Savannah morning news. [volume] (Savannah) 1868-1887, 1885-03-15
THE NEW YORK LIFE.
SCIENTIFIC ITEMS FROM THE
FORTIETH ANNUAL REPORT.

Interest income over per cent. on aV-
erage assets, nearly 6 per cent. on av-
erage reserve fund, and over 500. 900 in
excess Of losses by death.
Market value of securities over SI,4OO,-
600 in excess of their cost; due and I'M
paid interest on bond and mortgage only
1924, $50 SO. or less than Cne-half of 1 per
cent. of total assets.
Liabilities, both actual and contingent,
provided for, and divisible surplus tor
other than TOntine policies of over $4,000,-
600, on a 4 per cent. reserve.
An Increase of nearly $4,000,0 900 in as
sets. and of over $30,000,000 Of insurance
in force.
FORTY YEARS OF LIFE INSURANCE.
The history of the NEW YORK LIFE
INSURANCE COMPANY, reaching from
1915 to 1885, practically covers the
period in which life insurance
has had a history in this c0un-
try. 1t includes forty stirring and fruit
ful years IN the history of the nation. 1t
covers the period OF the settlement of the
great Northwest; the discovery of gold in
California, and the subsequent growth of
mining interests; the development Of the
railroad and telegraph systems OF the
country; the Mexican war and the an
neXatiOn Of Texas: the civil war and the
abolition OF slavery, and the enormous
growth of manufactures and commerce.
1t is praise enough to say that life insult
ance has kept pace with all this wonder
full growth ana development in the mate
rial resources of the country, and that the
NEW YORK LIFE has been and remains
one OF the foremost companies, not only Of
the country, but Of the world.
Life insurance as a business made its
most rapid advances during the years i'm
mediatelv following the civil war, the
amount of insurance in force reaching its
highest point at the beginning of 1878,
when it was over 81, 100, 100000. From
that it gradually Teceded, under the influ-
ence of the business depression imme-
diately preceding, and following the panic
of 1878, until at the beginning of 1880 it
was only 81, 440,000,000, a loss of nearly
One-third. 1t has never recovered all this
lost ground, the present amount in force
being about 81, 900, 100000. Total assets
fell off during three years, 1877, 1878 and
1879, but they are now about 80 per cent.
greater than in 1873. During
the first half of this period prices I'M
derwent heavy shrinkage, following
the currency price of gold till the resump-
ton of specie payments in 1879. The
figures Of a life company during the last
10 ears, therefore, furnish severe test
Of its strength, popularity and manage
ment. The following show the assets and
insurance in force OF the NEW YORK LIFE
at the beginning Of each year. y will be
seen that, while the business as whole
lost about 10 per cent. OF the insu ance in
force, and gained about 80 per cent. in
assets, the NEW YORK LIFE gained about
30 per cent. ofinsuraEcein force. and about
40 per cent. in assets. In 1913 the NEW
YORK LIFE had about One-seVenteenth
of all the insurance in force, and about
One-siXteenth of ali the assets. In 1885 it
has about One-ninth of all the insurance,
and about one-ninth OF all the assets.
INTEREST EARNINGS occupy an impOr-
tant place in life insurance calculations as
these, with the small over payments in
the earlier years Of a policy, must make
up for the heavy death rate of later years.
COlncideGt with the depression of bust
ness, following the panic of 1873, was the
decline in interest rates, shown in the
high price reached by government securi-
ties bearing only per cent, and in re-
ductIOn of the legal rate in New York
State from to 6 per cent. The NEW YORK
LIES immense assets have been so care
fully handled, however, as to earn on an
average about 51% per cent, and only
fraction OF l per cent. has remained I'M
paid at the end of each year. 1t will be
noticed that, during each of the last II
years, the receipts from interest have eX-
ceeded the total claims by death.
By the statement published on another
page) PREMIUMS RECEIVED AND TOTAL
AMOUNTS returned to policy holders by the
New York Life, in the various forms of
death claims, dividends, end0wments,
surrender of values on purchased policies
and annuities, it viii be seen that, while
the company has nearly trebled its assets,
it has been returning to policy holders
nearly 20 percent. OF the amounts received
from them. Meanwhile its annual pre-
IL Ion Id
CAUSES OF THE NEW YORK LIES RAPID
AND HEALTHY GROWTH.
Among the elements that have con-
trlbuted to the steady and rapid growth
of the NEW YORK LIFE, and to It's in
creasing favor among insurers, are the
following.
l. A LIBERAL CONTRACT, free from
burdensOme conditions, under which the
policy might become void or be-
come the subject Of expensive It'll
CATION. AS long ago as 1850 the
company eXpunged from its policies
the clause making them void in case
of self-destruction. In 1860 it originated
and introduced nOn-forfeiture policies, in
the face of great opposition from oIher
companies. In 1860 il originated the Gus
tom OF attaching to every policy copy
Of the application upon which il is Issued.
The application arG policy together con-
shutting the contract, both should be in
the hands Of the insured. Each of these
three reforms has been the subject of dis
cussiOn in State Legislatures since they
only the second has been enacted into
law. AS very few companies have toll
lowed the NEW YORK LIFE i'll the third,
and none in the first, the insuring public
have recognized the greater value of its
contracts.
THE PERFECT SECURITY OF ITS POLICIES.
2. Ithas been purely mutual company
from the beginning. Its officers and
trustees have been recognized as the
administrators of a great trust, with no
interests adverse to pOlicyhOlders, and
with every inducement to be just to all.
While it broke the iron rule of absolute
forfeiture, in case of Don-payment of pre-
MUM. that prevailed twenty-five years
ago, and while its reductions from the
tabular cost of insurance, by means of
dividends, have been very large, never
tbeless THE PERFECT SECURITY OF ITS
POLICIES HAS ALWAYS BEEN THE FIRST
CONSIDERATION. To secure this end, the
most rigid test of sOlvency has been adj
hered to in estimating its liabilities,
large surplus mas been maintained, and
the utmost care has been used in the
investment of funds and in the selection
of lives for insurance.
3. THE BEST PLANS OF INSURANCE
Three important steps have already been
noted as enhancing the value of the New
YORK LIES ordinary contracts. About
thirteen years ago the company began
the issue of its now famous "Tontine In
vestment Policy" which affords in
surance at ordinary rates for chosen
term of years, with five different options
of settlement, including full cash value,
at the end of these selected periods. The
maturing policies under the shorter pc
Rod have proved so profitable aud satisfac-
tory that the TOntine Investment Pol
icy has been Justly characterized as 1.-The
best form of insurance OF the age" In
this form of policy the forfeiture clause
was restored, in modified and carefully
guarded form, profits from forfeitures ac-
cruing to policyholders completing their
TOntine periods. This being deemed an
objection by sOme-while having decided
advantages and attractions for others
the New York Lite has now perfected
policy called the
NON-FORFEITTNG LIMITED-TONTINE POL
ICY,
which combines the non-forfeiture
features originated by this company in
1860 with the valuable OptiOus and benefits
OF the ''Tontine Investment Policy" THIS
POLICY MARKS THE LATEST ADVANCE IN
LIFE INSURANCE. By a combination and
non-fOrfeiture and Tontine privileges it
obviates the objections heretofore made
against both the ordinary policy and the
ordinary TOutinp and il is confidently re-