The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1873-11-04
WILBUR F. BOYLE,
JOHN G. PRIEST,
HENRY T. SIMON.
ADDRESS TO PoLIcY-HoLDgns

ADDRESS TO POLICY-HOLDERS.
To The Policy and Stockholders of The 81.
Louis Mutual Life Insurance Company:
Immediately after the inauguration in
August lust of your present Board of
Directors. card was published by the
President, in which you were promised
an early and truthful statement OF the
condition Of the company. We regret
this promise has not been fulfilled at IN
earlier date. but the peculiar circr n
stunccs which led to our election as
directors, and the fact that tho annual
statement Of the company TO: the year
ending December 81, 1872, had been
widely discredited, seemed to require Of
Us that. before any further statement
was published, thorough and accurate
examination of the company should he
frat secured. -".
1t will be seen by the accompanying
report of our condition that this exami.
nation has been made by Messrs. Edwin
Al. Bryant, Actnary of the Life Associa-
tion Of Amefioa; Emory MoCliutock,
Actunry Of the North western Life In
surance Company of Milwaukee, and
Josiah 81. Kellogg, Actusry of the In
aurance Department of the State Of Hi.
nois. These gentlemen need no en-
comiums from Us to insure confidence
III the accuracy and truthfulncss of their
statements. They are all distinguished
for integrity of character and eminent
ability in actuarial science, and in the
POI formance Of the task for which they
generously proffered US their services
they have also merited distinction for
untiiing industry. Doubtless the CO.
,f NJ
ries in the investigation of q single COM
pany is without Is precedent iu the his.
tory Of life insurance. It may, with
equal truth, be said that the occasion
or it was unprecedented. The bitter
aud malignant spirit in which our enc
mics had persecuted this company. and
the readiness with which they would
have seized upon any mistake of the
board to create distrust in your minds,
suggested the urgency OF extraordinary
means for estimating our assets and liza
bilities with unimpeachable accuracy.
We give you the report OF these
gentlemen as We received it from them.
That the figures contained in it failed to
approximate more closely to those ap-
pearing III the last annual statement of
the company, can be ACC )unted for only
by those under whose direction the last
mentioned .tatement was prepared.
1t will be seen by an examination Of
tho accompanying report That on the
basis Of reserve at the rate of ~ per
cent, the liabilities Of the company ex-
C. els lis assets to the extent of Sill, ,OC0.
1t will also be noticed that on the basis
OF reserve ut e per cent, the assets of
the company exceed its liabilities to the
extent Of 100000. In making this
estimate it will be observed that the
capital stock (amounting to Sl00,00O) is
not inc.uded in the list OF liabilities.
The reason for this is, that, under the
charter OF the company. this stock is
not entitled to any Of the assets (othcr
than any interest dividend not exceed
ing 10 per cent until all the policies
are fully paid; and inasmuch as the
charter is made perpetual, no liability
to the stock can ever occur. But the
questions which CONCERN Jou most are,
whether the company is safe, and whe.
ther. in the event OF your death, your
families would receive the amounts for
which you are insured. On this matter
we entertain no doubt whatever. We
do not hesitate to declare our conviction
that the company is now, and will con-
tinue to be, abundantly able to meet all
OF it's liabilities, present and future. It
is true that, under the laws of the
several States, where our company is
transacting business. reserve at ~
per cent il required, and in one of these
States the rate is limited to per cent.
But this is purely technical rule, and
whilo it may be necessary standard OF
security with companies in the Eastern
States, whore the average rate Of inte-
terest will not probably exceed a. to
per cont, it is not a proper test Of the
solvency of Western company, where
the rates of interest range from z to 10
per cent. So that you will ct once per-
ceive that. upon practical standard Of
solvenoy, the stability of our company
is placed beyond all reasonable doubt.
| In the States where the rate Of re-.
serve is not limited to q per cent, tho
company will, of course. have no diff.
Guilty in continuing it's business; and
even in the States where this reserve. is
required, We entertain the hope oi
being allowed to continue our business
for the present, and until the company
oan be supplied with the additional
amount required by the laws. In Mis-
souri,, We anticipate no difficulty. II the
| law recurring q AK per cent reserve