The weekly Panola star. [volume] (Panola, Miss.) 1857-1881, 1871-01-28
Prom me- Chicngo ThfuDe, January II, 1si
Grand Confidence Operation OF over
100000, 900. 1

AMt WIZ y NNhfN NNiiNANN UNiN Wv fHFetH VI WI
euuns - shown BY Tie 0rced cogfessiona o. rqulred
sworn statements u ~nnythre ne insurance COMPANIES,
tfs and lssi and ts1nr oil the companies 80 d9lg bus-
ness, and making definite reports touching the points here
laner ]1eni,q9ea a. can X SEW by r%ierrtng % ne 70
mlssioncrs fnr the years mentioned.
Having ben r%eflHiitet 70 examine the advance sheets Of
a circular being issued By the National Life Insurance
C0m1nnY Of ClirlgO, ! find ample statistical support for
The following Conclusions:
/. That these Gny three companies paid tii,is1,0Si40
for lnsss by death. and S~S4a,Slisi for EXPENSES, being
sn a. crage NO and a halt times ~ much for expenses ~
for death claims, or, In other words, each time the Insured
lq!s " lgr l1sscs n deaih. he pays $50 Tor The expenses
Also that the amount n premiums received by said
companies for the year 1863 was sst,90sts49, and the
whole amount paid by them for losses by death was Sli;
l~hl,OlSih, Or about onesiXth Of the amount received
ir premiums leaving the handsome profit ir these ~
solnlahlts q S6tllA5a.O2. The expense Of doing said
business, with ordinary economy, should never have ex.
Seedeii tiON,GQ, and, upon the cooperative PLAN would
nave bfn much less. THIS shows q net over payment
taken from the hard earnings Of the insured VI over &c.,
001,0Ql annually. a s~tupendous swinde.
2. That the actual co Of insurance for the nrst four
years of the business Of all the companies organized In
and since 1866, and doing business IN the State Of New
York, Old not exceed sen for $1,000 insurance, for the
losses, by DEATH The average age of all the insured In
these last mentioned companies Is about ~ years, and the
noltTNtlcpaiing premium In. the various companies at
5000 for four years, while the average cost for assessments
ir losses by death on the cooperative plan OF $2T1 per
FLOOD per year would amount 10 $3l.20 on $4,000 for -four
yeats. AGdlQ thls l0per cent. for collection, e. SSR,
with the membership fees Of SIS for the two memberships,
md the annual dues Of 80 per $1,000 insurance, or $40 on
5000 per annnm, or $40 for Tour years, and We have the
total c0sttOr four years insurance of 5000 on the Co
operative plan, slli,62 !, or S+941 per a1num, beng a
saving TO the Insured over the old plan of $l4S.S8 for four
yenrs, or I209 per year. Should the Insured live out his
eXlFttahoS, l. e, % years, this saving will, at10 per cent.
compound interest, amount to Sl2.iGi.sg, which the In
suied can readily realize, unless II would he more TO his
advantage " keep his money in his business. 1t is to be
horne In mind that during all this time he has the same IN
sufarce on the cooperative plan he has on. the other. In
ordinary business the saving Of % per cent. In the expenses
Of a business is considered large in this the saving is
ElFtNr tn h "a Faslr a YN fATH
1t also shows the average cost Of insurance for six years,
on the cooperative plan, In the Mutual Life Of New York,
years, woald have been S8s5 per year on $1,000 insurance.
This is still further connnncdb by another table, giving the
average number Of losses by death, in ls6s and lS6s, Of al
which Is only 6.i6 in 1000, requiring an assessment of
only S6.'6 for SlO0O of Insurance.
The total cost per year for 5000 insurance, In the Mu.
tual Lie, had It been on the cooperative plan, ailer the
company had been in eXislance twenty-one years, would
be rs follows:
Annual dnrs for $1,000, $500 per 81 900. ...~....".. $1,000
Assessments for death losses on 5000, at $685. per
Expense Of collecting assessments at 10 per %cent.,... ST1
Total cost on 5000 insurance on the cooperative
41o1
As this company had been In existence for many years,
the average aye must have been greater than in table No.
two t9, say at least an average of50. The average non
participating premium at the age of5O,. IN al the COM
pmies, is SSGl3 for $1,000, or $lS3.l5 for 5000 insurance,
leaving Q saving in one year In iavor oil cooperative inSIu-
gncc OfRl3A.iS.
Should the Insured live out hs expectation eco years.,
s emoa aiinI 4 V3 tSe SE San'd soa1e0G snm Of a = Z 8 IsF ssa'' During SHhig
this time DE difference Is under the control. of the insured,
and should he from any cause lapse his policy he loses
nothing, as he has only paid the actual cost of insur.
ance while he WAS Insured, but in the old companies, II he
stops paying, the whole amount, including the large
G lscatea 5s'"e"'' and the accrued interest thereon Is con,
As 10 the solypncy of these So companies, a careful
examination Of the abOvenamed Commissioners report,
showing the amount Of reserve, rs compared with their
realized assets, we find the companies stand as follows:
Is companies have enough realized assets to equal their
legal reserve; 10 companies have only so per cent; IS have
only 60 per ccnt,;S have 40 per cent, 3 only 20 per cent;
that in the aggregate they are short of realized assets al,
So, 81. 1t also shows that for every death there were
% pcof ,hfo tln,tdes who could not pay. the e~ror0tant
chances for the insured TO lose all lie had paid, to one
chance for himself or his family receiving anything In
We would cal. the attention Of our Western Legislators 70
this monstrous swlndle, and appeal TO them to enact sucl
laws as will forever stop these gigantic confidence opera
tons, The Insurance Commissioners and Legislatures o
the Eastern States who consented 70 this system mus
have had some subsaptidi rsaSon for inaugurating enc
continuing 1t, The lawmakers for the Western States
should no longer copy laws made in the interest of thes'
gigantic swindllng nlon0polies of New England and New
proper manner, but also to. keep the millions now throw
away in life Insurance to Eastern companies. in the hand
panies Of the East who have annually drawn more casl
for life insurance from the people OF the West than TN
cost Of our several State governments, boast that they con
troll the insurance Legislation Of the entire West. legis
lators, is this true2 Let us seel
In compiling these statements the National has allowed
for the sake of courtesy, that these sworn statements
although forced, and doubtless made to show to th
greatest possible advantage, are vet true. How true the
mag be, Is Illustrated by the fact, that the Great Wester
Life Insurance Company of New York, which, up0
page % Of Massachusetts, Insurance Commissioner
reports, claims assets TO amount Of $12,ggi, has sine
been declared hopelessly insolvent, and a receiver bee
appointed to wind up Its affairs, How many more vi
follow IN the footsteps Of the 2S similar high rate Engls
companies that have failed since 1850?
II any polcy-holder in one OF these high rate compani,
would learn now high such companies estimate their III
bilitics. let them write his company and offer TO surrendt
their policy, and endeavor to ascertain what the compan
will pay in cash or a pald.up policy, and unless, as IN m
case, you are treated with silent contempt, see what
contemplate offer they will make you.
uNR OF THE SuFfKREBs,
CHICAGO, Dec. 81. 1870.