The Best Policy

“It plays an important part in the business world,” explained Murray, “and it might even play a part in speculation. There is partnership insurance, you know.”

“I may have heard of it, but I never gave it any consideration.”

“It’s not a speculation, but a business precaution,” said Murray. “The partners are insured in favor of the firm. If one of them dies, it gives the firm the ready cash to buy his interest from the widow, without infringing on the business capital. Partnership insurance may sometimes prevent a failure; it may prevent several. Many interests may depend temporarily upon the operation of one man, and his sudden death might spell ruin for a number of people, unless they were protected by insurance. The policy is playing a more important part in the business world every day. There are lots of strange things that can be done when you fully understand it.”

“But that doesn’t help me,” asserted Lake impatiently.

“No,” returned Murray, “I don’t see how insurance could help you just now, unless you were to die. A policy won’t be accepted as security for a sum in excess of the premiums paid, for you might default.”

“I’m not the kind of man who dies to win,” said Lake rather sharply.

“Of course not,” replied Murray. “I was merely considering the financial possibilities of policies.” All insurance questions being of absorbing interest to Murray, he straightway forgot all about Lake’s predicament, and busied his mind with his own speculations. “There is so much that can be done with insurance,” he went on, “but I guess it’s just as well the public doesn’t know it all. Do you remember the case of Rankin, the banker who committed suicide?”

“Yes.”

“Well, Rankin couldn’t have done anything with our company, because the element of premeditation is assumed if death by suicide occurs within two years from the time the policy is issued. After that the manner of death cuts no figure, for the courts have held that an insurance company takes a risk on the mind as well as the body of a policy-holder, and, anyway, competition has cut out the old suicide restrictions. But there are companies that issue policies incontestable after the date of issue. Suppose Rankin, when he found his affairs in such shape that he no longer dared to face the world, had gone to one or more of these companies. A hundred thousand dollars – very likely less – would have protected his bank and provided for his family. He had already decided to kill himself, for his operations had been such that he could not hope to escape the penitentiary when discovery came, but he was ostensibly still a prosperous man. Many men of his standing insure themselves for extraordinarily large sums, to protect legitimately their business interests as well as their families.

“Not so very long ago we issued a paid-up policy for fifty thousand dollars on the life of one man, who died within three years, and we thought nothing of it. He was taking a risk on his own life then, for he thought he was going to live long enough to make a paid-up policy cheaper than the aggregate of annual payments, whereas there would have been a saving to his estate of a good many thousands of dollars if he had followed the other plan. However, that has nothing to do with this case; I mention it only to show that a man of Rankin’s apparent standing could have got insurance to any amount without creating comment. And, with an incontestable-after-date-of-issue policy, he could have protected his business associates and his family by the very culmination of his overwhelming disgrace. Why, a defaulter could use part of his stolen money in this way to provide for his family when the moment of discovery and death shall come, or a dishonest business man, facing ruin, could use his creditors’ money to make such provision, for insurance money is something sacred, that can not be reached like the rest of an estate. Oh, there are great dramatic possibilities in this business, Lake – tragedies and comedies and dramas of which the public knows nothing.”

“How does that help me?” demanded Lake gloomily, and the question brought Murray back to the realities of the moment.

“It doesn’t help you,” Murray replied, “but it’s an intensely interesting subject to one who gives it a little time and thought.”

Yet it did help Lake, although not at that moment. It was a new field, and Lake liked to explore new fields. A novelty that taxed his ingenuity appealed to him especially. True, he had enough to occupy his mind without entering upon idle speculation, but, when every other avenue to success seemed closed, his thoughts would revert to insurance.

“If it holds out such opportunities for others, why not for me?” he asked. “If others have entirely overlooked the possibilities, why may not I be doing the same thing?”

He met the colonel on the street occasionally, and the way the colonel smiled at him was maddening. There could be no doubt that the colonel considered the game won, but he was not a man to take chances: he had Lake watched, and the latter’s every move was reported to him. Even when Lake made another trip to Bington and endeavored to arrange a shrewd deal with some of the majority stock-holders, the colonel promptly heard of it.

“Accept my notes in payment for the stock,” Lake urged on that occasion, “and I’ll let you in on the profits of the deal. The traction company has got to get this road, but you can’t hold it up for a big price, because you were foolish enough to give it a second option. I can do it, however. Let me have the stock, and you can divide up among yourselves half of all I get in excess of the option price. My notes will be paid, and you will have a bonus of twelve or fifteen thousand dollars.”

