, 1877-03-25
The Pacific Mutual One Of the Most Pros
porous Companies in America.
Its Ability to Unrest with Doublo the Return Of
Eastern Companies One Of Its Sources
Of Strength.
It's $1o0,0o0.ooo Of Individual Lia-
bility Another Evidence Of
Soundness and Success.

information on the subject, that nm persuaded
to jot down few points upon the condition o.
that much-abuscd business On the Pacific Coas
| for the benefit Of your readers. 1t may be re
freshing, too, to hfe-insurancc men in Eastern
| cities who have suddenly found their occupa
tion gone, as fur as the getting Of new business
is concerned, to know tina. this coast has moi
felt the disastrous effects OF insurance fraud:
| and hard times anywhere near to the extent
| that all other parts of the country have
suffered thclefrom. Fortunately for thil
| State, its business is conducted entirely
upon gold basis, and securities hare not fell
the general depression here, Us in the Older
States. But, more fortunately still for 1ifc-in-
| surance the State is blessed with wise laws and
| au Insurance Commissioner who is capable and
| honest. The faithful execution of these strin.
| gent 1ifc-!nsurancc regulations has aarcd tue
! State from the iufiction of fraudulent foreign
t companies, aud preserved the confidence Of the
people in a business which, If properly conduct
ed, is not only Legitimate, but highly beneficial.
It may not be generally known to your readers,
but 1t is fact nevertheless, that to the Insur-
ance Commissioner of California, Mr.. j. ".
| Foard, Is due the first exposure OF the rotten
t ness Of the Continental Life, and, incidentally
| thereto, the exposure Of subsequent insurance
| frauds is alike to his credit.
The lifc-insurancc laws of California were
! modelled orig yinally closely after the New York
laws, but subsequent legislation has gone lar in
| advance Of the excellent provisions Of tho New
York code, and has i'll fact thrown around tho
policy-hodcr the most perfect protection posi-
bic. It is quite likely, however, that in its ef-
tort to hedge in the po)icy-lolder against fraud
and wrong, the Legislature may hare orcrshot
the mark: for, certain it Is, that, since the pass
aye Of these very rigid measures some two years
| ago, all forcign com 2an:es, with three excep-
tons, have stopped taking new business In CAL
ifo:nia, and many hare withdrawn from the
State entirely. It is likely that the coming Leg
islature maY modify tho later statutes on this
subject in some particulars; but there Is such a
out the length and breadth Of this State against
fraudulent corporations that organizations OF
the Continental and New Jersey Mutual stripe
are not likely to seek admission here. Caiifor-
mans arc jealous OF m0nOpolies and organized
frauds Of all kinds,> aud tncy mean that incor-
porations OF every nature shall show q reason
for their existence aud giTo guarantee OF good
behavior.
Thanks to this judicious policy, ca1iforn!a has
never had life-iusurance wreck. Spectators
have staid out OF the business. Only two life
insurance companies, in fact, have ever been or
ganizeu in this State, and these were composed
Of gentlemen Of large wealth and high standing.
One OF these, after several years. existence, sOld
out its business to an Eastern company and re-
tired. The other IS the Paritic Mutual Lhe-In-
surance Company OF California, which is to-day
one of the strongest aud ablest managed in this
country: This Company does not need all in
PRODUCTION to Chicago readers 1t has an active
and profitable agency there, and is opening new
agencies in every city of importance throughout
the East as fast as it tan be done. do not
know Of another company that is extending its
business SO largely and Systematically at the
present time.
The Pacific Mutual has just passed through
thc most rigid examination by that Nestor OF
insurance investigators, Mr.. j. W. Foard, at the
request Of the Insurance Commissioner of New
York, III which State the Company has applied for
license to do business. Mr., Foartl cert,fcs over
sthe broad seal Of the Statc' That he has person.
ally examined the books and papers Of the COM
pany and found its statement ''correct and true"
Such certificate from such an officer must be
regarded as final aud conclusive. In this con-
nection l would add a report made by Mr., 4.
D. Smith, ex-Dcputy Insurance Commissioner,
after thorough examination Of the Company's
affairs at the request ol the editor OF all insur-
ance Journal published in this city:
From the statement referred to in the above,
I find that the business fur last year was very
much greater in volume than In 1915, which I
think cannot be said OF any other American
companies. And its ratio Of expense to income
was also much more favorable. Its total income
WIS S4G3, 101.51, Of which amount ST., LBS
was from interest receipts Its disbursements,
including death losses, purchased and la2scd
policies. dividends to polcy-hoiders, aod e1-
pence Of management, was S3355, ,47].93, OF which
{let higf-salaried Eastern companies make note)
but S15, 10 WAS for officers salaries and office
employees. Its total assets were shown ut
S1.23l ,A159, and its liabilities at S916, 750.51;
leaving sur plus us to pollcy-holdcrs OF $685.
097.0S-
I'ne Pacific Mutual was organized in 1865 It
is mutual company, but, as the laws Of the
State require all companies to have capital
stock and guarantee fund, 1t has q ca2ita! Of
S100, ,0G0, anu guarantee fund Of $3.50, ,OJO be-
sides. Its stockholders are among the WEALTH.
est and most prominent men Of the State, rep
resentlng an aggregate individual wealth Ut
about Sl00, ,0o0, 900. I state this fact for the
reason that the laws of California make each
stock;loldcr. individually liable to the full
amount Of the indebtedness Of com
pany. For tlIis reason the enormous
wealth OF the Pacific Atutual's stock
lIolccrs Is one great source Of Its strength and
popularity. Tlsls is one OF the ena:tnicnts
companies here. 1t operates to the perfect pro-
lection Of Policyholders, but doubtless prevents
cautious men from vcnturing upon many invest |
mems which, though hazardous, promise to be
profitable. As showing tho character Of the
men connected with the Company. will give a
list Of its Directors, most Of whom have na-
tiU11al reputation,
The President of the Company, Mr.. j. H. Car
roll, is prominent business man OF Sacramento,
where he has been very su essfu IN acquiring
great wealth. Mr. G. i. Moore, the vice-Presi,
dent, WAS formerly connected with the Missouri |
Valley anu the Alliance Companies. He is re- |
ga;dcd one OF the ablcst insurance men in the |
holders, the law in this State cxcnpts from tax
alton and execution all policies in California |
companies whose premium dOcs not exceed S500 |
per annun. This may seem unjust to creditors, |
but therc is no doubling its value to the holder
Of a policy. Again, tho law requires a1l co:::pa-
MICS to nGFniE surrender 0f 4 nnffry ]YTn-