividends, and, to overcome possible objections to the\\nCompany s early rule to have Cash Dividends paid at the office\\nof the Superintendent, the same was modified to meet the wishes\\nof the public for the payment of dividends at the homes of the\\ninsured.*\\nThe collector in Industrial insurance is a necessity, it being one of the\\nessential principles of the business that the weekly premiums must be col-\\nlected from the house of the insured. Many as have been the efforts to\\neliminate the collector, by holding out inducements to the insured to pay at\\nthe office, by offers of a reduction of the premium, all such attempts have\\nproven a complete failure. It has been brought out time and again in par-\\nliamentary investigations that without the collector the entire system of\\ntrading friendly societies would fall to the ground, and that one of the pri-\\nmary causes of the failure of Government insurance in England is to be", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0309.jp2"}, "310": {"fulltext": "262 HISTORY OF THE PRUDENTIAL.\\nAmong the Company s business achievements during 1898\\nmention must be made of one of the largest transactions ever\\nconsummated in Partnership I^ife Insurance in the United States.\\nA policy was issued during the month of October for $400,000\\nfor Partnership insurance on the four members of the firm of\\nHahne Co. of the city of Newark. The annual premium on\\nthis policy was $13,221, the check for which was dated October\\n20, 1898. The firm of Hahne Co. owns the largest depart-\\nment store in the State of New Jersey, having, much like The\\nPrudential, developed from small beginnings into a structure of\\nvast proportions. Before deciding in what company the firm\\nwould seek the insurance protection referred to, the leading life\\ncompanies of the country submitted their propositions. No pol-\\nicy, however, so completely satisfied the members of this firm as\\nthe contract of The Prudential. It is something very considera-\\nbly to the credit of The Prudential Insurance Company that,\\nin open competition with all of the long-established old-line\\ncompanies, it should have been possible for an institution,\\ndeveloped largely for the purpose of extending the principles of\\ninsurance to the industrial population, to consummate this year\\na transaction which ranks as one of the largest and most impor-\\ntant in American life-insurance history.\\nAside from the increasing public appreciation of Industrial\\nand Ordinary insurance as offered to the public by The\\nfound in the fact that the Post-office does not employ collectors to call for\\nthe weekly premiums at the homes of the insured. The fact must not be\\noverlooked that many of the Industrial policy-holders hold policies for a\\nweekly premium of but five, ten or fifteen cents. Living, as these people\\ndo, sometimes miles from other habitations, it naturally becomes a seri-\\nous question how to protect properly the individual interests of every\\npolicy-holder. Experience has shown that it is only by means of the\\ndebit system of the Industrial companies and the payment of a reason-\\nable commission that this function can be properly discharged. While in\\nOrdinary insurance the renewal commissions on payments made at the\\noffice of the agent are often as high as 7^ per cent., in Industrial insur-\\nance the agent receives 15 per cent, for calling fifty- two times a year for the\\npremiums at the homes of the insured, irrespective of the distance the\\npolicy-holder may live from the office. If to this amount of necessary\\nlabor is added an additional amount of effort required to call more than once\\nwhen the insured may not be at home or not be in a position to pay the\\npremium, it will readily be conceded that the commission paid for the col-\\nlection of the weekly premiums is not an unreasonable one.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0310.jp2"}, "311": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, l8o7- 98. 263\\nPrudential, official opinion was now more than ever strongly and\\nemphatically in favor of life insurance for the masses on the\\nIndustrial plan of The Prudential Insurance Company. limiting\\nmyself to a single extract from official literature, I quote as\\nfollows from the 26th annual report of Mr. John C. I^inehan,\\nInsurance Commissioner of New Hampshire\\nThe industrial branch of life insurance has been put through a severe\\ntest during the past year, especially the feature devoted to the insurance of\\nchildren. Some three years ago an attack was made upon it by a local paper,\\nand the statements made at the time were of such a character that an in-\\nvestigation was deemed necessary. The opinions of gentlemen who were\\nnot interested in the business, but whose professions gave them opportunities\\nto study its effect, were sought for, and in every instance their reply was\\nthat it was a great blessing, for in many instances it was the only kind of\\nprotection working people could afford to carry.\\nIndustrial insurance furnishes one of the greatest benefits that can be\\nreceived in return for the amount paid, for very often, in case of death, the\\ninsurance is all there is left, either to bury the dead or provide for the\\nliving.\\nA careful consideration of the subject, as well as of the figures given,\\nand the circumstances from which industrial insurance originated, must\\nconvince all fair-minded men that the business is not only legitimate and\\nhonorable, but just as essential to those among whom it is operated as the\\nother kind is among those more favored with the good things of this world.\\nTo this recognition of Industrial insurance from the stand-\\npoint of public policy, I may properly add the following tribute to\\nthe good work of life-insurance agents in general by the late\\nRev. Phillips Brooks\\nOne of the greatest blessings of the vocation of Insurance agents is\\nthat they eliminate a great deal of the worry of life they rid men of a\\ngreat many of those distressing and carking troubles that keep them from\\nliving their true lives. I fancy there is no profession that\\nprofits so much by the great work that life-insurance agents are constantly\\ndoing as the profession of the ministry. By it they are set free to do what\\nthey are commissioned to do, careless how long life is going to last, sure\\nthat Godwill care for those they love, because in His Providence He has\\nled men to organize this great interest of life insurance for their protection.\\nWhat Bishop Brooks said of life-insurance agents in general\\napplies with special force to the daily labor of the vast army of\\nIndustrial agents, carrying into the homes of the industrial mil-\\nlions the teachings of a quarter of a century of insurance efforts", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0311.jp2"}, "312": {"fulltext": "264 HISTORY OF THE PRUDENTIAL.\\nand results, and completely fulfilling Mr. Dry den s early ambi-\\ntion, to make a success of Industrial insurance in America along\\nthe same lines which made possible the gigantic success of Sir\\nHenry Harben s scheme in his half -century management of The\\nPrudential Assurance Company of London.\\nI have purposely refrained in this work from making more\\nthan incidental mention of the large number of letters of thanks\\nand appreciation which constantly reach the Company from bene-\\nficiaries under Industrial policies, but I here include a short letter\\nwhich is so full of pathos and indicates so clearly the beneficent\\nmission of Industrial insurance, that I reproduce the same in full\\nas quoted in The Prudential Weekly Record of October 17, 1898\\nPhiladelphia, Pa., September 27, 1898.\\nTo John F. Dryden, Esq.\\nDear Sir: I would state that I have received the money on policy\\n662,025, being $187.95. I was very much pleased at your promptness in\\nsettling up my claim, as I was in need of money to bury my wife, and\\nwithout that assistance the county would have had to bury her, as I have\\nbeen out of employment for months, and I can assure you, Mr. President,\\nthat I highly appreciate your kindness and consider your institution as the\\nreal Savings Bank of the poor people, and whenever or wherever I\\ncan say a good word for it I will do so with pleasure.\\nI remain,\\nYours very respectfully,\\n2012 South Gratz Street, ROBERT MACCLERMONT.\\n36th Ward, Philadelphia.\\nThe results of the year 1898 had been exceedingly satis-\\nfactory. In the Industrial department the number of policies\\nhad increased to 2,924,526, for an aggregate amount of Indus-\\ntrial insurance protection of $333,992,200. In the Ordinary\\ndepartment, under the new system of making each representa-\\ntive of the Industrial also a representative of the Ordinary\\ndepartment, the business had been increased to 71,927 policies\\nfor an aggregate amount of $80,554,853 of insurance protec-\\ntion. Corresponding increase had been made in the assets and\\nsurplus of the Company, while the total annual payments to\\npolicy-holders during the year reached the colossal sum of\\n$5,389,403. The actual premium income of the Company from\\nboth the Industrial and Ordinary business exceeded $16,000,000,\\nwhile the total income, including interest, etc., was $17,481,876.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0312.jp2"}, "313": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1897-98. 265\\nThe results of the year s business operations had therefore been\\nvery gratifying and had proven a most emphatic public endorse-\\nment of the Company s conservative policy of a prudent liberality\\nin dealing with its policy-holders in its own way according to the\\nlight of its own experience.\\nIn his annual letter to the field force for the year 1899, Mr.\\nDryden, under date of January i, 1899, commented upon the\\nexcellent record made during the preceding year, and, in words\\nwhich are deserving of being reproduced, once more empha-\\nsized the importance of reducing the lapse-rate The Company\\ndesires and is striving to keep the lapses down to the minimum,\\nand everything within the rules of the Company must be done\\nto keep the membership intact. When it is finally decided that\\npremiums can not be collected, see that Paid-up Policies (if the\\ninsured are entitled thereto) are applied for. Thus the Com-\\npany s interest in its policy-holders is made manifest by its\\nrules, under which agents are not only required to put forward\\nevery effort to keep policies in force, but in cases where the\\nlapse of the policy is inevitable special efforts must be made to\\nprotect the interests of the insured, and it may be said, with\\nall the emphasis which it is possible to put into words, that not\\na single policy has ever lapsed which, as far as it was within\\nthe power of the Company, would not be on its books to-day,\\nhad advantage been taken of the exceptional opportunities given\\nfor revival or reinstatement. With special reference to paid-up\\npolicies, the President stated in his letter that The number\\nof Paid-up Policies in force upon our books is now 82,984,\\ncovering insurance for $3,690,205. The number issued during\\n1898 was 33,619, representing insurance for $1,670,360. In\\ncommenting upon the exceptional record made in the Ordi-\\nnary department, in which there had been a net increase of\\n$21,000,000 in the insurance in force, the President paid the\\nfollowing graceful tribute to the field force These facts and\\nfigures tell of the steady and permanent devotion and loyalty to the\\nCompany s interests, on the part of the field staff, that we have long\\nmaintained can not be paralleled by any other company.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0313.jp2"}, "314": {"fulltext": "266 HISTORY OF THE PRUDENTIAI*.\\nCHAPTER XV.\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA, 1899.\\nBy January 1, 1899, The Prudential had achieved results\\nwhich are practically without a parallel in the history of American\\nlife insurance. The experiment commenced in 1875 had been\\ndeveloped into a success of gigantic proportions. Where once\\nthere had been a question of doubt, where once the voice of\\npessimism had been ready to decry this early effort to extend the\\nprinciples of genuine life insurance to the masses, every compe-\\ntent critic and financial authority now readily conceded to the\\nfounders of Industrial insurance the foremost position in the life\\ninsurance world. Among others the Insurance Monitor, in a brief\\nreference to the results achieved by The Prudential during 1898,\\nrelated the following instance of well-deserved approval We\\nheard some high praise of the Prudential officers the other day,\\nfrom one of the leading lights in life insurance. The officers of\\nThe Prudential have long realized that Industrial insurance must\\nbe conducted in the interest of the masses, and any action which\\nwould seem to them likely to be construed otherwise would be\\npretty sure to meet with their disfavor. It was the personal\\nappeals and arguments of President Dryden to the industrial\\nclasses, for their own interest, that laid the foundations of the\\nbusiness in this country. He is studying that interest to-day.\\nTo these remarks I add an extract from the Camden Daily\\nTelegram of January 27, 1899\\nThe twenty-third annual statement of the Company, issued the first of\\nthis year, gives to its policy-holders in a concise, business way, a clear\\ninsight into its present and remarkable continued healthy growth. The in-\\nvestments are wisely and prudently made by experienced, able and honest\\nfinanciers, who give their undivided time and abilities to the interests of\\nthe Company, at the head of which stands the President, John F. Dryden.\\nThough at the head of an efficient staff which renders him such valuable\\nsupport, yet much of the unprecedented success of The Prudential is due\\nto the hard work, rare financial qualifications and sagacity of its President,", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0314.jp2"}, "315": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1899. 2 7\\nwho has perfected its organization until it is now like a completed machine,\\nindependent of the direction of a single head for its future smooth running.\\nSuch has been Mr. Dry den s great ambition, and, while he has lived to see\\nits fruition, there is every prospect that he may enjoy it for many years\\nto come.\\nThe people of New Jersey are justly proud of the fact that this great\\ninstitution was founded in their State, though its business has so long since\\noutgrown the confines of any specified locality or country. The home\\noffice in Newark legally designates it as a New Jersey corporation, while as\\na taxpayer it is one of the largest contributors to the State Treasury, and\\noutside of railroads the largest, its assessment last year, promptly paid,\\nbeing no less than $96,980.42. This sum does not include municipal taxes,\\nwhich it pays direct to Newark.\\nIt is but proper that mention should be made here of a factor\\nof not inconsiderable importance in making for the great success\\nof The Prudential in the Ordinary department. Sometime during\\n1896 The Prudential Company commenced the use of a striking\\nadvertisement in the nature of a reproduction of the Rock of\\nGibraltar, across the face of which, in bold letters, appeared\\nthe motto The Prudential has the strength of Gibraltar/\\nThis advertisement is to-day considered the most striking one of\\nits kind, and by this means the name of the Company has become\\nmore than ever a household word throughout the entire country.\\nBy a curious coincidence this advertisement proved the fulfill-\\nment of a singular prophecy already referred to in the earlier\\npart of this work.* The Newark Morning Register of Novem-\\nber 13, 1875, concluded an editorial on the new aspirant for life-\\ninsurance honors in America with the statement that The\\nSociety may be said to be founded upon a rock. It was pointed\\nout in The Prudential Weekly Record of July 31, 1899, that it\\nwas no longer the whole truth that the Company may be said\\nto be founded upon a rock, for there is now no may be about\\nit. It is now an established fact, one that is not only unques-\\ntioned, but absolutely unquestionable, that The Prudential is\\nfounded upon a rock, and stands to-day, in its way, equally\\na synonym and symbol of strength and impregnability with\\nthe renowned stronghold that, a little more than a century ago,\\nsuccessfully resisted a four years siege. It will be granted,\\nI believe, that seldom has an advertisement so completely\\nAnte, p. 58.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0315.jp2"}, "316": {"fulltext": "268 HISTORY OF THE PRUDENTIAL.\\nrepresented a business organization and its past history in so\\nconcise a phrase as The Prudential has the strength of\\nGibraltar, for of few companies or business organizations can\\nit be said, in the light of the history which is here given in as\\nmuch detail as limited space will permit, that it was built on\\nsolid foundations, and with the fixed determination that on such\\nfoundations a structure should be reared which should stand\\nantagonism, opposition, the most fierce competition, and the\\ninevitable changes of time. While perhaps a quarter of a cent-\\nury is too short a period to demonstrate the permanency of such\\nan institution as The Prudential, it must not be forgotten that,\\naside from its financial security and foundation on correct prin-\\nciples of finance and the law of mortality, the Company rests\\nequally secure in the affection and regard of more than three and\\na half millions of loyal policy-holders, and almost 15,000 em-\\nployees whose steady and permanent devotion and loyalty to the\\nCompany s interests, in the words of Mr. Dryden, cannot be\\nparalleled by any other company.\\nAs an illustration of the continued increase in the popularity\\nof the Company, mention must be made of a very important trans-\\naction that occurred during the latter part of the month of De-\\ncember, 1898, and to which extended reference was made in The\\nPrudential Weekly Record of January 2, 1899. The firm of Mont-\\ngomery Ward Co., of Chicago, had effected an arrangement\\nwith the Company by which whole-life policies were written upon\\nthe lives of 150 of the married employees of the firm. The poli-\\ncies were presented as a Christmas gift, one year s premium having\\nbeen paid thereon in full. In referring to this transaction, The\\nPrudential Weekly Record stated that The firm selected the\\nregular policies issued by The Prudential as the best they could\\nfind in the market for the purpose desired. In a letter of presen-\\ntation accompanying each policy the firm said As to the Com-\\npany and plan, we selected The Prudential because of its strong\\nfinancial standing, coupled with the great liberality of its policy\\ncontract, with its incontestability, loan and surrender values,\\nautomatic non-forfeiture, etc The transaction naturally\\nattracted considerable attention, and must be classed as one of\\nthe important events in life-insurance history.\\nInfluenced, no doubt, by the Montgomery Ward example,\\nthe Ithaca Daily News, during the latter part of the year,", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0316.jp2"}, "317": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1899. 269\\ncompleted an arrangement with The Prudential for insuring its\\nemployees, including even the carrier-boys, under policies in the\\nIndustrial department of the Company, all the premiums being\\npaid for a period of some months by the newspaper, thus offering a\\ndirect incentive to its employees to make an insurance provision\\nagainst death and other contingencies, on the Industrial plan.\\nA determined effort was made this year to increase the\\nefficiency of the field force by improved methods of straight\\ncanvassing, and special straight canvassing agencies were\\nestablished independent of the regular local offices, with an\\nexceptional degree of success. In referring to the subject under\\ndate of March 13th, the Vice-President, in direct charge of the\\nvast field operations, addressed the superintendents in a letter,\\nfrom which I make a few abstracts\\nIn order that you may thoroughly understand what we mean by the\\nterm A Straight Canvassing Superintendent, Assistant or Agent, we would\\nstate that each should start absolutely without debit* and receive no\\ntransfers whatever.\\nWe propose to appoint Superintendents without debits in every locality\\nwhere we think the conditions warrant it, providing suitable men are\\navailable.\\nIf a Superintendent feels that he cannot make a success of this feature\\nof the business, we advise him not to undertake it but we have already\\ndemonstrated in a number of cases that Superintendents, Assistants and\\nAgents can succeed under the conditions set forth.\\nThis letter was supplemented by another communication,\\ndated March 31st, in which the question of agency compensation\\nunder the new arrangement was dealt with in detail. I quote\\nThe term debit is applied to the total amount of weekly collect-\\nible premiums charged against an agent and for which the latter is respon-\\nsible. A debit is determined by deducting from the premiums of the\\ntotal number of policies issued or transferred to an agent the premiums of\\nthe policies terminated by reason of lapse, transfer or death. If, for ex-\\nample, $80.00 of weekly collectible premiums have been issued to the agent\\nand $12.50 have been terminated for some reason or other, the agent s\\ndebit would be $67.50. This amount of premiums the agent is expected\\nto collect and in return he is paid a commission of 15 per cent., which is\\ntermed ordinary salary. In a general way it may be said that the\\naverage collection will reach from 98 to 99 per cent, of the weekly collect-\\nible debit, while the average debit is approximately fifty dollars.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0317.jp2"}, "318": {"fulltext": "270 HISTORY OF THE PRUDENTIAL.\\nfrom the letter of the Vice-President a few passages of more\\nthan passing interest and importance\\nThe magnificent support which has been given this movement through-\\nout the Field, and the well-known ability of our Staff to produce new busi-\\nness of the highest grade, encourages us to believe that no interests will be\\njeopardized and no dangers met with if we extend to Superintendents with\\ndebits, as well as to those without, the privilege of making advances, when\\nnecessary, to new Agents during those first weeks of their service when no\\nspecial salary can be regularly received.\\nAdvances are to be made only to new Agents, and only when in the\\njudgment of the Superintendent they are necessary to secure the services\\nof permanent and reliable men.\\nA satisfactory amount of new business, known by the Superintendent\\nto be of good quality, must be in hand before an advance is allowed.\\nNo advance is to be made after the time when special salary could have\\nbeen received in the regular course.\\nThe Agent must, in every case, be made to understand that the advance\\nis in the nature of a loan, to be repaid by him as soon as he makes regular\\nearnings.\\nIt will be observed, on close examination of these extracts,\\nthat the Company s interests were well protected, while at the\\nsame time new agents, engaged at first in a rather difficult field,\\nwere encouraged by slight advances, sufficient to meet living\\nexpenses, until by their own efforts they had succeeded in estab-\\nlishing a permanent and sufficient income.\\nThe careful attention given to every detail in the manage-\\nment of the field force of The Prudential is perhaps nowhere\\nbetter set forth than in a letter from Vice-President Ward to a\\nnewly-appointed superintendent for his guidance in managing the\\naffairs of his district. The letter was republished in The Pruden-\\ntial Weekly Record of January 16, 1899, and the following extracts\\nwill illustrate the Company s interest in the economic and efficient\\nadministration of its district offices\\nOn assuming the management of a District for this Company you should\\nrealize that the responsibilities of your position are of considerable mag-\\nnitude.\\nThe Prudential desires to be known well in every community as fair-\\ndealing and liberal in its treatment of policy-holders and others connected\\nwith it. Let it be your constant aim to do right and to see that those under\\nyou act with the same purpose all working to promote and advance the\\nreputation of the Company and its employees. The opinion of the people", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0318.jp2"}, "319": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1899. 