The Daily Worker Newspaper, April 23, 1927, Page 2

ee eee ‘ eka Page Two “Big Four” Agents Trained to Aid Swindle Past Events of Insurance Expose, This is the twelfth of a series of thirty articles-enposing the fraud of “industrial” (weekly payment) life insurance. Previous articles have dealt with the methods employed by the “Big Four" in misusing “mutual” assets to the benefit of the banks which operate hand in glove with this powerful combine, The “Big | Four” is composed of the Metropolitan, Prudential, John Han-| cock and the Colonial Life Insurance Companies. Names promt- | nent in financial and government circles have figured largely | in thé series. Charles Evans Hughes, Governor Smith, Supt. of | Insurance James A. Beha, Charles M. Schwab and Alanson B. Houghton are among those present. How Weekly Payment {Insurance Policies Terminate | LAPSE (TOTAL LOSS .. TO WORKER) |mal evening dress, and even morning |attire, they are hobnobbing with the THE DATLY WORKER, NEW YORK, SATURDAY, APRIL 23, 1927 (GREEN THROWS AN! |aavor GREETS EX-PREMIER ELEGANT PAR FOR MacDON Join Nabobs in taining J. Ramsay (From a Staff Correspondent} WASHINGTON, April 22,—Pred dent Green of the A. F. of L, and his cohorts of high priced labor unfon officials are having a high old time in the old town these days. Bedizened in afternoon clothes, for- high and the mighty—all in honor and homage of their good friend, J. Ramsay MacDonald, chairman of the British Labor Party and leader .of His Majesty’s Opposition, Green’s Buffonery Mr. Green startled newspapermen by dasing into the British ambassa- dorial mansion on Connecticut avenue Wednesday noon, all togged out in Prince-Albert and high collar. The | British Ambassador, Sir Esme How- ard, had invited him and Secretary | Morrissey to be present at a dinner DEATH CLAIMS } 'FSleyarurity (you GET YOUR as, MONEY BACK]. \9%o 1% |he gave for MacDonald. | Throws Swell Dinner | Wednesday night, however, Prest- |dent Green and his boys came into |their own, In the ultra-fashionable | Hamilton hotel they threw a dinner party for the former Premier, ‘at which several ambassadors, a number jof politicians, among them Secretary lof Labor Davis, and a group of labor | union officials were present. | Mr. MacDonald in his press talks | while here explained at great length | how it came about that the Indepen- {dent Labor Party did not renominate This illustration graphically tells the story of the millions made by the| him for treasurer and how he ex- “Big Four” on forfeitures on lapsed weekly paymént policies. Giving the | Pected to be elected to that office just insurance trust the benefit of every doubt, they made upwards of $50,000,- 000.00 last year on this item alone. +. = (Copyrighted by The DAILY WORKER, 1927.) By CHARLES YALE HARRISON ARTICLE XIl. Because they have a bearing on what follows it is advisable to men- tion once more the startling facts rélative to “industrial” (weekly pay- ment) life insurance lapse statistics. It must be remembered that where- as “ordinary” life insurance policies have a loan value after being two years in force, industrial life insur- ance policies have no loan values whatsoever. An “industrial” policy- holder has been paying upon his pol- | z \cies at a 66% loss), drop them at al | complete loss. Save for your old age! 3% of all terminations are paid as surrender values and the balance are what the N. Y. Insurance Report calls “expiries”; which is another name for a lapsed policy. How to Sell It. I have before me a booklet issued by the Metropolitan Life Insurance Company, thé largest life insurance company in the world and the biggest seller of weekly payment life insur- ance in America. The pamphlet is called “Talks to New Agents.” It is a short course in how to sell industrial insurance. It says, “Peo- | the same. | How About Forward? | “TI am very fond of you Americans | you know,” he began, “and despite yeur bustle I think there is much to ” |} « in, “is | paying your expenses on this trip?” “That is not true, young man,” was the reply, “they are no more paying my expenses than you are. I have | written for the Forward and am their }guest at the celebration.” . | “Mr. MacDonald, you are no doubt |aware of the fight going on in the |labor movement in New York, what |is your opinion of the issues and fac- j tors, involved. as put forth by the Forward and The DAILY WORKER MacDonald,” a reporter hrokeg up to meet him. He sat in the Brit- it true that the Forward is/| lowing the return of MacDonald fr MacDonald Lolls In Embassy of Britains Sneers at Strikers By LAURENCE TODD (Federated Press) WASHINGTON, April 22.