Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-12-08

services ana save me cos, a, J. 60, -. -, =
cor,,,,r.,a 80. .s -, saf'tts' h'e''as
- s'e oou,' contro the business themselves
.sAe All the rsAs themselves. save all the profits
Tor themselves and % do the business forthe whole
her at his proror,,o,a,, - . - H -, ''
r..s a. - -. ~, -, ~ eA~ie VI tne t"ts cost
rs ana ~ se sais, sNASt cst OF ais Individual
- ~ ~ s"e. ~ NJ one es. each IL TO have his
,s,naS . a. Tvs inaiNtNeAl cost, e, lis indi-
''S va - .fot.. , VI the totsi cost
~ Wv nv iheheef " 10 make q prohi out OF any
oss eS.use, oapaal stock being dispensed with,
,inns ana r. ~, W. = NSeuiAied upon assHmi-
n,n,... . win mSigln which serve the
49, syee'i,e peipose ol .aptA Stock as 10 his own
, ( suu ny agesesate on the mar gins OF all the
Tacn m aP,, , .ne Sus,ness a. Mhole-
,,1,, -, ~ iui sn's ns shaIe OF tne proieo-
sny nros, o., -, 1900, NJ one sennued 10
~ " tnsnysnS % S a. s usnsr pawn
losses Tha nsv,n.n, - ~ Wv ayueh, On uealh
tho nrovisIon ~ rss., ~ t a 'aey cO.ur,
exnsnses -, ms ns,,'N, ~. 49,, , W vocuI. .ne
total COST Of fSe n5s,nsss M" '~N'' ii'>e up 'He
Eisss ,,,,o nv ~ ~ -, -, 49,.
bnf The nrannr,s S.,or aars, sna pans oine,,
msn,s hprdsn -, nr.n,f,, - t, - 50 .asa ea.n
tn hn Ia, =, ~ X 81 - "uI, PluPoIt."ne9 70
nran,,an, go 49,, -, , ~ '"e ies@ LUIS
Note c.refn,is ,sis 80 ,.,,. .-o,.,,,,.,
.rta,as a. ~; t- 80 man ~ ~ y a.
nossie,a .s IN rs aiu she OF .ne Nnoe
ccarr,i,,, T., 80 ~. ~ q. - w company -
that II viii have a certasn maSimnm xsssrix Sasts
ra,a tr.raas -, 's.i -. q a sess oeasn
,atr 80 xt .i'n aAe ~ n ~ sca.e ~
Tan ,,,nia, a., -, - s.iI ~ |" Va an &C,
each ~ ,h a. =. 81 . w - ~
each mans fun premiam Is needed and 4 his exar,
proportion OF the whole cost
Butt the losses are less, or the expenses are less
,sn ,s ~, esI.eu y more tlah wa
il Is correspondinCIy less HOW e. thc -, "a cos,
of the whui, bns,ness 20 no Adjusted auaony the
members obviously IL can be done only by IT,
II me business As a whoie Ms COST IN INV wear
,ess imam was assumed IN calculating The pre-
much 100 high escS man bss ,r.,s My,,aa,sS
demands the return 10 each 81 hls own oyernay
meat. Then an VIII stand on the same footing
,sha, "a ,s as tne "nO'e JUSTICES had cost tne
r. 80. ~, ~. s ~ P ie.u ,,s ~. -
each will have paid the comnanv for abe yas, ms,
,rpa, H.; 80 taii WY .,olnPahy iuI .he year JUST
an1 ,II 81 20 a, go "a. IoI tnc year,
thara ha 49, ~ Jus. .ne sSiiae piopuIloh as "
in,aros. ~ ~ Aiu. iosses, ~ Penses ~
eli - Pay !, ~ ~, s a. u " hau
ana anu az ane ~ 10 meet losses
RnI II ISesa s.u o., rue tue iesei =. Al
,,,sn,a a., 80 s,ss VI ~ pa ilehts are "is-
,a,,In IN any o,ner pfpporusn' taen scme, by
.Sosr 80 aac @ " S.l''us less yuan
tnora sSan ,sir sre 81 me i ~ as res =,
70 NV ;n a; sara,, @ ~ ~ oose, Su9
teteS al ,h sapT I sa ,he cost haa
,ai 81 eav DE- ,na"Ni's @Ne fH'e'Ss' =" Mee' H.
onysap nj ni,es ,
go, 30 a 49,, s sals "i tne MHele
whan ,naya "a $500 49, = h ~. ~ 49, ~ oe greater
Thase cnnsidsS,, man t nen a'sie = 'ne-
cpsiyeiy the ma,hnds nv Sh;rh x,Hou,s I'm n
,ns or ,..,,ns =, 1857 - . oi SUI
stnar ,ar ,.,i ~ 81 tat s"""'u NC na~e,
e'"e' ioi niu.ua's Vi ness-
"HhN shOtLD lhtf DE MADE.
Since the return OF surplus simply adjusts the
assumed cost and the actual COS, a. t,suraaca and
a, 90 So, ,.ar.,- . -. = : -
- - - , N'uia va o'eiPd, menus IL
shou1 oe ade as oiten as the actual cost Is ascer-
tained-whenever the overpa! meni is determined.
Inc premiums are paid In and Interest j. earned
and conected year by year; the sses and expenses
are paio and the reserve provided year 10y wear;
eacn year income and outgo are balanced 10y
a aneIsees ne cos, OF insurance Is determined
surpius,or oVeIpayments are determined IN and for
edch year bS itseii There Is no reason why the
surplus should not he returned each year, or such
such portion as NAV he safely dvIsed .ha,,J ~, ~
tanned for any period Of years. Especially is tais
true OF any company with considerable business
Of i've assnn,snns ~ y, , 20 w., me saiety
which doesn't exnect To sneod fs,r ,.xasns.s ,nre
than its future premiums will nroyidp
The whole Substance of InIIfual life Insurance
method is that each man shall get his INSURANCE al
its yearly cost 10 me comuany
The natural course OF business therefore an n
mutual life Insurance company wo,ld he 10 charge
a premium certain 10 he large enon oh for mi en-,
Wei Wihin the assnmea rHo,,si,,s a. - Setp
serves AS proatahlv a. IL cnnsistsn, with nsr,.c,
safety. 70 Keen ts eynenses as lo,r "a nossil. nm
an these vays irving to NAL The xearIv c,si; a.
Then escb year d,iiin, ~, ,1r-,ass " ~, 81
ments 10 those who coT1frihn,ed them IN tho mn;
norton OF CON, ribn,on or oyornsx,o,, a. ,,trinc
10 each ,olicy holdar his -. e., -. -
neither maSinc bi,,a - ,s.rs ,h.. ~, e 49, a.
yvno him Ies,n, b bs, ,, N.A ' "a, Suss y
End s5rinn ,S rs, =, ~ s, "a tns VI ,
nor aowina him ~ ne - so pc so , - a.,
inr him more than rs Observation-Disclosures seara ,aean
from some otber nolicr hdsr on 49, sha,y; .aesn
cnmnanv recSrsp Sr aS M ~ se
cost 10 orrs nm M ,s eae pJ.y noluei an u mas
yearly no more than !. rns,s q,