New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-02-19

CONSTITUTION OF THE SURPLUS.

Some items of the surplus held may vary in the
future All companies are required to report the
market value OF stocks and bonds cost; this, at
present prices gives an Increase IN our assets our
securities OF this class OF the CHEST and most stable
character but fall IN the market, while not Affecting
the Income, would take 80 much out OF our assets ana
surplus Some OF these bonds cost premium which,
should they be held to maturity, will DO lost when theg
are paid; Others again cost less than their face and
corresponding gain will be made when they paid.
Another and important part OF the present surplus Is
the prom so far made from sales OF real estate amount
Ing as has been stated TO S5S3l04 o. We have SO far
real estate taken by foreclosure lS73'sO, whole
We shall doubtless make further large profits may
and until we closely deerm the outcome OF
the whole, whole, we deem 1t the prudent to
impair our dividend paying ability aud, moreover, so
that the income from these Invested gains may assist the
Income from rents on the uDsOld real estate and the
better enable us to hold It for proper prizes.
THE INSURANCE BUSINESS
We began the with sl52 23o6s5 at risk; we lost
cent Of the amount at favorable experience we
believe TO be ecualIcd by none and nearly ~ reached
y Gey any pa+r Reh and
piring term pOllces, $4,000; not taken. S6o5,OOO;
9Sgt s sSd232 total loss OF o.
So leave the amount at risk at the end OF the
year 1851 ,30l,5
THE EXPENSE OF NEW BLOOD"
n would have been easy to secured large in
crease ia risk by raising the mission.
therefor by paying salaries solicitors regardless OF
any commission basis. But we refused to gain
business In that way. For, with company OF the
size OF this we believe il our first duty 60 secure
low OF insurance present members possible,
consistent with the perpetuity " the cOmpany and to
take new members only Sd fast as can be done with
out enhancing that cost more than the new lives are
worth to the OLD for legitimate purposes.
t certainly ought to be the case that as the companies
give the. stability every solvent company has
enough for that nowthey should be able to find ways to
reduce the cost OF insurance expenses
cerned In every other great business the reduction OF
expenses is constant study and necessity. Ouly by
such reductions have ros been possible In many most
The great tall IN the rate Of interest IN the last Few
years has greatly and permanently crea sed the cost OF
Insurance in all companies bv reducing the dividends
ba earned 1t ought not be further increased
through the expense account.
And yet, never commissions high nor other
expenditures for now business great as now. They
can he paid only by the Tontne companies and out OF
their great profits from iOrieres which no: TO be
divided for many years ana for the final an cunt OF
which there IL no responsibility.
company is therefore shut mp 10 one OF two cOurses
to adopt some one OF the many modes OF the rontne
scheme to business for the sake OF the proceeds from
forfeited policies and whatever OF those proceeds Is
necessary to get much business satisfies its amb
ton promotes the speculation Deng thus able TO pay
practically unlimited commissions and salaries; or else,
II It be unwilling inct loss and make gain by forfeit
and seeks to give the seouIes family protection at
the least the prOvident husband and father, It
must find for Its agents the men who will not work q
scheme which spenlaes on family losses and who VIII
be cOntent with commissions smalle> than tbs TOntne
agents can give away" throw of"-and yet make
money; and IL must be content with such business as
they can pet In face ~ Tontne estimates and
missions thrown off," and wait for the judgment
OF pTu lent sober minded men acting upon knowledge
the truth end under OF resp visibility to those
depsudent them for their all In this lie.
Many companies have felt themselves compelled to
adopt form OF TOntne In order to meet the expense
aud the form oi it's connection, preierring this appar-
emily easier way for the time being rather than make the
square issue with the TOntine principle and all It's
incidents.
our course in this matter is taken We will seek no
gains from tOrietures either fol- expenses or for pr0hs
10 the lucky few We Will give to each family that aud
all that the husband and father las paid fol- with the
cOmpetest equity we discover, and at the lowest
cost accomplish. We have set he character or
Tontne before the public; and await an issue which,
II he somewhat prolonged cannot be doubtful. and
which can well afford to ablde for the right Is not
doubtful. Respectfully submitted. ,
JACOB J.. GREENE, President.