The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1870-04-19
InisroL, ArRiL Is, 1870.

Judging from the tone OF
the "lnquirer's" first article, attacking
the Mutual Life as he did, l took it for
granted that his only object was retalia-
ton, but l am partially inclined to be-
lieve, from his last inquiry, that there is
q possibility of his being in the dark, or
in other words that perhaps he may un.
derstand the matter as he states, even as
ridiculous and absurd as his notion ap.
pears. | hope he is honest, and on this
ground will attempt once more to set him
right. He says that he learns from the
last years annual statement Of the CON-
pany that their assets were thirty-fve
million-while the receipts for interest
was s1,70l ,402,72 on their investments,
which is less than FIVE per cent" In
quirer allow me to correct you. In the
|" Ninth Annual Report of the Superin-
tendent of the Insurance Department
State Of New York"-page 532, you will
find that the aggregate assets Of the Mu-
tual Life were twenty three millions nine
hundred and ninety.fve thousand fifty
seven dollars and ninety-seven cents you
will also find in the tenth annual report,
same department, page 64S, that these
assets paid s1,769,698.76 in interest and
rents. Taking into account what the
company saved by not being obliged to
pay rent, you will find that she received
better than eight per cent interest on her
investments that year. Canyon see your
mistake? If not, to be more plain, if
possible, l will add, wait until the year
comes round, then learn what the thirty
five millions you refer to, has earned, and
you can tell better what per cent. it
pays.
| do not know what he means by sta
ting that insinuated that the managers
of the company use the funds for specu.
lative purposes. We do not speculate
with our moneys unless you call dealing
in bonds and mortgages speculation
that l believe ] stated. Promising to
pay dividends and not paying them, seems
to annoy the d" Inquirer" | suppose il
is understood that we do not do banking
business The business of the company
is life insurance, and the dividends of the
company are used either to purchase ad
ditional insurance or to aid in the pay
ment of premiums falling due. Addition.
are at any time recoverable into cash il
payment of premiums to the company
Should the original motive for efiecting NJ
insurance in the company cease, the party
may on application surrender his policy
for its cash value. In the case referred
to where policy holder applied to thu
company for his dividend, he, the "poli
cy holder" called upon the company {
month or two after he had ordered tn,
company to apply his dividend to thu
purchase of additional insurance, stating
that he had changed his mind and theI
wanted the cash instead The compan,
informed him that he should have takei
it when due, that they only declared div
dends once year, and therefore pait
them only once and that he must nov
wait until the year came about. Tn
policy holder was then little short 70
funds, and of course the arrangement di'
not quite meet his convenience. Blu
was the company in fault?
Inquirer has considerable to say abou
forfeited policies. That some do forfei
their policies is true in all companies, Blu
not in the light which he represents. L
those dollar and ten cent companies n
one will deny but that at any time whe
the insured fails to pay his assessment
from whatever cause, whether it be tina
the amount demanded is more than h
can pay, or any other reason, he forfeit'
while only those forfeit in the Mutua
, Life who will not either pay the prem
! ums, use the dividends standing to thei
credit to pay them, or surrender thei
policies for paid up policies, or the cas-
surrender value. Again he labors unde
a mistake if he supposes that all lapse
, policies are forfeited. Many of the holder
of lapsed policies procure paid up insul
ance or cash surrender value,if they d
=, not the fault is their own.
, do not wish to be understood that tn
expenses of company have no bearin
upon the cost of insurance, nor did
make any such statement. All 9th,
o things being equal, here lies, to gre'
: extent, the difference between companie
Few persons when asked to insure The
: lives, stop to investigate the standing
i different companies. They are too apt
' be over persuaded by some oily-tongue
v collaboration captivated by the sp
:. cious plea, " cheap insurance" Figur
, will tell, and ! ask the caref
consideration of our readers to the su
y Joined statement from official sources f
- 1860. AS each of the companies name
;. have set apart the same proportionate r
4 serve to meet the requirements Of Il
New York law, it follows, as a matter
% course, that the ability to pay dividen
. depends almost entirely on the ratio
4 expense to income. 1t will be obsery,
!, that the ratio Of expense to income rang
:, from OLA to 20.4S per cent, the ave
age Of the teu companies named, bell
:, Alp, while the Mutual Life Of Ne
- York is but 1857. The actual cost Of
W policy in the Mutual Life would be mu
to less in series of years, owing to the l
;. duction in premiums by larger dividend
!, Ratio OF L
II Pol Amt IN, TO Incon
e Craftsman 1899 9S0i 700 Ola
Amicable, 1899 2l79050 Ola
d, Empire ll6s 1901 900 1888
II homeopathic 1850 2,ss365s 35.4i