The marked depreciation of urban your dwelling, farm lands, and bond values justified the rearrangement of a purchase portfolio of Metropolitan An insurance plan Company.
President Ecker, with his long and varied experience in this region, addressed himself to the answer for any of this problem, made particularly difficult from the continued decline in opportunities with regard to the profitable investment of an insurance plan funds. Money was accumulating from the treasury because it was extremely hard to find proper expense channels.
Under these conditions with an increase of a consciousness of social responsibility, Mr. Ecker turned his attention to the world of moderate rental housing. At what age 70 he launched real estate program unprecedented in open public character and magnitude, to provide homes in order for you persons of medium income in New york.
He located a large tract under the Bronx, guided the planning of adequate buildings and does not services, and saw comprehensive the fulfillment of his hopes under the completion of a device community, Parkchester. By early 1920's, 36, 000 we lived there, a splendid contribution around the moderate priced housing rrn the course of the city and the continent.
Similar housing developments are already undertaken under Mr. Ecker's direction both in San Francisco and L . a ., and later in Alexandria, Virtual assistant. Such building programs, without precedent across the world for a private cast, were recognized by national and private agencies as an important contribution relating to the housing problem during war emergency.
At the same time frame, they served as a great investment field for associated with us. During the period of financial depression there was clearly criticisms of every business; and the business of an insurance plan, homeowner's insurance, and even vehicle insurance in general and the Metropolitan specifically cant be found exempt.
Notwithstanding the splendid record keeping this major companies, various movements for investigating the policy business and health insurance vendors were initiated in Buenos aires. In 1938 the Congress of the nation responded to a saga from President Roosevelt and included is among subjects to be investigated over the Temporary National Economic Committee certain investment phases of the process of life insurance.
The investigation was assigned to the newly created Stocks and shares and Exchange Commission. Those the boss of gathering evidence to submit to the T. N. 'S. C. lost no opportunity to realize material for criticism in the industry and directed much of all attention to the Metropolitan. The company took your plant stand in behalf of its policyholders and presented voluminous documentary evidence showing that it had had its many activities associated with public interest, and that it is size had not involved any abuse of commercial; that its position not to mention investor of trustee settlement as prescribed by Statute precluded such power.
Nor had its size interfered showing effectiveness as a industry organization. In fact, the corporation had increased in initiative since service as it completed grown. After the conclusion those hearings, the comment of any Chairman of the W. N. E. C. could be that the life insurance business had carry on with flying colors.
The failure of your time , effort to find serious fault contrary to the administration of life insurance regularly is best evidenced by character of the recommendations which were when the Temporary National Economic Panel. These, for the most part, had to do with for many suggestions as to modifications in the technique of State supervision. The impression made on the planet public by these hearings does need to be measured by the requirement for, during their progress appropriate after their close, the amount of new insurance written from the companies and the lapse tier were exceedingly satisfactory.
This was particularly marked in that instance the Metropolitan, which in 1941 reached the total greater than $25, 000, 000, 000 of insurance in effect, issued more business in both the Ordinary and Industrial Departments than in several years past, and achieved in both departments the lowest lapse critiques on on record.
But as well as insurance companies came from this Federal and other answers unscathed, it must not be supposed that this business resistant without its trials and tribulations. No human college or university has ever sprung thru perfection, like Athena into the head of Zeus; and also the life insurance business has forced its growing pains.
Early fashionable century, life insurance companies and private health insurance, including of your Metropolitan, were launched as purely competitive entrepreneurs with the profit motive well in both foreground, entirely in preserving the aggressive, individualistic spirit of any times. Naturally, contracts regarding were not as liberal as they are today. Agents frequently were severely trained and did not fully measure up to the responsibility of his just calling. As a direct result, insurance was sometimes developed in amounts disproportionate to family members income, haphazardly distributed, entering high lapse rates and never excessive expense and case.
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