—J. Ram- say MacDonald came to Washington on April 20 and found it all dressed ish embassy and answered questions from press correspondents. He had lunch with Sir Esme Howard, the Tory ambassador, and a number of guests including Sen. Borah and President Green and Secretary Morrison of the American Federation of Labor, with Secretary of Labor Davis. | | In the evening, the A. F’. of L. gave | him a dinner at the Hamilton Hotel— | a dinner for 60 trade union officials with a few public officeholders to round out the occasion. \_ _ Mayor James J, Walker of New York City is shown greeting J, Ramsay MacDonald, former prime minister of Great Britain, fol- icy for the past twenty years, during|ple**buy life insurance because of and the FREIHEIT?” Slanders General Strike ‘om Boston and Concord, { Marines and Warships Mass to Attack Hankow (Continued from Page One) war vessels are patrolling the Yang- tze between Shanghai and Hankow. France More Militant. Dispatches from Paris indicate that | the die-hard cabinet, fearing a revolt in Indo-China, is adopting a more| militant stand on the Chinese situa- tion. Authoritative sources state that | the cabinet is willing to follow Great Britain in an open war against the Nationalist government. | In case of intervention the powers will take steps to separate Hankow from Nanking and will direct their attack entirely against the Hankow| government. * Bids for Support. SHANGHAI, April 22. — Chiang | Kai-shek is making an open bid for | imperialist support, it was learned from authoritative sources today. | He is prepared to offer the im-| | perialist powers full indemnity for| a8 @ monument in honor of Tamada, | foreign lives lost and ‘property dam- | # greatly-admired liberal leader. Who is Behind the Prosecution of the Militant Needle Trades Workers? Who Are Matthew Woll’s Fellow Conspirators? They Are Leaders of the National Civic Fed- eration! Woll is Acting President of the Labor Hating Civic Federation. Ben Gold and 10 other members of the Furriers’ Union and 40 members of the International Ladies’ Garment Workers’ Union are being framed up by a combination of high salaried labor leaders and capitalists. They are trying to jail them for long terms, There is a United Front of the Special American Federation of Labor Committee, headed by Vice President Woll, and the Na- tional Civic Federation, dominated by the most powerful capi- talists in the United States. Matthew Woll is the connecting link in the conspiracy. Samuel McRoberts is treasurer of the National Civic Federa- tion. His corporation connections are as follows: President and director Metropolitan Trust Co., of the City of N. Y., 120 Broadway; director American Alliance Insurance Co.; director Sugar Refining Co.; chairman of Finance Committee of Armour & Co.; director Austin Machinery Corporation; director Chicago, Milwaukee, St. Paul Rail- way Co.; director Commercial Credit Corporation; director Consolidated Cigar Corporation; director Consolidated Coal Co.; the director Consolie dation Coal Products Co.; the director Continental Guarantee Corporation; director Cumberland and Pa. R. R.; director Great American Insurance Co.; the director Kansas City Southern Railway Co.; director Massachusetts Fire & Marine Insurance Co.; director National Surety Co.; director N. Y. Ine demnity Co. Action Against Home Bootlegging Is Due WASHINGTON, April 22.-Federal “intervention” into home brewing, wine making and small distilling may become necessary as a result of an; enormous increase in this method of producing intoxicants, it was learned at the treasury today. While Gen, L, C. Andrews, dry chief, has passed up the “little fel- low” in the drive against big sources of liquor supply which have been keeping the bootleg market satisfied, officials admitted today that the ques- tion of home manufacture of intoxi- cants is looming as a “serious” prob-| lem, BUY THE DAILY WORKER AT THE NEWSSTANDS Scores Killed When Bridge Falls TOKYO, Japan, April 22.—Scores | of Japanese villagers on Shikoku Is-| land were killed and injured when} Mima Bridge’ cracked under the| weight of a 17,000-poand stone today. | The stone, drawn by horses and fol-| lowed by 1,000 persons, was intended | 21 Day Moratorium In Japan; Call a Special Meeting of the Diet TOKYO, April 22.