Morning journal and courier., 1891-02-10

assets that earn the interest. No one else is doing it for him. Many of the compa- nies that few years ago took only $10 to $15 for expenses out of every $100 of pre- miums and interest are to-day taking from $20 to $25; all for the race for magnitude. That extra $10 to $15 for expenses out of every $100 comes also out of the policy holder. What is magnitude to him that he should 80 dearly pay for ita It makes his policy no more secure; it does not oth- erwise lessen it's cost one dollar.
 And to whom does the management of 8 mutual company owe duty that should control all it's methods, if not to those who already and solely compose it-its present policy y-holders
 We have been and still are held up to discredit by the Racers, because at one time we allowed our business to shrink in volume rather than to incur such an in- crease in expense and use such adventur- ous methods as alone would then have al lowed it to grow and because, since it began again to grow without increase of cost or change of method, we have cared more to keep down it's cost than for rapid growth. What is rapid growth worth to for $153. .OOO, ,OOO, that they should pay an extra and heavy cost for it |?
 We are giving insurance to our present members at the lowest cost attainable to- day-lower on the average and as to the whole body than any other company; we are taking on new business on terms which make it profitable to present policy y-hold- CTS we are taking it on faster than the old is going off humanly speaking, the rate of prosperous increase is secure. We count all that the only true and enduring success in management; and a review of our yearly operations shows it to be one of no mean proportions.
 EFFECT ON AGENTS.
 By far the largest item of the expense account, the thing in it which costs the policy-holder most, is the compensation to | agents, who are engaged in the business as a means of livelihood and to whom, there | fore, every increase in commissions by a rival company is a powerful incentive to | change their connection and @ source of | discontent if they do not so change. The | company which pays the highest commis- l sion will draw to it at last all the agents | who care only for the commission and mo- thing for what becomes of their customer l afterward. It will get most of the new men entering upon agency work and who
 have not yet learned that the higher thei1 own pay the less the dividends to theil | policy-holders and the less permanently
 desirable the company.
 l We have seen our rivals advancing com
 missions and allowances of every sort from
 two to three times more than we could pay
 without cutting our dividends, and devi
 sing plans for postponing all dividends
 from ten to twenty years, and a specula
 tive system of forfeitures to cover up ex
 penses and supply profits, and so taking
 away many agents and keeping ava.
 many more that would have come to us.
 We have not an efficient agent who ha
 not been tempted to leave us for highe
 pay, and who has not stayed with us at
 sacrifice for the time being. They hav
 preferred to remain because they hav
 shared in our conviction that this shoult
 be 8 policy-holders' company, and hay
 not been willing for price to offer tn
 public that which they could not them
 selves believe in, at a cost which the
 knew could not be justified. Against tn
 temptation of speculations, rebates, an ! every extravaganza of competition, the l have made hard, slow fight. It is now
 winning fight, and they deserve the re spect of our membership and it's co-opera tion in the greater opportunity which lie before them.
 We desire to extend to all who nee
 them the same benefits upon the sam
 terms which, through forty-fve yeart , have made this company a conspicuou
 exponent of the singular value to Amer can homes of pure life insurance. Gu 7 ability to serve was never so great, ou ground never before so certain. We as every member to use actively his infuene with those whose families need protection , to the end that we may widen our usefu ness, not only without increase of cost so doing, but in @ way which shall tend t t benefit present policy-holders as well { ) l new corners.
 5 THE CALL FOR REFORMS.
 Apropos of these matters, it is of Il severest critics of our conservative couri and most strenuous workers for a gre, 3 volume of new business are now trying !, secure concerted action to reform u 8 | methods by which they have worked the f reaching. Unfortunately for the succe of such purpose, they abate none of u
 ambitions which led to the vicious metl
 ods and which compel their use until , l more conservative standard of succe ! shall be accepted.
 Meantime, it is profound satisfactio l to know that every step in reform mu
 lead back to the ground we have persis ( | ently held and hold to-day without nee ! of change.
 STANDING OF THE COMPANY. On the 31st of December, 1890, this COT f pany had in force GA, ,147 policies, insu f ing $153, ,234, 742 Its gross assets on tn I | day were $58, TAT, ,707.44. Its iabiliti 2 were $53, 175, ,707.25. Its surplus w r $5, ,572, ,0OO.19 an increase during the ye of s491 ,S23. 5S.
 - An examination of the schedule of a sets and their income leaves nothing to said for their high character.
 I The liabilities are computed upon higher standard of solvency than tn
 used by any other company or by any the State departments. They calcula l upon basis which assumes the earnir
 of four per cent. annual interest. Our bu
 mess up to 1882 was written upon tl
 same assumption That written since 1S$ l is upon the assumption of only three p = cent. interest. Our liabilities are COT 2 puted accordingly, and are therefore mue E higher than if computed on the assum q tion of four per cent. throughout F which case our surplus would be conside f ably over $6, 900, ,OOO There is no stoe I to own or control the surplus.
 A mutual life insurance company is
 cooperative effort by it's members to s
 cure for their families the necessary final
 cial protection against the loss of the hu t band and father. The essential elemen s of it's success are security, equity, loyalt
 to true purpose, prudence and econom
 Its success is 8 maximum of family prote
 ton at a minimum of cost By the
 things we stand to be judged. By the
 all must, sooner or later, be tested. : Respectfully submitted, f JACOB L. GREENE, President.