271\\nwho know The Prudential only by reputation will be influenced favorably\\nor adversely according as the local office is managed.\\nYour position as Superintendent entitles you, in a business way at least r\\nto an acquaintance with the most influential residents, and you should\\ndeport yourself in a manner that will command the respect and confidence\\nof the community at once and only employ those who will measure up to\\nthe same standard.\\nInstruct your force never, under the penalty of immediate dismissal, to\\nmisrepresent a contract. Have the Company s rules strictly enforced.\\nExamine the agents collection books frequently, and see that policies are\\nlapsed under the four weeks rule. Retain every good or promising agent\\nif possible finals mean lapses. Insist on Straight Canvassing. Encour-\\nage each man to write Ordinary and to make the attempt to get Annual\\nPremiums.\\nSelect for Agents men who are thoroughly respectable and possessed\\nof the qualities which make for success honest, earnest, industrious and\\nsober men. Get good material to work upon, and then spare no pains in\\nthe development. If you begin aright, the after- work is much easier. Do\\nnot let an Agent go for want of a little time and care. Remember it is a\\npart of your duty to make Agents and Assistants successful.\\nWe shall personally watch your record with a great deal of interest, and\\ngive you all the time and opportunity we think necessary to insure your\\ncontinuance as a Superintendent. The fact of our placing a District in your\\nhands shows our confidence in your ability and integrity, and you have our\\nbest wishes for success.\\nThe truly national character of The Prudential was once\\nmore illustrated in the great fire which destroyed the Hotel\\nWindsor in New York City on March 17, 1899. There were\\nfound, four days after the fire, wrapped up in an old shawl with\\na bank-book, two Prudential policies on the lives of persons living\\nin the hotel. The incident is referred to in The Prudential\\nWeekly Record of April 10th, in which also a reproduction of the\\nhalf -charred policies is given, together with the following com-\\nments\\nInvestigation by Prudential representatives discovered, happily, that\\nthe two persons named were not among the lost, but are still alive also the\\nfollowing facts\\nBoth women are married. Mrs. McDonald was in the employ of the\\nhotel. Her sister, Mrs. White, is in Europe, and had left her policy in care\\nof her sister. Together with Mrs. McDonald s effects, including her policy,\\nher bank-book and $600 in cash, Mrs. White s policy was placed in her sis-\\nter s trunk. The latter was destroyed, also the money, all that remained\\nbeing the bank-book, policies and the brass padlock of the trunk. Mrs.\\nMcDonald was on the fourth floor of the hotel when the fire broke out, but\\nescaped.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0319.jp2"}, "320": {"fulltext": "2JZ HISTORY OF THE PRUDENTIAL.\\nThis connection of ours with an occurrence that has shocked and horri-\\nfied the whole country again calls to mind the all-embracing and truly\\nnational character of The Prudential. No great fire, explosion, railroad\\naccident or other mishap or disaster involving large loss of life can now\\noccur in which this Company is not somehow concerned, and generally\\nas a ready helper in time of sorest need.\\nAnother policy-holder of the Company living at the time in\\nthe hotel also fortunately made her escape without serious injury.\\nMention has been made, in an earlier part of this work, of\\nthe passage of a law in the State of Colorado in 1893, prohibiting\\nthe insurance of minors under the age of ten years. In com-\\npliance with a strong local demand for the repeal of this law,\\nofficially voiced by the Insurance Commissioner, a determined\\neffort was made this year to repeal the law of 1893, an( i enact in\\nits place a regulating statute practically identical with a similar\\nlaw in force in the State of New York and the Province of\\nOntario. With this object in view, House Bill No. 317, a copy\\nof which is given below, was introduced into the Colorado legis-\\nlature by Mr. Arthur Bartels, of Denver\\nBII.lv REGULATING THE INSURANCE OF MINORS.\\nSection i. Any person liable for the support of a child of the age of\\none year and upward may take a yearly renewable term policy of insurance\\nthereon, the amount payable under which may be made to increase with\\nadvancing age and which shall not exceed the sums specified in the follow-\\ning table, the ages therein specified being the age at time of death, and\\nwhich, after the age of thirteen, may become an ordinary life policy for an\\namount not exceeding the sum specified in the table\\nBetween the ages of one and two years, thirty dollars.\\nBetween the ages of two and three years, thirty-four dollars.\\nBetween the ages of three and four years, forty dollars.\\nBetween the ages of four and five years, forty-eight dollars.\\nBetween the ages of five and six years, fifty-eight dollars.\\nBetween the ages of six and seven years, one hundred and forty dollars.\\nBetween the ages of seven and eight years, one hundred and sixty-\\neight dollars.\\nBetween the ages of eight and nine years, two hundred dollars.\\nBetween the ages of nine and ten years, two hundred and forty dollars.\\nBetween the ages of ten and eleven years, three hundred dollars.\\nBetween the ages of eleven and twelve years, three hundred and eighty\\ndollars.\\nBetween the ages of twelve and thirteen years, four hundred and sixty\\ndollars.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0320.jp2"}, "321": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1899. 273\\nBetween the ages of thirteen and sixteen years, five hundred and twenty\\ndollars.\\nBetween the ages of sixteen and seventeen years, six hundred and\\ntwelve dollars.\\nBetween the ages of seventeen and eighteen years, seven hundred dollars.\\nBetween the ages of eighteen and nineteen years, seven hundred and\\neighty-four dollars.\\nBetween the ages of nineteen and twenty years, eight hundred and\\nfifty -five dollars.\\nBetween the ages of twenty and twenty-one years, nine hundred and\\nthirty dollars.\\nSection 2. All acts and parts of acts in conflict herewith are hereby\\nrepealed.\\nSection 3. In the opinion of the General Assembly an emergency\\nexists therefore, this act shall take effect and be in force from and after its\\npassage.\\nIt will be observed, on examination of this bill, that ade-\\nquate provision was made against speculative insurance of any\\nkind, either on the part of Industrial or Ordinary companies\\nthat the bill covered all ages under twenty-one, and permitted\\nat the younger ages insurance for amounts just about sufficient\\nto meet funeral expenses and the cost of the last illness. The bill\\nhad the approval of the Superintendent of Insurance, the Hon.\\nH. H. Bddy, who had taken pains to secure information and data\\nwith reference to the transaction of this form of insurance in\\nother States of the Union. A circular letter had been addressed\\nby Mr. Eddy to the Insurance Commissioners of leading States,\\nstating that\\nI would esteem it a very great favor if you would kindly advise me as\\nto the results of the prosecution of this kind of insurance [Industrial] in\\nyour State, and whether, in your judgment, the repeal of the present pro-\\nhibitive law and the enactment of a permissive law, with proper restrictions\\nplaced upon and proper regulation of the insurance companies provided for,\\nwould be a benefit to the community at large, or otherwise.\\nIn reply to Mr. Eddy s letter, the Insurance Commissioner\\nof New Jersey, the Hon. Wm. Bettle, said\\nAs you are doubtless aware, industrial insurance, on the lives of both\\nadults and infants, has been prosecuted in this State for many years, and\\nhas attained a volume as large perhaps, if not larger, in proportion to\\npopulation, than any other State in the Union, and this Department has\\nyet to receive the first charge or complaint that the insurance of children\\nunder ten years af age was productive of infanticide. I have long since", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0321.jp2"}, "322": {"fulltext": "274 HISTORY OE THE PRUDENTIAL.\\nrejected the assertion as entirely unfounded and unjustifiable. The benefi-\\ncence and value of this kind of insurance have been demonstrated beyond\\nquestion, and there can be no doubt that the repeal of the present statute of\\nyour State prohibiting the insurance of children under ten years of age, and\\nthe enactment of a law permitting this to be done, with proper restrictions\\nupon and regulation of the companies transacting it, would be a great benefit\\nto its people.\\nThe reply from the Insurance Superintendent of New York\\nwas as follows\\nThe recognition given insurance of this character is contained in section\\n55 of our insurance law, chapter 690, laws of 1892.\\nThis Department has never had any cause to criticise the provisions\\nof this section of the law. I note your statement that the principal argu-\\nment which has been used against the passage of such a law in your State\\nis that it would be productive of infanticide for the purpose of obtaining\\nthe insurance. I am of the opinion that this is a very poor argument, and\\ncertainly the records of insurance corporations carrying on business of\\nthis character will not bear out any such statement.\\nA likewise favorable reply was received from the Insurance\\nSuperintendent of Illinois\\nNo evidence has been presented to this Department, and I am not\\naware that any exists, that this character of insurance has resulted in\\nincreasing, or has been productive of infanticide. I believe that the\\nexperience of the companies who do this kind of business has demonstrated\\nthat under proper restrictions it is a benefit both to the parents of children\\nwho are insured, who are usually in poor circumstances, and likewise and\\nin consequence a benefit to the community at large. Since my incum-\\nbency in the office of Superintendent of Insurance, no complaints have been\\nmade of the evil effects of this insurance, or of any wrongful practices\\npeculiar to this character of insurance.\\nFrom Ohio, where a vast amount of Industrial insurance\\nhas been transacted for many years, the official opinion on the\\npart of the State Superintendent of Insurance was expressed in\\nthe following words\\nIndustrial insurance has been written in Ohio for several years, and so\\nfar we have never had any complaints from any sources showing that there\\nhas been any criminal or immoral effects arising from it. My opinion\\nis that no such effects come from the business.\\nFrom the State of Massachusetts, where a few years before\\na considerable agitation had resulted in an official investigation of", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0322.jp2"}, "323": {"fulltext": "THE PRUDENTIAL INS. CO. OE AMERICA, 1899. 275\\nthe entire subject, the Deputy Insurance Commissioner replied as\\nfollows\\nThe business has been almost wholly confined to the operations of the\\nthree large companies which have made a specialty of it, and the popular\\nverdict upon its results has been one of full approval and commendation.\\nThe industrial companies have had to struggle against prejudice, igno-\\nrance, jealousy and a thousand impediments that inevitably attend the\\npromotion and building up of a new system, until its usefulness and value\\nhave asserted themselves and vindicated its adoption. Its progress has\\nbeen steady and aggressive, until now probably not less than ten millions of\\nlives are insured under it in this country, while in England probably one-\\nhalf of the entire population are included in similar institutions there.\\nVery many inquiries and investigations have from time to time been\\ninstituted, and very thorough and searching examinations have been had.\\nThe most important of these and of greatest length and breadth of inquiry\\nwere in the Commons House of Parliament of Great Britain, and by the\\nGeneral Court of Massachusetts in 1895. The verdict in both cases was a\\npractically unanimous approval of the plans of the companies, the vote in\\nthe Massachusetts House being 149 to 23.\\nThe system of industrial insurance can be successfully carried on\\nonly in cities or thickly settled communities of mechanical or indus-\\ntrial operatives, where the collection of the small weekly premiums can be\\nquickly and economically made. It is, if not essentially, at least very\\nlargely family insurance, and if the insurance of the children at the same\\ntime with the parents is not permitted a very great part of its attractive-\\nness and value would be lost.\\nA similar reply was received from the State of Pennsylvania,\\nwhere also more or less agitation had led to numerous attempts\\nat adverse legislation\\nThe claim that the insurance of children at an early age is productive\\nof infanticide for the purpose of obtaining the insurance is entirely falla-\\ncious, the amount of the policy in the case of a child under ten years being\\nso small that the temptation to commit a crime of that sort is almost\\nentirely eliminated.\\nThe Insurance Commissioner of Connecticut stated that\\nI believe it is a benefit to any State, and I believe that the companies\\nthemselves are trying to prosecute the business to treat the policy-holders\\nfairly, and to pay their claims promptly.\\nThis kind of insurance has been conducted across the water successfully,\\nand it is now increasing rapidly in this country. believe that every State\\nought to open its doors, with such restrictions as they might deem best, to\\nallow this business to be transacted. It is legitimate, it has done a great\\ngood to the community and has benefited and is benefiting thousands.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0323.jp2"}, "324": {"fulltext": "276 HISTORY OF THE PRUDENTIAL.\\nSumming up the results of his investigation, Mr. Eddy ex-\\npressed himself forcibly on the subject as follows\\nAs to the Insurance Department of Colorado, I may say that it has\\nagain and again recommended the repeal of the law of 1893, which abso-\\nlutely prohibits the insurance of minors under ten years of age, and favored\\nthe enactment, in lieu thereof, of a regulating statute, similar to that which\\nobtains in other States of the Union, being an exact copy as to detail of the\\nstatute now in force in the State of New York and the Province of Ontario.\\nThe department is in possession of no facts, nor have any come to my\\npersonal knowledge, tending to show that the insurance of minors is not\\nin every sense as legitimate, as beneficial or as necessary as the insurance\\nof adults.\\nIt will be observed, on careful reading of the preceding\\nextracts, that without exception the Insurance Commissioners of\\nthe principal States of the Union in which Industrial insurance\\nhad been conducted for many years were strongly in favor of the\\ninsurance of children for small amounts, and this view, as has\\nbeen pointed out, was based on careful personal investigation and\\nthe records of the departments officially in charge of the insur-\\nance interests of the different States. The passage of the bill\\nwas from the outset bitterly opposed by a few members, including\\nthe Secretary of the Colorado Humane Society, the same body\\nwhich in 1893 had succeeded in placing the prohibitive law on\\nthe statute-book. A strong effort was made by the Society to\\ncreate a sentiment adverse to the passage of the law, especially\\namong kindred societies. The subject being practically unknown\\nto a large number of people outside of the industrial population,\\nit became necessary to disseminate information pertaining to the\\nsubject of Industrial insurance, but within a short time after the\\nopposition manifested itself some of the leading and most respected\\ncitizens of the State came forward with emphatic statements of\\ntheir views in favor of the passage of the bill and the repeal of\\nthe law of 1893. Among others, Mrs. Sarah S. Piatt, President\\nof the State Board of Charities and President of the Women s\\nClub of the State of Colorado, in an open letter under date of\\nFebruary 20, 1899, expressed herself as follows\\nIn my charity work in Holyoke, Mass., where the majority of the peo-\\nple are factory workers and where large numbers are insured on this plan,\\nI had often occasion to meet with the good results of this form of saving. I\\nmet with abundant proof that by this method of insurance much misery was", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0324.jp2"}, "325": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1899. 277\\ndirectly prevented in that the people were placed above the need of public\\nsupport to bury their dead but furthermore, in that much good was done\\nin an indirect manner by teaching the working people systematic habits of\\nsaving in other directions. Although I have seen much of the actual work-\\nings of this method of family insurance, I have never met with an instance\\nwhere harm was likely to result, and for these reasons, and as the result of\\nmy personal knowledge, I agree that the prohibitory law of 1893 should be\\nrepealed and be replaced by a regulating statute such as is in force in\\nother States.\\nThe Rev. Edward Pearsons Newton, President of the Asso-\\nciated Charities of Pueblo, Colo., also dealt with the subject in\\nan open letter dated February 1 6th\\nFor years my interests have led me to read much upon social and\\ncharitable lines. I believe Industrial Insurance makes for thrift and inde-\\npendence, and these are above all things to be fostered among the poor. I\\nheartily desire its introduction among the wage-earners of Pueblo, of whom\\nwe have so many.\\nAmong others, the Rev. Thos. H. Malone, Editor of the\\nColorado Catholic, a member of the State Board of Charities,\\nand one of the foremost of the Catholic clergy of the State,\\nriot only expressed his views in an open letter dated Feb-\\nruary 25th, but also appeared personally before the Senate In-\\nsurance Committee in favor of the repeal of the law of 1893.\\nFrom his letter I quote the following extract\\nI have given the matter some thought and consideration with special\\nview of the moral aspects of the whole question, and in the absence of any\\nfacts detrimental to this method of insurance, and in the further absence of\\nany reasonable theory of public morals as opposed to it, I am in favor of\\nthe repeal of the law of 1893 and the enactment of a regulating statute,\\nwhich will not only correct a former injustice, but do much to place the\\nbusiness as a whole on a better legal foundation, since I understand that the\\nlaw itself has been declared unconstitutional. As one having some knowl-\\nedge of the life and labor of the working people of this State, I do not\\nhesitate to say that I feel satisfied that they can be trusted in this matter,\\nand that they should not be deprived of the liberty to place a small insur-\\nance protection on the lives of every member of the family as may to them\\nseem expedient and desirable.\\nThese views of recognized authorities on matters relating\\nto public welfare, with special reference to the administration of\\npublic charities, are supplemented by a letter addressed to State\\nSenator J. C. Evans, in reply to a letter of inquiry as to the", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0325.jp2"}, "326": {"fulltext": "278 HISTORY OF THE PRUDENTIAL.\\ninsurance of minors in the city of Boston. During the agita-\\ntion of 1895 in the State of Massachusetts, when an attempt\\nwas made to prohibit the insurance of children under ten years\\nof age, Mr. Thos. T. Stokes, Director of the Associated Charities\\nof Boston, had appeared before the committee of the Legislature\\nand had expressed himself strongly in favor of the insurance of\\nchildren. Senator Evans addressed a letter to Mr. Stokes, mak-\\ning inquiry as to whether subsequent experience had been such\\nas to induce him to change his views in regard to the subject.\\nIn reply Mr. Stokes expressed himself as follows\\nI beg to say that my ideas are the same as when I was quoted before a\\ncommittee of our General Court. I believe there may be abuses, but to\\nprevent thousands saving because a few may spend their money foolishly is\\nno argument. Then again, I believe in thrift and to try and encourage\\npeople to save. I firmly believe that in Massachusetts there has never been\\na case where a child has been murdered by neglect, or quicker means, for\\nthe insurance. I am not a teetotaler, but when money goes any way out of\\nthe saloon it s for the better interests of the public. It s said undertakers\\nare most interested in keeping alive child insurance well, the poor have\\nfeelings as the rich and love their children, why should they not take pride\\nin having a respectable funeral And it s better to be prepared than when\\nthe time comes to be burdened by a load of debt. The good people who\\nwere, and are, against this class of insurance offer no suggestions, and are\\nthe first to cry out about the improvidence of the poor. I had charge as\\npresident of wards 13, 14 and 15 seventy -five thousand people for years.\\nI have seen people have but little money by them, but do their best to keep\\nup the payments iVs a wonderful object lesson, and those who from their\\nfine residences offer suggestions and nothing else are not fit judges.\\nA large body of evidence was presented from all parts of the\\ncountry tending to show that charges made against the system\\nwere unfounded, and based on prejudice, ignorance or personal\\nspite, and these views gradually prevailed with the outside public,\\nas well as with the members of the Legislature. A large number\\nof petitions were received from the three principal cities of the\\nState, aggregating thousands of names of men and women voters\\nof the State, asking the Legislature to repeal the law of 1893 an( i\\nenact the regulating statute outlined and defined in House Bill\\nNo. 317. As illustrating the widespread extent of the agitation\\nin favor of the passage of the law, I cannot do better than\\nquote from some letters from citizens of Denver, making clear\\nthe views of working men and working women, aiming in", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0326.jp2"}, "327": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1899. 279\\ntheir own way, and within the limit of their own means, to\\nimprove the conditions of their struggle for a higher and a better\\nsocial life and provide, as far as possible, against the hardships\\nand contingencies of human life. The following extract is\\nfrom a letter from Mrs. Annie B. Bradley, of No. 402 South\\nBroadway, Denver, Colo., dated March 10, 1899\\nI cannot better express my convictions on the subject than by stat-\\ning that the lives of my two children, as well as of every other member\\nof my family, have been insured for the past seven years, and I feel quite\\nsure that those who know me will not think that I placed this small amount\\nof insurance provision on the lives of my children out of any mercenary\\nmotive or for any purpose of gain. I believe in insurance for children as\\nmuch as I believe in insurance for adults, seeing in this method of saving\\nthe best means of making provision for possible emergencies. I find it\\ndifficult to express my feelings as to those who have, in the most malignant\\nand uncalled-for manner, insulted those who have thus given practical\\nproof of their belief in the merits of Industrial insurance. To my mind,\\nthe so-called humane societies who are opposed to House Bill 317 are\\nabsolutely ignorant of that portion of our population who avail them-\\nselves of this method of saving and insurance. I am, perhaps, as familiar\\nwith the life of the wage-earners of this city as any one, and to my mind\\nonly those who have forethought and thrift make use of this method of\\nfamily insurance.\\nFrom* all that I can learn, those opposed to the bill regulating the insur-\\nance of minors and repealing the law of 1893 have not brought forward a\\nsingle fact in support of their slanderous and libelous allegations. In jus-\\ntice to the thousands of self-respecting and upright people of this city who\\nbelieve in Industrial insurance, I protest against the mischievous, mislead-\\ning and insulting method pursued by the Secretary of the Humane Society.\\nThe man does not speak for the wage-earners of this city, but rather mis-\\nrepresents the best interests of the working people of this State. I feel\\nquite sure that we are more competent to judge of the merits of Industrial\\ninsurance than these self-appointed social reformers, who have never been\\nasked by any workingman, woman or child to represent their side of this\\nquestion.