—The twenty- one day bank moratorium was of- ficially ordered this afternoon. A special five-day session of the diet was called to open May 3rd. The financial crisis has extend. ed even into the imperial family. The imperial household depart- ment held an emergency confer- ence today to advance money to princes who were short of funds. |New England Working Women Have Arranged Conference For May BOSTON, April 22—A conference of women labor organizations in New England will be held here Sunday May 15 to mobilize the women to fight against imperialist wars and for the right of the working women, The agenda cails for action on the | following points: to fight imperialist. which time he may have deposited upwards of $500, yet, if he is in des- erate circumstances,\and requires a loan, the “Big Four” will not grant it. Get Little. In order to secure cash on a week- ly payment life insurance policy, it must be surrendered. cash is usually about one-third of the total payments made during the pay- ment-period. When the policy is sur- rendered for its cash value, it is au- tomatically lapsed by the comp: and further protection, such as it is, ceases. Ballyhooers for life insurance never fail to stress the point that life insur- ance is a great investment, Save for your old age. 97% of American workers are destitute at age 65, they| say. They quote horrible examples of memwho failed to make provision for their old age and who are now lan-/| quishing iu the poorhou: The claim is not being put forward in this series of articles that the prin- ciple of life insurance is not a good one. On the contrary, it is one of such great merit and of such great social significance that it should not! be left in the hands of the swindling Wall Street financiers, who fatten upon the ignorance and credulity of 40 million workers; unwitting victims of the “Big Four” weekly payment life insurance combine. Rates Too High. Certuin’y lHfe insurance is a good thing, but not at the present rates which are more than three times too great for the benefits paid. Certainly life insurance has a great social significance but not in the hands of the present Wall Street di-| rectors, who now control the so-called mutual companies td the detriment of the policyholders’ interests and to their own aggrandizement and profit. Consider the question of weekly payment policy lapses. In the year 1925, one and a half billions of dol- lars of “industrial” insurance ter- minated on the books of the “Big Four.” Of this enormous termination only 9% were paid in death claims. One percent (1%) of these terminations were paid as death claims. After all the propaganda about sav- ing for one’s age, we discover that the policy conditions ate so harsh that only 1% of all terminated poli- cies are endowments, If your agent ever tells you to save for your old age via a weekly payment endowment pol- icy, tell him that: you can find a bet- ter method than doing it with his company. Most Policies Lapse. The above percentages, startling though they may be, are as naught compared with the figures on the “Big Four” weekly payment policy lapses. Of the total amount of year- ly terminations 75% are total loss lapses. This means that insurers who are unable to hang on to their policies for the prescribed ten years (after their poli- salesmen who sell it to them, Your! “Oh, those last’ two papers, they processes, stripped bare, may some-| are the Communist papers. Aren’t ftimes mean to plead, cozx, dram or they?” he asked and then went no urge men into insuring their lives; | further. but the more you apply cleverness— | jaged at Nanking, without making | |counter-demands for reparations for | thousands of Chinese killed and valu- | | able property destroyed by the im- perialist bombardment of the city, it is reported. Talking to the press men, MacDon- ald said the geners4 strike-had “struck labor generally,” and because it had proved disastrously expensive to the strength of the labor movement he did The available |i nd.” he cost is so excessive that 2s soon as it is mentioned the prospect will fight therefore it is advisable to | keep cost in the background. Get him |het up ebout his old age, about the | poorhouse, about anything, but don’t mention cost. After you have scared the wits out of him, then you may mention cost... it won’t matter