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- pe WINNETKA WEEKLY TALK, SATURDAY, JULY 25, 1925 19 Your Insurance Edited By F. J. Budinger LIFE INSURANCE Experience has shown that the per- centage of failures among business firms using life insurance is much smaller than those which do not, prob- ably because of its stabilizing effect upon credit and its sinking fund value when capital or managerial property must be replaced. When one member of a firm dies, his interests in the busi- ness are inherited by his heirs, usually his family. From a practical point of view their inexperience and inability to take an active and able part in its affairs make the heirs useless to the firm; and to have such inexperienced persons financially interested is de- cidedly objectionable from a business standpoint. M any firms, therefore, in- sure each member for a sum sufficient to purchase his interest at his death. Life insurance also provides cash for immediate satisfaction of creditors who sometimes feel that their accounts are endangered when one member of a firm dies. At such times failure to comply with insistent demands results in a with-holding of credit, and the consequent inability to procure mer- chandise is a serious handicap to a merchant. A life insurance police provides immediate cash for such con- tingencies. In cases where the employer depends upon the skill and experience of one man who manages the business, that man's ability may be regarded as an essential part of the capital property of the business. Loss invariably results when such a man dies, for time is re- quired to find or train a competent successor. In such cases life insurance replaces the cash value of services lost. Strengthens Credit Almost every business concern, large or small, depends upon its ability to borrow at the bank. The credit of a firm is more secure and loans more easily obtained, often at better interest rates, if the borrowing firm carries life insurance which will protect the bank in event of the death of the firm's leading member. Life insurance is used as security for bond issues or mort- gages, and as a means of arranging for replacement or business expansion funds. An endowment policy will pro- vide cash for retiring a bond issue at maturity, or prior if the head of the firm should die before maturity. It will likewise furnish funds for replac- ing machinery, or for business enlarge- ment purposes. Where life insurance is carried securities demand higher prices because redemption is assured, and the interest rates upon such is- sues may be materially lower without retarding the market. Corporation Insurance The simplest form of Corporation Insurance is for a company to insure its principal executives in favor of the Corporation as beneficiary. This is very practical since the brains and abilities of the executives of a concern have a monetary valve to 'the concern which at death can be at least partially compensated from life insurance. An- other form of Corporation Insurance is Rosenberg's Lmm-- Sh Ges Got The Vogue of CRETONNE Here is Elizabeth just starting out for a stroll in a dashing two- piece frock of brightest cretonne. As you can see, it has a wide band of black sateen at the bot- tom of the blouse and skirt and sateen also edges the cuffs and the pockets. She is carrying a gay cretonne parasol. Cretonne ........ 29c up Black Sateen ....39c up Parasols ....... $2.50 up Rosenbera.s! EE -- er Servs Grote Storprrmrmmmememsmmeste. I---- J | to insure each stockholder for an amount equal or partially equal to the market value of the stock held. The beneficiary might be the Corporation and the funds used to buy the stock from the heirs or the heirs might be \| the beneficiary with a provision that the stock be turned back into the com- pany at the death of a stockholder. This latter plan is an ideal arrange- ment for a "closed corporation." Partnership Insurance Partnership Insurance is probably the most popular form of business life insurance. It is simply the insuring of each partner to the partnership. Since at the death of any partner to a partnership the said partnership automatically becomes dissolved and the surviving partners might be liable for the indebtedness incurred by the deceased partners, it is really nec- essary that a fund be provided to take care of the contingencies that are bound to arise at the death of a part- ner. No other method is as thorough and generally practical as coverage by life insurance. Individual Business Insurance Just as an individual business, or sole proprietorship plan is the simplest form of business organization, so is the