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.