then, Get to Their Hearts. The booklet gees on to illustrate how to get at your prospect’s heart- | Strings: “Suppose the case of, say, your uninsured neighbor, a good “risk, aged 40, who earns a nice salary. He adores his little son, the cutest little four-year-old in the world... . You hand the child a smali gift and the jfather is greatly pleased because the |toy is a joy to the boy.” This is known as sales technique! stuff. : Still further, “You must pour out the water of life insurance until the |rock of resistance sinks out of sight |—but you must pour it out with tact. | Tact does not present a proposal (of insurance) with a crowd around; does | |not begin a canvass with talk about jcost; does not show many figures; does not dwell on surrender values; does not leave sample policies until asked for... .” From the beginning of his novitiate | the new agent is primed to forget |cost in talking to his prospect, As | Stated in the little lesson above, he must never talk about surrender val- dupe discovers what his surrender values really are it is usually too late. | Don’t show figures! Of course not, |they are unfavorable to the company. |They expose the prima facie fraud. | No, talk about the weather, bring the son a toy, kiss the baby, but don’t |mention cost. Don’t show figures jand above all don’t leave sample pol- icies. It might give the game away. It is due to the terrific number of | weekly payment lapses that the enor- mous “Big Four” assets {keep pyra- miding year after year. During 1925, | conservatively estimated, the “Big |#our” made upwards of $50,000,000, jon forfeitures on lapsed policies, But did the 40 million “industrial” policy- | holders benefit by these profits? Did |the “mutual” directors lower the cost of insurance ? “Keep cost in the background.” BOSTON, April 22.—Scott Nearing will talk on “Dollar Diplomacy,” the second of a course of four lectures at Lorimer Hall, Tremont Temple, on Monday at 8 o'clock. The lectures are being held under the auspices of the Workers’ School ‘of Boston, | ues. Why should he. When the poor | the greater your success.” Nice busi-| s-—plead, coax, drum! Further on} i | “Keep cost in the back- 1S SPLIT OVER What may develop inte a new split in the socialist party for Abraham | Cahan, was indicated today when the latest edition of the New Leader, so- | cialist party organ, appeared on the streets with Norman Thomas and | James Oneal locking herns in deadly | combat over the recent split in the | Koumintang Party of China. Dr. Thomas is severe in his con- demnation of Chiang Kuai-Shek and | tionalist movement, even going so far Great|as to accuse him of having received| | British gold, which is going far for {such a cautious person as Dr, Thomas. To quote from his column, “Timely Topics: “In no proper sensg, is the sorry split in the ranks of the Chinese Na- | tionalist party a matter of principle lora right and left wing division. Gen. | Chiang masks his own treason to the Nationalist movement by the familiar talk of the wickedness of the Reds. | Apparently he is without support, save his own troops, the money of some Chinese merchants, and perhaps |some British gold, He is charged with not accounting for $90;- 000,000 of Nationalist money and of having reached a virtual understand- ing with the Northern militarists, Whatever offenses Chinese Com- munists in Hankow may have com- | insignificant in comparison with | Chiang’s criminal defection. In the long run he is likely to fall. In the |meantime he has thrown Chinese ,af- |fairs into new chaos. One way or janother the powers may take ad- | vantage of that chaos. If they do they will only add to Chinese bitterness, It is highly important to remember that not the Northern militarists nor |Chiang himself, although perhaps they may at times be paid tools of foreigners, British or Japanese, have dared to talk anything but the lan- guage of relentless opposition to the unequal treaties.” | Lest the New Leader might be ac- cused of one-sidedness James Oneal takes up the cudgels for Chiang on the editorial page, which is not out of harmony with his support of the A. F. of L, officials who are aiding the bosses and bomb squad in trying to send furriers and left wing mem- bers of the needle trades unions to CHIANG'S TREASON, mitted against Chinese unity they are | jnot think it would be repeated in a | long while. He attacked Secretary Cook of the British