to persisting policyholders from unjust burdens which the lapse of policies casts upon them. Furthermore, as each insured would then have paid all the expense of his becoming such, there would be no reason for forfeiting policies in case of non-payment of premiums; the policyholder would be entitled to receive in such event, either his proper pro rata of paid-up insurance, or an extended term policy, or the surrender value.

Sixth. The special expense attendant upon proof of death could also appropriately be met by a charge against the amount payable on the policy.

Seventh. The safety of savings banks would, of course, be in no way imperiled by extending their functions to life insurance. Life insurance rests upon substantial certainty, differing in this respect radically from fire, accident, and other kinds of insurance. As Insurance Commissioner Host, of Wisconsin, said in a recent address:

"If we take a number of thousand persons of different ages, nothing is more certain in nature than that their natural deaths will occur in a series not differing very widely from that of other thousands of persons under similar circumstances.

"The practical experience of this theory has given to the world the mortality tables upon which life insurance premiums are ascertained and the reserves for the future needs calculated.

"No life insurance company has ever failed which complied strictly with the law governing the calculation, maintenance, and investment of the legal

reserve.

The causes of failure in life insurance companies since Elizur Wright established the science have been exces

sive expense, unsound investment, or rapacious or dishonest management. To the risk of these abuses all financial institutions are necessarily subject, but they are evils from which our savings banks have been remarkably free. This practical freedom of our savings banks from these evils affords a strong reason for utilizing them to supply the kindred service of life insurance.

Eighth. The theoretical risk of a mortality loss in a single institution greater than that provided for in the insurance reserve should be absolutely guarded against, however, by providing a general guaranty fund, to which all savings-insurance banks within a State would make small pro rata contributions,- a provision similar to that prevailing in other countries, where all banks of issue contribute to a common fund which guarantees all outstanding bank notes. If the individual risks were limited at first to, say, $150 on a single life, the business could be begun safely on a purely mutual basis as soon as a few hundred lives were insured, or earlier if a guaranty fund were provided. As the business increased, the limit of single risks could be correspondingly increased, but should probably not exceed $500.

Ninth. The plan contemplates that there should be also provided at the establishment of an insurance department for every bank, at least until the central guaranty fund is ample, individual guaranty funds to serve until the banks' accumulated insurance reserve is sufficiently large to meet all contingencies. These separate guaranty funds are at present to be supplied by public-spirited citizens upon the agreement that the funds shall be repaid with interest at the savings bank rate if and when in the judgment of the banks' trustees they are no longer required.

Tenth. Coöperation between the several savingsinsurance banks within a State should under appropriate legislation be established; for instance, by providing that each institution could act as an agent for the others to receive and forward premium payments, and in connection. with the making of proof of death and payment of losses.

Eleventh. The funds of the savings department should not be liable for the obligations of the expenses of the insurance department, the two funds being treated like separate trust funds, managed by the same trustees.

Twelfth. As the State Actuary would provide a standard policy and standard premium rates for all savingsinsurance banks and the State Medical Director would secure through his supervision substantial uniformity in health tests, a proper basis for comparison between the several banks would be established, with the resulting education and encouragement to the trustees and managers of the several institutions. Superiority in management would result in greater dividends earned and disclosed at the end of the year. These dividends could best be applied in increasing the amount of insurance given each policyholder.

Thirteenth. In view of the fact that the actuarial service would be supplied by the State, that the books, policies and other blanks would be uniform, that the initial and death expenses would be covered by special charges, it is believed that safe insurance could be supplied by the savings banks for premiums not greater than one-half those heretofore charged.

Fourteenth. It is believed that the establishment of such insurance departments will tend to materially increase the number of depositors in the savings depart

ment.

Many who insure and have had no deposit will,

through becoming savings bank insurance policyholders, be led to become depositors also.

Fifteenth. The law authorizing the establishment of an insurance department in connection with savings banks should, obviously, be permissive merely. No savings bank should be required to extend its functions to industrial insurance until at least a majority of its trustees are convinced of the wisdom of so doing.

The savings banks seem not only the natural, but the only available means of extending immediately the blessing of cheap and safe insurance to our workingmen. Any new companies organized for the purpose of providing this insurance, even though undertaken with wholly philanthropic purposes, would be subjected to a large part of the expenses to which the existing industrial insurance companies are now subject, and such new companies. would also lack the existing good will of the working classes, which is essential to early relief to the workingmen from the present unnecessary life insurance burdens. (Applause.)

William V. Rowe, of New York:

Mr. President, I move a cordial vote of thanks to Mr. Brandeis for his extraordinary exposition of the principles, or one of the principles, of this underlying popular discontent which has been under debate here to-day.

The President:

You hear the motion made by Mr. Rowe and seconded by Mr. Sumner, that a vote of thanks be extended to Mr. Brandeis for his extraordinary, able and interesting paper.

The motion was duly carried.

The President:

If any gentleman desires to discuss this matter or to question Mr. Brandeis, he now has the opportunity.

Judge Davy, of Rochester:

Mr. President, I desire to offer a resolution thanking our distinguished President for the interesting and able address to which we have listened to-day. I will call upon the Secretary to put the motion if the President will not put the motion himself. I think, gentlemen of the Association, we are to be congratulated that we have so distinguished a man as our President to preside over our deliberations (applause) - one of the ablest lawyers in the State and the nation and a gentleman who has represented us as Ambassador to Great Britain.

(The President here left the chair and seated himself behind an adjoining tall desk amid the laughter of the convention.)

He was as distinguished an Ambassador as the country ever had. I thought perhaps it would not be out of place when resolutions were offered complimenting the other speakers for me to say a few words of the President of this Association. I think that the members of the State Bar Association ought to feel proud of having so distinguished a man as Mr. Choate as President of their Association. It adds strength to the Association, and I I wish that the address he delivered to us on this occasion could be placed in the hands of every lawyer throughout this State. It would have a good, wholesome effect. It would have a tendency to hold up the character and spirit of the Bar Association. Mr. Secretary, I did not intend to make any remarks, but I could not let this occasion pass without offering this resolution. Now, Mr. Sec