INSURANCE STOCKS AS AN INVESTMENT Babson Discusses Inflation By Roger W. Babson Babson Park, Mass., Oct. 27. ? Those who follow the market closely know that ^ __ i u e insurance stocks are about the only group that has not gone up in price during the past eix months. The industrials are strong based' up on postwar pros pects ; the rail roads are strong U..?? uaoca upun iiur.e - ? ^ temporary earn Ings; the public BABSON utilities are strong based upon the hopes that Dewey will be elected: while other groups are more or , less following the leaders with thp exception of the insurance stocks These have been dull since the Supreme Court decision of a few months ago. This de cision may not hurt the larger direct writing fire companies nor the well-operated' re-insurance companies, but it could lmock the present agency system galley west. Up to the present time, the insurance agents^ of most states have controlled the Insur ance business. Their honeymoon is apparently over. DIFFERENT KINDS OF INSURANCE COMPARED All kinds of Insurance compa nies are more or less fearful of government interference in this country. In foreign countries the insurance Industry has been one of the first to be taken over by the socialistic governments. So many people are affected by in surance that it has been a popu lar industry for politicians to se0'.; lower rates. Some economists claim that the cost of selling ir. surance could materially be re duced under government owner ship. In the case of fire companies this might be done by adding the insurance premium to the tax bill, based upon the amount that tha property is assessed. In the casa of accident insurance, the prem ium could be deducted from the wage envelope; while life insur ance will come more and more under social security. Personally, I believe that these changes may come some day but need not be taken seriously at this time. Be side?, there always" will be an op portunity for private companies to sell "excess insurance," ? ex cess .fire, burglar, accident, lite ari*d certainly casualty. INSURANCE AND INFLATION It is not Supreme Court decis ions or government operations which I fear. ? but rather infla tion. .. Inflation could materially hurt life insurance companies. It is true that they can pay out the same dollars that they take in, but they have contracted to make these payments based upon cer tain operating expenses. In the case of non-participating insur ance companies, thes? operating expenses could gradually increase, due to inflation, without the di rect writing companies having any means of increasing their in come. When a life insurance company took a contract forty years ago on a young man at twenty years of age the company assumed that conditions would remain the same until the man finally died. Up to the present time, better health methods have been reducing death rates. These have offset, tempo rarily, these Increased expenses and decreased interest rates. If inflation does not come and in terest rates soon again increase, these life insurance companies have little to fe^ir; but otherwise, look out - ? . FIKE COMPANY STOCKS BEST Fire Insurance companies ar.i not subject to these handicaps as their rates can be re-adjusted every one, three or five years ac cording to the length of the out standing policies. This is ttlso true of most accident and health policies. Frankly, I prefer the stocks of good fire and accident IF YOU SUFFER FROM ARTHRITIS ?r K' 1.1 in voi' an now do something about it! Medica! set- , cnce has recently come to the * rescue with DMC PRESCRIP TION No. 49. Try this remark able new medicine or two weeks and you'll be surprised at the re sults. There is absolutely nothing on the marked so effective for the treatment ;f Arthritis and Rheumatism as DMC PRESCRIP- i TIONNo. 49. Sold In This Vicinity By BODDIR DRUG STORE Louisburg, N. C. Insurance companies to those of life companies and health com panies. Some other week I will discuss casualty companies; bu,. this is a subject by itself. The cloud over the Are Insur ance companies at the present time is the very heavy fire losses. These are running today greater than they have been for years. Coupled with these losses are tho unjustified cuts in rates by the insurance departments of certain states. These rates should be raised instead of lowered. The increased Are losses are due to) "poor housekeeping, " 'untrained 1 employees and the Inability of fire chiefs to get the needed equipment." Therefore, next ween I shall say a word to your City Fathers as to the Immediate need tor installing more fire alarms, buying more fire equipment and making their departments more efficient just as soon as possible before the big inflation comes ground 1950 Five million pounds of butter, previously set aside for Govern ment war agencies, will be releas-. ed to hospitals at frequent inter vals. AWARDED DEGREE Nelson May, YoungsyiUe. Is commended for his achievement in being awarded the Carolina Farm Degree given C7 outstand ing North Carolina Future Farm ers of America members in an ar ticle appearing in the current Oc tober-November issue of "The Furrow," national " farm publica tion. This degree was given these boys in recognition of their unus ual success in F. F. A. projects, the article states George W. Sledge, Spring Hope, ! who was awarded $100 fqr being one of North (Carolina's 13 most ! outstanding F. F. A. boys for 1944, is the subject of an article in recognition of his achievement, [which appears in the current i October-November issue of "The ; Furrow," national farm publica tion. The Carolina Farmer Degree was given to 67 members of Fu ture Farmers of America in North Carolina, including Sledge, for unusual success in F. F. A. pro jects, the article stated Patronize TIMES Advertisers MR. FARMER! There are over 25,000 Farm Bureau Members in North Carolina. Franklin County farmers have been profiting from the strength of the Organization in other Counties. Eastern North Carolina Counties leave been is signed the following membership quotas for 1945: Pitt 3,000 Greene .... 1,600 Edgecombe .1,500 Wilson 1,500 Martin ....1,500 Lenoir ....1,500 .Nash 1,500 Franklin .... 400 Do you believe in Organization? Are you a member? Are you willing to support a farm organization? If so ? JOIN TODAY. ? ?-* Membership dues - $3.00 per year for man and wife. Franklin County Farm Bureau Walter Fuller, Sec'y- J. O. Wilson, Pres. idf A/0/1/ w 9 ? W ?for the day when " Highway a are Happy Ways" again! Tomorrow's " dream but f is much more than a dream. It is shaping up today, in full scale models that will soon be translated into gleaming fluted metal, curved plastic glass, new type chairs built for long-trip relaxation ? many features of comfort and efficiency we can't even talk about now. ** - Super-Coaches like this are coming, sure as Victory. Greyhound will pioneer in their design and will make all possi ble speed in their construction ? with out relaxing, for one moment, its full time job of carrying war manpower. These startling new buses will not only replace equipment overworked by' heavy wartime travel ? they'll give eleven million returning Service men find women (and travel-hungry millions at home) a more delightful way to see and enjoy "This Amazing America.'' To Help ''Shape Up" Victory Ghre all you can to your local War Chert or Com munity fund. Speed enlistment In the WAVES, the WACS and the SPARS. TELEPHONE 329-1 BUS STATION ? BODDIE DEUG STORE ? GREYHOUND L/Nes Come to our sweater show! We've a big collection of soft, warm, bright sweaters for everyone! Long pull-over, cardigans, for Misses and Women. WEST NASH STREET LOUISBURG, N. C. FARMERS - LIKE THIS BANK pARMERS need the spe ialized services of a good bank more than any other group of people. Their problems are many and specialized with prac tically no time to deal with them. Whatever por problem, we are confident our staff of executives can solve it for you. Gome in and get ac quainted. FIRST - CITIZENS BANK & TRUST COMPANY Member Federal Deposit Insurance Corporation Corner Main & Nash Sts. Looisborg, N. Carolina Banking Honrs: 9:00 A. M. to 2:00 P. M.

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