Miners’ Federation, saying | | that Cook is a strong trade unionist at 9 in the morning, but by 10 he is la sytidicalist, by 11 is advocating poli- | tieal action, and by afternoon is again | relying on industrial action. His own defeat at the hands of Codk’s sup-| porters, for nomination for treasurer of the Independent Labor Party, he dismissed as being of slight conse- quence. He said he would now be nominated by possibly 70 organiza- | tions, and: expected to win a bigger | | vote than last year, in the Labor Party jas a whole. On China, | | When asked about the new situation | | in China, created by the anti-red move | of Chiang Kai-Shek, MacDonald said | that the foreign powers are respons- | brands him as a traitor to the Na-|ible for all that has happened. He | 1.) jeaders who have been executed | did not discuss the class issue in the | Chinese revolution. The interview was cut short by the hour for Sir luncheon, at that Esme Howard’s | point, | MacDonald answered a question as} [to his connection with the Jewish | Daily Forward’s anniversary celebra- | tion in New York, by explaining that |he writes a London letter for that | paper, and hence was asked to speak | at its anniversary celebration, but he | denied that the paper was paying his | expenses on his American trip. bine Naalsibiatls | | Supports Daily Worker The International Branch, Union City, N. J., has contributed $15 toward the sustaining fund of the DAILY WORKER. Plans are also being made for the raising of funds for the | paper periodically in the future. }s EES nod vs) | jail. Here is what Oneal has to say: “The split in the ranks of the Chi- nese Nationalists is wide, and civil ; war is waged between the two fac- tions. The Communists have set up in business at Hankow and the anti- Communists at Nanking. In Moscow the Communists are terribly shocked because CHIANG-KAI-SHEK HAS EXECUTED SOME OF HIS COM- MUNIST OPPONENTS and is carry- ing the war into the opposition camp. With the Moscow braves’ record of executions, jailings and exiling of So- cialists, Chiang probably thought it wise to give his opponents a dose of their own medicine, We note that Earl Browder of the American Com- munist Party, Tom Mann of England and M. Doriot have gone to Hankow to advise the Communists. Chiang has issued a statement telling what happened.” The socialist officials have little use for a united front’even among themselves but they seem to enjoy @ divided rear, | rest of 116 Nationalist leaders, in- | chow. | protest against the raids on local Jiunited in tho Kuomintang with the Sections af Nanking were totally | destroyed by British and American | gun-fire during the bombardment of | the city, according to W. De Crosse, | an eye-witness. That Chiang Kai-shek may form an open alliance with Chang Tso-lin, Manchurian war lord, was intimated by De Crosse, who is connected in a semi-official capacity with Chiang Kai-shek. Chiang is also currying the favor of foreign imperialists and native manufacturers by issuing warrants for the wholesale arrest and execu- tion of labor leaders. A denunciatory warrant for the ar- cluding Michael Borodin. Several} other Russiaris are included among | those for whom warrants ere issued. | Murder 112. The number of Nationalist and la- by Chiang now total 112. Summary execution of leaders of workers and peasants’ upjons are taking place at Nanking, Canton, Swatow and Soo- Tn an attempt to suppress the mass | unions and the exceution of labor leaders, Chiarig Kai-shek has declared | martial law in the native city of | Shanghai. Chiang’s troops, patrolled the streets and searched “suspicious-look- | ing” Chinese. | Suppress Unions. | Chow-lu, who has made a specialty | of suppressing workers’ and peasants’ | unions has been ordered by Chiang Kai-shek to Nanking, where there has | been widespread unrest against his ruthless dictatorship. Reports from Nanking state that six more labor leaders were executed | at Lunghwa at the orders of Chiang Kai-shek, Their names are being withheld, Bombard Nanking. Two thousand white guard Rus-| sians and 7,000 Shantung troops, sur- | rounded by! Chiang’s troops, are in Pukow and continue to shell Nanking. These shells are coming principally | from guns mounted on armored trains and are taking a daily toll of lives in Nanking. The normal population of Nanking, which is 1,000,000, has been | cut down by the flight of the panic- stricken populace. Few shops are open and business is at a standstill with the city over-run with soldiers. * * * Bukharin Advises Moderation, MOSCOW, April 22,—Pointing out that the Communist Party must work within the Kuomintang and ally itself with all of the national forces, but the extreme right, N. D. Bucharin in a statement issued yesterday said, “We must utilize the national forces jdiers here today for service in his exception of the extreme right which is flirting with the militarists.” <8 @ Chiang Seeks Reirforcements, MANILA, P. IL, April 22.