\\nA still more emphatic expression of the workingmen s view\\nof the case is found in the following letter from Mr. Jacob Hauck,\\na shoemaker of No. 2044 Humboldt street, Denver, Colo.\\nI have heard a good many arguments in regard to this bill. I for one\\nbelieve in Industrial insurance and always advocate it, and I know what I\\nam talking about, having lost two members in my family who carried that\\nkind of insurance, and it was a great help in need. It is a grand institution\\nfor the poor. If a man has a large family like myself and has to work for a\\nliving, it is almost impossible for him to lay away money he needs it all", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0327.jp2"}, "328": {"fulltext": "28o HISTORY OF THE PRUDENTIAL.\\nfor the support of his family. But I could always pay five or ten cents a\\nweek to some Industrial company and never miss it, and when death comes\\nyou don t have to ask cold charity for help. When I lived in the East I had\\nall my children insured, and, thank God, none of them died. Here in\\nthis city I lost a child which never was insured, and do you know where that\\npoor thing is buried Away out in the prairie is a place called Potter s\\nField, and there, among unknown men and women, lies that child of mine.\\nIt makes my heart ache when I go out there and look at the place where\\nmy child is buried. I take it as a personal insult when I hear people say\\nthat the poor would kill their little ones for a few pieces of silver. No\\nthey insure them because they love them, and when they die they can be\\nlaid away decently. I look on this kind of insurance as a savings bank for\\nthe poor. I have carried this kind of insurance in my family for the last\\nfourteen years, and never saw anything in any way where the company\\ntried to make you give up your insurance so they could profit by lapses.\\nOn the contrary, if one mentions one word to the agent as to lapsing a\\npolicy he does all in his power to prevent it and to induce one to keep it\\nup. If he does not succeed he will call in his assistant superintendent, and\\nif he can not make one keep up the policy, the next one to call is the\\nsuperintendent of the district, and they will all tell the same story,\\nKeep it up don t drop it don t give up your insurance.\\nAnother lengthy letter addressed to Mr. Bartels, the cham-\\npion of the people, was from a Mrs. L,. F. Alexander, of No. 1462\\nSouth Tremont street, Denver, Colo. This letter also illustrates\\nthe strong views held by working people of the State on the\\nsubject of prohibitive legislation, and I may be permitted to\\nmake a brief extract which is deserving of a permanent place in\\nthis summary of public opinion on the subject of Industrial\\ninsurance 6\\nIndustrial insurance, to my mind, is a Godsend to the class of people\\nwho, by paying a small sum weekly, provide themselves with the means to\\ngive their little ones a decent burial without the assistance of the county.\\nThe idea has been advanced [by the Humane Society] that child insurance\\ncauses parents to murder or neglect their children, whereby they would\\nreceive the pitiable sum which in some cases would not defray the expenses\\nof burial. Such an argument, to my mind, is simply absurd. In the same\\nargument the suggestion was made [by the Humane Society] that the county\\ncould bury the children of the poor. Another absurd idea Why should pov-\\nerty restrict the affection and respect of parents for their children In the\\nsame argument it was said that children would be deprived of the necessities\\nof life by their parents paying from five to ten cents a week on the Industrial\\npolicy. True, Death does not visit every home of the poor, but in case it\\nshould, how much more difficult for the parents whose children are not\\ninsured to defray funeral expenses, which must be paid, than to pay the\\npaltry sum of five or ten cents a week for the insurance Having laid away", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0328.jp2"}, "329": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1899. 2 x\\ntwo little ones under very trying circumstances, who were not insured, I\\nknow whereof I speak. I fail to see wherein the Humane Society is doing\\nan act of humanity by opposing the insurance of children.\\nThe result of this agitation, extending, as it did, over a con-\\nsiderable period of time, is best summed up in the following\\nextract from the Weekly U?iderwriter of April 15, 1899\\nA feature of the legislative period was the strong fight made to secure\\nthe repeal of the present prohibitive law relating to child insurance and to\\nsecure the passage of an act permitting the insurance of minors under the\\nage of ten years, under proper restrictions and safeguards. At the outset\\nthe Humane Society and the newspapers vigorously opposed the proposed\\nchange. The industrial company waged a campaign of education, printing\\nand distributing a number of telling circulars. In spite of prejudice arising\\nthrough ignorance, misinformation and malice, the bill passed the House,*\\nand a strong majority for it was found in the Senate but as it arrived in the\\nSenate late in the session, a determined effort to filibuster indicated by two\\nsenators compelled the majority to surrender the bill in order to pass other\\nmeasures in the limited time left at their disposal. Had the bill reached\\nthe Senate a few days earlier, it would undoubtedly have passed.f\\nAlthough but little more than seven r ears had passed since\\nthe new office building of the Company had been occupied for\\nbusiness purposes, it had gradually become evident that the\\nrapid increase in business would require a very considerable\\naddition to the Company s office accommodations. While at first\\na large part of the building had been leased for general office\\nIn Colorado women have a right to vote and hold office. It is there-\\nfore of interest to note that of the three women members of the House of\\nRepresentatives, Dr. Mary F. Barry, of Pueblo, and Mrs. Harriet G. R.\\nWright, of Denver, voted in favor of the repeal of the prohibitive statute\\nof 1893.\\nt In Ohio an attempt was made in the early part of 1900 to pass a bill pro-\\nhibiting the insurance of children under the age of twelve. In few sections\\nof the country is Industrial insurance so thoroughly understood as in Ohio,\\nwhere, on account of the large urban population, a very considerable pro-\\nportion of the people are insured on the Industrial plan of family insurance.\\nThe bill was very carefully considered by the Senate, hearings were granted\\nto the companies opposed to the measure and to the Ohio Humane Society,\\nin favor of the bill. Every phase of the business received exceptionally\\ncareful consideration on the part of practically every member of the Senate.\\nIn view of these facts it is of more than passing interest to note that the\\nbill attempting to prohibit the insurance of minors, under the age of twelve,\\nin the State of Ohio, was defeated by a vote of 24 against the measure and\\nonly one vote (the author of the bill) in its favor.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0329.jp2"}, "330": {"fulltext": "282 HISTORY OF THE PRUDENTIAL.\\npurposes, gradually, as these leases had terminated, the space\\nhad been occupied by the Company for its own purposes.\\nAnticipating the necessity of new buildings, additional real\\nestate had been purchased, and during September, 1899, ground\\nwas broken for the erection of three new structures adjoining the\\npresent home-office building. When completed the home office of\\nThe Prudential will be unsurpassed by any similar building in the\\nworld as a structure devoted almost entirely to the transaction\\nof a life-insurance business.\\nBefore I review the year s results in more detail, it is but\\nproper that mention should be made of an event of exceptional\\nimportance in the history of the Company. I have on previous\\noccasions referred to the loyalty of the agency force and the\\nCompany s high appreciation of the continued service of its\\nmen. Among those who entered the Company s employ at a\\ncritical period of its existence, at a time when the business was in\\nits very infancy, and when exceptional courage and extraordinary\\neffort were required to make the business a success, was Superin-\\ntendent Peter Hgenolf, who had entered the Company s field force\\nas an agent on the 10th of November, 1879, or exactly four years\\nafter the first application for Industrial insurance had been\\nreceived by the then Prudential Friendly Society. Mr. Egenolf\\ncelebrated the twentieth anniversary of his connection with the\\nCompany by a banquet tendered by him to the officers of the\\nCompany and the employees of his own office at the Hotel Savoy\\non November 10, 1899. At the dinner, Mr. Dryden, as Presi-\\ndent of The Prudential, paid Mr. Egenolf a high tribute as a\\nworker in the service of the Company, as one who had borne\\nhimself with rare skill, energy and fidelity all through his long\\nservice. He gave some interesting reminiscences of Mr. Egenolf s\\nearly connection with the Company, and concluded by presenting\\nhim with a certificate of membership in The Prudential Old\\nGuard, Class D, likewise with the diamond badge which distin-\\nguishes the members of the Old Guard who have been twenty\\nyears in the Company s employ. The Vice-President of the Com-\\npany, Dr. Leslie D. Ward, also dwelt in his remarks upon the\\nsplendid qualities of Mr. Egenolf, referring to him as one of the\\nmen who had so ably helped to build up The Prudential, and\\nconcluding with the statement that No man in its field service\\nis more highly esteemed than Mr. Egenolf.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0330.jp2"}, "331": {"fulltext": "THE PRUDENTIAL INS. CO. OF AMERICA, 1899. 283\\nAnother veteran Superintendent, Mr. C. V. Dykeman, of the\\nI^ong Island City District, celebrated the completion of his twen-\\ntieth year of service with the Company by giving a banquet at\\nDelmonico s to his brother Superintendents of the Long Island\\nDistrict and some representatives of the home office. Mr. Dyke-\\nman shared equally with Mr. Egenolf the honor of having been\\none of the Company s most loyal and faithful Superintendents\\nduring a period when such sendees were needed most. Mention\\nmust also be made of Mr. L. W. Frisbee and Mr. K. G. Jackson,\\ntwo veteran Superintendents, who have almost completed their\\ntwenty years of sendee with the Company. The Prudential is un-\\nder permanent obligations to these two men for services of the\\nhighest order and the performance of duty under most trying con-\\nditions during the early years of the Company s history. There\\nare also many Agents and clerks whose services extend over two\\ndecades, and who have in no small manner contributed to the won-\\nderful success of the Company, but want of space forbids more\\nthan incidental mention of this fact. It is not too much to say\\nthat in few institutions, in few business organizations, exist such\\nhappy and cordial relations as are found among the officers of The\\nPrudential Insurance Company and its employees.*\\nAt the close of the year the total number of Industrial policies\\nin force had reached 3,406,189, insuring the sum of $389,139,257,\\nindicating a gain over the preceding year of 481,663 Industrial\\npolicies and of $55, 147,057 of Industrial insurance. In combining\\nIndustrial and Ordinary business, The Prudential had in force at the\\nclose of 1899 3,509,417 policies, and insurance amounting to more\\nthan one-half billion of dollars, the exact figures being $502 30 1 48 6\\nOf all the insurance companies in the United States, only four have\\ninsurance in force exceeding this sum, and the youngest of these\\ncompanies is many years older than The Prudential.\\nAnother Superintendent, Mr. W. F. Lawson, of Philadelphia, cele-\\nbrated the anniversary of his twentieth year of continued connection with\\nThe Prudential on January 30, 1900. Mr. Dryden, who was present at the\\nbanquet, referred to Mr. Lawson as one of the men through whose efforts\\nThe Prudential had reached the commanding position of being the leading\\ninsurance company in the State of Pennsylvania. Mr. Lawson represents\\none of the highest types of an Industrial underwriter, and is looked upon\\nas a model by all who have had the privilege of personal relations with him\\nduring his long and exceptionally successful career.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0331.jp2"}, "332": {"fulltext": "284 HISTORY OF THE PRUDENTIAL,\\nCHAPTER XVI.\\nSUMMARY OF CONCLUSIONS AND RESULTS.\\nOf life insurance for workingmen it has been said, with\\nmuch truth, that it is not an end in itself, but a means to an\\nend, that it is primarily a savings institution by which men\\nare assisted to make provision for future contingencies, and\\nwith equal truth, by another authority on social economics, that\\nIt is evident that insurance of various kinds is an indispensa-\\nble condition of that economic security for the laboring classes\\nwhich is so desirable for their happiness and for the welfare of\\nsociety, and which must form part of the solution of the labor\\nproblem. f It is my firm conviction that in the vast improve-\\nment of the material and moral condition of our working people,\\nwhich undoubtedly has taken place during the past quarter-\\ncentury, Industrial insurance has done much to help bring about\\nthis much-to-be-desired result, and that it has had its share in the\\ngradual solution of the so-called labor question by increasing\\nthe degree of economic security and social welfare, the evidences\\nof which we meet with in all directions. But whatever the\\nfinal verdict of the economist and student of social progress,\\none fact stands out broadly which must needs attract atten-\\ntion, and which can neither be ignored nor explained away, the\\nfact that, of all forms of social institutions making for the\\nimprovement of the condition of the masses by the application\\nof sound principles of insurance and finance, Industrial insur-\\nance holds to-day the most commanding position, counting its\\npatrons by more than thirty millions the world over, while in the\\nUnited States, during the short space of a quarter of a century,\\nits operations have reached an extent unknown in the earlier\\nhistory of American life insurance.\\nW. F. Willoughby, Workingmen s Insurance, pp. 2-3. Crowell Co.,\\nNew York, 1898.\\nt Richard T. Ely, The Labor Problem in America, p. 141.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0332.jp2"}, "333": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS.\\n285\\nBy the 1st of January, 1900, the eleven principal Industrial\\ncompanies for which the information has been published returned\\n10,026,442 Industrial policies as in force on December 31, 1899,\\nfor the sum of more than one billion of dollars, or, to be accurate,\\n$1,290,436,355. The table which follows will give the details for\\neach of the eleven companies, together with the location of the\\nprincipal offices, indicating the vast numerical and territorial\\nextent of the business\\nINDUSTRIAL INSURANCE IN THE UNITED STATES.\\nJanuary i, 1900.\\nCompanies.\\nIvOCATION OF\\nHome Office.\\nNo. of Poli-\\ncies in Force.\\nAmts. of Ind.\\nIns. in Force.\\nMetropolitan,\\nJohn Hancock,\\nLife Ins. Co. of Va.,\\nWestern Southern,\\nBaltimore Mutual Aid,\\nPacific Mutual,\\nProvident Life,\\nNew York, N. Y.\\nNewark, N. J.\\nBoston, Mass.\\nRichmond, Va.\\nLouisville, Ky.\\nCincinnati, O.\\nBaltimore, Md.\\nSan Francisco, Cal.\\nJersey City, N. J.\\nBaltimore, Md.\\nWheeling, W. Va.\\n4,855,756\\n3,406,189\\n1,069,197\\n219,679\\n148,049\\nH7,545\\n86,251\\n61,709\\n27,697\\n21,132\\n13,238\\n$688,629,175\\n389,039,257\\n141,609,904\\n20,246,656\\n16,368,863\\n10,881,961\\n5,150,963\\n11,779,229\\n2,854,075\\n2,304,762\\n1,571,510\\n10,026,442\\n$1,290,436,355\\nIf we briefly compare the numerical aspect of the results\\nattained by Industrial insurance companies, with the results at-\\ntained by Ordinary life companies and savings banks, we have\\nproof in the following table that the most recent form of life\\ninsurance and savings has made progress far exceeding the prog-\\nress of other forms of insurance and thrift in this country\\nCOMPARATIVE RESULTS OF INSURANCE AND SAVINGS\\nINSTITUTIONS IN THE UNITED STATES. 1899.\\nNumber of Institutions. Number.\\n11 Industrial Life Companies,* Policy-holders, 10,026,442\\n942 Savings Banks, Depositors, 5,687,818\\n58 Ordinary Life Companies, Policy-holders, 2,807,476\\nSix of these companies transact also an Ordinary business. The num-\\nber of Ordinary policies in force with these companies on December 31,\\n1899, was 268,153, for $300,175,426 of life-insurance protection. Theaverage\\namount per policy, only $1,120, will illustrate the Industrial character of the\\naverage Ordinary risk in the Industrial companies.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0333.jp2"}, "334": {"fulltext": "286 HISTORY OF THE PRUDENTIAL.\\nThis result is without a parallel in economic or social history.\\nIt would have been impossible but for the all-important fact,\\nwhich I feel satisfied has been brought out clearly, that Industrial\\ninsurance, as illustrated in the history of The Prudential Insurance\\nCompany of America, is, like society itself, not a manufacture,\\nbut a growth, a growth, I may add, fully in harmony with the\\nhealthy and normal progress of the working people of this\\ncountry during the past quarter-century. If, in the words\\nof Mr. Devine, it is a mental trait of the economic man,\\nto readily accept the final judgment of the community as to\\nthe market value of the commodities and services he wishes\\nto buy or sell, we must concede that Industrial insurance\\nmust meet not only inherent and definite needs not supplied by\\nother agencies or forms of thrift, but that these wants and\\nneeds are supplied to the satisfaction of the millions who, in\\never-increasing numbers, are becoming patrons of the Industrial\\ncompanies.\\nWe must also accept the further conclusion that the progress\\nof Industrial insurance is evidence of a healthy economic and\\nsocial instinct, and that the requirements of society are fully met\\nin the immediate and remote results which have been accom-\\nplished. I fully agree with Mr. Devine, that It is a mistake,\\nthough not an uncommon one, to credit the economic instinct with\\nthe disposition to place material satisfactions above those which\\nspring from man s higher nature, for the true economic instinct\\nguards against just that tendency. It fixes the eye upon the\\nfuture and highest want, rather than upon the lower and im-\\nmediate want, f and in the light of this reasoning, indicative\\nof a thorough knowledge of the life and struggle of the industrial\\nmasses, I believe that we may, with perfect justice, concede to the\\npolicy-holders of Industrial companies the credit of having aimed\\nhigh in their efforts to improve the condition of their daily strug-\\ngle against poverty and want, by providing to the extent of their\\nability against the uncertainties of human life itself. The more\\nIndustrial insurance is studied, the more, I believe, will others\\nshare with me the conviction that it forms one of the most useful\\nof modern institutions making for the improvement of social life\\nEconomics, p. 13. The Macmillan Co., N. Y., 1898.\\nt Ibid., p. 51.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0334.jp2"}, "335": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS. 287\\nand the increase of economic security. It has properly been\\ncalled family insurance, and such it truly is in the complete\\nsense of the word, including in its beneficence a provision for\\ncertain recognized wants and needs of the entire family, while at\\nthe same time a more or less sufficient provision is made for the\\nimmediate needs of the widow and orphan as the first duty of\\nself-reliant workingmen. If it is true, in the words of Mr.\\nLecky that improved conduct and improved circumstances are\\nto an English mind the chief and almost the only measure of\\nprogress, I, for one, cannot escape the conclusion that, from\\nconsiderations of the highest degree of public welfare, this system\\nof life insurance is worthy of the careful study and sympathetic\\nconsideration of all who have the best interests of the working\\nclasses at heart.\\nWant of space does not permit of a more extended consider-\\nation of the general social and economic aspects of Industrial\\nlife insurance as a modern form of thrift, the result of ages of\\ngradual change and development of the most ancient forms of\\nhuman association, but I trust that I have succeeded in making\\nit plain to the reader that we have in Industrial insurance a\\nform of thrift which no economist or student of social problems\\ncan properly and wisely ignore, a form of thrift which, rather\\nthan deserving of that marked degree of indifference which alone\\nexplains the paucity of all reference to the entire subject of life\\ninsurance in works on economics and social science, is fully\\nworthy of the most careful and thorough study on the part of\\nthose who concern themselves with socio-economic questions di-\\nrectly affecting the welfare of the working people of this country.\\nAs far as it has been possible, I have tried to give full consider-\\nation to all essential phases and aspects of more than passing\\ninterest to the reader and student of insurance progress. I have\\ntraced from the earliest beginning the development of the first\\nCompany organized in the United States for the successful trans-\\naction of this form of insurance, and the development of its\\nmethods and practice in conducting the business. It only re-\\nmains for me to treat of the general results as they are restated\\nin the statistical evidence of the quarter-century progress of The\\nPrudential, and such related evidence as will further illustrate\\nthe importance of this form of life insurance for working people\\nfrom the standpoint of public policy.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0335.jp2"}, "336": {"fulltext": "288\\nHISTORY OF THE PRUDENTIAL.\\nThe first table to which I would direct attention will show in\\na condensed form, yet with sufficient detail, the uninterrupted\\nbusiness progress of The Prudential during the entire period of\\nits history. The returns as to policies in force and the amounts\\nof insurance are given separately for both departments of the\\nCompany s business, for the Industrial for 1876-1899, and for the\\nOrdinary for 1886- 1899\\nTHE) PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\n1876-1899.\\nOutstanding Insurance.\\nYears Ending\\nIndustrial Insurance.\\nOrdinary Insurance.\\nDec. 31ST\\nNo.\\nAmount.\\nNo.\\nAmount.\\n1876,\\n1877,\\n1878,\\n1879,\\n1880,\\n1881,\\n1882,\\n1883,\\n1884,\\n1885\\n1886,\\nI887,\\n1888,\\n1889,\\n1891,\\n1892,\\n1893,\\n1894,\\n1895,\\n1896,\\n1897,\\n1898\\n1899,\\n4,816\\n11,226\\n22,808\\n43,715\\n87,462\\n133,582\\n196,007\\n273,917\\n324,794\\n422,671\\n548,433\\n736,909\\n850,064\\n1,099,312\\n1,228,332\\n1,360,383\\n1,653,465\\n1,941,533\\n2,256,014\\n2,330,741\\n2,437,251\\n2,658,700\\n2,924,526\\n3,406,189\\n$443,072\\n1,030,655\\n2,027,888\\n3,866,913\\n7,347,892\\nIO,959\u00c2\u00bb948\\n15,738,973\\n23,053,935\\n28,545,189\\n40,266,445\\n59,328,627\\n81,694,088\\n92,418,854\\n117,357,415\\n135,084,498\\n150,758,907\\n184,306,206\\n218,199,566\\n259,840,927\\n268,414,100\\n279,030,638\\n303,770,952\\n333\u00c2\u00bb992,200\\n389,039,257\\n427\\n735\\n915\\n1,839\\n3,272\\n5,677\\n8,120\\n10,472\\n17,752\\n30,893\\n35,807\\n52,583\\n71,927\\n103,228\\nl\\n$585,500\\n945,000\\n1,242,929\\n2,328,862\\n4,079, x 56\\n6,801,435\\n9,533,076\\n12,441,733\\n20,504,727\\n34,716,055\\n41,422,845\\n59,346,638\\n80,554,853\\n113,162,229\\nAccording to this table the total number of Industrial policies\\nnow in force is 3,406,189, or more than half a million in excess\\nof the total number of Ordinary policies in force with fifty-eight\\nAmerican life companies in 1899. The Ordinary policies of the\\nCompany number 103,228, placing The Prudential, after but\\nfourteen years of Ordinary business operations, in the front rank\\nwith the giant life companies of the present day. I add, as a", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0336.jp2"}, "337": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS.\\n289\\nfurther indication of progress, a table showing for each year of\\nbusiness operations the annual average amount of insurance in\\nforce per policy for both the Industrial and Ordinary business\\nof the Company\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\n1876-1899.\\nYears Ending Dec. 31ST.\\nAverage Industrial\\nAverage Ordinary\\nPolicy.\\nPolicy.\\n$92 00\\n91 81\\n88 91\\n88 46\\n84 01\\n82 05\\n80 30\\n84 16\\n8789\\n95 27\\n108 18\\n$1,371 19\\nno 86\\n1,285 71\\n108 72\\ni,35 8 39\\n106 76\\n1,266 37\\n109 97\\n1,246 69\\nno 82\\n1,198 05\\nin 47\\ni,i73 78\\n112 39\\n1,188 10\\n115 18\\ni,i55 07\\nn5 16\\n*,i23 75\\n114 49\\n1,156 84\\n114 26\\n1,128 63\\n114 20\\n1,119 95\\n114 22\\n1,096 24\\n1876,\\n1877,\\n1878,\\n1879,\\n1880,\\n1881,\\n1882,\\n1883,\\n1884,\\n1885,\\n1886,\\n1887,\\n1888,\\n1889,\\n1890,\\n1891,\\n1892,\\n1893,\\n1894,\\n1895,\\n1896,\\n1897,\\n1898,\\n1899,\\nIt will be observed that the average amount per policy in\\nforce has been subject to more or less fluctuation as regards the\\nIndustrial business, but, nevertheless, a distinct tendency is\\napparent towards a higher average, while the contrary is to be\\nobserved in the Ordinary business. As regards the Industrial\\nbusiness, this increase in average amounts is due partly to\\nincreased benefits at the earlier ages, and partly to the additional\\nbenefits payable on policies subject to the many voluntary con-\\ncessions, but largely in consequence of an increasing demand for\\npolicies for larger amounts as a means of providing not only for\\nthe burial expenses, but, in addition, for at least a small fund for\\nthe support of surviving members of the family. Cases are\\nbecoming more and more numerous where it can be said that", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0337.jp2"}, "338": {"fulltext": "290 HISTORY OF THE PRUDENTIAL.\\nIndustrial insurance has provided for widows and orphans in\\naddition to its primary purpose of meeting the expenses of burial\\nand last illness. One such case I may mention as having been\\nreferred, to in the Sixteenth Annual Report of the Boston Asso-\\nciated Charities (1895, P- 54) 1 where I find it stated that\\nAfter the death of the man the insurance money was enough to\\npay a few debts and leave enough for the wife to use until some\\ncourse of action could be decided upon. The family is now quite\\ncomfortable. Such illustrations of the value of Industrial insur-\\nance in individual instances could be furnished by the thousands\\nfrom the records of the companies, but want of space forbids more\\nthan incidental mention. Still it is true, as it has well been said,\\nthat The final value of all scientific work lies in the principles\\nevolved from individual instances, and hence the value of cases\\nlike the one quoted.\\nThe decrease which has taken place in the average amount\\nof Ordinary policies must also be accepted as proof of the asser-\\ntion that Industrial companies, in developing their Ordinary\\nbusiness, have done so in a different direction than that fol-\\nlowed by other Ordinary companies, in that they have extended\\nthe benefits of life insurance, after a vast amount of insurance\\neducation, to a class of people who have not been reached\\nby the non-Industrial level-premium companies. The vital\\ndifference between the Ordinary business transacted by Indus-\\ntrial companies and the business of other Ordinary companies\\nis illustrated by the fact that, while the average amount of an\\nOrdinary policy in The Prudential in 1899 was $1,094, the\\naverage amount for all Ordinary companies reporting to the\\nNew York Insurance Department in 1898 was $2,382, a very\\nmaterial difference, indicating that the Industrial companies\\nextend the benefits of Ordinary life insurance to a class of people\\nnot reached by the other Ordinary life companies.\\nI find mention of a somewhat similar case in the Fortieth Annual\\nReport of the Chicago Relief and Aid Society, where it is stated that\\nNo. 43,660 is the case of a German with a wife and two boys, eleven\\nand eight years old. He bore an exceptionally high character, and had\\nnever needed or asked aid till after a six months illness of cancer of the\\nstomach, of which he died a month later. The widow received $500 insur-\\nance, and after paying the funeral expenses and other debts incurred depos-\\nited the remaining three hundred in Dreyer s Bank, which failed.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0338.jp2"}, "339": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS.\\n291\\nWhile at first The Prudential confined its operations exclu-\\nsively to the transaction of an Industrial business and only com-\\nmenced the Ordinary business in 1886, it will be observed, on\\ncomparing the number of Industrial and Ordinary policy-holders,\\nthat at present the Ordinary business forms 2.9 per cent, of the\\ntotal number of policies in force, while in amount the Ordinary\\nforms 22.5 per cent, of the entire business of the Company. Since\\nthe ratio of Ordinary to total business has been gradually, though\\nvery slowly, on the increase, it may be assumed that this growth of\\nthe Ordinary department will continue and in time assume propor-\\ntions equally extensive with the Industrial part of the business.\\nThe aggregate premium income of the Company, from both\\nthe Industrial and Ordinary business, during the past twenty-\\nfour years of business operations, is set forth in the following\\ntable\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\n1876-1899.\\nPremium Income.\\nYears Ending\\nDec. 31ST.\\nIndustrial.\\nOrdinary.\\nTotal.\\n1876,\\n1877\\n1878,\\n1879,\\n1880,\\n1881,\\n1882,\\n1883,\\n1884,\\n1885,\\n1886,\\nI88 7\\n1888,\\n1889,\\n1890,\\n1891,\\n1892,\\n1893,\\n1894,\\n1895,\\n1896,\\n1897,\\n1898,\\n1899,\\n$14,495\\n28,517\\n59,817\\n121,560\\n250,958\\n402,947\\n571,595\\n828,911\\n1,127,738\\n1,468,956\\n2,099,523\\n2,9\u00c2\u00b08,555\\n3,616,168\\n4,374,486\\n5,513,898\\n6,217,729\\n7,214,561\\n8,679,468\\n10,295,877\\n10,901,674\\n11,991,713\\n12,762,951\\n13,642,191\\n15,411,254\\n$14,773\\n33,702\\n43,327\\n68,347\\n122,978\\n195,554\\n311,283\\n405,376\\n594,425\\n99 x ,\u00c2\u00b093\\ni,337,93i\\n1,788,917\\n2,497,261\\n3,6i7,538\\n$14,495\\n28,517\\n59,817\\n121,560\\n250,958\\n402,947\\n571,595\\n828,911\\n1,127,738\\n1,468,956\\n2,114,296\\n2,942,257\\n3,659,495\\n4,442,833\\n5,636,876\\n6,413,283\\n7,525,844\\n9,084,844\\n10,890,302\\n11,892,767\\nI3,329 644\\n14,551,868\\n16,139,452\\n19,028,792\\nTotal,\\n$120,505,542\\n$12,022,505\\n$132,528,047", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0339.jp2"}, "340": {"fulltext": "292\\nHISTORY OF THE PRUDENTIAL.\\nIt is shown by this table that while the annual premium\\nincome now exceeds nineteen million dollars, the aggregate\\nduring the past twenty-four years has been $132,528,047. The\\ntable is properly supplemented by one showing the aggregate\\nincome of the Company from all sources, including the income\\nfrom interests, rents, etc. which now annually exceeds one and\\na half million dollars:\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\n1876-1899.\\nTotal, Income.\\nYears Ending\\nDec. 31ST.\\nFrom Policy\\nHolders.\\nFrom Other\\nSources.\\nTotal.\\n1876,\\n1877,\\n1878,\\n1879,\\n1880,\\n1881,\\n1882,\\n1883,\\n1884,\\n1885,\\n1886,\\n1887,\\n1888,\\n1889,\\n1890,\\n1891,\\n1892,\\n1893\\n1894,\\n1895,\\n1896,\\n1897,\\ni8y8,\\n1899,\\n$14,495\\n28,517\\n59,817\\n121,560\\n250,958\\n402,947\\n571,595\\n828,911\\n1,127,738\\n1,468,956\\n2,114,296\\n2,942,257\\n3,659,495\\n4,442,833\\n5,636,876\\n6,413,283\\n7,525,844\\n9,084,844\\n10,890,302\\n11,892,767\\n13,329,644\\n14,551,868\\n16,139,452\\n19,028,792\\n$48\\n119\\n663\\n7,067\\n20,964\\n9,718\\n12,998\\n16,992\\n28,842\\n40,707\\n50,661\\n71,094\\n97,589\\n158,465\\n184,777\\n290,349\\n363,034\\n437,068\\n567,032\\n692,771\\n828,802\\n1,028,897\\n1,342,424\\n1,557,408\\n$14,543\\n28,636\\n60,480\\n128,627\\n271,922\\n412,665\\n584,593\\n845,903\\n1,156,580\\n1,509,663\\n2,164,957\\n3,013,351\\n3,757,o84\\n4,601,298\\n5,821,653\\n6,703,632\\n7,888,878\\n9,521,912\\nn,457,334\\n12,585,538\\n14,158,446\\n15,580,765\\n17,481,876\\n20,586,200\\nTotal,\\n$132,528,047\\n$7,808,489\\n$140,336,536\\nThe total income from other sources than premiums during\\nthe twenty-four years of business operations has been, as shown,\\n$7,808,489, which, added to the preceding total of $132,528,047,\\nmakes a grand total income from all sources, during the period\\n1 876-1 899, of $140,336,536. All this has been achieved by a", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0340.jp2"}, "341": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS.\\n293\\nCompany transacting a form of life insurance practically unknown\\nin this country twenty-five years ago. But a still more stupendous\\nresult is disclosed in the aggregate of business transactions in the\\nfield operations of The Prudential, as indicated by the statement\\nof new insurance written during each of the years forming the\\nperiod 1 876-1 899\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\n1876-1899.\\nNew Insurance Issued.\\nYears Ending\\nIndustrial.\\nOrdinary.\\nDec. 31ST.\\nNo.\\nAmount.\\nNo.\\nAmount.\\n1876,\\n1877,\\n1878,\\n1879,\\n1880,\\n1881,\\n1882,\\n1883,\\n1884,\\n1885,\\n1886,\\n1887,\\n1888,\\n1889,\\n1890,\\n1891,\\n1892,\\n1893,\\n1894,\\n1895,\\n1896,\\n1897,\\n1898,\\n1899,\\n7,904\\nIO,52I\\n20,064\\n35,879\\n101,856\\n124,746\\nJ 5i,956\\n227,417\\n266,718\\n304,773\\n391,278\\n519,577\\n558,339\\n721,830\\n808,597\\n623,804\\n804,075\\n1,086,780\\n1,696,847\\n1,044,686\\n957,8o4\\n1,008,868\\n1,043,998\\n1,401,399\\n$727,168\\n967,932\\n1,785,696\\n3,157,352\\n8,555,904\\n9,688,362\\nll,54I,2IO\\n20,426,140\\n24,892,268\\n28,860,882\\n49,142,316\\n60,202,194\\n58,214,981\\n73,576,853\\n95,674,484\\n72,966,176\\n92,677,524\\n128,208,941\\n205,128,243\\n124,374,407\\n108,223,712\\n112,371,379\\n121,080,784\\n165,760,248\\n552\\n574\\n458\\n1,280\\n2,484\\n3,827\\n4,503\\n5,280\\n12,245\\n23,503\\n17,695\\n29,002\\n39,2o8\\n54,342\\n$728,500\\n689,000\\n632,413\\n1,568,542\\n3,075,376\\n4,449, 1 77\\n5,080,097\\n6,256,198\\n13,872,559\\n25,706,280\\n21,190,031\\n31,581,798\\n43,614,000\\n56,914,383\\nTotal,\\n13,919,716\\n$1,578,205,156 194,953\\n$215,358,354\\nIt is apparent from a study of this table that the annual\\nvolume of new business has been subject to very considerable\\nfluctuations, but much more so in the Industrial than in the\\nOrdinary business of the Company. In the former, the largest\\nvolume of business was written during 1894, next to which comes", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0341.jp2"}, "342": {"fulltext": "294 HISTORY OF THE PRUDENTIAL.\\nthe record for the year just closed, while in Ordinary business\\nthe largest volume of new applications was secured during\\n1899. The aggregate result of a quarter-century of effort to\\nextend the principles of life insurance to the masses is\\nsummed up in the total of 13,919,716 Industrial and 194,953\\nOrdinary policies written and revived during the period. If\\nfrom this total we deduct the number of policy-holders whose\\ndeaths are represented in the return of claims paid, we have\\nstill a vastly larger number than are now in force on the books\\nof the Company. The difference between the business written\\nand the business at present in force, minus the mortality\\nduring the period, represents the lapses, the terminations, or\\nthe waste. But not wholly so. Large numbers who have\\nlapsed had for a time the benefit of life-insurance protection,\\nwhile all had a more or less complete opportunity to study\\nand reflect upon insurance principles by the temporary protection\\nand the possession of literature and contracts illustrating the\\nmethods and results of The Prudential. The subject has been\\ntouched upon in other portions of the work, and need not be\\nreconsidered here in detail, except that it may be pointed out\\nthat the sincerity of the Company in its constant efforts to\\nreduce the lapse-rate is, by inference, to be found in the fact\\nthat if the Company had never been compelled to lapse a policy\\nit would now have on its books an amount of life insurance\\nvastly in excess of what is actually the case. Instead of having\\nan Industrial premium income of $15,411,254, the annual\\nincome would be approximately $63,000,000, and instead of\\nhaving three and a half million of policies in force, the number\\nwould be approximately 12,600,000. Nor can a fair comparison\\nbe made with the lapse-rate prevailing in Ordinary companies,\\nfor it must be taken into account that the policy-holder of an\\nIndustrial company has fifty-two chances to lapse his policy to\\nthe, at most, four chances of an Ordinary policy-holder. Still,\\neven when such comparisons are made they are not always to\\nthe disadvantage of the Industrial companies, and we have an\\nexcellent illustration in the experience of The Prudential, which\\nduring the year 1899 revived of the total new Industrial issue\\n6.1 per cent, against only 4.8 per cent, of the Ordinary issue.\\nSince frequent mention has been made of Industrial paid-up\\npolicies, it may not be out of place to state the facts briefly as to", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0342.jp2"}, "343": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS.\\n295\\nthe Company s experience with this feature of business operations\\nduring recent years\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\n1890-1899.\\nPaid-dp Policies.\\nINDUSTRIAL POLICIES.\\nYears Ending Dec. 31ST.\\nNumber.\\nPercentage of Total\\nNew Issue.\\n1891\\n1892,\\n1893,\\n1894,\\n1895,\\n1896,\\n1897,\\n1898,\\n1899.\\n195\\n175\\n130\\n199\\n962\\n1,815\\n10,695\\n39 2 40\\n32,629\\n31,333\\nO.02\\nO.03\\nO.02\\nO.02\\nO.06\\nO.17\\n1. 12\\n3-89\\n3-13\\n2.24\\n1890-1899,\\nH7,373\\n1. 12\\nAccording to this table there have been issued during the\\npast ten years 117,373 Industrial paid-up policies, which repre-\\nsent an aggregate total of $4,026,900 paid-up insurance protec-\\ntion. The ratio of paid-up policies to the total new issue was\\nhighest during 1897, and since that date there has been a marked\\ndecline. It would be defeating the very objects of life insurance\\nif the surrender values of Industrial or, for that matter, of\\nOrdinary policies were made sufficiently attractive to make such\\nsurrender profitable or expedient. It must needs be the aim of\\nevery insurance company to attain the primary object of the\\ninsurance contract, and entirely too much attention has been\\ngiven to a question of far less importance than some writers, and\\nespecially professional agitators, have attached thereto. It has\\nbeen the aim of The Prudential to deal equitably with unfortunate\\npolicy-holders, and no company has been more ready to make\\nvoluntary concessions and grant exceptional privileges than The\\nPrudential. But the managers of the Company have never lost\\nsight of the fact that persistent policy-holders are entitled to", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0343.jp2"}, "344": {"fulltext": "296 HISTORY OF THE PRUDENTIAL.\\nfull protection, and it would be a violation of its trusteeship of\\nthe interests of millions of policy-holders if, by over-liberal\\nconsideration of the few, the entire structure of Industrial\\ninsurance should be placed in peril. Hence, the fact deserv-\\ning of most serious consideration, that in life insurance, to\\naccomplish the purpose of the business, the surrender or lapse of\\na policy should be at all times a partial loss to the insured, while\\nits revival and persistence in premium payment should at all times\\nbe to the advantage of the insured.* If the companies have suc-\\nceeded in making such exceptional progress, it is largely due to\\nthe fact that the largest benefits and best results come to those\\nwho maintain the integrity of their contracts and keep their\\npolicies in force until death or maturity. f For, as it has been\\nsaid with much truth, it is the object of a life-insurance com-\\npany to pay claims, and this object is largely defeated by\\nthe surrender of contracts, which, if kept in force, would\\nhave realized much larger returns than are possible on policies\\nvoided by the non-payment of premiums during the life-time of\\nthe insured. It is, therefore, with special interest that the next\\ntable should be studied, as a comprehensive statement of the\\nIn England the question of surrender privileges has received con-\\nsiderable attention, especially in connection with parliamentary investiga-\\ntions into the practices and methods of Friendly Societies. In one of\\nthese investigations a witness called the attention of the Commission to the\\nfact that the power of a member to borrow on his death certificate of\\nmembership was objectionable, for, he stated, A member may never\\nbecome entitled to funeral money. It is contrary to the principles of a\\nFriendly Society, and tends to cheat the widow; and that Even the\\nborrower thought it bad in the end. (Young s Report, p. 70.) In\\nAmerican Fraternal Societies and Assessment organizations, ostensibly\\noperated for the sole benefit of the insured, there are no surrender provi-\\nsions and no loan privileges, and the same holds practically true for the\\nEnglish Friendly Societies of to-day.\\nf There can be no question that the company s first duty is to those to\\nwhom it remains under contract obligation its continuing policy-holders.\\nIt has first to consider how they are affected by a withdrawal of one of\\ntheir number, how the sure basis of its operations, the solvency of its con-\\ntracts, and the future cost of their administration stand affected. The\\nelements of the problem are definite, the determination of their weight,\\nthe measurement of their operative force is somewhat a matter of varying\\ncircumstances. (Jacob L. Greene at the Milwaukee Convention of Insur-\\nance Commissioners, 1898.)", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0344.jp2"}, "345": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS.\\n297\\ndirect financial results to the beneficiaries of policy-holders during\\nthe past twenty- four years of active business operations\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\n1876-1899.\\nTOTAI, DISBURSEMENTS TO POUCY-HOLDERS.\\nYears Ending\\nDec. 31ST.\\n1876,\\n1877,\\n1878,\\n1879,\\n1880,\\n1881,\\n1882,\\n1883,\\n1884,\\n1885,\\n1886,\\n1887,\\n1888,\\n1889,\\n1890,\\n1891,\\n1892,\\n1893,\\n1894,\\n1895,\\n1896,\\n1897,\\n1898,\\n1899,\\nTotal,\\nIndustrial.\\n$1,958\\n5,296\\nH,338\\n23,013\\n57,256\\n111,508\\n157,706\\n222,083\\n322,382\\n418,622\\n593,273\\n841,319\\n1,091,723\\n1,313,948\\n1,725,925\\n2,055,580\\n2,466,406\\n2,811,332\\n3,H9 956\\n3,655,513\\n4,083,839\\n4,522,932\\n4,861,553\\n5,426,545\\n$39,901,006\\nOrdinary.\\n$12,595\\n5,l6l\\n17,375\\n28,973\\n49,722\\n73,250\\n104,876\\n117,239\\n259,978\\n322,678\\n463,844\\n527,850\\n830,100\\n$2,813,641\\nTotal.\\n$1,958\\n5,296\\nH,338\\n23,013\\n57,256\\n111,508\\n157,706\\n222,083\\n322,382\\n418,622\\n593, 2 73\\n853,914\\n1,096,884\\n1,331,323\\n1,754,898\\n2,105,302\\n2,539,656\\n2,916,208\\n3,237,195\\n3,915,491\\n4,406,517\\n4,986,776\\n5,389,403\\n6,256,645\\n[2, 714,647\\nIt will be observed that, in the aggregate, there has been\\nreturned to the Prudential policy-holders and their beneficiaries\\nthe vast sum of $42,714,647. The annual disbursements on In-\\ndustrial business have now reached almost five and a half million\\ndollars, to which must be added $830, 100 of returns to Ordinary\\npolicy-holders, or a total of payments to beneficiaries during 1899\\nof $6,256,645, being equal to an average weekly payment of over\\n$1 20,000. How much suffering and want this vast sum mitigates,\\nand partly, at least, prevents by timely assistance, no words can\\nadequately describe. Only those who have an intimate knowledge", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0345.jp2"}, "346": {"fulltext": "298\\nHISTORY OF THE PRUDENTIAL.\\nof the life and struggle of the industrial population can even\\nfaintly understand the deeper meaning of these figures, figures\\nwhich indicate only in small part the vast amount of good accom-\\nplished through the medium and by the method of Industrial\\nlife insurance. But it would, indeed, be a grave error to look\\nupon the results attained in the payment of claims as the sole test\\nof the efficiency and beneficence of this system of insurance. The\\nfar more important point is to remember that there remains in\\nforce more than $389,000,000 of insurance protection on the lives\\nof Industrial policy-holders, every dollar of which is fully secured\\nby an adequate reserve safely invested in the very best kind of\\nsecurities, fully warranting the claim that The Prudential has\\nthe strength of Gibraltar. The finances of the Company, the\\nassets and surplus to policy-holders, and the liabilities, determined\\nby the most careful methods of actuarial valuation as applied to\\nOrdinary life insurance, are fully set forth in the table which\\nfollows\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\n1876-1899.\\nYears Ending\\nDecember 31ST.\\n1876,\\ni877\\n1878,\\n1879,\\n1880,\\n188 1,\\n1882,\\n1883,\\n1884,\\n1885,\\n1886,\\n1887,\\n1888,\\n1889,\\n1890,\\n1891,\\n1892,\\n1893.\\n1894,\\n1895,\\n1896,\\n1897,\\n1898,\\n1899,\\nAssets.\\n$2,232\\n7,371\\n21,391\\nI39, 8o 3\\n168,154\\n253,853\\n392,269\\n563,178\\n752,878\\n1,040,816\\n1,425,720\\n1,967,369\\n2,874,163\\n3,924,295\\n5,084,895\\n6,889,674\\n8,840,853\\n11,021,445\\n13,041,810\\n15,780,154\\n19,541,828\\n23,984,570\\n28,887,196\\n33,948,76o\\nINABILITIES.\\n(4 50\\n$256\\n7,034\\n30,265\\n71,170\\n138,067\\n227,233\\n387,521\\n423,438\\n635,827\\n1,019,617\\n1,480,291\\n2,097,944\\n2,853,230\\n3,741,021\\n5,440,617\\n6,622,411\\n8,285,884\\n10,100,033\\n12,470,317\\nI5,507,7H\\n18,744,452\\n22,998,301\\n27,934,337\\nSurplus.\\n(4*)\\n$2,232\\n7,115\\n14,357\\n109,538\\n96,984\\n115,786\\n165,036\\n175,657\\n329,440\\n404,989\\n406,103\\n487,078\\n776,219\\n1,071,065\\n1,343,874\\n1,449,057\\n2,218,442\\n2,735,561\\n2,941,777\\n3,309,837\\n4,034,117\\n5,240,118\\n5,888,895\\n6,014,423", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0346.jp2"}, "347": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS. 299\\nThere is abundant evidence in this table of inherent strength\\nand permanent financial stability. Year by year material im-\\nprovement has been made in the accumulation of substantial\\nassets and of a sufficient surplus, until to-day this margin of safety\\nexceeds six million dollars. As to the investment of the vast\\naccumulation of assets, accumulated and held as a sacred fund for\\nthe discharge of maturing obligations, it may be of interest to\\nthe reader to know that, of the sum of over thirty-three million\\ndollars (three times the amount of accumulations of only seven\\nyears ago), 72.4 per cent, is invested in bonds and mortgages\\n(including railroad and municipal bonds), 13.9 per cent, is in-\\nvested in real estate, 8.3 per cent, consists of cash in bank, 3.0\\nper cent, is represented by premiums in course of collection,\\n1.4 per cent, by loans on policies and collateral securities, while\\n1.0 per cent, represents accrued interest and rents. Of the\\nliabilities of the Company, 81.8 per cent, represent the reserve\\nto the credit and for the security of policy-holders 17.7 per\\ncent, represent the surplus, including capital and 0.5 per\\ncent, represent other liabilities not included in the two preceding\\nitems.\\nToo much stress cannot be laid on the absolute financial secu-\\nrity to millions of policy-holders represented by these figures\\nand facts dealing with the finances of the Company. The whole\\nhistory of so-called co-operative and assessment insurance is one\\nlong record of failure and of fraud, representing untold millions\\nof wasted money and untold millions of unpaid claims, but most\\nof all a record of the shameful betrayal of a sacred trust. It is\\nsomething very considerably to the credit of the managers of\\nIndustrial insurance companies that failure and insolvency have\\nbeen made impossible by the safe and substantial foundations on\\nwhich the structure of Industrial insurance rests, and which, as\\nfar as human judgment goes, will endure as long as the Republic\\nitself.\\nWhere so large a number of business transactions are\\nrequired, affecting so considerable a number of people as are\\nrepresented in the policy-holders of The Prudential, it will be of\\ninterest to place on record the actual number of employees of the\\nCompany on February 1, 1900, together with the corresponding\\ndata for the year 1885, for which the information has been given\\nin an earlier portion of this work", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0347.jp2"}, "348": {"fulltext": "30o\\nHISTORY OF THE PRUDENTIAL.