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SECOND SECTION. The Atlanta Georgian. VOL. I. NO. 213. ATLANTA, GA., MONDAY, DECEMBER 31, 1906. INSURANCE a COMMODITY; HOW TO TELL DIFFERENT KINDS OF INSURANCE LOCAL AND SPECIAL AGENTS; THEIR RELATIVE MERITS IN LIFE INSURANCE WORK By EUGENE OBERDORFER. Insurance of today encircles In Its scope such varied and numerous kinds, w hen viewing the subject It evidences that the financial loss with even the parting of life Is protected to the full- est extent, so far as the provision by every person extends. With serious thought, one can Indulge in comforts anil luxuries to the closest notch of one’s Income where life Insurance Is carried, that supplies the estate to those dependent on the "bread winner.” Accident Insurance covers the un-1 foreseen, so as the prudent man leaves ! the doctor’s office, having been accepted for a life policy, he grasps the chance to secure his Income with which to pay the premiums and feels reasonably safe that he will live to enjoy the returns of his savings at old age, If only he does not meet with an accident. We may- thwart off sickness: we can dodge the epidemic; phylcs will set us right, but no one can dodge an accident. The mishap and result are simultaneous. Everywhere, walking, sitting, riding, eating or sleeping, ’tls but a moment and we are crippled, and dlsubled. Health Insurance made its debut, paying Indemnity while disabled from business and work, and capping the serurity of our weekly profit, wages and Income by yielding the flow of money Just the same when the brain Is taxed with fever as were It sound and active In accord with the physical en ergies of the usual avocation. Fire insurance, burglary Insurance, boiler Insurance, credit Insurance, live stock, fly wheel, frost, bonds, resi- dence theft, plate glass, elevator and collection; liability Insurance against demands and recovery from employers, physicians, druggists, landlord, con tractors. automobile, cyclone, marine, storm, baggage, and, yes, even, matri mony and children. Insurance today Is a commodity. It Is necessary for the beginner in life, as it Is a safe-guard for the successful man. , The general law of prnctlcnl consid eration for both parties to Insurance contracts. Is after nil simple. The as- „ EUGENE OBERDORFER. Resident Manager Fidelity and Casual ty Insurance Company. sured is confronted with the question as there are so many kinds of Insur ance, Does It pay better to pay the pre mium or carry the risk? The answer every insurance agent knows—We can’t afford to do without It. The question of the other party to the contract Is answered, for if the volume Is sufficient to wield to the law of general average, the rates and limits drift and shape themselves, that every kind of Insurance Is profitable and many more hazards will become lines of Insurance for the future and will come under the subject of the different kind of Insurance. ATLANTA AGENT OF ROME COMPANY QUALIFIES FOR HALF MILLION DOLLAR CLUB Rome, Gn., Dec. 31—The Half Mil lion Dollar Club and Two Hundred ’"housand Dollar Club of the State Mu tual Life Insurance Company of Rome, Ga„ will be the guests at Birmingham of the Alabama Club of the State Mu tual Life agents on January 3 to 5. On January 3 every State Mutual Life agent who can reach Birmingham will jnoet. Ini annual convention there. For two days about two hundred agents, Including members of the Ala bama Club and the banner Insurance agents who have won membership In the clubs whose names are dollar marks, will discuss plans for an ag gressive campaign in life insurance business fov the year 1907. They will also celebrate the close of a year which makes the State Mutual Life Insurance Company of Rome, Or tho world record-breaker In Insurance. In the first twelve months of Its life as an old line company the State Mu tual Life has written about 328.000,001 of business. Alabama has contributed more than any other state In the Union. Up to December 1. 1900, Ala bama agents of the State Mutual Life Insurance Company had written over eight million dollars of business. The amount of business written by the agents of Alabama awarded to them the honor of entertaining the banner agents of tho company—those who had written the most business, and those who are, therefore, best fitted to give advice as to how to write life Insur ance. The guests of the Alabama Club be long to unique organizations In lire In surance. When tho big Now York life Insurance companies first established clubs of their honor members they put into the honor class the men who had written one hundred thousand dollars of business. More successful Ufe in surance agents Inspired to tho T«o Hundred Thousand Dollar Club, or ganized later. It remained for the State Mutual Life-Insurance Company of Rome, Ga., to bring before tho world about ten men who have written an abnormal amount of business for this By MARK J. M’CORD. The question ds to which kind of an agent Is the most beneficial to a gen eral agency, the local or the special agent. Is one which I suppose has been debated In the mind of every general agent Personally, If I was