New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-08-09
LIFE INSURANCE.

LIFE INSURANCE.
REPORT OF A SPECIAL COMMITTEE ON THE
ASSETS. LIABILITIES, AND MANAGEMENT OF
THE MUTUAL LIFE INSURANCE COMPANY.
At meeting of the Board of Trustees of
the Mutual Life Insurance Company, held the 9th Of
June last IL was resolved that Messrs j. " L. Fruyn,
David Hoadley, o. H. Palmer, Henry +. Davies, and
William Z. Dodge be appointed Committee to examine
the assets OF the Company and their amount and charac
ter and also TO ascertain its liabilities on is policies or
otherwise At subsequent meeting Of tho Board, held
on July o. this Committee submitted their report which
was adopted and has Just been printed The Committee
say that on the 10Th Of June they examined the United
States State and County securities held by the Company
and actually counted and inspected all the certificates
representing such Indebtedness excepting $4,000 United
States securities deposited at the office OF the Supern-
tendent OF the Insurance Department which they also
subsequently inspected and found them to be correctly
stated.
In order to ascertain from the best authority within
their reach whether the general basis which the Com
pauy was ransacng Its business and expected to meet
It's obligations in the future sound, the Committee
requested President to engage the services Of Pros
Bartlett and Church Of West Point to examine the
era principles and test the accuracy OF the valuations Of
the policies and other obligations Issued blythe Company
This was done and those gentlemen cOnsenng to serve
made report from which the following interesting OK
tracts made:
"As preliminary. we deem it important to remark
that there no terms, usually employed IN
stating the financial condition Of an insurance com
pany, likely 10 misead as the words Obligations
and sses They very often suggest TO the minds Of per
sons unacquaued with the principles OF assurance the
and prendice ia quarters where properly understood
they would produce confidence, rep0se ana WhOles0e
conviction For instance from the table on page e OF
your last annual report, 1t appears that the Companys
Obligations policies in force with additions for in
creased assurance, amount to more than trO hundred
ana ttrentyoo millions Of dollars while on page IL your
gross assets are represented TO be little less than hry
AM
fails 10 produce IN minds ignorant OF the Iacs tha JIG
hbInS moi stated a belief that the Company BANK
understood that these obligations ana assets are not
Observation-Disclosures is that the obligations are
rosnssfirs and only mature gradually along the
future, while the assets are present ana must grow
during the same future to proportions commensurate
win Inc maturing obgatons-ths question takes
aspect and what before promised only disaster now
ives abundant assurance OF safety To Illustrate: II
person owe dollar today he must TO be solvent have
dollar to pay. His assets must equal ms oDngsu3ns
they are both present, and therefore simultaneous he
tnust pay a dollar year hence ana money Is worth nVe
per cent per annum he need only nave to-day 10 OF uo
lar for this Will earn enough 10 make up to Io y
the end Of the Here s present assets are less IMAM
his future obligations and he is solvent because tx
the time OF the required payment, tne lorher wiz
certainly grow to the dimensins OF the latter they are
agree to pay at the present tlne eguay i1S % ~
fund sum sufficient 70 secure the payment OF dOlaF 20
ga of dollar and the whole sum paid in would be
q5xOO or ninetyfve dollars Now, suppose the 0blga
tbin the wear OF one OF its members, and that from
experience IL has been discovered 10 DC law OF hatuS
Elected dies annually The payment required at the
end OF the year would be only one dollar ana the present
10 secure that have SEEM are only 70 cents ana
fbe original payment OF each would % the one
hundredh part Of o95 dollar or nine mills a ana ma na
cbIieatIons 500. IT, at the end OF the year other
members be admitted on the sanG md he e"naIv
oasv 10 make a new statement OF the assets ana ODga
lions at the beginning OF the second year. and so on
TII sone Illustration is sufficient to demonstrate the
utter futihty Of all attempts 70 draw ~ m @
from comparison OF the obligations ana assets Vi an III
suTance company, without previously making them
We have tested the processes by which the pres
emf values of the future benefits secured by these poll
cies and the present values Of the future net
On them arc determined in your ONCE ana lOuhd them
Entirely satisfactory. BY well settled principle the
present liability any policy Is the difference Detween
thoss two values We then applied these processes 10
set1a cases in all the different kinds OF policies ana
the results in SGeP Serefore aop in
the fullest confidence OF accuracy the m
made preparatory 70 your @ CLASSES Of policies to
| as follows namely: .,,o-. g.
Mlo ~ e. S SnTat..p Inno ia
RrJow assa... LO939f q 49, Adduons'''''. soI4I9Z y
EadG 9,a n .I Dg H'Sg So G. Tot... saoa' ao
This amoupt IA the net reserve necessary TO meet tn'
liabilities Of the Company on the oas after the LIST Of
Febriary last The liabilities OF the company o or
Gsy 20 "a, i as T6 leaving surplus Of t3l6756o -
So that, had the Company gone INTO Iast IL yonlt
have had over and above the sum necessary W 90
another Company doing business on legluni9tso nnr IA
ftfY
tables and per cent INTEREST,", for assuming hhnctIn
liabilities S3lG7366 "a. This surplus alooI
therefrom proper reserve for adverse az
has live its annual predecessors been equitaDy .ds
trbuted among the policy-holders. A.,
the Committee also examined and inspected In detai
the bonds and mortgages executed or assigned 10 IN
Company and not only find them as stated out
the opinion that the mortgage loans OF tne Cop"h
have been made with great caution, both as 70 VI
character and value Of the property mortgageu anu
the title Of the m0rtgagors. The report con'" 49, -
from the Hon. VIM. Barnes, superintendent OF 'no -
surance Department Of the State. comphnen""b :"
Company on the favorable condition Of It's AFFAIRS
THE LATE FATAL EXPLOSION OF FlhE"oi'No
The surviving victims or the late eApioSio'
OF fireworks in Printing HousesquAre stu remain
hospital, and are improving slowly, but u 10
surcIv Mr. Redcan suffers from the burns IN MS su
and neck Mr. Wogan from the severe M lie face an
limbs Officer Maher from the wounds Oh rnnnd i'm III
herds and the boy Barrett from an ugly thougbt
throat few days ago the last named ", ~ danger
40 t...k d.