\\nOFFICE AND AGENCY FORCE OF\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\n1885 AND I9OO.\\nForce.\\n1885\\n1900\\nAssistant Superintendents of Districts,\\nInspectors of Districts,\\n125\\n34\\n150\\n1,200\\n811\\n203\\n1,640\\n34\\n7,802\\nTotal Office and Field Force,\\n1,509\\n10,490\\nTo the total force for the present year must properly be\\nadded a field medical staff of 3,884 examining physicians, and\\nfurther 45 employees in the printing department and 46 em-\\nployees in the home-office building as janitors, elevator attend-\\nants, etc. The increase in the total office and field force during\\nthe period 1 885-1900 has been 595 per cent., while during the same\\ntime the business operations of the Company, as measured by\\nthe amount of Industrial insurance in force (not taking into\\naccount the Ordinary business), have increased 863 per cent.,\\nin other words, the large increase in employees has been made\\nnecessary by the still larger increase in business operations. The\\nincrease is perhaps best illustrated by the average weekly issue\\nof new policies, as shown in the following table for the three\\nyears, 1879, 1889 and 1899\\nAVERAGE NUMBER OF NEW POLICIES ISSUED WEEKLY BY\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\n1879, I 889, 1899.\\nYears Ending Dec. 31ST.\\nIndustrial.\\nOrdinary.\\nWeekly Issue.\\nWeekly Issue.\\n1879,\\n1889,\\n1899,\\n690\\n13.881\\n26,950\\n25\\n1,044", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0348.jp2"}, "349": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS. 301\\nThe actual extent of business operations will be more clearly\\nrealized in this statement of weekly office transactions reaching\\nnow an average issue of more than 28,000 new policies, and\\nweekly claim payments exceeding $120,000.\\nA very interesting and suggestive illustration of the develop-\\nment and highly complex nature of the business of Industrial\\ninsurance is supplied by the statistics of the Printing and Supply\\nDepartments of The Prudential. According to the returns for\\nthe year 1899, these two departments employ more than sixty\\npersons, while nine presses are kept continually at work to meet\\nthe demands of the office and field force for the large number of\\nforms and different kinds of supplies required. During 1899\\nthere were shipped daily by express, or otherwise, three and one-\\nhalf tons of matter pamphlets, paper, forms, letter-heads, etc.\\nA large amount of the necessary printing includes the issue of\\ntwo regular publications The Prudential, for distribution to\\nthe Industrial policy-holders, and The Weekly Record, for\\ndistribution to the field force. The Prudential is issued every\\nother month, the edition never being less than two million copies.\\nThis paper contains much useful information on the subject of\\nIndustrial insurance, rate tables, health notes for the home, and\\na list of current claim payments. The Weekly Record is for\\nthe field force, and contains, in addition to useful information on\\nthe subject of life insurance, a record of the results obtained from\\nweek to week by the principal Superintendents, Assistants and\\nAgents of the Company s field force. The Weekly Record\\nhas proven a most useful element in the development of an esprit\\nde corps and acts directly as an incentive and an encouragement\\nto increased efforts on the part of those who are making a deter-\\nmined struggle for individual success and leadership as Industrial\\nlife underwriters.\\nSo much having been said as regards extent of operations,\\nsome information as to the class of people insured on the\\nIndustrial plan with The Prudential Insurance Company may be\\nof interest. This question can be answered in a number of ways,\\nbut I confine myself to data relating to the nationality and occupa-\\ntion of the insured. First, as regards race and nationality, it will\\nbe recalled that it is not now the practice of the Company to solicit\\nnegro risks, on account of adverse legislation compelling Industrial\\ncompanies to grant the same benefits to persons of color as are", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0349.jp2"}, "350": {"fulltext": "302\\nHISTORY OF THE PRUDENTIAL.\\npaid to whites, in contrast to the recognized fact that the for-\\nmer are subject to a death-rate about 50 per cent, higher than\\nthe latter. Hence the proportion of colored persons is smaller\\nthan would be the case were the former and more equitable prac-\\ntice still in vogue. Of the total number of decedents in the\\nIndustrial experience of The Prudential during the period 1891-\\n1898, only 2.5 per cent, were persons of color.\\nNationality of Decedents Insured under Industrial Policies in\\nThe Prudential Insurance Company of America.\\n1898.\\nNationality of Decedents.\\nPer Cent, of Total\\nMortality.\\nNative-Born,\\nBorn in the United Kingdom,\\nGermany,\\nCanada,\\nAustria-Hungary,\\nScandinavia,\\nSwitzerland,\\n1 Russia, Poland and Finland,\\nItaly,\\nFrance,\\nHolland and Belgium,\\nSouth America, Mexico and West Indies,\\nSpain, Portugal and Azores,\\nAsia, Africa and Turkey,\\n62.18\\n22.07\\n12.01\\n0.94\\n0.74\\n0.65\\n0.29\\n0.29\\n0.27\\n0.26\\n0.20\\n0.04\\n0.03\\n0.03\\nIt is shown in this interesting tabulation, as far as I know,\\nthe first of its kind relating to Industrial insurance, that of all\\nthe deaths during the year 1898, 62.2 per cent, were of persons of\\nnative birth. Unfortunately, no data are at the command of the\\nCompany as to the parentage of the insured, this question not\\nbeing asked in the application, but the fact is, nevertheless, signifi-\\ncant that the larger proportion of the insured in The Prudential\\nare native-born. Next in numerical importance to those of native\\nbirth come persons born in the United Kingdom, but of the latter\\nthe majority are Irish, who, as is well known, form a very large\\nproportion of the population of the United States. Natives of\\nGermany form 12.0 per cent, of the total insured, while the re-\\nmainder is made up of practically every nationality forming the", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0350.jp2"}, "351": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS. 303\\nheterogeneous population of this country.* The fact that so large\\na proportion of Germans should be insured is of considerable\\ninterest, since it is generally conceded that this element of our\\npopulation is not only of a most thrifty and saving disposition, but\\nalso at the same time the most cautious and prudent in making\\nlife-insurance provision on plans not likely to lead to disappoint-\\nment and litigation. It may not be out of place to add, by way\\nof comment, that during recent years Industrial insurance on the\\nplan of The Prudential has made very material progress in Ger-\\nmany, in spite of the fact that compulsory government insurance\\nis supposed to meet all of the needs of the working population,\\nand with German thoroughness a hand-book on Die Kleine\\nI^ebens-Versicherung has recently been published as a guide for\\nprospective insurers.\\nThe facts pertaining to the nationality of the insured popula-\\ntion are, therefore, confirmatory evidence that the class of people\\ninsured with Industrial companies represents a normal proportion\\nof natives and foreigners, and that it is an error to suppose that\\nthe demand for this form of insurance is largely limited to the\\nforeign-born or to a distinct element of the emigrant population.\\nWhile we have no absolute test as to the moral or mental char-\\nacteristics of these people, we at least have the proof that no\\nspecial selection of a distinct class or element of the population\\nexists, and that, in view of the large proportion of native-born\\npolicy-holders, the system of Industrial insurance must properly\\nbe looked upon as national in its scope and operations.\\nA still more satisfactory test as to the character of the class\\nof risks accepted by The Prudential is supplied by a detailed state-\\nment of the principal occupations of the insured, and for this\\nDuring 1899 The Prudential Insurance Company paid Industrial claims\\nin the following countries\\nAustralia, Austria, Azores, Belgium, Canada, China, Denmark, England,\\nGermany, India, Ireland, Italy, Norway, Russia, Scotland, South Africa,\\nSweden and Switzerland.\\nSince the Company does not transact business outside of the United\\nStates, all of the claims paid in foreign countries represent policies origi-\\nnally taken out in the United States, but continued in force after the return\\nof emigrant policy-holders to their native land.\\nThis list does not include claims paid in Cuba, Puerto Rico, the Phil-\\nippines and the Sandwich Islands, or on sailors and soldiers in the service of\\nthe United States.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0351.jp2"}, "352": {"fulltext": "3\u00c2\u00b04\\nHISTORY OF THE PRUDENTIAL.\\npurpose I have taken account of the occupation of those who\\ndied during the two years 1897 an( i 1898\\nTHE PRUDENTIAL INSURANCE COMPANY OP AMERICA.\\nPrincipal Occupations of White Mai.es.\\nIndustrial Mortality Experience, 1897-1898.\\nTotal Number of Male Decedents (aged 15 and over); 24,237.\\nNo.\\nLetter Carriers, 27\\nPolicemen, 71\\nSoldiers, 139\\nActors, 18\\nLawyers, Judges, etc., 23\\nClergymen, 13\\nMusicians, 51\\nPhotographers 19\\nPhysicians, 17\\nTeachers, 19\\nVeterinary Surgeons, 11\\nBarbers, 189\\nHotel-keepers, 93\\nSextons, 14\\nWatchmen, 267\\nDrivers, Truckmen, 951\\nElevator Men, 17\\nRailway Employees, 489\\nTelegraphers, 30\\nBoatmen, 64\\nLongshoremen, 68\\nPilots, 10\\nSailors, 72\\nCaptains, 30\\nBakers, Confectioners, 211\\nDruggists, 145\\nGrocers, 206\\nHardware Dealers, 116\\nLiquor Dealers, 197\\nBartenders, 211\\nMerchants, Dealers, 260\\nMillers, 37\\nSalesmen, 197\\nUndertakers, 43\\nAgents, 174\\nBook-keepers, 156\\nBrokers, n\\nClerks, 665\\nStenographers, 11\\nNo.\\nTobacco Workers, 238\\nElectrical Workers, 273\\nGas Workers, 117\\nGlass Workers, 123\\nJewelers, 166\\nGold and Silver Workers, 171\\nBrass Workers, 71\\nCopper Workers, 11\\nBlacksmiths, 401\\nIron Workers, 715\\nTin Workers, 145\\nShoemakers, 558\\nTanners, 65\\nMachinists, 460\\nPaper Workers, 40\\nPrinters, Compositors, 223\\nLithographers, 27\\nRubber Workers, 20\\nHatters, 133\\nTailors, 350\\nCarpet Workers, 30\\nSilk Workers, 73\\nRopemakers, 21\\nSpinners and Weavers, 144\\nCoopers, 171\\nCarpenters, Cabinetmakers, 1,002\\nContractors, 53\\nMasons, 401\\nBrickmakers, 33\\nMarble Workers, 32\\nPlumbers, 201\\nPotters, 53\\nStone-cutters, 122\\nPainters, 550\\nRoofers, 48\\nRiggers, 18\\nFarmers, 704\\nGardeners, 209\\nFishermen, 57\\nMiners, 442\\nQuarrymen, 29\\nEngineers, Firemen, 364", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0352.jp2"}, "353": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS.\\n305\\nThe white adult male decedents in The Prudential s Indus-\\ntrial experience of 1897 an( 1898 ma J be grouped, according to\\noccupation, as follows\\nOccupations.\\nTrades, Industries and Manufactures,\\nLaborers,\\nMerchants and Dealers,\\nBuilding and Construction,\\nTransportation and Communication,\\nAgriculture, Mining, Fisheries,\\nPersonal Service,\\nProfessional Service,\\nGovernment and Defense,\\nNo Occupation and Unstated,\\nTotal,\\nPbr Cent, of\\nNo.\\nTotal.\\n5,872\\n24.2\\n4,944\\n20.4\\n3,33i\\n13-7\\n2,979\\n12.3\\n2,036\\n8.4\\n1,704\\n7.0\\ni,449\\n6.0\\n456\\n1.9\\n314\\n1-3\\n1,152\\n4.8\\n24,237\\nIOO.\\nThese tables bring out very clearly the truly industrial\\ncharacter of the business, and, had space permitted, a more\\ndetailed list of occupations would have shown that practically\\nevery profession, trade and industry is represented among the\\npolicy-holders in about the same proportion as in the general\\npopulation according to the United States census of 1890. It is\\nshown that among the insured are clergymen, lawyers, justices,\\nphysicians, teachers, soldiers, sailors, firemen and policemen\\nevery form of social life finds its representation, though, as a\\nmatter of course, the larger proportion of the insured are laborers,\\nskilled and unskilled, employed in the numerous industries and\\ntrades. It is a matter of regret that it is not possible to give\\nthe exact number of persons insured in the various occupations)\\nbut a statistical investigation of the occupation of the living\\nwould hardly be productive of sufficiently important practical\\nresults to warrant the necessary expenditure of money and time\\nfor tabulation and analysis, dealing, as The Prudential does,\\nwith millions of policy-holders but the mortality returns here\\ngiven will be sufficient to indicate the truly industrial nature of\\nthe business. Estimates of the probable number insured, based\\non the number of deaths during two years, have been made by the\\nwriter, but so many factors have to be taken into consideration that\\nthe results can be only approximately correct. Still, as regards the\\nmost important occupations it may be of interest to the reader to", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0353.jp2"}, "354": {"fulltext": "306 HISTORY OF THE PRUDENTIAL.\\nlearn that, on the basis of the best available data, The Prudential\\nin 1898 had approximately 113,100 laborers, 27,343 teamsters\\nand drivers, 30,700 carpenters, 20,300 iron and steel workers,\\n18,000 farmers, 34,700 clerks, 14,600 shoemakers, 18,200 printers,\\n24,100 railway employees, 17,900 miners and 16,000 machinists\\ninsured on the Industrial plan of life insurance.\\nAs to the occupations of women, I have also been compelled\\nto limit my table to a small number of interesting employments\\nand pursuits. The proportion of the sexes of the insured is, in\\nthe Industrial experience of The Prudential, about the same\\nas in the general population,* and, as must necessarily be the\\ncase, a large majority of insured women are housekeepers. For\\nthe remainder I give a table illustrating the truly industrial and\\nnational character of the business of the Company\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\nPrincipal Occupations of Females.\\nIndustrial Mortality Experience, 1897-1898.\\nTotal Number Adult (aged 15 and over) White Female\\nDecedents, 23,837.\\nActresses 8 Cashiers, n\\nArtists, 5 Clerks, 101\\nMusicians, 15 Stenographers, 23\\nNurses, 96\\nTeachers, 43\\nTelegraph and Telephone\\nOperators 6\\nSaleswomen, 63\\nStore-keepers, 34\\nBook-keepers, 33\\nBook-binders, 34\\nBoxtnakers, 21\\nCarpet Weavers, 15\\nCorsetmakers, 13\\nDressmakers, Seamstresses, 414\\nMilliners, 56\\nSilk Workers, 54\\nThis table does not require further comment, but has been\\nincluded in the series as a rather interesting contribution to our\\nknowledge of woman s share in life-insurance development.\\nWhile in Industrial insurance it is the practice to place a small\\npolic} on every member of the family rather than a large policy\\nupon a single member, women, as a matter of course, have been\\nOf the total number of decedents in the Industrial experience of The\\nPrudential during the period 1891-1898, 51.2 per cent, were males and 48.8\\nper cent, were females. According to the United States census of 1890,\\nVital and Social Statistics, Part III., the sex distribution of the total mor-\\ntality in the United States was 52.2 per cent, males and 47.8 per cent, females.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0354.jp2"}, "355": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS. 307\\ninsured in about the same ratio as men, but the good effect of life\\ninsurance in early life is illustrated in the increasing number of\\nself-supporting young women, who continue in force the insur-\\nance placed upon their lives in early infancy by parents whose\\nmemory must needs be held in higher esteem for this evidence of\\nprudent forethought and affectionate regard.\\nThese facts pertaining to the nationality and occupations of\\nthe insured will make it plain that the business is one which is ap-\\nplicable to all sorts and conditions of men, and that it is truly\\nnational and industrial in its scope and extent of operations.\\nPerhaps the best proof of this assertion is to be found in the fact\\nthat, in the city in which The Prudential was founded, in 1875,\\nthe large majority of the population are now insured on this plan\\nof family insurance. In Newark, N. J., during the year 1899\\nthere occurred, according to the Board of Health, 3,548 deaths of\\npersons one year of age and over. Of this number 1,307, or\\n36.8 per cent., were insured in The Prudential, while in the other\\nIndustrial companies, as far as my information goes, about an\\nequal number of policies were in force, indicating a total of about\\n73 per cent, of the population above age one insured on the\\nIndustrial plan. If we exclude the lowest pauper class and the\\nwell-to-do or rich, who are above the need of Industrial insur-\\nance, it will be seen that in this city, to-day one of the leading\\nmanufacturing cities of this country, but a very small proportion\\nof the working people have not as yet availed themselves of this\\nform of insurance as a means of providing against some of the\\nuncertainties of human life.\\nAs to the direct effect of this form of insurance on the dimi-\\nnution of the rate of pauper burials, once exceedingly high in\\nthe city of Newark,, we find evidence in the official returns, for,\\ntaking account of the last twenty years, there has been a very\\nmaterial reduction in the rate of burials at public expense. In\\n1880, when The Prudential had only 49,959 Industrial policies\\nin force in the State of New Jersey, the rate of pauper burials\\nin the city of Newark per 100,000 of population was 128, while\\nin 1899, with 36.8 per cent, of the population over one year of\\nage insured in The Prudential, the rate was only 93. It will\\nbe apparent that in this direction alone the Industrial companies\\nsave a not inconsiderable amount to the taxpayer and the com-\\nmunity.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0355.jp2"}, "356": {"fulltext": "3 o8\\nHISTORY OF THE PRUDENTIAL.\\nPauper burials statistics for a number of American cities for\\na period of considerable length are, unfortunately, not obtain-\\nable but I have brought together the returns for ten principal\\ncities, which have been consolidated in the following table. The\\nresults are for five-year periods for the twenty years 1880-99,\\nand include the cities of New York, Boston, Newark, Cincinnati,\\nBaltimore, Indianapolis, Minneapolis, Cambridge, Worcester\\nand Charleston, S. C. The table indicates a constant, though\\ngradual, decline in the rate of pauper burials from 210 per\\n100,000 during i88o- 84 to 156 during 1 895- 99\\nPAUPER BURIALS\\nIn Ten American Cities, 1880-1899.\\nPeriods.\\nAggregate Popula-\\ntion of Ten Cities.\\nAggregate Number\\nof Burials.\\nRate per 100,000.\\ni88o- 84,\\ni88 5 8 9\\ni890- 94,\\ni895- 99,f\\n13,345,248\\n15,397,545\\n17,623,685\\n20,854,451\\n27,987\\n29,747\\n33,l8o\\n32,614\\n2IO\\n193\\n188\\n156\\nSince by means of Industrial insurance frequent provision is\\nmade for dependent widows and orphans, we should also expect\\na decrease in the cost of out-door relief, in spite of the fact that\\nthis is an age of free if foolish giving. In Newark during\\n1880 the cost of out-door poor relief was $29,818, or $0.22 per\\ncapita, against a cost of only $17,158 during 1898, or of $0.07\\nper capita. Had the rate of 1880 prevailed in 1898, the actual\\ncost to the taxpayers would have been $52,607.\\nA not inconsiderable share of this reduction must be credited\\nto the Industrial companies, which through their large claim dis-\\nbursements, now exceeding $16,000,000 annually, are the direct\\ncause of a vast diminution of pauperism and w T ant.* Indirectly\\nthe effect of the system is to be traced in the increased habits of\\nA typical instance of the direct relation of Industrial insurance to\\npublic welfare is furnished by a case referred to in the Orange (N. J.)\\nJournal of December 2, 1899, in which reference is made to the death of\\na Mrs. Ellen Clark, who, on account of illness, had for more than two 3-ears\\nbeen under the care of the poor authorities and the management of the\\nMemorial Hospital. The item concludes with the statement that the\\nexpenses of her funeral were met by an insurance policy which had been\\nkept in force by a charitable woman.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0356.jp2"}, "357": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS. 309\\nsavings and thrift in other directions, but especially in the growth\\nand development of savings banks and building and loan associa-\\ntions. In the State of New Jersey there were 73,052 depositors\\nin savings banks in 1880, while the number of Industrial policy-\\nholders was only 49,959, while in 1899 the number of depositors\\nhad increased to 190,941, against an increase to 613,552 of Indus-\\ntrial policy-holders in The Prudential. It will be recalled that\\nin 1872, before the organization of Industrial companies, the\\nLabor Commissioner of Massachusetts had pointed out that sys-\\ntematic savings among working people were the exception rather\\nthan the rule, while now it may be said that systematic savings\\nhabits are the rule either in the direction of deposits in banks\\nor payments to building and loan associations, and this result\\nmust be largely attributed to the missionary work of Industrial\\ncompanies, like The Prudential, teaching the masses habits of\\nthrift not only in one, but in many directions.\\nI can only very briefly touch upon the medical statistics of\\nthe Company. Naturally in a branch of life insurance so radically\\ndifferent in its methods and extent of operations from Ordinary\\nlife companies, the mortality experience, the disease and accident\\noccurrence must widely differ from the observed experience of\\ncompanies limiting their risks to adult males of the more pros-\\nperous elements of the population, and as regards medical exam-\\ninations in Industrial insurance they are, as a matter of course,\\nless rigid than is the case in Ordinary life insurance. This is\\nshown by the ratio of rejections of examined Industrial business\\n(Prudential experience 1899) which was only 1.5 per cent, against\\na ratio of 15.5 per cent, in Ordinary.\\nIn other words, among the Industrial class of risks practi-\\ncally all applicants are accepted, and naturally a higher mortality\\nIt is much to be regretted that it is impossible to furnish information\\nas to the average number of deposits per annum made by depositors in\\nAmerican savings banks at the present time. In reply to an inquiry\\naddressed to the Board of Commissioners of Savings Banks of Massa-\\nchusetts, I am informed that the investigation made in Massachusetts in\\n1872 was the only instance in which the information has ever been given.\\nThe considerable growth of Dime Savings Banks and Penny Provident\\nFunds during the past twenty-five years would, however, give direct sup-\\nport to the assertion that Industrial insurance has been directly, as well as\\nindirectly, a force making for the education of the masses in habits of sys-\\ntematic saving of small sums {ante, p. 25).", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0357.jp2"}, "358": {"fulltext": "3io\\nHISTORY OF THE PRUDENTIAL.\\nexperience must result. Dangerous and unhealthy occupations\\nare not discriminated against, as is evidenced by the table of occu-\\npations showing the large proportion of men employed in mines,\\nthe railway service, at sea, and in other dangerous occupations.\\nThese occupations are subject to a higher mortality, which finds\\nits corresponding result in higher premium rates. The table\\nwhich follows has been limited to thirty principal causes of death\\nobserved in the Industrial experience 1891-1898, and is only\\nintended as evidence confirming facts previously stated\\nINDUSTRIAL MORTALITY EXPERIENCE OF THE PRUDENTIAL\\nINSURANCE COMPANY.\\nThirty Principal Causes of Death. 1891-1898.\\nPer Cent, of\\nNumber.\\nTotal\\nMortality.\\n36,107\\n16.63\\n25,851\\nII.90\\n16,881\\n7-77\\n13,438\\n6.19\\n10,343\\n4.76\\n9.403\\n4-33\\n9,228\\n4-25\\n7,348\\n3-38\\n7,OH\\n3-23\\n5,971\\n2-75\\n5,526\\n2-55\\n4,837\\n2.23\\n4,559\\n2.10\\n4,035\\n1.86\\n4,012\\n1.85\\n3,821\\n1.76\\n2,711\\n1.25\\n2,33i\\n1.07\\n2,253\\n1.04\\n2,234\\n1.03\\n2,062\\no.95\\ni,734\\n0.80\\n1,721\\n0.79\\n1,632\\no.75\\ni,395\\n0.64\\n1,274\\no.59\\n1,160\\no.53\\n1,104\\n0.51\\n1,084\\n0.50\\n1,034\\n0.48\\n25,058\\nn-53\\n217,158\\n100.00\\nTubercular Diseases,\\nPneumonia,\\nHeart Diseases\\nBright s Disease,\\nAccidents,\\nDiphtheria,\\nApoplexy,\\nCancer,\\nBronchitis,\\nGastritis,\\nMeningitis,\\nTyphoid Fever,\\nCroup and Laryngitis,\\nParalysis,\\nDiseases of the Liver,\\nDiarrhoea and Dysentery,\\nScarlet Fever,\\nPeritonitis,\\nDiseases of Women,\\nLa Grippe,\\nOld Age,\\nConvulsions,\\nCholera Infantum,\\nSuicide and Homicide,\\nRheumatism,\\nAsthma,\\nMalarial Fever,\\nDropsy,\\nInsanity,\\nPyaemia and Septicaemia,\\nAll other causes,\\nTotal,", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0358.jp2"}, "359": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS.\\n3\\nThe most important cause of death in the Industrial mor-\\ntality experience of The Prudential is shown to have been con-\\nsumption and other tubercular diseases, forming 16.6 per cent,\\nof the total mortality from all causes. Next to tubercular diseases\\nwe note an excessive mortality from pneumonia, responsible for\\n1 1.9 per cent, of the total deaths. The proportion of deaths\\nfrom heart diseases and Bright s disease was 7.8 per cent, and\\n6.2 percent., respectively, while accidents were responsible for\\n4.8 per cent, of the mortality from all causes. In comparing this\\nmortality experience with the mortality of the general popula-\\ntion, the fact must not be lost sight of that, it being the practice\\nof the Company to accept risks on all healthy lives one year of\\nage and upwards to the year seventy, deaths under the age of\\none are not represented in the mortality experience of the Com-\\npany. The age distribution of the mortality is, however, fully\\ndisclosed in the next table, showing the actual and relative\\nnumbers of deaths at various groups of age\\nINDUSTRIAL MORTALITY EXPERIENCE. 1891-1898.\\nWhits Maizes and Females.\\nProportion of Deaths at Various Ages in ioo Deaths at All Ages.\\nAges at Death.\\n1\\nMales. Females.\\n13.6\\n6.6\\n2-5\\n3-7\\n5-6\\n6.7\\n7.0\\n6.8\\n6.3\\n6.3\\n7-i\\n7.2\\n7.8\\n6.9\\n5-9\\n13-3\\n6.7\\n2.7\\nq\\nIO\u00e2\u0080\u0094 14\\nICJ-IQ\\n3-9\\n5-8\\n6.4\\n5-8\\n5-i\\n5-2\\n5-6\\n7.0\\n7.8\\n8.8\\n20\u00e2\u0080\u009424.\\n25\u00e2\u0080\u0094 2Q\\n30\u00e2\u0080\u009434\\n35-3Q,\\n40\u00e2\u0080\u009444\\n45-4Q,\\nSO\u00e2\u0080\u0094 54\\n\u00c2\u00ab-;q\\n6^-60\\n8.2\\n7-7\\nThe large proportion of deaths at the age period 2-4 (both\\nyears inclusive) is, of course, explained by the fact that Indus-\\ntrial insurance being family insurance, children of ages over one", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0359.jp2"}, "360": {"fulltext": "312\\nHISTORY OF THE PRUDENTIAL.\\nform a very large proportion of the insured, but not more so than\\nin the general population, as is made clear by comparative data\\nfor the city of New York, where, during the period 1891-1896,\\nthe proportion of deaths, ages 2-14 (both years inclusive), was\\n26.9 per cent., against 23.4 per cent, for The Prudential.\\nA table has been given on page 218 showing the actual\\nmortality experience per 1,000 living, for children under ten\\nyears of age, to which has been added the expected mortality\\naccording to the Farr life table, on which the premiums of the\\nCompany are calculated. It was there shown, and we have here\\nadditional proof, that in the practice of insuring children for\\nsmall sums no unfavorable factors have been observed in the\\nexperience of the Company.\\nThe quarter-century results of experience in business man-\\nagement are, perhaps, nowhere better brought out than in the\\nvastly improved policy conditions of the Industrial contract,\\nto-day practically identical in all essentials with the contract of\\nOrdinary policy-holders. Briefly stated, the results of years of\\neffort, of a strong sense of equity, prudence and liberality, are\\nshown in the following statement of the Industrial policy con-\\nditions in 1876 and 1900\\nEVOLUTION OF THE INDUSTRIAL POLICY OF\\nTHE PRUDENTIAL INSURANCE COMPANY OF AMERICA.\\nPolicy Conditions.\\nAmounts of Insiirance, Age io, Premium 5c.\\nBenefit during first 3 months,\\nDeath from Consumption during 1st year,\\nHeart Diseases\\nSuicide,\\nIntemperance,\\nHazardous Occupations,\\nResidence,\\nIncontestability,\\nPaid-up Insurance,\\nAdditional Benefits,\\nCash Dividends,\\nCash-Surrender Values,\\nT876\\n$100.00.\\nNo liability.\\n$120.00.\\nOne-fourth.\\nFull liability.\\nVoids policy.\\nVery restricted.\\nRestricted.\\nNo provision.\\nNone.\\nNo restriction.\\nt\\nAfter 2 years.\\n3\\n15\\n20\\n1900\\nThe great value of these concessions and the removal of\\nmany burdensome restrictions cannot be adequately estimated\\nin dollars and cents. Still, as an indication of the financial", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0360.jp2"}, "361": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS.\\n3 J 3\\nimportance of the many measures introduced during the past\\ntwenty years, it is but proper that I should insert a brief, even\\nthough incomplete, statement as to the cost of the numerous\\nconcessions made voluntarily by The Prudential to its policy-\\nholders\\nConcessions made by The Prudential Insurance Company of\\nAmerica to its Industrial Policy-Holders, and the Esti-\\nmated Cost of same to January i, 1900.\\nConcessions.\\nCost.\\nMaking retroactive the increase in benefits in 1886, and in\\nInfantile benefits in 1896,\\nGranting Paid-up insurance since November, 1893, on poli-\\ncies five years old, containing no agreement for same,\\nGranting Paid-up insurance from July 1, 1898, on policies\\nthree and four years old, containing agreement for\\nPaid-up insurance after five years,\\nDividends declared since January, 1897, on policies con-\\ntaining no provisions for dividends,\\nAllowing new policies to be written in full immediate\\nbenefit if original policies are lapsed,\\nAllowing policies that have been lapsed to be revived\\nwithout the payment of arrears in premiums, such ar-\\nrears being a non-interest bearing lien on the policies,\\n$530,000\\n1,040,000\\n20,000\\n563,894\\n27,000\\n(Not estimated.\\nTotal estimated value of concessions, $2,180,894\\nOnly the more important concessions are referred to in this\\ntable. Minor concessions, such as the rule under which the first\\ntwo weeks premiums are returned on request if policy is not\\nsatisfactory, the removal of the consumption and suicide clauses,\\nthe lien clause under which lapsed policies can be revived with-\\nout the payment of arrears, the lien bearing no interest, and\\nmany others referred to in other parts of this work, cannot be\\nconveniently calculated, but as the matter stands it is shown\\nthat the Company, during fourteen years, has made concessions\\nto policy-holders, whose original contracts did not provide for\\nprivileges offered new insurers, to the extent of $2,180,894. I n\\nother words, the Company never advanced a step, never made\\na distinct improvement in its policy contract, but it made such\\nprivileges and improvements retroactive to all policy-holders,", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0361.jp2"}, "362": {"fulltext": "314 HISTORY OF THE PRUDENTIAL.\\nirrespective of the fact that under the original contracts policy*\\nholders would not have been entitled to increased benefits in one\\ndirection or another. Does not this account for the fact that\\nThe Prudential holds so high a place in public esteem? Is it\\nnot clear, in the light of these facts, known to millions of our\\nmost intelligent working people, that The Prudential has been\\njust, has been liberal, has been fair in its dealing with the masses,\\nin marked contrast to the shameful betrayal of their interests in\\nthe past by thousands of concerns of whatever name, trading\\nunder the title of insurance organizations, largely, if not solely,\\nfor the purpose of personal profit? Of all the beneficiaries to\\nwhom claims were paid by The Prudential during 1899 approxi-\\nmately 50 per cent, received more than their original contract called\\nfor. Can any Ordinary, any Assessment, any Fraternal Insur-\\nance Company or Society point to a similar record of prudence,\\nequity and liberality? Where so much has been done, there\\nneed be no doubt but that still further and still greater advance-\\nment will be made, but The Prudential will ever remain loyal\\nto its early principles, will take no steps which are not based on\\nits own experience, supported by observed facts.\\nThese summaries and brief restatements of facts previously\\ntouched upon cannot fall very short of making clear the vast\\nextent in operations and far-reaching economic and social con-\\nsequences of this form of life insurance in the United States.\\nThey will make clear that the business is the result of evolution-\\nary forces making for ages for an improved system of protection\\nagainst the most immediate and socially important wants of the\\nmasses they will have shown that Industrial insurance rests on\\na firm foundation, and that it enjoys the highest possible confi-\\ndence and appreciation on the part of millions of our country s\\nbest and most respected class of industrial workers that it in-\\ncludes the heroes of peace as well as of war that it ministers to\\nthe wants of the young, the middle aged and the old that it is\\nnational in its scope and extent, and that it has therefore a place\\nin the social and political economy of the nation, well deserving\\nof the most serious consideration of the statesman, the economist,\\nand the social reformer. It has been shown that, from the stand-\\npoint of public policy, this system is worthy of State approval on\\nthe ground of a decrease in public burdens and the diminished\\nneed of private charity and aid, and in the corresponding increase", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0362.jp2"}, "363": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS. 315\\nin the savings habits of the people and the longer life which must\\nresult from improved conditions of social life.\\nMost of all is Industrial insurance deserving of public\\nrespect and consideration in a Republic where the will of the\\nmajority is law, where the wishes of the masses are respected,\\nwhere measures and tendencies meeting with extensive public ap-\\nproval are looked upon as evidences of progress in the direction of\\na higher and better life. The verdict of the masses, of the best ele-\\nments of our industrial population, is certainly in favor of this form\\nof insurance. However humble this struggle on the part of the\\nworking people to improve the conditions of their social and family\\nlife, the results, in the aggregate, are of almost stupendous propor-\\ntion and who will sa}^ that it is not true in this particular, as it\\nhas been pointed out by Mr. L,ecky to be true in general, that It\\ni s Industrialism that has brought into the world\\nthat strong sense of the moral value of thrift, steady industry,\\npunctuality in observing engagements, constant forethought with\\na view of providing for the co?iti?igencies of the future, which is\\nnow so characteristic of the moral type of the most civilized\\nnations.\\nLimited in space and time, I have, no doubt, fallen short in\\nmy aim to produce a work useful to the student of economics\\nand social problems, a work which, while in a measure the\\nhistory and record of events relating to The Prudential Insur-\\nance Company of America, is yet largely the history and\\nrecord of events relating to the business as a whole. While I\\ncannot have answered all of the many questions relating to the\\nbusiness which have in times past assumed more or less public\\nimportance, still, every effort has been made to meet reasonable\\nexpectation by a full and detailed treatment of the most important\\npoints of controversy. If it is said that a statement of the facts\\ncoming from one actively employed in the business of Industrial\\ninsurance must needs fall short of the highest requirements of\\ncritical examination, the answer is that the writer has kept in\\nmind the well-known expression of Th. Ribot, that It is a\\ncomplete mistake to. suppose that what is not true can be scien-\\ntifically established, and with these words of proper caution I\\nThe Map of Life, p. 53.\\nt Heredity, p. 183. Appleton Co., N. Y., 1891.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0363.jp2"}, "364": {"fulltext": "316 HISTORY OF THE PRUDENTIAL.\\nhave approached my task, and trust that I have done the under-\\ntaking justice. At least, I have added to the rather limited body\\nof available information relating to life-insurance practice and\\nresults a work containing the record of one institution to which\\nthe industrial population of this country is indebted for a new\\nform of insurance, which has, forever, done away with the former\\ncrude and primitive types of so-called insurance societies and\\nattempts to transact on the ancient basis of status a highly com-\\nplex and intricate form of business enterprise, a business resting\\non recognized laws of human mortality and finance and possible\\nof successful operation only on the basis of contract, the founda-\\ntion principle of modern social life.\\nYears of personal experience in the field of actual business\\noperations, personal contact with hundreds of thousands of our\\nworking population of all nationalities in various parts of the\\ncountry, have convinced me that, after all that has been said and\\nwritten on the progress of the masses during the past fifty years,\\nbut scant justice has been done the people in the fully deserved\\nrecognition of their efforts to improve the conditions of their daily\\nlife in a manner and a way most likely to bring about the realiza-\\ntion of their, perhaps indefinite, yet strong and worthy, aims.\\nThere are those who think little of what the workingman does for\\nhimself, who think that most of their progress and improvement\\nis the result of charitable or philanthropic efforts, but I, for one,\\nshare no such views. Years of experience have forced upon me\\nthe conviction and belief that the working people can be trusted\\nin matters pertaining to the solution of their own problems, and\\nthat they will accomplish more by agencies of their own than by\\nartificial agencies devised by others.\\nIn the true and emphatic words of Mr. Herbert Spencer,\\nWhich is the more misleading, belief without evidence, or\\nrefusal to believe in presence of overwhelming evidence and\\nIf there is an irrational faith which persists without any facts\\nto support it, there is an irrational lack of faith which persists\\nspite of the accumulation of facts which should produce it\\nand we may doubt whether the last does not lead to worse\\nresults than the first. I feel convinced that the facts here\\nbrought together will lead those who for the first time learn of\\nThe Ethics of Social Life, Part IV., I 133.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0364.jp2"}, "365": {"fulltext": "SUMMARY OF CONCLUSIONS AND RESULTS. 317\\nthe vast extent of Industrial insurance, and the far-reaching\\nresults which have been accomplished through the work of The\\nPrudential and other Industrial companies, to seriously consider\\nwhether this form of thrift and evidence of a healthy, robust\\nstruggle for economic independence, on the part of millions of\\nworking people, is not more deserving of approval and respect and\\nsympathetic consideration than the many and far more costly\\nefforts to ameliorate the condition of the people by artificial means\\nthrough the medium of public or private charitable agencies.\\nIn simple justice to the wage-earners of this country, I feel con-\\nvinced that never were words of Mr. Spencer more applicable\\nto the affairs of daily life than in the following sentence, deserv-\\ning to be engraved on the mind and memory of all who have the\\nbest interests of the masses at heart\\nThe average legislator, equally with the average citizen,\\nhas no faith whatever in the beneficent working of social forces,\\nnotwithstanding the almost infinite illustrations of this beneficent\\nworking. He persists in thinking of a society as a manufacture\\nand not as a growth blind to the fact that the vast and complex\\norganization by which its life is carried on, has resulted from the\\nspontaneous co-operations of men pursuing their private ends.\\nThough, when he asks how the surface of the Earth has been\\ncleared and made fertile, how towns have grown up, how manu-\\nfactures of all kinds have arisen, how the arts have been de-\\nveloped, how knowledge has been accumulated, how literature\\nhas been produced, he is forced to recognize the fact that none\\nof these are of governmental origin, but many of them have\\nsuffered from governmental obstruction yet, ignoring all this,\\nhe assumes that if a good thing is to be achieved, or an evil\\nprevented, Parliament must be invoked. He has unlimited faith\\nin the agency which has achieved multitudinous failures, and has\\nno faith in the agency which has achieved multitudinous successes.\\nIt was this clear recognition of social and economic laws and\\nforces which made it possible for Mr. John F. Dryden to com-\\npletely realize his early ambition, and succeed in the laudable\\nendeavor to make a success of Industrial insurance and The\\nPrudential Insurance Company of America. And nowhere, to\\nmy knowledge, has this been stated more clearly and precisely\\nThe Ethics of Social Life, Part IV., 133.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0365.jp2"}, "366": {"fulltext": "318 HISTORY OF THE PRUDENTIAL.\\nthan in Mr. Dry den s own words, in his presidential address at\\nthe reunion of officers and agents on January 10, 1900, than which\\nI can select none better to conclude this sketch of the History\\nof The Prudential Insurance Company of America\\nThis is a wonderful business, gentlemen, in which you are\\nengaged. I speak of it now not from the confines of The Pru-\\ndential s work, but from that great, broad arena which compre-\\nhends the whole scheme of life insurance, and may be found in\\noperation in every country of the civilized world a business with\\na noble history, a business with a lofty aim, a business with a\\nmagnificent purpose, a business with splendid results. I4ke\\nmost good and enduring things, its birth was humble and early\\nadvancement difficult. Originating back in remote antiquity, it\\nhas moved forward by slow stages, but in regular gradation, until\\nto-day it stands upon a solid basis and challenges the admiration\\nof the whole world. It could not be removed from the great\\nscheme of the social and political economy of our civilization\\nwithout bringing a disaster upon the human race which no man\\ncan foresee or measure, and that particular part of the plan, gen-\\ntlemen, which has from its beginning characterized the history of\\nThe Prudential is more marvelous than all the others.\\nTaking its root in human affection, in that lofty desire to\\nprovide for one s own, the germ of it lying back out of our sight,\\neven before recorded history began, it has gone on by a process\\nof evolution first the gild, then the burial societies, then the\\nfriendly societies until at last it has been placed upon an immu-\\ntable and scientific foundation, and we have the Industrial insur-\\nance company. An Industrial company like The Prudential\\noffers to the people a perfected and well-rounded-out scheme of\\nlife insurance, in that it places its blessings within the reach\\nof all classes, male and female, rich and poor alike. It is the\\nhighest development of life insurance in existence.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0366.jp2"}, "367": {"fulltext": "INDEX.\\n3*9\\nINDEX.\\nPage.\\nA\\nA, B, C of life insurance, Indus-\\ntrial insurance the, 190\\nAdministration of agencies, 270\\nAdult rate table, five-hundred dol-\\nlar, 126 colored, 138 1896, 228\\nAdvertisement of The Prudential,\\nthe Rock of Gibraltar, 267\\nAmerican Exchange and Re-\\nview on paid-up Industrial\\npolicies, 188, 189\\nArena, Industrial insurance dis-\\ncussed in the, 190, 191\\nAdverse legislation (see Children,\\nNegroes, Surrender value).\\nAgency system dispensed with, 59\\nAgents, life insurance, a necessity,\\n14, 59, 86 praise of, 14, 231,\\n249, 263, 265, 268 to their in-\\nterest to prevent lapses, 123\\nimportation of English Indus-\\ntrial, by Metropolitan, 132 In-\\ndustrial, as insurance teachers,\\n148 class of men employed\\nas, 149, 271 fraudulent Indus-\\ntrial, 149 ex-, an injury to\\ncompanies, 149 liberal treat-\\nment of Prudential, 156 diffi-\\nculties of Industrial, 169 new\\nterms to Prudential, 184 In-\\ndustrial-Ordinary, 231, 242\\nfaithful Prudential, 232, 233\\ninducement to, 238 instruc-\\ntion of, 240 evidence of good\\ncharacter of, 241 position of\\nIndustrial, 241 evidence of\\nPage.\\nconfidence in, 257, 261 Phil-\\nlips Brooks on, 263 straight\\ncanvassing, 269 management\\nof, 270, 271 loyalty of the\\nPrudential, 282; number of,\\nin the Prudential force, 1885-\\n1900, 300.\\nAges, proportion of deaths at\\nearly, 311, 312\\nAges at death in the Prudential s\\nexperience, 1891-1898, 311\\nAid Societies in New York State,\\n1848-1866, 16\\nAldcroft, W. H., on Industrial\\ninsurance, 223\\nAlexander, Mrs. L. F., on Indus-\\ntrial insurance, 280\\nAmerican Humane Association,\\nmisstatement in report of the, 200\\nAmerican Life Insurance Compa-\\nny, of Philadelphia, Industrial\\nbusiness of the, 167\\nAmerican Manual of Life Insur-\\nance, The 8\\nAmerican Popular Life, weekly\\npremium payment plan of the, 21\\nAmounts of insurance, Prudential\\nFriendly Society, 83\\nAssets of The Prudential, i876- 99, 298\\nAssets, investment of, 299\\nAnglo-Saxon thrift defined, 4\\nAnniversary, Tenth, of The Pru-\\ndential, 156\\nAnnuities, Industrial, 100\\nApplication form, new, 240", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0367.jp2"}, "368": {"fulltext": "320\\nINDEX.\\nPage.\\nApplications, to The Prudential\\nFriendly Society, analysis of\\nfirst 1,000, 79-83\\nApproval, of Industrial Insurance,\\nprevious to 1875, 53 by insur-\\nance journals, 130, 147 offi-\\ncial, 119, 134, 135, 155, 160, 161,\\n180, 199, 206, 223, 224, 263, 273-\\n276 general, 158, 159, 180, 221,\\n264, 268, 278 public, 196-198,\\n216, 217, 276, 277, 281 legis-\\nlative, in Colorado and Ohio,\\n281.\\nArmy and Navy, permit to Pru-\\ndential policy-holders to serve\\nin, 254, 255\\nArrears, notification of persons in,\\n123 allowed delinquents, 244.\\nAssociation, the principle of, 6\\nperversion of the principle of,\\n19.\\nAssurance Associations, Parlia-\\nmentary Report on, 5\\nAttacks on Industrial insurance,\\n145 by ex-agents, 149 by\\nnewspapers, 150, 199, 200 in\\nColorado, 198 nature of, 206,\\n207; in 1895, 213; in Massa-\\nchusetts, 217, 229, 230 (see\\nalso Negroes, Children, Sur-\\nrender value).\\nB\\nBaltimore Underwriter, on Indus-\\ntrial insurance, 178; on The\\nPrudential, 195, 196, 247, 248.\\nBarry, Dr. Mary F., approval of\\nIndustrial insurance, 281\\nBartels, Arthur, effort to pass Col-\\norado House Bill No. 317, .272\\nBassett, Allen I/., first president of\\nThe Prudential Friendly Soci-\\nety, 70 and the Industrial\\nInsurance Company of the\\nUnited States, 114, 115.\\nPage.\\nBeade, Rev. J. B., on Industrial\\ninsurance, 9\\nBeneficence of Industrial insur-\\nance (see Value of).\\nBenefit, public, of Industrial in-\\nsurance (see Value of).\\nBenefit societies, fallacies of, 131\\nBenefits, additional, after five\\nyears, 236 value of, increased\\nby The Prudential, 313, 314.\\nBettle, Hon. Wm., on Industrial\\ninsurance, 273\\nBlanchard, Noah, president of The\\nPrudential Insurance Co. of\\nAmerica, 70; death of, 144, 145.\\nBoard of Trade, Newark, investi-\\ngation of Industrial insurance\\nby the, 91\\nBonds, reduced fees for agents\\n241 agents no longer re-\\nquired, 252.\\nBooth, Chas., on Industrial insur-\\nance, 164\\nBoston Herald, on mass insurance,\\n12 on Industrial insurance,\\n178-180 on life insurance of\\nchildren, 179 on adverse legis-\\nlation, 229.\\nBoston Standard, on Butler s attack\\non Industrial insurance, 150; on\\nlife insurance of children, 172\\non The Prudential, 191, 192.\\nBradley, Mrs. Annie B., on Indus-\\ntrial insurance, 279\\nBritish Industry, the, 9\\nBrooks, Phillips, on life-insurance\\nagents, 263\\nBund plan, a failure, 27, 103 of\\nthe Metropolitan, 28, 102 of\\nthe New York Life Insurance\\nCo., 28, 29 of the Western\\nNew York Life Insurance Co.,\\n29 of the Life Insurance As-\\nsociation of America, 29 of\\nlife insurance, 38 opposed by\\nthe Insurance Times, 39, 67\\nof the Prudential League, 89.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0368.jp2"}, "369": {"fulltext": "INDEX.\\n321\\nPage.\\nBurial, decent, of the dead, 4 the\\nobject of Industrial insurance,\\n4, 143-\\nBurial clubs among the English, 5\\nBurial expenses, primary object\\nof Industrial insurance, 4\\nBurial insurance a necessity, 32\\nBurials of paupers (see Pauper\\nburials).