—Profess- ing admiration for Filipino soldiers, Gen. Chiang Kai-shek, Chinese na- tionalist general, sought to recruit wenty-five experienced Filipino sol- army. . Several Filipino soldiers of forunte | are now with Chiang, among them is.| Vicente Barros, a former major in the Philippine Scouts, t : bey Wee. | Japan More Aggressive. TOKYO, April 22.—That the new) Japanese . government. will adopt a/ more aggressive policy in China is | predicted here. “Japan cannot remain indifferent | about what is happening in China,” Premier Tanaka said in a statement issued this aftérnoon, “as it is direct- ly and deeply affected by it.” Japan is ready to cooperate with the other powers, he said. LECTURES THE PEOPLE'S INSTITUTE At Cooper Union (8 St. & Astor Pl.) at 8 o'clock Admission Free Sunday, April 24—Dr, trwin Edman: “Science, Salvation, and the Mod- ern Soul.” : Tuesday, April 26—Prof. Henry BE. Crampton—"Evolution Today.” Friday, April 29—Hverett Dean Martin: What 1s the Matter With ern Idea he Type of M. Who ‘Thrives in the Modern World,” . ‘A . AT MANHATTAN TRADE SCHOOL Lex, Av. & 22d St. at 8 o'clock. Single Admission, 25 cents. Reduction for Course Tlokets, day, Apr. 25--Houston Peterson: Minaubert and the World of Iiu- sion.—"A Literary Saint.” Thurs, Apr. 28.--Dr, EB. G. Spaulding: Questions People Expect a Philos- opher to Answer-—"What Is the Personality?” Sat. April 30—Dr, Scott Buchanan: Platonic Attitudes.—"“Dialectic as a Method in Philogophy.” LABOR TEMPLE 14th Street and Second Avenue THIS SUNDAY 5 P, M.—The Pioneers of the Race DR, G. F. BECK “The Saint of the Market Place”——Socrates ADMISSION 26 CENTS war, to carry on an effective cam- paign to unionize the working women. To encourage and assist the work- ing class women to become eitizens of the United States. To fight for equal pay for equal work. To com- bat child labor and to consider the question of training the children of the workers in sympathy and svpport of the aims of labor. To fignt for government maintenance of working women for a: specific period of time before and after child birth and de- mand legislative action legalizing birth control. To develop politica? consciousness and activity among working women, To participate in all struggles of the workers jointly with other labor organizations. To provide for the educational, cutural, and so cial needs of the working class house- wives. To render material and moral support to workers engaged in strug- gles against capitalists, (relief in time of strikes, lockouts, ete.). The conference will be held at Credit Union Hall, 62 Charabers St, at two p.m. and FORUMS ————————— INGERSOLL FORUM anti-religious center of N. Y. CHAMBER MUSIC HALL, CARNEGIE HALL SUNDAY EVENING, 8 P. M, DR. WINIPRED SACKVILLE (Mother) STONER will speak on “Vitology—The Only Sane— Sense Philosophy” Questions and Speeches from floor. ion free. TOMORROW NIGHT, 8 P.M. Joe Freeman will speak on “RUSSIA IN 1927” A brilliant proletarian journel- ist, who has) just returned from a haif-year's stay in the Soviet Union, tells what he saw there, At The Workers School Forum 108 Bast 14th Street. NEXT SUNDAY: May-Da: No Forum. Attend your Day Meeting, * ADMISSION 26c. Boston Starts Training Clabs BOSTON, April 22.—The Young Workers League of District One has organized a training course on Or- ganization and policy of the Young Workers League. 7:15 P. M— EDMUND B. CHAFFEE “The Revolt of Asia” ADMISSION FREE 8:20 P. M.—Oper Forum HARRY F, WARD “Economics and Religion” —2, ADMISSION FREE This course will be given in 7 les- sons with 2 periods every lesson, The course contains instructions on structure of the Y. W. L. duties and function of units and officers, how to build shop nuclei, how to get new members, discipline and policy of the Y. W. L. on every field of work. Nat Kay the District Organizer of the League will instruct the course. a cn