But the stock-holders were conservative and cautious men, and the very fact that Lake could not command the money that he needed made them suspicious. As matters stood, they were sure of getting out of a losing venture with a small profit – at least, so it seemed to them – and they preferred that to the risk of losing everything in an effort to secure a larger profit. Furthermore, they were now on the side of the colonel, for his option was at a larger price. And the colonel was very confident – so confident that work was being rushed on details that would prove valueless without the Bington road. This was what made Lake desperately angry; it was humiliating to be treated as a helpless weakling.

As valuable time passed, his mind reverted again to the insurance field. His opportunity – the opportunity of a lifetime – was almost lost. The colonel, wishing to lose no time, had arranged for a meeting with certain of the majority stock-holders the day the first option expired. The option expired at noon, and the colonel would be ready to take over what stock he needed at one minute after the noon hour. This would not be very much, in view of the minority stock he already held, but the sanguine stock-holders did not know this: they expected him to take all of it.

“Some of them are going to find they’re tricked, just as I am,” Lake grumbled. “If I could only convince Belden of the ultimate absolute security of a loan! He wants to help me; he’s ready to be convinced; but – ”

People passing saw this moody, depressed young man stop short in the street and his eye light with sudden hope.

“By thunder!” he exclaimed. “Of course, I can protect him against unforeseen disaster, if he has confidence in my integrity!”

He was almost jubilant when he entered Belden’s office.

“Got the money?” asked Belden.

“No; but I know how to get it,” replied Lake. “You believe in my honesty, don’t you?”

“Implicitly.”

“You merely doubt my ability?”

“Your financial ability,” explained Belden. “You will do what you agree to do – if you can. I have no earthly doubt of your willingness, even anxiety, to repay every obligation you may incur, but, added to other risks, there is the possibility of accident.”

“If I eliminate that?”

“You may have the money.”

“On long time?”

“The time and the terms are immaterial.”

“I’ll come for it later,” announced Lake, and he departed, leaving Belden puzzled and curious.

Once outside, Lake stopped to do a little mental figuring before taking up the other details of his plan.

“I advanced five hundred to bind the option,” he reflected. “That leaves nineteen thousand five hundred necessary to put the deal through. Twenty thousand from Belden will give me just the margin I need.”

Murray was as much puzzled and surprised by the change in the man as Belden had been, and Murray, like Belden, was anxious to help him in any reasonably safe way.

“Am I good for five hundred for thirty days, if I give you my positive assurance that I know exactly how I am going to pay it in that time?” asked Lake.

“Why, yes,” replied Murray. “On short-time figuring you’re a pretty safe man.”

“Draw me a check for it, and I’ll give you my thirty-day note,” said Lake, “and my verbal assurance that it’s a cinch.”

Murray noted the confidence of Lake’s tone and manner, and drew the check.

“What are you going to do with it?” he asked.

“Pay a life insurance premium,” laughed Lake. “Give me an application blank and round up a medical examiner. I want a twenty-year endowment policy for twenty thousand dollars, and I want it put through like a limited express that’s trying to make up time.”

“I suppose you know what you’re doing,” said Murray doubtfully.

“You bet I do!” Lake spoke confidently.

“Oh, very well,” remarked Murray. “I don’t see how I can refuse business for the company, even if I stand to lose.”

“You won’t lose,” declared Lake with joyous enthusiasm. “I’m going to show you a new trick in the line of insurance financiering.”

After that, Lake haunted Murray’s office, and grew daily more anxious. He was a good risk, but certain formalities were necessary, and these took time, although Murray did his utmost to shorten the routine. Lake’s nervousness increased; he had Murray telegraph the home office; he grew haggard, for he had not counted on this delay; but finally, in the moment of almost utter despair, the policy was delivered to him. An hour later he was in Belden’s office.

“I want twenty thousand at four per cent., payable at the rate of one thousand a year, with interest!” he cried. “I’ll pay it, to a certainty, within sixty days, but I’m trying to make it look more reasonable, to satisfy you. You believe I can pay one thousand a year, don’t you?”

“If you live.”

“If I don’t,” exclaimed Lake, “there is insurance for twenty thousand in my wife’s favor, and duly assigned to you,” and he banged the policy down on the desk in front of the astonished Belden. “You can trust me to take care of the premiums, can’t you?”

“Your integrity I never doubted,” replied Belden, “and that obligation should be within your means.”