\\nBurnett, Dr., tribute to John F.\\nDryden, no\\nButler, Benj., attack on Industrial\\ninsurance, 149 on the life in-\\nsurance of children, 149, 150.\\nCamden Daily Telegram on The\\nPrudential, 266, 267\\nCanvassers, advertisement for, 86, 87\\nCanvassing, straight, advocated in\\n1853, I2 V method of, 250.\\nCapital, increase of Prudential s, 192\\nCarlstadt Freie Presse on The\\nPrudential, 143\\nCharitable institutions, R. T. Ely\\non, 41 not in touch with in-\\ndustrial conditions, 151.\\nCharitable relief and Industrial\\ninsurance, 307, 30S\\nCharities, Associated, of Boston,\\non Industrial insurance, 278, 290\\nCharity, W. G. Sumner on, 41\\nlife insurance not, 34, 41, 144,\\n203 Industrial insurance not,\\n34, 144, 203 vs. Industrial in-\\nsurance, 203.\\nCharity Organization Society, of\\nPhiladelphia, on Industrial in-\\nsurance, 172\\nCharity Society of Louisville on\\nIndustrial insurance, 216\\nChicago Relief and Aid Society,\\nFortieth Report, reference to\\nIndustrial claim payment, 290\\nChild Endowment, policies issued\\nby The Prudential, 192 ex-\\nplained, 192, 193.\\nChild Insurance, a misnomer, .120\\nPage.\\nChild life, value of, attempt to\\ndetermine, 198\\nChild mortality, its causes, 32 in\\nNew York City, 32 excessive\\nprior to 1875, 55, 56 in New-\\nark, N. J., 55, 130.\\nChild murder for insurance money\\ndenied, 179, 206 (see also Ap-\\nproval)\\nChildren, insured, mortality of,\\n218 claims paid on, 219.\\nChildren, insurance of, early in-\\nstance of, 8 first American at-\\ntack on, 10 explanation of, 72,\\n120, 179 a legitimate business,\\n120 charges against, 128 aver-\\nage amounts of policies, 128,\\n150 parliamentary investiga-\\ntion of, in England, 129 attack\\non, 150, 213 expert opinion\\non, 159 officially approved,\\n161, 206, 273, 276 agitation\\non the, 172 objects of the,\\n179 attempt to prohibit, 182,\\n184, 198 legislative investiga-\\ntion of, 182 legal recognition\\nof, 183 perversion of facts as to\\nthe, 207 premium limit, 226,\\n227 effort to regulate, 272,\\n273 not contrary to public\\npolicy, 273, 280 favored by\\nDenver citizens, 279-281 ap-\\nproved by Ohio Legislature,\\n281 (see also Approval).\\nChronicle, The, on insurance edu-\\ncation, 148 on surrender value\\nof Industrial policies, 171.\\nCivilization and life insurance, .318\\nClaflin, Governor, of Massachu-\\nsetts, report on depositors in\\nsavings banks, 1870, 25\\nClaims, method of paying, The\\nPrudential Friendly Society s,\\n71, 76, 77 immediate payment\\nof, 162, 163, 257 amounts of,\\npaid by The Prudential, 1876-\\n1885, 163; improved method\\nof paying, 257.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0369.jp2"}, "370": {"fulltext": "322\\nINDEX.\\nPage.\\nClark, John B., Consulting Actu-\\nary of The Prudential Friendly-\\nSociety, 6 1 actuarial data of,\\n77 on surrender values, 87.\\nClark-Dryden correspondence, 61\\nClarke, Julius B., advocates Indus-\\ntrial insurance in Massachu-\\nsetts, 48\\nClass insurance, in 1859, T 3 by\\nOrdinary companies, 105.\\nClass of people insured, in The\\nPrudential, 194, 301, 302, 303\\nClerical force of The Prudential,\\n1885-1900, 300\\nCoal-miners, native, accepted by\\nThe Prudential 246\\nCode, telegraphic, for claim pay-\\nments, 258\\nCollector, a necessity in Industrial\\ninsurance, 261, 262\\nCollins, J. B., on life insurance vs.\\nsavings banks, 11\\nCollins, J. F., 117 death of, 231\\nsketch of, 232.\\nColor line in life insurance (see\\nNegroes), 137\\nColorado, insurance of children\\nprohibited in, 198 law of 1893\\nunconstitutional, 208 Insur-\\nance Department of, on Indus-\\ntrial insurance, 199, 208 effort\\nto repeal law of 1893, 272 In-\\nsurance Commissioner of, on\\nIndustrial insurance, 276 Leg-\\nislature of, in favor of Indus-\\ntrial insurance, 281 attempt\\nto repeal the law of 1893, a\\nfailure, 281.\\nCompanies, organization of new\\nIndustrial, 100\\nCompetition, evil effects of, ex-\\ncessive, 133, 146, 181, 184\\nComplaints, rarity of, against In-\\ndustrial insurance, 135, 152\\nConcessions, to policy-holders,\\nmade by The Prudential, 154,\\n187, i95-i97 214, 215, 227,\\nPage.\\n228, 235-238, 312, 313; made\\nretroactive, 237 expected re-\\nsult of, 238 cost of Prudential,\\n2 39, 3 T 3 5 review of, 248, 249.\\nConfidence, public, in The Pru-\\ndential, 253, 314\\nConnecticut, Insurance Commis-\\nsioner of, on Industrial insur-\\nance, 160, 223, 275\\nConservative policy of The Pru-\\ndential, 158\\nConsumption clause, in the Pru-\\ndential policy, 155 removed,\\n229.\\nContract, the Industrial, of The\\nPrudential, 312\\nCo-operation, R. T. Ely on, 18\\nHerbert Spencer on, 18.\\nCo-operative insurance associa-\\ntions, based on false principles,\\n19 frequency of failure of, 33.\\nCo-operative insurance, fallacies\\nof, 18 determining features\\nof, 27 condemned, 33 vs.\\nIndustrial insurance, 51, 131,\\n143-\\nCost, in Industrial insurance, dis-\\ncussion of, 50 of Prudential\\nconcessions, 1886-1900, 313.\\nCustoms, ancient origin of pres-\\nent-day, 4\\nD\\nDeaths, thirty principal causes of,\\nin the Prudential s experience,\\n1891-1898, 310\\nDebit, definition of, 269\\nDefinition of Industrial insurance,\\n3 of life insurance, 34 of\\ndebit, 269.\\nDemand for Industrial insurance,\\n35, 37, 42, 50, 51, 53, 84, 85,\\n92, 96, 98, no, in, 178, 253,\\n286.\\nDemolins, E., on thrift, 4\\nDenver citizens on Industrial in-\\nsurance, 279-281", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0370.jp2"}, "371": {"fulltext": "INDEX.\\n3*3\\nPage.\\nDenver Times on Industrial in-\\nsurance, 199, 200\\nDevine, E. T., on morals and eco-\\nnomics, 286\\nDisbursements to Prudential\\npolicy-holders, 1876-1899, 297\\nDiseases, excessive prevalence of,\\nprevious to 1875, 55; mortality\\nfrom principal, in The Pru-\\ndential, 310, 311.\\nDiscrimination against negroes,\\nlaws prohibiting, 153, 159, 185\\n(see also Negroes).\\nDividends, on Special Adult poli-\\ncies, 182, 215 cash, after fif-\\nteen years, 237 cash, method\\nof payment of, 261.\\nDrake, W. R., first applicant to\\nThe Prudential Friendly So-\\nciety, 58, 79\\nDryden, Forrest F., elected Secre-\\ntary of The Prudential, 183\\nDryden, John F., founder of The\\nPrudential, 1 student of in-\\nsurance problems, 52, 57 vis-\\nits Newark, 1873, 56 and the\\nWidows and Orphans Friend-\\nly Society, 57, no; influence\\non, of Gladstone and Wright,\\n57 knowledge of insurance\\nprinciples, 60 correspondence\\nwith J. E. Clark, 61 courage\\nand energy of, 68 elected\\nPresident of The Prudential,\\n70, 145 visit to England, 94\\nSpectator on, 115, 145 on\\nfirst infantile rate table, 121\\ncircular on lapses, 124 on Im-\\nmediate Benefit Concession\\nto policy-holders, 125 on life\\ninsurance of negroes, 137 on\\nexpense-rate, 139 on lapse\\nquestion, 139 on Prudential\\nhistory, 156 on Prudential\\nprogress, 166, 248, 249 tribute\\nto, no, 167 on Industrial in-\\nsurance as an educator, 193,\\nPage.\\n194; on the panic of 1893,\\nJ 95 i argument before the\\nColorado Legislature, 198,\\n199 on insurable interest,\\n198, 199 statement before the\\nInsurance Committee of Mas-\\nsachusetts, 218, 219, 222 ad-\\ndress of, 1896, 230 on Indus-\\ntrial-Ordinary insurance, 230\\nPresidential elector, 230; letter\\non concessions, 235-238 on\\nPrudential agents, 242 on\\nrevivals, 242, 243 address by,\\nat Prudential banquet, 1898,\\n2 5 2 253 letter on war risks,\\n254, 255 letter to the field\\nforce, 265 tribute to Superin-\\ntendent Egenolf, 282 tribute\\nto Superintendent W. F. Law-\\nson, 283 recognition of social\\nforces, 317 address of, January\\n10, 1900, 318.\\nDuty, life insurance as a, 13\\nDykeman, C. V., Superintendent,\\nanniversary of, 283\\nE\\nEconomic aspects of Industrial in-\\nsurance, 68, 198, 284, 286, 287,\\n315, 316.\\nEddy, H. H., Insurance Commis-\\nsioner of Colorado, 273\\nEducational value of Industrial\\ninsurance, 13, 14, 45, 105, 148,\\n178, 190, 191, 193, 194.\\nEgenolf, P., Superintendent, an-\\nniversary of, 282\\nEichbauer, Frederick, death of, 232\\nEly, Richard T., on scope of Po-\\nlitical Economy, 2 on co-\\noperation, 18 on charitable\\ninstitutions, 41 on life insur-\\nance, 284.\\nEmigration, English, influence of,\\non American Industrial insur-\\nance, 33", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0371.jp2"}, "372": {"fulltext": "324\\nINDEX.\\nPage.\\nEmployees, insurance of Mont-\\ngomery Ward Co. s, in The\\nPrudential, 268 insurance of\\nIthaca Daily News in The Pru-\\ndential, 268.\\nEmployees, Prudential, number\\nof, 156 in 1886, 167 1885-\\n1900, 300.\\nEndowment policies, Industrial,\\nissued by The Prudential, 189\\nfor children, explained, 192, 193.\\nEngland, surrender value in, 296\\nEnglish, Stephen, on Industrial\\ninsurance, 31 reply to Elizur\\nWright, 47 (see Insurance\\nTimes).\\nEntz, J. F., on mass insurance, 23,\\n24 organized the Progress I/if e\\nand Savings Insurance Co., 24\\non family insurance, 24.\\nEquity, the basis of the Pruden-\\ntial contract, 88 evidence of\\nPrudential, 228 the underly-\\ning principle of The Pruden-\\ntial, 253.\\nEvans, J. C, Colorado State Sen-\\nator, on Industrial insurance, 277\\nEvolution, in life-insurance\\nmethods, 84 of the Prudential\\nIndustrial policy, 1876-1900,\\n154, 312 of Industrial insur-\\nance, 164, 165, 314, 318; of\\nIndustrial-Ordinary insurance,\\n259-\\nExamination, official, of The Pru-\\ndential, 204\\nExchange and Review, the, on\\nlife insurance, 22, 23 on the\\nBund or Union plan of life\\ninsurance, 27.\\nExpense-rate in Industrial insur-\\nance, 50, 62, 139, 140\\nExperience, necessary for im-\\nproved tables, 61 the guide of\\nThe Prudential, 239.\\nExperiment in the issue of Indus-\\ntrial policies, 259, 260\\nPage.\\nExtension, of business operations\\nof The Prudential, 142 of in-\\nsurance principles to the mas-\\nses, 159.\\nExtent of Industrial insurance,\\nworld-wide, 200, 284\\nF\\nFackler, D. P., examination of the\\nN. J. Mutual bjr, 99 examina-\\ntion of The Prudential, 118;\\non Industrial insurance, 223,\\n224.\\nFallacies, life insurance, 17\\nFamilien Schutz, Bund plan of in-\\nsurance, 29\\nFamily Bank plan of insurance,\\nadvocated by Elizur Wright,\\n43 failure of, 44.\\nFamily insurance, need of, 24,\\n306 Insurance Commissioner\\nClarke, of Massachusetts, on,\\n49; approved, 85; demand\\nfor, 86 official approval of,\\n152, 275.\\nFarr s English Life Table com-\\npared with Prudential s expe-\\nrience, 218\\nFinancial condition of The Pru-\\ndential, in 1879, XI 8; New Jer-\\nsey official report on, 204 sta-\\ntistics of, 298, 299.\\nFinancial value of Prudential s\\nconcessions, 313\\nFive-Hundred-Dollar Adult Rate\\nTable, first, 126\\nForeign-born Industrial policy-\\nholders in The Prudential, 302\\nFortuna Life Insurance Society,\\nThe, 28\\nFoundation, solid, of The Pruden-\\ntial, 267\\nFraternal insurance vs. Industrial\\ninsurance, 143\\nFraternal Orders, inherent defects\\nof, 7 membership, 106 fal-\\nlacies of, 131.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0372.jp2"}, "373": {"fulltext": "INDEX.\\n325\\nPage.\\nFriendly Society, an American, .111\\nFriendly Societies, early, 5 Roy-\\nal Commission on, 30, 34 fre-\\nquency of failure of, 33 and\\nIndustrial insurance, 48, 49\\nand American Industrial insur-\\nance companies, 50; Neison\\nand Ratcliffe on, 60 in 1875, 78.\\nFuel Saving Society of Philadel-\\nphia, 8\\nFuneral insurance, Walford on, 35\\nFuneral insurance companies, 35, 174\\nFuneral rites, importance of, 4\\nFunerals, extravagance of, 1875,\\n66 expenses of, first object of\\nIndustrial insurance, 76 cost\\nof, in Newark and New York,\\n219, 220.\\nGermania Life Insurance Co., In-\\ndustrial business of the, 161\\nGermans, Industrial insurance ap-\\nproved by, 143 as insurance\\nrisks, 302, 303.\\nGermany, Industrial insurance in, 303\\nGibraltar, rock of, 58, 119, 267\\nGilds, of the middle ages, 5\\ndestruction of, by Henry\\nVIII., 5.\\nGladstone, on post-office insur-\\nance, 16 attack of, on the\\nBritish Prudential, 46.\\nGovernment insurance, 16, 35\\nGreene, Jacob L. on the first duty\\nof a life company, 296\\nGuizot, criticism of English\\nthought, 2\\nGummere, on early importance\\nof funeral rites, 4\\nH\\nHadley, A. T., on individual\\nresponsibility, 221\\nHadley, H. H., and the Peabody\\nLife, 36 experiments in life\\ninsurance, 36\\nPage.\\nHaggart, Thos., death of, 247\\nHahne Co., Newark, N. J., part-\\nnership insurance of, in The\\nPrudential, 262\\nHamill, Dr. Edward H., on de-\\nclined risks, 200\\nHarben, Henry, testimony before\\nthe Royal Commission, 30\\non agitation for Industrial in-\\nsurance in America, 30 on the\\nhistory of the British Pruden-\\ntial, 30 reply to EHzur Wright,\\n46 defends the British Pru-\\ndential, 47 on sickness insur-\\nance, 95 on mortality expe-\\nrience of British Prudential,\\n129.\\nHarvey, Augustus F., on Indus-\\ntrial insurance, 158\\nHauck, Jacob, on Industrial insur-\\nance, 279, 280\\nHawes, Dr. Edwin, on Industrial\\ninsurance, 216\\nHealth insurance, in 1845, 9 fail-\\nure of, 9 fallacies of, 17 at-\\ntempt to organize, by Pruden-\\ntial Friendly Society, 61, 62, 63\\n(see also Sickness insurance).\\nHenry VIII., destruction of Gilds\\nby, 5\\nHildise Bund, of the Metropolitan\\nLife Insurance Company, 28\\na failure, 106 cumbrous meth-\\nod of, 146.\\nHilfinnoth, Bund plan of insur-\\nance, 29\\nHobart, Garret A., on Industrial\\ninsurance, 96\\nHodgkins, Dr., on benefit socie-\\nties, 131\\nHoffman, F. L-, on negro mor-\\ntality, 139\\nHolway, D. N., on the science of\\nlife insurance, 27 on Indus-\\ntrial insurance, 190.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0373.jp2"}, "374": {"fulltext": "326\\nINDEX.\\nPage.\\nHome office of The Prudential,\\nioo, 147, 176 occupation of\\nnew, 191, 192 preparation to\\nenlarge, 281, 282.\\nHonesty of agents, evidence of, 252\\nHunt s Merchants Magazine, on\\nIndustrial insurance, 9 on life\\ninsurance vs. savings banks, 11.\\nIllinois, Insurance Superintend-\\nent of, on Industrial insurance,\\n274 murder of insured chil-\\ndren unknown in, 274.\\nImitations, fraudulent, of Indus-\\ntrial companies, 23\\nImmediate benefit, problem of,\\n124 change in, by Prudential,\\n154 provisions of The Pru-\\ndential, 202 under Industrial\\npolicies, 215.\\nImprovement in the Prudential\\npolicy, 1876-1900, 312\\nIncome, premium, of The Pru-\\ndential 1876-1899, 291 total,\\nof The Prudential, 1876-1899,\\n292.\\nIncontestability, after six months,\\nattempt to obtain, in Illinois,\\n184 of Industrial policies,\\nafter two years, 214.\\nIndependent, New York, on The\\nPrudential, 213\\nIndicator, on negro life insurance,\\n209 on The Prudential, 231.\\nIndustrial, explanation of the\\nterm, 3, 160, 161\\nIndustrial and Commercial, Ham-\\nilton, Ont., 59, 60\\nIndustrial and General, The, first\\nEnglish Industrial companj^, 3\\nfounded, 1849, 5 5 description\\nof, 9.\\nIndustrial companies, fraudulent\\nimitations of, 23 early effort\\nto organize, 22 reasons for\\npage.\\nthe success of, 49 Govern-\\nment aid in organization of,\\n51 organization of, a public\\nduty, 54.\\nIndustrial depression, effect of,\\non Industrial insurance, 155\\nIndustrial insurance, compared\\nwith Ordinary insurance, 3,\\n485 defined, 3 objects of,\\n4, 287 educational aspect of,\\n13, 14, 45, 105, 148, 178, 190,\\n191, 193, 194; demand for,\\n35, 37, 42, 50, 51, 53, 84, 85,\\n92, 96, 98, no, in, 178, 253,\\n286 and public policy, 45, 113;\\nprinciples of, partly recog-\\nnized, 8 first reference to, in\\nAmerica, 9 early opposition\\nto, 15 public confidence in, 15\\nearly recognition of the value\\nof, 23 principles of, recognized\\nby 1870, 24 influenced by\\nEnglish emigration, 33; growth\\nof sentiment in favor of, 34\\nearly development distinct\\nfrom Ordinary companies, 39\\nin the United States, beginning\\nof, 39 superior to savings\\nbanks, 43 various opinions on,\\n44 considered impracticable\\nin 1874, 45 attacked by Elizur\\nWright, 46 method of, ex-\\nplained, 48 conditions favor-\\ning, 56; founders of,in America,\\n58, 63 attempted in Canada,\\n59, 60 and funeral extrava-\\ngance, 66 early difficulties of,\\n68; actuarial basis of, 61, 62,\\n75, 76, 77; simplicity of, 76;\\nequity of system, 76 English\\norigin of, 78 in force in the\\nUnited States, 1879, 116; offi-\\ncially recognized in Massachu-\\nsetts, 119, 120 is not a charity,\\n34, 144, 203 in Massachusetts,\\nsignificant approval of, 222\\nthe wonder of the age, 247", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0374.jp2"}, "375": {"fulltext": "INDEX.\\n327\\nPage.\\nnot a manufacture, but a\\ngrowth, 2S6 in force in The\\nPrudential, 1876-1899, 288 the\\nhighest development of life\\ninsurance, 318 (see also-\\nMoral aspect, Social aspect,\\nApproval, and Value).\\nIndustrial insurance company,\\nfirst, in England, 3 first effort\\nto organize, in America, 21.\\nIndustrial Life Insurance Co. of\\nNew York, the, attempt at or-\\nganization, 22\\nIndustrial Insurance Co. of the\\nUnited States, 114\\nIndustrial Insurance Co. of Amer-\\nica, a fraud, 173\\nIndustrial insurance societies,\\nfraudulent, 89, 93, 173\\nIndustrial-Ordinary insurance, 127,\\n165, 191, 194, 230, 231.\\nIndustrial-Ordinary lapse release, 259\\nIndustrial-Ordinary policy, differ-\\nent from Ordinary, 290\\nIndustrial policies, increasing in\\namount, 289 average amount\\nof Prudential, 289.\\nIndustrialism, Lecky on, 315\\nInfantile applications, not indica-\\ntive of adverse selection, 81\\nInfantile rate table, Prudential\\nFriendly Society, 72 1879,\\n108, 121 1896, 225.\\nInfluenza, epidemic of, 183\\nInstructions, Agents Manual of, 240\\nInsurable interest defined, 49, 161\\n179, 198, 199.\\nInsurance and Commercial Maga-\\nzine on Industrial insurance, 147\\nInsurance Commissioners, special\\ncommittee of, on Industrial\\ninsurance, 122\\nInsurance Critic, on real estate\\npurchase, of The Prudential,\\n176, 177 on The Prudential,\\n233. 234.\\nPage.\\nInsurance enterprises, fraudulent,\\nin 1868, 18\\nInsurance Herald, on statement\\nof Mr. J. F. Dryden, 222\\nInsurance in force in The Pruden-\\ntial, December 31, 1876, 93;\\n1877. 99 1878, 108 1879, n6\\n1880, 132; 1881, 142; 1882, 146,\\n147 1883, 151 1884, 153, 154,\\n155; 1885,159; 1886,166; 1887,\\n169 1888, 175 1889, 181 1890,\\n184 1891, 185, 186 1892, 191\\n1894, 202, 203, 212; 1895, 224;\\n1897, 247 1898, 264 1899, 283.\\nInsurance Journal, New York, on\\nThe Prudential, 196, 197\\nInsurance Times, on Health in-\\nsurance fallacies, 17 on Indus-\\ntrial insurance, 31, 32, 34, 39,\\n112, 131 in 1874, 45; in 1875,\\n67; in 1879, in; on Elizur\\nWright, 44; on Insurance\\nCommissioner Clarke s report,\\n52 reasons for favoring In-\\ndustrial insurance, 53, 54 on\\nfuneral extravagance, 66 on\\ntaxation of life insurance,\\n256.\\nInsurance World, on Industrial\\ninsurance, 60, 102 recognizes\\nnecessity of Industrial insur-\\nance, no; on The Prudential,\\n118 on surrender value of In-\\ndustrial policies, 170, 171.\\nIntemperance clause in the Pru-\\ndential policy, eliminated, 155\\nIntermediate insurance, 105 of\\nThe Prudential, 245.\\nInternational Life of London, re-\\ninsurance of, 29\\nInvestment features of Industrial\\ninsurance, 290\\nInvestments, analysis of Pruden-\\ntial, 299\\nIssue of new business by The\\nPrudential, 1876-1899, 293", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0375.jp2"}, "376": {"fulltext": "328\\nINDEX.\\nPage.\\nIssue, weekly Industrial, of The\\nPrudential, 300 weekly Ordi-\\nnary, of The Prudential, 300.\\nIthaca Daily News, Industrial in-\\nsurance of employees, 268, 269\\nJersey City Journal on Industrial\\ninsurance, 97\\nJohn Hancock Mutual Life, Pru-\\ndential branch of, 101 com-\\nmences Industrial insurance,\\n115.\\nJohnson, A. B., attack on life in-\\nsurance, 10\\nJones, Hugh R., on insurance of\\nchildren, 223\\nK\\nKeyes, E. W., savings bank plan\\nof insurance, 36\\nLaboring Men s Life Insurance\\nCo., Chicago, 111., 20\\nLabor problems vs. Industrial In-\\nsurance, 284\\nLabor-Term insurance, 36\\nLapsed policy-holders, treatment\\nof, 296\\nLapses, circular on, 123 efforts\\nmade to prevent, 123, 180, 195,\\n196, 225, 244, 251, 252, 265, 280\\nofficial opinion on the question\\nof, 135 a loss to the company,\\n139, 141, 294 in Industrial in-\\nsurance, 139, 171, 179, 197, 198,\\n296 Weekly Underwriter on\\nquestion of, 141 misconcep-\\ntion as to importance of, 142,\\n212 consideration of question\\nof, 212 reduction of, 238 a\\nserious problem, 252.\\nLawson, W. F., Superintendent,\\nanniversary of, 283\\nLecky, W. E. H., on public\\nopinion, 222 on conduct and\\nPAGE.\\nprogress, 287 on Industrial-\\nism, 315.\\nLegislation, evils of, in dealing\\nwith life insurance, 41; neces-\\nsity of restrictive, 135 Her-\\nbert Spencer on ill-advised,\\n317 adverse, attempts at (see\\nChildren, Negroes, Surrender\\nvalue).\\nLiabilities, of The Prudential,\\n1877-1899, 298 analysis of The\\nPrudential, 299.\\nLiberality, and equity of The\\nPrudential, 195, 239.\\nLicense fees of Industrial agents, 136\\nLien provision of Industrial poli-\\ncies, 243\\nLiens, form of Industrial policy, 243\\nLife insurance, mass vs. class, 3\\nfor the masses, 8, 11, 12, 17, 21,\\n2 3 76, 77 vs. savings banks,\\n10, 11, 25, 42,43, 285; ignorance\\nof the principles of, 11 for\\nsmall amounts, 12, 16 for the\\npoor, 13, 23, 41, 64, 102, in,\\n112 as a duty, 13 and educa-\\ntion (see Educational value)\\nin i860, 13 lack of confidence\\nin the principles of, 15 ten-\\ndency of, in 1864, 16 in 1868,\\n20 moral obligation of, 21\\nscientific principles of, 27\\nBund or Union plan of, 28, 29,\\n89, 102 new departure in, 30\\nnot philanthropy, 34, 41, 144,\\n203 definition of, 34 secur-\\nity, the first element in, 34, 50\\nsavings bank plan of, 36 for\\nthe poor, defined, 41 nature\\nof, 41 attacked by Elizur\\nWright, 43 for those who\\nneed it most, 67.\\nLife Insurance Association of\\nAmerica, Bund plan of, 29\\nLife Insurance Co. of Virginia, 168\\nLimit of insurance, Prudential\\nFriendly Society, 70", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0376.jp2"}, "377": {"fulltext": "INDEX.\\n329\\nPage.\\nLoans on Industrial policies, 243, 244\\nLoyalty of the Prudential force, 282\\nM\\nMcDermott, Thos. L-, on Indus-\\ntrial insurance, 216, 217\\nMackay, T., on tendency of\\nwage-earners towards econom-\\nic independence, 190, 191 on\\nIndustrial insurance, 221.\\nMaine, explosion of the U. S. S.,\\n253 Prudential policy-holders\\nlost in the explosion of the, 254.\\nMalone, Rev. T. H., on Industrial\\ninsurance, 277\\nManagement of The Prudential,\\nefficiency of the, 155\\nManagement of agents, 270, 271\\nManchester Order of Unity, 60\\nManhattan Co-operative Relief\\nAssociation, 18, 19\\nMasses, life insurance for the, 8,\\n11, 12, 17, 21, 23, 76, 77.\\nMass insurance, vs. class insur-\\nance, 3 by The Prudential, 179.\\nMassachusetts, attempt to prohibit\\ninsurance of children in, 217;\\nfailure of attempt to prohibit\\ninsurance of children in, 221\\nefforts at adverse legislation in,\\n229, 230 Deputy Insurance\\nCommissioner of, on Indus-\\ntrial insurance, 275.\\nMassachusetts Insurance Commis-\\nsioner, on negro discrimina-\\ntion, 153 on Industrial insur-\\nance, 48, 160, 161, 180.\\nMassachusetts Insurance Report,\\nof 1874, on Industrial insur-\\nance, 48, in on Industrial in-\\ninsurance in 1880, 119.\\nMassachusetts Labor Commission\\non savings bank depositors, 25\\nMassachusetts Labor Report, on\\nlife insurance, 1875, 65 on\\ncharity, ill.\\nPage.\\nMassachusetts S. P. C. C, opposi-\\ntion to insurance of children,\\n217 change of views on the\\ninsurance of children, 217.\\nMaternal instinct, among working\\nwomen, 128 among the poor,\\n279, 280.\\nMedical Director, instructions is-\\nsued by The Prudential, 240\\nMedical examinations, in Indus-\\ntrial insurance, 201, 202; on\\nrevivals, 244 ratio of, to rejec-\\ntions, 309.\\nMedical inspection, 239, 240\\nMedical statistics of The Pruden-\\ntial, 309, 312\\nMethods of transacting Industrial\\nbusiness, 240, 241\\nMetropolitan Life Insurance Co.,\\nBund plan of, 28, 102 com-\\nmences Industrial insurance,\\n116; progress of, 132; exami-\\nnation of, 205.\\nMetuchen Inquirer on The Pru-\\ndential, 134 on Prudential\\nprogress, 177.\\nMilitary service, no extra charge\\nfor, 255\\nMill, J. S., on taxation of life in-\\nsurance, 256\\nMiners and Mechanics Life In-\\nsurance Co., 20\\nMinors, life insurance of (see Chil-\\ndren).\\nMinority, Colorado House Bill No.\\n317 defeated by a small, 281\\nMisrepresentation of Industrial in-\\nsurance, 200\\nMissouri Valley Life, insurance\\nscheme of, 36 insurance plan\\nof, and failure, 37.