Evening Republican, Volume 21, Number 149, Rensselaer, Jasper County, 3 July 1918 — HOW THE GOVERNMENT STRENGTHENS FIGHTER AND SAFEGUARDS HIS HOME [ARTICLE]

HOW THE GOVERNMENT STRENGTHENS FIGHTER AND SAFEGUARDS HIS HOME

Uncle Sam’s War Risk Insurance Offers Protection at Cost —Government Assumes All Administrative Costs and Extra War Hazards—Business Exceeds by Several Hundred Per Cent Largest Insurance Company in World.

By JAMES H. COLLINS. (From Committee on Public Information.) On October 6, 1917, the war-risk insurance law went into effect, providing for protection of our soldiers, sailors, and marines and their families. On April 6, 1918, only six months later, Uncle Sam had written approximately $14,000,000,000 of war risk insurance on his fighting forces, covering upward of 1,700,000 persons in the' military and naval service. For allotments and allowances alone, approximately 1,600,000 checks aggregating more than $43,000,000 have already been sent It will not be long before the bureau will be sending out a million checks a month. . We have spoken of it as "the warrisk insurance law.” Technically this is correct; actually, it is misleading; for the legislation that went into effect on October 6, 1917, was really a group of laws —four acts co-ordinat-ed for a common purpose. The first measure in this unprecedented program of protection is the system of allotments and allowances, in which the fighter and the government are partners for the care of the families of all enlisted men in the military or naval service. The second measure provides for stated compensation for death and disability incurred in the line of duty. This is the modern American substitute for pensions. The compensation, which ranges from S2O to SIOO a month, Is paid automatically by the govern- • ment to certain specified beneficiaries, regardless of rank or pay, and without any cost to the recipient. The third measure of protection is outright government insurance against death and total permanent disability. In this, the United States is a pioneer among the nations of the world—offering insurance up to SIO,OOO to every member of its fighting forces, at net peace rates. The government assumes HIT overhead charges and costs of administration, thus making the rates almost incredibly low. This insurance is a supplemental form of protection, stimulating thrift and strengthening self-respect.

Immensity of Bureau’s Work. The fourth measure of protection embodied in the military and naval insurance act is the system of re-edu-cation and rehabilitation of the men disabled in the war —tn itself a task of vital importance and great magnitude. The figures given convey an idea of the immensity of the bureau’s work. The insurance now on the books of the Bureau of War-Risk Insurance exceeds by several hundred per cent the insurance held by the largest life insurance company tn the world. To cope with the hydra-headed problem imposed upon it, the Bureau of War Risk Insurance has been forced to expand at an exceedingly rapid rate. ; The bureau now .occupies space in] fight separate buildings, covering an j area of more than 120,000 square feet, I and has a personnel of more than 3.- ] 300. working in two shifts, from nine i o’clock in the morning till midnight. It may be asked why the government. in addition to family allowances and liberal compensation, should offer insurance against death and disability to its fighting men. The justification for this sweeping innovation is simply this: The governineptJjy'calling a man to war takes Inm into the most hazardous business in.the world, and thus destroys his insurability. In return. it is only fitting and proper that the government should go into the insurance business for his benefit. Private insurance companies could not possibly insure soldiers and sailors except at prohibitive rates. At a conference of life insurance representatives in Washington, when the pres-

ent act was discussed, it was stated that SSB a thousand was the lowest figure at which any insurance company could afford to accept soldiers and sailors as risks, and that only for one year. Thus, SIO,OOO life insurance, which under the government system would cost a soldier twenty-six years old $80.40, would cost about SSBO with a private insurance company. This disparity is largely explained by the government’s j liberality in itself assuming all the administrative costs and the extra war hazards. , Supplants Pension System. The entire system of protection afforded by the government is, in the words of ii. majorgeneral in the army, an element of victory in the present wa'r. Families provided for means fighters unafraid. The difference between the old pension system and the modern system which has supplanted it is clearly demonstrated by the case of Mrs. Betty Ingraham, 403 Third street. Platt City, Ala., the first woman to receive a check from the Bureau of War-Risk Insurance for a soldier or sailor killed i in action in the present war. Her son, Gunner’s Mate Osmond Kelly Ingraham, was killed October 15, 1917, when the U. S. S. Cassin was attacked by a German submarine. Under the terms of the military and naval insurance act, Mrs. Ingraham, being a widowed mother dependent upon her son for support, will receive S2O per month, as long as she lives, unless she remarries. Furthermore, she is entitled to $25 a month for 240 months under the insurance provision of the act. Her son had not made specific application for insurance, but up to February 12, 1918, automatic insurance for approximately $4,300 was provided. Thus, Mrs. Ingraham will receive a total of $45 per month from the United States government. If her son had applied for SIO,OOO of insurance she would receive $77.50 a month. Under the pension laws, section 4707, Revised Statutes, as amended by the act of June 27, 1890, Mrs. Ingraham would have been entitled to sl2' a month. Such is the chasm between the old and the new.