compelled to take my choice of one or the other, I should select the local agent The reason la that the one great desidera tum In building up a stable life Insur ance business la not alone the secur ing of a great volume of business, but rather securing as much business as possible of such kind and upon such a character of persona as will cause that business to stay upon the books of the company. Any company that la con sistently and conservatively managed to the interests of Its policyholders would rather have a medium amount of good sticking business than a great volume of poorly written and poorly considered business. It is expensive to produce business, and, aa necessarily nine-tenths of all business must be se cured by an agent, the question of the kind, -character and personality of the agent is a controlling one. Personally, my experience has 1>een largely with the local agent and local agents are the mainstay of the- busi ness, but the specials have their place, and, In a way, are Just as Importan the locals. It may be argued that special Is preferable because he goes to a locality only for a limited space of time, can thereby secure an audience with his prospects more quickly, and In that way- can write more business than the local agent. On the contrary, It may be argued with equal If not great er force that the local agent. If he be. of the proper character and responsi bility has the confidence of his neigh bors and Is always on the ground and can thereby secure In the long run more business and a better charac ter of business than the special agent. It Is obo true that when the second year’s premium comes due, the local agent being on the ground has the temptation to "switch’’ his business in to some other company for the sake of the commission. This can be avoided In a large .measure by looking to the per sonality of the local agent and by mak ing It to his Interest to see that his business Is maintained as originally written. His Interest will be so se cured If he Is paid for It, and not oth erwise. The Interests of the company and the general agent are Identical. In lieu of a salary and as the basis of his MARK J. M’CORD. State Manager National Life Intur- ance Company of The United States of America. compensation, he Is given a line of re newal commissions to look after this business. Then why not give the lo cal agent, the man on the ground, a piece of the same pic for the same purpose? At last special agents are a neces sity to every general agency, to go from one locality to another, not only looking aftey the production of now business, but overlooking the whole business. But In my experience the local agent Is the mainstay. The lab orer Is worthy of his hire. As a man thlnketh In his heart, so Is he. The higher success will not be reached until the Interests of the company, the local agent, the special agent and the gen eral agent are made one and the same. They are all members, and should be loyal members of one great business family, and that fnmlly will take Its stand In the whole business community In so far as each of Its members are above reproach. SUCCESS FOR YOUNG MEN ' IN THE INSURANCE FIELD IF THEY WILL HUSTLE CHARLES M’D. FORT. Member of half milllon-dollar club, young glnnt of life Insurance. They arc the "Hnlf Million Dollar Club. 1 These eminently successful men and the Two Hundred Thousand Dollar Club men will be the welcome guests of the Alabama Club next week. The president of the entertainers Is J. H. Dean and there Is a galaxy of bright and brainy men among the hosts. The meetings will be held In the commodi- ham. Among Romans who will go down to Birmingham for this convention are: Charles R. Porter, president of the State Mutual Life Insurance Company; Fred Avererctt, agency manager; B. W. Lacy, Jr„ actuary: R. Dwight Shaw, agent; H. B. Parks, agent; Dr. Walker Curry, medical director; R. W. Graves, treasurer, and Lloyd Damron, assistant to the president. 2 YOUNG MEN BEGIN NEW YEAR BY STARTING INS. AGENCY By GEORGE M. HOPE. The best evidence of thf opportuni ties open to Intelligent men In the life Insurance business Is exemplified In the many successes that have been made by prominent life Insurance managers who have started at the bottom and have risen to positions of eminence with their companies. There are many examples of this kind that can be pointed to. Many young men who have started , out In the Insurance world has begun his career expecting always to be u solicitor. This man has remained a solicitor. Other young men have | started out with the purpose and In- l tent of becoming managers for some ! great company or other higher nosl- I tlons and have soon found thnt their I expectations were realized. It wns their ambition, coupled with energy, perslstance and honesty that has mads them go to the top of the ladder. This same opportunity Is open to the young men In the life Insurance world today. In speaking with prominent life In surance managers of llio ic-udjuniineui which Is now going on, pursuant ti recent legislative enactment, he thinks so soon as the re-adjustment la effect ed and the new order of things la firmly