\\nMonitor, Insurance, on life insur-\\nance for the poor, 13 on Gov-\\nernment insurance, 16; on\\ntendency of life insurance in\\n1864, 16 on life-insurance\\nfallacies, 17 on insurance for", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0377.jp2"}, "378": {"fulltext": "33\u00c2\u00b0\\nINDEX.\\nPage.\\nthe masses, 17, 21 on The Pru-\\ndential Friendly Society, 78\\non Industrial insurance, 105 on\\nthe Bund plan in life insurance,\\n106 on the progress of The\\nPrudential, 117 on Prudential\\nliberality, 187, 188 on surren-\\nder value law of 1895, 214 on\\nIndustrial rates, 226 on the\\nsuccess of The Prudential, 266.\\nMonthly premium payment plan,\\nof Mutual Benefit of Newark,\\n21 advocated, 32 inadequacy\\nof, 32 endorsed by the Insur-\\nance Times, 40 of the John\\nHancock Mutual, 10 1.\\nMoon, J., on Industrial insurance, 223\\nMoral aspect of Industrial insur-\\nance, 21, 68, 91, 113, 234\\nMorgan, Nathan D., on Industrial\\ninsurance in 1874, 44, 45\\nMortality of children, 32 exces-\\nsive, as explaining the demand\\nfor Industrial insurance, 32 of\\nNew York City, excessive dur-\\ning 1870-1872, 32 excessive\\nin American cities previous to\\n^75, 55 statistics of negro\\npopulation, 138; comparative,\\nof children and adults, 220 by\\nage and sex, in Prudential ex-\\nperience, 311.\\nMortality experience, investiga-\\ntion into Prudential, 159 of\\nchildren insmed in The Pru-\\ndential compared with Fair s\\nTable, 218; The Prudential,\\n1891-1898, 310, 311.\\nMotto of The Prudential, 225\\nMowatt, James A., on Industrial\\ninsurance, 46\\nMurder of children for insurance\\nmoney, not proven, 128, 129\\nunknown, 150, 152, 207, 208,\\n217, 274, 276 denied, 150, 223.\\nMutual Benefit Life Insurance Co.\\nNewark, N. J., effort to estab-\\nPage.\\nlish weekly premium pay-\\nments in 1847, 8\\nN\\nNational character of Industrial\\ninsurance, 303, 307\\nNationality of Industrial policy-\\nholders in The Prudential, 302\\nNecessity, Industrial insurance a, 134\\nNeglect of insured children prac-\\ntically unknown, 207, 217, 223\\nNegroes, insurance of, 137, 185,\\n208, 209, 211; first Pruden-\\ntial adult rate table for, 138\\ndiscrimination against, pro-\\nhibited in Massachusetts, 153\\nin Rhode Island, 159 in New\\nYork, 185 discrimination\\nagainst, 207 excessive mor-\\ntality of, 137, 209, 302 mortal-\\nity of, in Prudential experi-\\nence, 210 not solicited by The\\nPrudential, 211; Leslie D.\\nWard on insurance of, 209-211.\\nNeisonandJ. F. Dryden, 60\\nNewark Daily Advertiser on The\\nPrudential, 74. 75, 90, 91\\nNewark Daily Journal on The\\nPrudential, 147\\nNewark Evening Courier on The\\nPrudential Friendly Society,\\n58, 75, 76.\\nNewark Morning Register on The\\nPrudential Friendly Society,\\n58 on Industrial insurance, 76,\\n77 on The Prudential, 144, 267.\\nNewark, N. J., birthplace of In-\\ndustrial insurance, 56 pauper-\\nism in, previous to 1875, 56\\na favorable field to organize an\\nIndustrial company, 78 mor-\\ntality of children in, 130 be-\\nneficent results of Industrial\\ninsurance in, 307 decrease in\\npauper burials in, 307 large\\nproportion of industrial popu-\\nlation insured, 307.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0378.jp2"}, "379": {"fulltext": "INDEX.\\n331\\nPage.\\nNewark Sunday Call, on The Pru-\\ndential Friendly Society, 85,\\n86 on The Prudential, 133, 134.\\nNew Era in Industrial insurance,\\n187, 235.\\nNew Hampshire Insurance Com-\\nmissioner on Industrial insur-\\nance, 263\\nNew insurance, explanation of,\\n212 issued by The Prudential,\\n1876-1899, 293\\nNew Jersey, attempts at adverse\\nlegislation in, 184 law prohib-\\niting discrimination against\\nnegroes, 208, 209 surrender\\nvalue question in, 211, 212\\nsurrender value law of, 214\\nInsurance Commissioner of, on\\nIndustrial insurance, 273, 274.\\nNew Jersey Mutual, failure of the, 98\\nNewspaper attacks on Industrial\\ninsurance, 150, 199, 200, 277\\nNew York City, excessive mor-\\ntality in, 32 pauper burials in,\\n32, 56 infant mortality in, 312.\\nNew York Insurance Department\\non Industrial insurance, 205, 274\\nNew York Insurance Report, on\\nindustrial depression, 155 on\\nIndustrial insurance, 134, 135,\\n151, 155-\\nNew York Life Insurance Co.,\\nUnion plan of, 27, 28, 29 offi-\\ncers of the, attempt Industrial\\ninsurance, 114.\\nNew York Life Insurance and\\nTrust Co. insurance for small\\nsums by the, 12\\nNew York State, Prudential en-\\nters, 117; insurance license\\nquestion in, 136 attempt to\\nprohibit the insurance of per-\\nsons under ten years in, 182\\nInsurance Superintendent of,\\non Industrial insurance, 274\\nmurder of insured children\\nunknown in, 274.\\nPage.\\nNew York Workingmen s Bene-\\nfit Co., 20\\nNon-forfeiture, law not applicable\\nto Industrial insurance, 122\\nin Industrial insurance, 164,\\n165 (see Surrender value,\\nLapses, Paid-up insurance).\\nNotification law not applicable to\\nIndustrial insurance, 122\\nO\\nObjects of Industrial insurance, 4,\\n287, 316.\\nOccupation, of first male appli-\\ncants to The Prudential Friend-\\nly Society, 80 restrictions re-\\nmoved, 155 restrictions on,\\n245, 246 of Prudential Indus-\\ntrial policy-holders (male), 304,\\n305 of Prudential Industrial\\npolicy-holders (female), 306;\\ndangerous, of Industrial pol-\\nicy-holders, 310.\\nOdd Fellows in America, 8\\nOffice force of The Prudential,\\n1885-1900, 300\\nOhio, Insurance Superintendent\\nof, on Industrial insurance, 171, 274\\nOhio, murder of insured children\\nunknown in, 274 attempts to\\nprohibit the insurance of chil-\\ndren under 12 years defeated\\nin, 281.\\nOld Guard, Prudential, explana-\\ntion of, 177 privileges of,\\n241 membership in, 282,\\nOpposition to Industrial insur-\\nance, early, 15 reasons for, 141\\ncharacter of, 150 a class sen-\\ntiment, 278 (see Approval).\\nOrange Journal, N. J., on value of\\nIndustrial insurance, 308\\nOrdinary-Industrial insurance, 127,\\n165, 191, 194, 230, 231.\\nOrdinary insurance, vs. Industrial\\ninsurance, 3, 285 attacks on,\\n10, 26 by Industrial com-\\npanies, 165 commenced by", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0379.jp2"}, "380": {"fulltext": "332\\nINDEX.\\nPage.\\nThe Prudential, 165 in force\\nin The Prudential, 1886-1899,\\n288 proportion of total busi-\\nness, 290.\\nOrdinary policies, average amount\\nof Prudential, 289\\nOrigin of Industrial insurance, 78, 318\\n1 Our American Union on life\\ninsurance, 10\\nPaid-up Industrial insurance, 211,\\n212, 214, 237; misstatement\\nabout, by University Settle-\\nment Society, 213 explained,\\n187, 188 granted by The Pru-\\ndential, 265 1 890- 1 899, 295.\\nPanic and depression, of i873- 78,\\neffect on Industrial insurance,\\n68 of 1893, effect of, 195\\neffect of, on life insurance,\\n203.\\nPartnership insurance by The Pru-\\ndential, 262\\nPaterson Guardian on Industrial\\ninsurance, 97\\nPaterson Press on The Pruden-\\ntial, 142, 143\\nPauper burials, the abhorrence of,\\n4 in New York City, 32 and\\nIndustrial insurance, 147, 148\\ndecrease in, 307, 308 table of,\\nfor ten American cities, 1880-\\n1899, 308.\\nPauperism, in Massachusetts, 1875,\\n65; insurance against, 114; and\\nIndustrial insurance, 147, 148\\nprevented by Industrial insur-\\nance, 280 in American cities\\nprevious to 1875, 56.\\nPaupers, life insurance of, un-\\nprofitable and impracticable, .112\\nPeabody Life, savings bank plan\\nof insurance, 36 weekly pre-\\nmium payment plan of, 36.\\nPeacock, Mr., effort of, to organ-\\nize an Industrial company, 21, 22\\nPage.\\nPennsylvania, attempt to prohibit\\ninsurance of children in, 172\\nInsurance Commissioner of,\\non Industrial insurance, 275\\nmurder of insured children\\nunknown in, 275.\\nPennsylvania Co. for Insurance of\\nLives, 8\\nPensions, industrial, old age, im-\\npracticable, 73\\nPeople s Life Insurance Co. of\\nNew York City, 20\\nPeople s Insurance Co. of Nor-\\nwich, Conn., 168\\nPeto, Sir S. Morton, on taxation\\nof life insurance, 256\\nPhiladelphia Charity Organization\\nSociety on Industrial insur-\\nance, 172\\nPhiladelphia Intelligencer on\\npaid-up Industrial policies, 188, 189\\nPhilanthropy, insurance is not,\\n34, 144, 203.\\nPiedmont and Arlington Life In-\\nsurance Co., connection with\\nthe Widows and Orphans\\nFriendly Society, 38\\nPittsburg Dispatch on Industrial\\ninsurance, 149\\nPiatt, Sarah S., on Industrial in-\\nsurance, 276, 277\\nPolice, chief of, on Industrial in-\\nsurance in Louisville, 217\\nPolicemen s Insurance Fund, in\\nNew York City, 17\\nPolicy, return of, if not satisfac-\\ntory, 228 new, of The Pruden-\\ntial, 236, 237 average amount\\nof Industrial and Ordinary,\\n289.\\nPolitical economy and Industrial\\ninsurance, 2 (see also Eco-\\nnomic aspects).\\nPoor, life insurance for the, 13, 23,\\n41, 64, 102, in, 112.\\nPoor man s friend, The Pru-\\ndential the, 144", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0380.jp2"}, "381": {"fulltext": "INDEX.\\n333\\nPage.\\nPopulation, sex distribution of,\\ninsured in The Prudential, 306\\nPost-office insurance, 16\\nPoverty and pauperism, difference\\nbetween, 73, 112\\nPremium payment plans, 8, 21,\\n27, 32, 36, 40.\\nPremium payments, methods of,\\nPrudential Friendly Society, 70\\nPremium Rates of Industrial Com-\\npanies, discussion of, 50\\nPremiums, weekly, first applied in\\nlife insurance, 8 paid out of\\nluxuries, not necessities, 73;\\nweekly payment of, preferred,\\n82 unpaid portion of annual,\\ndeducted from claim, 124 re-\\nturn of first two weeks if pol-\\nicy is not satisfactory, 228\\nlimit of, in insurance of chil-\\ndren, 226, 227 income of The\\nPrudential, 1876-1899, 291.\\nPrinciples, life insurance, igno-\\nrance of, 11 life insurance,\\nlack of confidence in, 15 Pru-\\ndential foundation, 176 busi-\\nness, of The Prudential, 253.\\nPrinting and Supply Departments\\nof The Prudential, 301\\nPrivileges of the Prudential Old\\nGuard, 241\\nProblem, The Prudential solves\\nthe insurance, 144, 146\\nProfit-sharing policies, Industrial, 242\\nProgress Life and Savings Insur-\\nance Co. of the United States, 24\\nProgress of The Prudential Insur-\\nance Co. (see Insurance in\\nforce).\\nPropinquity of Industrial insur-\\nance, 102\\nProvident Savings Assurance So-\\nciety, attempt to transact busi-\\nness without agents, 65 com-\\nmenced Industrial insurance,\\n114; discontinued Industrial\\ninsurance, 142.\\nPage.\\nPseudo life-insurance companies, 173\\nPrudential Benefit Society, The,\\nNewark, N. J., 93\\nPrudential League, Harrisburg,\\nPa., 89\\nPrudential, the, of Kn gland, model\\nfor the American company, 1\\nand the Industrial and General,\\n5 and the International Life,\\n29 influence of, on American\\ninsurance development, 16\\nin 1864, 16; in 1868, 21;\\nmethod of business, 23 his-\\ntory of, 30; in 1872, 31; In-\\nsurance Times on, 41 attacked\\nby Gladstone, 46 in 1874, 60\\n(see Harben, Henry).\\nPrudential Friendly Society, The,\\norganized, 1875, 38; in 1875,\\n57 first application to, 58\\nfounded on a rock, 58;\\nfounders of, 58, 63 organiza-\\ntion difficult, 63 first Board\\nof Directors, 69, 85 first pros-\\npectus of, 70 medical exam-\\nination not required, 70 rates\\ncharged by, 72, 73 foundation\\nprinciples of, 74, 75, 85 ob-\\njects and methods, 71, 74, 75\\nbenefits of plan, 76 progress\\nof, in 1875, 79; class of per-\\nsons insured in, 80 progress\\nof, 1876, 84, 92, 93 approval\\nof plan of, 85, no early finan-\\ncial difficulties, 93; title\\nchanged to The Prudential In-\\nsurance Co. of America, 95.\\nPrudential Insurance Co. of\\nAmerica, The, Newark, N. J.,\\nfirst American Industrial in-\\nsurance company, 1 foun-\\ndation principles of, 63, 64\\nfounded on a rock, 77;\\nan institution for all, 77 ex-\\ntends its operations, 95; capi-\\ntal increased, 117 name of, a\\nhousehold word, 119; Insur-", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0381.jp2"}, "382": {"fulltext": "334\\nINDEX.\\nPage.\\nance Times on, 131 praise of,\\nI 33 *34 I newspaper attack on,\\n145 tenth anniversary of,\\n156 public discussion of\\nmethod of, 166, 167 growth\\nof, 176 Boston Herald on,\\n180 paid-up policies of, 187\\ngrants surrender values, 188,\\n189 insurance in force, 1876-\\n1899, 288 total income of,\\n1876-1899, 292 new business\\nissue, 1876-1899, 293 paid-up\\npolicy issue, 1890-1899, 295\\npayments to policy-holders,\\n1876- 1899, 297 surplus of,\\n1876-1899, 298 assets of, 1876-\\n1899, 298 liabilities of, 1877-\\n1899, 298.\\nPrudential Insurance Co. of Amer-\\nica, New York City, 52\\nPrudential Life Insurance Co.,\\nColumbus, Ohio, 34\\nPrudential Mutual Aid, Harris-\\nburg, Pa., 90\\nPrudential Weekly Record, The,\\non the Rock of Gibraltar, 267\\npublished for the field force,\\n301.\\nPublic charit}^ and Industrial in-\\nsurance, 113\\nPublic policy and Industrial in-\\nsurance, 45, 113\\nR\\nRatcliffe and J. F. Dryden, 60\\nRates, premium, relation of mor-\\ntality to, 109 change in Pru-\\ndential, October 6, 1884, 154\\nJanuary 4, 1886, 164; in 1890,\\n184 in 1896, 225.\\nRate tables, first adult, Prudential\\nFriendly Society, 71 first in-\\nfantile, Prudential Friendly So-\\nciety, 72 Prudential infantile,\\n1879, 108 Prudential adult,\\n1879, 109 first infantile, Pru-\\ndential Insurance Co., 121\\nPage.\\nFive -Hundred Dollar, adult,\\n126 Prudential, for colored\\nrisks, 138; Child s Endowment,\\n193 Prudential infantile, 1896,\\n225 Prudential adult, 1896,\\n228 Prudential intermediate,\\n246.\\nReal estate, purchase of, for Pru-\\ndential office building, .175, 176\\nReceipt books, cost of, assumed\\nby The Prudential, 260\\nReese, Dr. R. M., on insurance\\neducation, 13\\nRegulation, statutory, of Indus-\\ntrial insurance, 183\\nRegulating statute, efforts in\\nColorado to pass a 272\\nRejected lives, observation on, 200\\nRejections, medical, in Pruden-\\ntial Industrial and Ordinary\\nDepartments, 309\\nRelief and Aid Society, Chicago, 290\\nReligious press on Manhattan Co-\\noperative Relief Association, 19\\nReserve, required on Industrial\\npolicies, 119 on infantile\\npolicies, 120 on Industrial\\npolicies, discussion on, 151.\\nRetail principle in life insurance, 105\\nRevival privileges of Industrial\\npolicy-holders, 89, 124, 195,\\n196, 242, 243.\\nReynolds, Dr. F. S., on Industrial\\ninsurance, 217\\nRhodes s United States Advertiser\\non mass insurance, 11\\nRibot, T., on scientific evidence, 315\\nRisks, Industrial, character of,\\n82, 83, 302-307.\\nRochdale, Industrial insurance in, 42\\nRoman Collegia, the, as insurance\\nassociations, 5\\nRoyal Liver Friendly Society,\\nLiverpool, Eng. 60 mortality\\nexperience of the, 129.", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0382.jp2"}, "383": {"fulltext": "INDEX.\\n335\\nPage.\\nS\\nSt. Peter s Workingmen s Benefit\\nClub, in\\nSavings, semi- compulsory, by\\nIndustrial insurance, 43; sys-\\ntematic, increased by Indus-\\ntrial insurance, 309.\\nSavings banks vs. life insurance,\\n10, 11, 25, 42, 43, 59, 285.\\nSavings Bank Commission of\\nMassachusetts, report of 1852, 25\\nSavings banks depositors of Mas-\\nsachusetts, wealthy, 25, 26;\\nGovernor s message on, 25.\\nSaving habits, undeveloped, 25\\nof the masses in 1872, 25 de-\\nveloped by Industrial insur-\\nance, 26, 43, 309.\\nSavings institution, life insurance a, 284\\nSecurity the essential principle in\\nlife insurance, .34, 50, 77, 299\\nSelection, adverse, in Industrial\\ninsurance, 202\\nSelf-solicited insurance for the\\nmasses, fallacy of, 64, 65\\nSentiment as a factor in legislation, 153\\nSex distribution, of persons in-\\nsured in The Prudential, 306\\nof decedents, in the Pruden-\\ntial s experience, 311.\\nShannon, M., on Industrial insur-\\nance, 205\\nSickness, excessive, previous to\\n1875, 55 inadequacy of statis-\\ntics of, 61 statistics of, 77.\\nSickness insurance, attempt at,\\n61, 62, 63 discontinued by The\\nPrudential Friendly Society,\\n62, 95 in small demand, 83,\\n100 branch of Industrial com-\\npanies, 94 why a failure, 94,\\n95 a failure, 108 (see also\\nHealth insurance).\\nSmall amounts, life insurance for,\\n12, 104, 105.\\nPage.\\nSmith, Heber, on Industrial insur-\\nance in 1874, 44\\nSocial aspects of Industrial insur-\\nance, 104, 113, 169, 178, 190,\\n191, 193, 194, 234, 284, 286, 315,\\n316.\\nvSolvency, of Industrial insurance\\ncompanies, 132 of The Pru-\\ndential, 299.\\nSpecial Adult policy of The Pru-\\ndential, 164\\nSpectator, the, on health-insur-\\nance fallacies, 17 criticism of\\nManhattan Co-operative Relief\\nAssociation, 19 on the British\\nPrudential, 30, 31 on Indus-\\ntrial insurance, 30, 103, 104,\\n169 interview with life under-\\nwriters, 44, 45 on attack on\\nThe Prudential, 145 on The\\nPrudential, 145, 146, 156 on\\nthe insurance of children, 182\\non anti-discrimination laws,\\n185 on Industrial insurance\\nprogress, 203, 204 on Indus-\\ntrial rates, 226 on Industrial-\\nOrdinary insurance, 231.\\nSpencer, Herbert, on Industrial\\ninsurance, 2 on co-operation,\\n18 on credulity and belief,\\n316 on evolutionary tenden-\\ncies, 137 on ill-advised legis-\\nlation, 317.\\nSprague, T. B., on life insurance\\nof children, 129, 159.\\nSprague, Actuary, Connecticut\\nInsurance Department, on val-\\nuation of Industrial policies, 160\\nState life insurance a failure, 16\\nState supervision of Industrial\\ncompanies, 135, 180\\nStatistical data demanded by Mas-\\nsachusetts agitators, 230\\nStatus, transition from, to con-\\ntract, 6 vs. contract, 75.\\nStock, sale of Prudential, 145, 146", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0383.jp2"}, "384": {"fulltext": "33^\\nINDEX.\\nPage.\\nStokes, Thos. T., on Industrial\\ninsurance, 278\\nStraight canvassing, results of,\\n250 increased efforts at, 269.\\nSuccess, of Industrial companies\\nin doubt, 103, 105 of The\\nPrudential by 1879, 118 in In-\\ndustrial insurance, difficulty of,\\n168 of Industrial insurance,\\nevidence of, 173.\\nSuicide clause, in the Prudential\\npolicy, 155 removed, 229.\\nSumner, Charles, on taxation of\\nlife insurance, 256\\nSumner, Professor W. G. on social\\nduties, 6 on charity, 41.\\nSun Life Insurance Co., The, or-\\nganized, 183\\nSupply and Printing Departments\\nof The Prudential, 301\\nSurplus of The Prudential, 1876-\\n1899, 298\\nSurrender value, inexpedient in\\nIndustrial insurance, 87, 88 of\\nIndustrial policies, 87 in In-\\ndustrial insurance, 164, 165,\\n170 attempt to pass laws, 170,\\n211, 212 question discussed,\\n170, 171, 188, 189, 214, 295, 296;\\nafter two years, 184 law of\\nNew Jersey, 1895, 213, 214;\\nprivilege of Industrial policy-\\nholders, 235 cash, 237 mis-\\nconception of question of, 296.\\nTaxation of life insurance, 113,\\n256 taxes on Industrial and\\nOrdinary policies assumed by\\nthe Company, 256 taxes paid\\nby The Prudential, 267.\\nTax-payer, Industrial insurance\\nand the, 307, 308\\nTemperance and Industrial insur-\\nance, 241\\nPage.\\nTennessee, attempts to prohibit\\ninsurance of children in, 216\\nThe Prudential, bi-monthly\\npublication, 301\\nThornton, George H., 117\\nThrift, defined, 4 Industrial in-\\nsurance encourages, 91, 164,\\n169, 170 Industrial agents\\nteachers of, 148 Industrial\\ninsurance a modern form of,\\n287.\\nTilt, Dr. E. J., on child insurance, 192\\nTimes, New York, on Govern-\\nment insurance, 16\\nTrenton True American on child\\nmurder and Industrial insur-\\nance, 128\\nTribune, New York, attack on life\\ninsurance, 26 approval of In-\\ndustrial insurance in 1875, 64;\\non insurance of children, 152\\non Prudential progress, 169.\\nTubercular diseases, mortality\\nfrom, in the Prudential s ex-\\nperience, 310, 311\\nTuckett s Insurance Journal on\\nstraight canvassing, 12\\nTwisting of Industrial policies, 181\\nU\\nUndertakers and Burial Insur-\\nance Co., Richmond, Va., 35\\nUnion plan of the New York Life\\nInsurance Co., 27\\nUnion or Bund plan a failure, 27\\n(see also Bund plan in life in-\\nsurance).\\nUnited Brethren Mutual Aid, 106\\nUnited States Funeral Directing\\nCo., a failure, 173\\nUnited States Industrial Insur-\\nance Co., organized in New-\\nark, N. J., 180 reinsurance of,\\n181.\\nUniversity Settlement Society,\\nunwarranted attack on Indus-\\ntrial companies, 213", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0384.jp2"}, "385": {"fulltext": "INDEX.\\n337\\nPage.\\nV\\nValuation of Industrial poli-\\ncies, 122, 160\\nValue, of Industrial insurance,\\n68, n8, 119, I47 148, 158, 161,\\n162, 177, 178, 216, 217, 221, 222,\\n239, 248, 263, 264, 271, 272, 274,\\n276, 277, 281, 290, 297, 298, 307,\\n308, 314 of Prudential con-\\ncessions to policy-holders, 313.\\nVaught, Dr. R. L., on Industrial\\ninsurance, 217\\nVerdict of the masses on Indus-\\ntrial insurance, 286, 314 (see\\nalso Approval).\\nVice-President of The Prudential,\\nL. D. Ward elected, 154\\nVictoria Assurance Society and\\nAmerican life companies, 31\\nW\\nWaldorf-Astoria, banquet at the,\\n1898, 252 1900, 318.\\nWalford, Cornelius, on funeral in-\\nsurance, 35\\nWalker, Amasa, on Government\\ninsurance, 35\\nWalker, Francis A., on economic\\ntruths for the masses, 47\\nWar, mortality experience of The\\nPrudential, 255 permits to\\npolicy-holders, 255 revenue\\ntaxes on Industrial policies,\\n255, 256.\\nWard, Edgar B., Counsel and\\nSecond Vice-President of The\\nPrudential, 69, 127\\nWard, Iy. D., organizer of The Pru-\\ndential Friendly Society, 69\\nelected Vice-President of The\\nPrudential, 154; executive skill\\nof, 154 on negro life insur-\\nance, 209-211; on straight\\ncanvassing, 249-251 on claim\\npayments, 257 on payment of\\nIndustrial dividends, 261 on\\nagency management, 270, 271\\nPage.\\ntribute to Superintendent Ege-\\nnolf, 282.\\nWashington, D. C, effort to estab-\\nlish Industrial company in, 67\\nIndustrial Life Company in, 78.\\nWatchword, Prudential agents 252\\nWebb, Sydney, on Fraternal in-\\nsurance, 7\\nWeekly-payment plan, first ap-\\nplied in life insurance, 8 early\\napproval of, 14 of the Amer-\\nican Popular Life, 21 of the\\nNew York Life, 27 of the Pea-\\nbody Life, 36 popularity of,\\n101 early instance of, in.\\nWeekly Underwriter, on life in-\\nsurance for children, 128 on\\ninsurance legislation, 135 on\\nState supervision, 135 on In-\\ndustrial lapses, 141 on Gov.\\nButler s attack, 149 on Indus-\\ntrial insurance, 150 on The\\nPrudential, 197 on Colorado\\nlegislation of 1899, 281.\\nWells, David A., interest in In-\\ndustrial insurance, 168\\nWestern and Southern Industrial\\nInsurance Co., 181\\nWestern New York Life Insur-\\nance Co:, Bund plan of, 29\\nWhite, Samuel H., on Industrial\\ninsurance in 1874, 44\\nWhite, Dr. W. P., on Industrial\\ninsurance, 217\\nWhitehead, Hon. John, first appli-\\ncant to Widows and Orphans\\nFriendly Society, .110\\nWidows and Orphans Friendly\\nSociety, character of 37 Bund\\nplan of, 38 Teutonic character\\nof, 38 charter amended, 57\\nJohn F. Dryden and the, no.\\nWilloughby, W. F., on working-\\nmen s insurance, 284\\nWindsor Hotel fire, 271\\nWise, Henry A., on Government\\ninsurance, 35", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0385.jp2"}, "386": {"fulltext": "338\\nINDEX.\\nPage.\\nWomen, as Industrial agents, 87\\nmembers of Colorado Legisla-\\nture in favor of Industrial in-\\nsurance, 281.\\nWorkingmen s insurance, early\\nefforts at, 1, 6 by health-insur-\\nance companies, 17 compa-\\nnies, objects of, 20 companies\\nin 1868, 20; companies, fail-\\nures of, 20, 101 of the New\\nYork Life Insurance Co., 27\\non the Bund or Union plan, 27\\nI 875, 65 defined, 284.\\nWorkingmen s Life Insurance\\nCo., Chicago, 111.,\\nWorkingmen s Union, New York\\nCity,\\nWright, Elizur, on life-insurance\\n5 agents, 14 on Industrial in-\\n20\\n20\\nPage.\\nsurance, 15 on post-office in-\\nsurance, 16 on Government\\ninsurance, 16 savings bank\\nplan of insurance, 36, 59\\nFamily Bank scheme of, 43\\nattacks on life insurance, 43\\ncriticism of, by Insurance\\nTimes, 44 attacks Industrial\\ninsurance, 46; misrepresenta-\\ntion of, proven, 47 on life\\ninsurance for the poor, 64\\nmistakes of, 98, 99.\\nWright, Mrs. Harriet G. R., ap-\\nproval of Industrial insurance, 281\\nYates, Henry J., elected Treasurer\\nof The Prudential, 154", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0386.jp2"}, "387": {"fulltext": "", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0387.jp2"}, "388": {"fulltext": "", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0388.jp2"}, "389": {"fulltext": "", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0389.jp2"}, "390": {"fulltext": "", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0390.jp2"}, "391": {"fulltext": "", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0391.jp2"}, "392": {"fulltext": "JUN 27 1900", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0392.jp2"}, "393": {"fulltext": "", "height": "4002", "width": "2552", "jp2-path": "historyofprudent00hoff_0393.jp2"}, "394": {"fulltext": "", "height": "4212", "width": "2819", "jp2-path": "historyofprudent00hoff_0394.jp2"}}