New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-10-06

upon
tons" The facts of experience concerning the
surrender OF policies are as palpapie as those
conditions Of dstrust apprehension and embarrassment
sush IS affect the question here the course OF business IN
the surrender OF policies De predicted with certain
constructed
SEPARATION OF TuE REGISTRY BUSINESS.
But finally consider what will DO the situa-
ton II the registered business Of tho company shall,
the of the Prcdigal, take the portion be-
longing to H. and set up 10 business for ITSELF In inc
first place the Of such separation the regis
tered policy fund account instead OF being CHARGED
endowmcnts and death claims, which we found TO he
bnt VII De az once SnargeHp,S, VII Tue Tase
msturcd registered eudowmens amount TO Sli3OO; ana
registered death claims To sl1l73l, total ma
tured liability. ehargeabc 70 registered policy account
of sl2So5 The present value o' REGISTERED pol IN
liability registered business, independently OF the
gistercd will De 81 100 l13 This liability then Is
regis cred business by itself But referring TO our re
have for special registered account but SlOOoO14 OF
nearly 100000 less than Is requ ca rms upon us
the entire business which deficient in an amount OF
81 Gl6GOl and proves hat there was virtue
in the registry system wdich fairly well administered,
would piove in fact highly conservative OF the Interests
Of Pocyhoders. This deficiency Of 100000 or aboni
ten per cent OF required reserve would not OF user
he conclusive against possible recuneaton under tne
direction Of the receiver II an Tue Ieihanhs ceu43
were syoele to sneh r Tsu oe LenG rsonTces
carefully invested in good securities. producing more
than per cent (because We have deficiency 70 make
when required. without depreciation Next We should
require premium income, saifoif ,, 70 or1o oS
and death claims. (he latter MOI 70 eA-
SsS G; coodd S 81 R ne Sse 10 eSs Contribute
10 making and keeping good constantly increasing e.
which starts with acknoW lodged Gencency oI
10 per cent. How far away are from such conditions
thesccondons absolutely Indispensaoit 70 the sue
way most clearly indicated Let US consider the ques-
OF the sources Of revenue the special deposit
fund with the details Of which win not burden this re-
a. lssa Inn - IA
Total net income present derived from the properties
belonging this fund Of $4,000 This is gig Ter cent
cent on reduced estimated value OF the same We
require 70 meet the conditions OF our proIIoI an f
come of 4l2 cent reserve, or pnncpa SUN Oh
Sl1O2 4I3 that T. $4,000 Instead therefore, OF NM
help make good the deficiency III reserve tne interest
account is itself deficient hy more tuah +IseS
in respect 70 their ready eonveribility into money
enough has been disclosed m former part o. iD' re-
port SO far from producing me amount Galieu lo ~ y,
estimates Of value, y O. very certain tna, n9Hy W
aud Al a very considerable loss. Aud yet the immediate
OF Of those properties is one on le acls
Jvso or .b sfb NJ March ~ Sl23OOO Those ma
turing since vii, presume and viii presently snow
i . YER ne ,reg al TIC count shall direct
lever io n-oceed with ne business Here, then. are
Sl23OoO g. be provided for az once out Oi ines interest
and tax hurdeueG mortgages aud morigaged pOptrue.
And I'm au This make no account 81 anolhet years
taxes and of interest accruug upon these ma'ued OBJ
lem surely. the character aud condition OF our re-
good the conceded dehcency ID our resei'o WIN "'
RESOURCES FROM PREMIUMS.
Asa last resort we turn to premiums reccivable.o
see If these will afford margin enough 10 make good the
Deficiencies found elsewhere. The problem becomes
moro complicated. and difficult. as we proceed Tor
now We md. that not only must our premium income
hear IL. own natural burden Of dischargng maturing
obligations paving expenses, and contributing 10 an IN,
creasinC not only DO we Demand or 70 w hnu
make GOOD the original deficiency Of 100000 in that re-
the situnton o. ea upon T.. mae GOO t,g W i6st
insufficient SURELY will require very tobnst
and richly loaded premium TO fuhh requirements hks
these. lot us see then, nst Whai Is IhC 1iiuou' ="
this premium receivable from registered pOncles ana
what are burdens which must bear The Obligations
which u must discharge on iis own account DSoi1 t
Tne premiums from registered policies, as thes.
SsTn found s%dunied S o2s SE'' Lt Us see What
are prospective demands upon thls resonftSe'
there have been ied fifteen registered death claims
amounting 10 Sal eco. Ihs indicates fearful annual
mortality nearly twenty per 900 ana about qoOoV
al assurance provide for out Of this premium income
of 100000 This would leave S22OOO out OF when 10
meet maturing endo~mont pay EXPENSES coh.l5Dute 10
the natural of "a normal reserve ana IN the
present instance. make good deficiency u reserve
ipclfus of 10000 besides contributing 70 SINKING
fund That 90 restore 100000 10 the principal 0I dtt
~ ,t ~, Az, r.r sU1,rn tho payment OF which will
leayr Just $1,000 with which % defray expenses,
and discharge all the obligations 10 the reserve,
1rhi.i, pr~minIn income ought on Its &C
count To discharge. besides making good the
d,Hciences enumerated from other sources We
mud. therefore the threshold OF our in
qniry-without going into detailed calculation OF all
The clements entering into it-that the future premiums
10 he received arc not sufficient pay the future Obliga
tons tho rate these found 20 nature-ict alone
their contributing tO make up the deficiency IN reserve
and n The income from Investments. II would seem,
therefore, that need MOI push ms inquiry t1ef' ID
font carry by itself in the manner provided ny law
the general business the rogsterla deparlnent OF
tie business OF this company What would or would not
be permissible under the law, II the actuarial c0nclu
isf rial
quiy which l. the province u the actuAy 20 consider
CONTINGENT LIABILITIES.
Besides all the foregoing accumulation OF evidence rom
the real actual aud tangible iacs o. the Situation bear
ing upon tins question Of The suciency the
assets credits and premiums-from the registered
policies 10 discharge the obligations OF nose Ponees as
the saline shall mature according 10 the terms thereof
has opened before the acqary III The progress OF
ms Investigations, conlecturGl haDhty OF mueHnIte
dimensions. which tine urgent demand for an early re
port upon the case rendered u Impossible Tor nm TO
explore aud reduce TO defined limits or even 10 blbg
within rational estimates. This condition arises upon
evidence I'm the receiver Office that some ponccs
certainly paid up Tor 80 large an amount as SoOOO
which are marked b. cancelled upon the cOmpaBy's
books. and which have not entered INTO the foregoing
calculations OF liability n Tact III fu force by thClr
own terms TIE suggestion from "A single policy OF
the Kind opens wide and fruitful hcid OF IN
ouirv ard research which may serve confirm
but cannot possible oppose OF reverse them II rs
proper further 10 po'iso 2notLed 0glsh1n ~rS'
stcre and noureGistered policy -hoidets may he held
mat the fc.i.te4eV p.o.S ui' - ~ ~ ,,nsr ~
registered policies surrendered 10 the company ana now
a. he rvsr'. hands the surrender value upon which
was paid oui 81 the general fund. IL VIII then become
an Import ut question whether the general fund not
entitled henaf OF the registered policy holders
from the special registered deposit Iuud the
sun iu this WAY advanced on its account This rs a
purely legal question upon which tine actuay OF course
Of Such demand be- made and It's possible admission
valid and snbsisiing claim; whereby 70 further