The vast amount of correspondence which comes to the Bureau of War Risk Insurance is steeped in human interest. Stories of heroism and lofty patriotism are found by the thousands in the letters received at the bureau. Many mothers and fathers have returned checks sent to them by the government, declaring that the government needs the money at this crucial hour tt> win the war. Keeps Home Fires Burning. The Bureau of War Risk Insurance is keeping the home fires burning. But it is doing more than that. It is keeping America’s fighting forces confident and reassured. A “bluejacket” on one of the battleships after signing the application for SIO,OOO of government insurance, dropped his pen and said: • “I have taken care of my family; now I can go out and fight like blazes.” Thousands of families throughout the country are directly- and vitally affected by the allotment and allowance feature of the war insurance law. Every married enlisted man in the army and navy must allot from his pay (every month) at least sls a month, and not more than half his pay, toward the support of his wife and children. To this allotment the government adds certain allowances, depending upon the size of the family. In addition, the enlisted man may make some further provision for other relatives, and in case of dependency the government will add certain allowances. The Bureau of War Risk Insurance, therefore, must keep a tremendous filling and cross-filing system, covering

every enlisted person in the nation’s service, and this means millions of cards, millions of bookkeeping and financial operations, thousands of awards, and thousands of checks going out every month. The bleak specter of poverty, the humiliation of charity, the silent suffering of penniless pride—these are eliminated by the government protection when the man is fighting. After his fighting is over, government compensation and government insurance are then called upon to play their part in the 'work of protection. Persons who have business with the Bureau of War Risk Insurance, as beneficiaries or otherwise, need not in any circumstances . employ claim agents or provide lawyers. The Bureau of War Risk Insurance will cheerfully furnish full legal advice and assistance. Secretary McAdoo has vigorously denounced the nefarious activities of claim agents and others who would prey upon dependents of men killed in battle by exacting unnecessary fees and requiring useless litigations.

Claims Paid Promptly. Actual insurance checks, mailed to the dependents of a soldier or sailor who has been killed in battle or died of disease, involve very few complications making for delay. These insurance claims are paid promptly after death. Uncle Sam’s war-risk insurance had the “selling” advantage of a very attractive rate, and also a wide popular interest roused by the contingencies of war. Even so, a certain amount of work was necessary to roll up a large body of policyholders. A very brief experience during the first few weeks demonstrated that educational work was necessary—some well-organized effort looking toward explanation, so that every soldier, sailor, marine, nurse, and coast guard man would know what might be obtained under this law—that is to say, know their rights. 0 Therefore, during the month of January, men were detailed in every cantonment and on every ship to undertake the work of explanation. It was found that hundreds of trained insurance men were available in the army and navy, and these, as well as officers interested in the welfare of their men, were arrayed for a general campaign. Leaders iff this movement were assembled at the War-Risk Insurance Bureau in Washington for three days’ instructions, returning to their posts all over the country prepared to explain insurance in detail. A spirit of friendly rivalry was created among regiments and other units of the fighting forces on land and sea. Many officers made it a point of pride to have every one of the men under them insured, very often to the entire amount allowed under the law, which is SIO,OOO. Average Is SB,OOO a Man. The latest figures show that the average' amount of insurance taken out by our fighters is upward of SB,OOO per man. It was estimated as early as February 12, 1918, that the American army, both here and abroad, was more than 90 per cent insured by Uncle Sam. Final figures for the navy are not yet available, but the bluejackets are known to have responded enthusiastically. As long as new men are called to the colors, Uncle Sam’s insurance campaign will continue without let up. “Insurance means preparedness; preparedness means vlctory ”_this- is one of the many battle cries which are arraying all American fighters in the insurance ranks. The War-tlisk Insurance Act is administered by the treasury department, and the work of carrying out its provisions is under the close supervision of Secretary McAdoo, who proposed to the congress the measure creating the bureau and who has had personal charge of tlie_or ganlzation of this new form of government activity. Its success is very close to his heart, because he sees in it not only a great humanitarian piece of legislation, bringing security and justice to those who defend our flag, and to their dependents, but also an experiment which' may lead to broader human benefits in the future.