Installed that we will see life Insurance grow more wholesome, more satisfac tory and more profitable to the men In the field.' He expresses no doubt that some Individuals who resist the In evitable current will be destroyed, but those who adjust themselves to the new conditions will work out their problem to a successful Issue, and the man who cannot keep pace with events as they develop will necessarily drop by the wayside, but a new man will come to take his place and will reap the benfits of the re-established order of things, and that the man who takes the advantage of present opportunity SOUTHERN SUITES By H. H. CABANI68. If we recognize life Insurance as a necessity, and which no man caring for his dependent family will do with out, the important question becomes, In which company shall I insure? No one can take the risk of Insuring In a company which Is not solvent on account of any sentiment or feeling of sectional pride. A Southern company must, therefore present strength and solidity, conservative and economical management, and when these necessary conditions are complied with, it has a right to expect patronage. Fortunately the laws of all the states, practically, require a deposit of one hundred thousand dollars, in good and safe bonds, before the company Is al lowed to begin writing business. This Is an abundant safeguard, for if the deposit Is ever lessened or impaired, tho company must make It good or be shut out of the state. There has not been a failure of 1 a legal reserve life insurance company for about forty years, and, hedged about with stronger laws than ever, a failure is almost an Impossibility. In fact, in addition to the deposit of one hundred thousand dollars, many states require the legal reserve to be deposited with the state treasury, thus E LIFE IN THE H. H. CABANISS. Stata Manr.gar Citizens’ Lift In surance Company. GEORGE M. HOPt. Of the Firm of George M. Hope & Co. 8tate Managers National Life In surance Cor'-urny of Vermont. and succeed*, which he will mist as suredly do by the proper application of persistent, earnest and Intelligent en deavor, will In future years have every reason to be proud of his chosen pro fession, which, under the new condi tions, will rank with yiat of the most respected professions In tho country. JOHN S. STEWART. COKE S. DAVIS. 3n the morrow there will be many slnesaos that will do their first real irk. Nineteen hundred and seven will wn with many hearts throbbing with aspect of a successful year. None II begin the year with brighter pros- :t than Messrs. John A. Stewart and Coke 8. Davis, under the firm name of Stewart A Davis, who will begin a gen eral Insurance business, with offices In the Austell bufidlng. Then* young men have secured a dis trict agency with the Aetna Life In surance Company. They have pur- — EFFEC7 7HE ARMSTRONG MEASURES WILL HAVE ON SOUTHERN A GENCIES By HUGH M. WILLET. Practically all of the Standard Life; Insurance Companies will continue to \ operate In Ifpw- Tork state, and must, | therefore, conform to the provisions ,)(j the Armstrong laws. The most Im-1 portant of these Is the limitation Im posed upon the expenditures of the companies for new business. One ef- chosed the state agency of ths Genera! Accident, Erie and Life Assurance Cor-1 porutlon. Limited, of. Perth, Scotland, and will make connections with some of the best fire companies. Coke 8. Davis, of this firm, for sev I eral years was inspector for the Guar-1 sntee Company of North America and has since been connected with the! agency of Haas A McIntyre. John S. Stewart Is known through out the state as being connected with the Aetna Life Company. He has been I In the Atlanta olfice for several years. and recently resigned the position of | cashier-for that company In this city. He has also done considerable field work for the Aetna. >In taking oVer the Genera! Accident business Stewart A Davis will succeed H. O. A A. T. Cox. who have been the state agents for that corporation for several years. The reputation of these young men who begin their new year as general Insurance agents Is a guarantee that they will succeed and they are receiv ing the beat wishes of a large number of friends. Assuming, therefore, thnt our South ern life Insurance companies are solv ent, and kept so by the laws of the states In which they do business, Is It not wisdom nnri patriotism to patronlao the home companies,? It Is wisdom because of the untold millions which have been sent north, east and northwest to pay for life In surance. if one-half of these millions , were kept at home, the additional I orosperlty which would come to the ’ South would startle even the most op timistic. Manufacturing and other in dustrial enterprises would bs enrour- nved and thousands of thrifty people would be added to our population. To give nn Idea of the vastness of this proposition, consider that the three l>lg companies of New York have about I two hundred million of surplus. This does not take Into account the legnl reserve, tho expense, and the mortuary funds. The two hundred millions con- | stltute a surplus after paying all losses and expenses, nnd