plan of life insurance to cover such a business. Take a practical case: Assume that an individual has a busi- ness with a capital of $50,000 and from this business he nets $10,000 a year. This is 20 percent of his capital. If this individual did not care to be en- gaged in business, he could invest his $50,000 safely so that it would bring him a return of probably $3,000 a year. This would be 6 percent of his capital. Therefore the brains and ability of this individual operating his capital in a business is practically worth 14 percent per annum of his capital or $7,000. And to perpetuate the income of $10,- 000 he would have to have an estate of approxmately $165,000 invested at 6 percent. Since he has an original capital of $50,000 his own worth to his business is approximately $115,000. To carry this much insurance would prob- ably cost him about $3,000 a year. Of course very few men will carry this much life insurance in proportion to the capital and income we refer to. However, it is conclusive evidence of an individual's worth to a business. PLAN FOR COMMANDERY HERE LOSES IN BALLOT Wilmette Masons, last night, lost out for the second time within a year and a half in their efforts to have a Com- mandery established in this village, when the Evanston lodge, which has jurisdiction, voted 79 to 50 against the suggestion. A. J. Kuelzow, president of the Wil- mette Commandery club, made the principal speech for the establishment of the new commandery in Wilmette. He stated that there were approxi- mately 3,000 Masons in Wilmette and that he felt this was a large enough number on which to base the new or- ganization. A membership of 200 to start the new commandery was prom- ised in his speech. He also discussed the financial condition of the Wilmette organization, showing it to be excellent. In spite of the adverse vote, those interested in the proposed commandery are not discouraged. At the first vote, taken a year and a half ago, the vote was 3 to 1 against the proposition. The 79 to 50 vote, therefore, is con- sidered encouraging. A number of prominent Evanston Masons, espe- cially among those from the south side of the city, privately expressed themselves as strongly favoring the move. They believed that the exist- ence of a Wilmette commandery would be beneficial to the Evanston com- mandery as well as stimulating to the interest of north shore Masons. Op- position seemed to be chiefly on the grounds that it would be better to have one strong commandery than two weak ones. Transportation facilities, it was thought, made the Evanston or- ganization sufficiently accessible to all to insure good attendance and mem- bership. "But we hope to try again in the very near future," commented W. W, Winberg, who organized the movement for the local organization. "We hope to convince the Evanston lodge that this will not be a weak commandery and that it will be a good thing for Masons, both in Evanston and here, to have two commanderies instead of one. The Evanstonians have been very fair with us and we believe that if we have a strong enough case to put before them they will vote with us, eventually." A meeting of the Wilmette Com- mandery club is to be held soon for the purpose of discussing plans for the future. | PaoL & PIPER ] CHILDREN'S SHOE SPECIALISTS 1608 Chicago Ave. EVANSTON, ILLINOIS July Special Women's Imported Sport Hose $3.00 to $3.50 Values $1.65 Unique Italian wine, with an Gayly bottle. Decanter (Illustrated Above) For grape juice or compartment that keeps your favor- ite beverage cool without diluting. colored straw covering on Price..... 35 Beverage lasses in a wide range of prices in our July clearance sale. A Timely Offering in Charming Glassware Novelties THIS season's showing of refresh- ment wares includes many striking, and unusual patterns, some of which are exclusive with the Burley Shops. Iced Tea and Lemonade Sets in clear, ice the prices will be We invite you. crackled and plain glass and in colors; Novelty Decanters; Trays in many shapes and bright colors; Sippers, Coasters and Ice Buckets--all are featured for a happy selection, while Lovers of the beautiful and unusual will enjoy a visit to the Burley Shops. Burley & Company the found pleasing. CHINA - CRYSTAL - LAMPS - ANTIQUES Seven North Wabash Avenue Established 1838 Exclusive (IMustrated Above) This attractive set is exclusive with In crackled lass with apple Breen handles on both the square jug and theglasses. $7700 Price. ... Same pattern, without han- dles on lasses, all crack- 13 pieces in each set -- 6 lasses, 6 sippers and 1 ju 87 Years in Chicago Iced Tea Set Burley Shops. $5.00