rightfully should be distributed to the policyholders, except , a few millions kept for emergencies. The Southern c/mipunies nre free from graft, looting and extravagance. A pride In our slate and section Is , commendable, and should prompt us to patronize home Institutions, safety and economy being considered. The representatives of the older com panies, having grown rich and power ful, make light of the “special propo sition” which some of the Southern companies offer policyholders. These people ought to remember that the Northern companies began bual ness. In their Infancy, by offering spe dais, and did not give It up until they had grown rich and Independent. Second, that a rightful division, slv Ing back to the policyholders some of their own money, would decrease the millions of surplus. Third, the Southern companies, by economical management, can save enough from tho expense account to make n reasonable yearly reduction In the cost of a policy. To develop these life Insurance com panies of the South will give protection just ns good, much cheaper, because the dividends will he larger, and will help along other enterprises and tend to enrich the people of the South. It Is safe and sane to encourage them and build them up. LOCAL FIRE INSURANCE FIRMS HAVE ENJOYED PROSPEROUS BUSINESS YEAR By EDGAR DUNLAP. The year 1906 has been a very satis factory year for the Atlanta local agents. I believe all agents have In creased their business, even though tholr companies hava decreased their lines since the San Francisco fire. This Increase has come about natur ally—tho entire country having en joyed a period of prosperity never be fore known! With the great amount of building going on, a natural activity has been brought about In all lines of material, manufactories having been running on full time, merchants have been carrying larger stocks and from all these sources has come the Increase In premiums. The San Francisco fire demonstrated the fact that a great many people car ry too little Insurance and with the natural appreciation In values, every one should look to his Insurance with a view of Increasing it to meet the present cash values. The companlee have bravely met the heavy demands on them for payment of losses and It is a fact that what few companies have failed have been non board companies. This should demonstrate to the In suring public that the organisation of companies for the proper Inspections of risks and compiling of statistics In or der to make adequate and fair rates. Is for the final protection of the policy holder In maintaining the solvency lit the companies. Quite a number of small companies are being organized to care for tho business and the Insurance public should look to the strength of the com panies In placing their Insurance, for EDGAR DUNLAP. Prominent Local Firs Insurance Age who can tell when such a calamity ns visited San Francisco will nzaln visit some other great city? Should such :i thing happen again soon, what compa nies could meet the demand on their ' assets to pay losses? ACCIDENT INSURANCE SHOULD BE CARRIED; A STRONG ARGUMENT HUGH M. WILLET. Of the Firm of Baglay & Willst, State Agents Psnn Mutual Life In surance Company. of representatives In ths field. Gn the principle ’of the survival of the fittest the most capable and energetic agents I -till remain and the others will drop I nut. Some men also will be deterred ; from entering the field who might oth- i erwise be attracted thereto, j Another effect will be to reduce I somewhat the volume of Insurance i written. This will be a natural conae- j quence from the smaller number of agents engaged In the work. The busi ness. however, will be better In quality, as It will not be secured by high pres sure methods or rebates, and the pro portion of lapses will be lowered. Another result will be the lessening of competition between agents, because a smaller number of them will be In the field. As a consequence, the efficient agent of today will be able to produce a larger share of the business, and will make as much or mors money than lie has In the past. Since the compensation for new business will be about the same In all standard companies, ths only advant age that one company can have ovor another will bo such as It justly de rives from Its age, stren. tb, policy lorms and honorable record. The ef fect of this equalisation of cost will operate in favor of (be conservative companies of established reputation. Agents have heretofore been attracted to those companies which paid highest for the business. Henceforth they wlU find it more profitable to connect them selves with those companies whose policies and reputaJoa commend themselves most favqrably to the In- By W. FLOYD JOHNSON. The question of Insurance In Its va rious forms la one of great Importance to the public; and accident and health W ee has become to play as Im part In the Insurance world as the other branches of Insurance. For years the public generally have realized the Importance of carrying fire and life Insurance, but they have taken to ac cident Insurance gradually, as though they had to be educated to It. Only a few years ago most of the business men only .carried an accident policy for some special railroad trip; whereas now- nearly all prudent business men provide for accident and health pro tection each year, Just as they do other Importnnt business matters; and why shouldn’t they, for the benefit to their families In event of accidental death Is treater for leas cost than any other 'orm of Insurance, to say nothing of the personal benefit one gets while dis abled from business, either from acci dents or sickness? it requires no argument to sell fire Insurance, betause It has been recog nised for years as a business necessity; In fact, a merchant who would not carry fire Insurance would find his credit In the business world -greatly Impaired, for It Is a protection due to hi* creditors; then ypu Insure y. for protection of your fnmlly li of dtnth; nnd you Insure plate glass, windows and show cases against breakage; and carry a burglary policy to protect your valuables against thieves and burglars; and manufactur ers carry liability Insurance for pro tection In case of accidents to their employees—then why not Jnsur time, which Is undoubtedly you valuable asset, for It we can keep our hrnlth and have no accidents, any of us can provide for self and families? But even the most healthy man bos no way of knowing when ho may be sick, nor wnen ne may iie hurl, we **» »ub- 1 to accidents dally, and It hai truly said “that It is the unex< peeled that happens.” All of the leading accident companies arc now issuing a full disability policy, which provides against any accident nnd any form of Illness; whereas, n few years ago neither the accident nor health contracts were so liberal, there being a number of ezceptlons stipu lated which meant that accidents due to certain causes were either not cov ered at all or would be paid for at a reduced amount; but competition be tween the different companies has forced each to bring out better and more liberal policies fronf time to time, and, I believe, there Is no form of In surance that now offers the Insuring public greater benefits for the pre mium paid than does the recent acci dent and health "Disability'' policies, ’and each policyholder should see that he has one of the latest style policies, even If he should have to throw away a few years’ accumulative benefits, for there are enough "cut outs and cut downs” In the old policies to mors than offset the accumulation. W. FLOYD JOHNSON, State Manager U. 8. Casualty Co. j 321 Prudential Building. FLOYD JOHNSON. _ Accident Department iatcher Insurance Agency. STAYED OUT LATE; SAW FATHER SHOT UPON RETURNING Montlcello, Oa., Dec. II.—James Falk, a merchant, was killed at 2 o'clock terday morning on the veranda of hi« home and In the presence of his ,’two ' daughters, Ruth and Mary, by Hubert Waldrup, a young man who had Just returned with the girls from a dance. Mr. Falk did not want tho girls to go to the dance, but yielded when Waldrup promised that they should bo home' be fore midnight. ' Waldrup did not keep his promise, for It was 2 o'clock when he returned with the girls. An effort was made to get the girls into the house through a window with out disturbing their father, but Mr. Falk heard the noise and appeared on the veranda. He chided Waldrup and the girls for being out late. Waldrup remonstrated, and. It Is said, Falk attacked him. Tho young man drew a revolver and shot the father dead In the presence of the girls. The girls are prostrated, but they aay their father provoked tho tragedy. STANTON GOES WITH CONWAY surlng public. This will be one of the best results of the Armstrong laws, as the companies most deserving of pat ronage will, by the withdrawal of un- fair competition, write that share of the business to which their merit enti tles them. Another Important effect of the pas sage of the Armstrong laws will be to furnish a basis for wise legislation In other states. While there are some objectionable features in those laws, they contain many excellent one*. The latter will stand the test of trial, and the others will be amended or repealed, In Georgia and many other Southern stales there Is need of legislation which will throw greater safeguards around the business and will remove ques tionable practices and policies. v While working some hardships and creating some anxieties during the time that conditions are readjusting themselves, “the effect of the Arm strong measures on Southern agencies" will, aa a whole, he beneficial. Great er economy In the conduct of tho busi ness, a higher standard of agents em ployed, a more persistent membership and the enactment of laws that will better protect the publla frotr deceptive contracts, will be some compensation for the upheaval which wrought great damage In certain quarters. With con fidence In the Integrity of the business restored, with the public educated and Interested as never before, with the country paselng through a period of unexampled prosperity, the outlook for Insurance In the sew year Is altogether hopeful. OLIN M. STANTON, Special Agent. Now associated with Arch M. Conway, of the North American Accident Co., of Chicago.