The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1892-02-05


hundred and forty seven parcels Of real
under mortgage. and the further facs that
these properties are scattered not Guy KY
over two continents the nature Of his duties
made 1t necessary, perhaps, to omit con ment
on the real estate t ensactions IN WHICH
profits have been realized and to con1ne him-
self practically to the tour parcels when ne
discusses, but your interests reach further,
and you will be naturally plersed 70 lesi IN
criticized to the Company's total holdlngs.
but ALSO the circumstances surrounding each
case. II these related facts tell you anything
1t is the probable existence to-day OF q sur.
plus largely In excess of $l5.000,0oO. We all
accept the superintendent's figures, yet as you
and are peculiarly interested in the whole
case, we are permitted between ourselves TO
view the possible effect of these facts sup.
pose, for example, that the superintendent
nad f accepted the W1known 9p,hi%Sn arl reai
estate as 10 the value of the Plaza hotel-
$2,i3O 0p0-aDd that he hid accepted the .aine
of cur home building on rental basis OF nye
pei. cent ret, and that lie had accep cd the
inside figures Of the inspectors OF tie Credit
foncfer AS to the value of the Paris pro periy,
his heavy deductions On HOlbTrook Hall.
would have been only S420, 800. rs. This alone
would increase our surplus SsOoooo,
Agency Management.
Uner the head of agency management the
eupen intendent of insurance says that funds
Of the company to the extent of hundreds of
thousands of dollars have been advance to
these agents without interest and upon In
sufficient secu ity." To persons unfamiliar
with the life insurance business this state
ment would seem to indicate the worst pos
sihlo management Of our agency depRrtment.
The facts ought, therefore, to be fully ex-
planned: Tbs general system upon which ad-
yances havs been made to the agents by this
company and By thor li10 companies may be
illustrated as follows 1.-THE figures used being
actual existing contract: The company, we
will say. enters into q contract with Brown,
who is general agent for a State, that he
shall receive commission of twenty five per
cent. of the first year premium OF all policies
Ialced by him, and rene wal commits
sion of i've Per cent. on each renewal
premium pa d on such policies. Brown, OF
course, finds it necessary to empl ) Jones ard
hers IS snb-Ggents and ho ordinarily pays
them the twenty iite per mt. commission
allowed him by the company on first year pre-
miums. Brown relies upon his rene val COM
mission fur his own compensation, but while
he ol tinues In active service he is frequent
allowed TO d.aW hxsd amount against com
NH sions for his living expenses, such amount
being regulated bj tho Elrcunstan es Of the
case As competition increases Brown finds
that in order t. retain Sub-AEeut Jones he
will be CHI ged pay more than 20 per cent.
cnn1nissiOn. TO d. This Brown is Obliged to
make a new arrangement with the company.
Irstesd OF Increasing Browns first yesreem
mission he cnmpsny aulees TO advance hiEi a
sum tqnsl 10 Two renewals, or 10 per cent. on
Browne future renewal commissions under
thu contract as security for the advance.
Brown is now able to nay, Jones 80 PSF cent.
commission sud 80 retain his services.
Put ut he end of tho year brown ia Fppar.
entity indebted TO he company III an amount
con i to ten per cent Of ait frat YEARS. pre-
niHms secured by Jones, and tas larger the
business the larger the aIpBrert debt. THE
" il continue until such time SO TIE old busi.
u s. kept on the books greatly exceeds the
amount OF nsw business annually dore ina
rapidly increasing business this result wi 4
not he reached for several Year,. but if tn
total an ouni PAD 10 lrawn bad not exceeded
wha. the hptr ess was actually worth the
time Will come nhen tho commissions accru-
ing under his contract will exceed he total
cost Of the years busia IS. Browns buslue
from this time forth will require q lats ey-
penditure on the part of the coz 'any in pro
tHis so-cRlled iuc ht- dness as it appears under
his contract win disappear rapidly than
II accumulate AT which time Brown willreal-
ize tbs profit for which he has worked. The
ncs' in large lsrt viii have lower exn, nse
rRt'o 20 this extent n the future aud it's ur
plus will M cOrreanondlnEly ircrets 4. Il
will notltc thst this de1t does rot epressnt
money when Brown mas pqunudered or re-
tanned fer his own uses. Re as simply used
the money TO carry on the comp any Is bust
meas II II should ever happen that Browns
renewal com missions fail TO cancel h debt
the hqtin mst R las SIMPLY cost thu gompany
taken good care IhRt the total amount of
commissions and advance received by Brown
business secured by him WAS worth.
L.o. yanuKam & Co.
The superintendent oritlCises the agency of
Messra. l.. G. Yanuxem 81 Go. al Pbiladelphis
and alleges a debt to tho COMPANY on account
of what he terms .eNtraYsgaht allowances"
OF several hundred iheusand dollars Re-
ferriue TO The illustration shovt CT the m OF hnd
on which q general agents business is con-
anct,a andiths manner in which an apparent
from ls6T TO 1881 inctue We this firm nrots
busineet AgsrsBs Ing sns hundred and thirty .
two NIL lions dallars clear exclamation Is
alto d. d soa OF lO u MSItar the sboys prac ice
lnra. 5sbt night snPrsr TO sxis In this
p.rtt t'1l ar agency thu advance conte mp lar sd
Ia Cur 1lcstratton took on various forms
unr0r frriaus contracts, which, however,
ssrt hlwA Us snbjeet To our approval Against
shaGnmtsifsions earaed and 10 be earned the
siahHIs Of this firm drew advances for liv-
ing eStenses as befo referred to. aud ad-
sanesS acGsaut we're made 20 soma rub
agents. Int n" Tins las the amount of
o.les S'ivaeetd to l.. G. Ftnuxesn & q. ex
cad d tss HRne OF their entire busiuesa
Gaaef this ~ sts Ia OF org ization II han been
pasrihla for single 4 m TO handie large
ter tory. and by ersating renew Il interest,
/ iitSease of very large proportion, we
hase avoided frraaent changes In gen raj
sgsnts and have largely escaped tho anger
tt having our business carr ed TO Other com.
atties bS an agent whose in ersst in any
giyon policy ceased With The first year of its
existence
In his way fIessrs. L. G. yanuxen q Co.
h pe aohs IT years large business than
the entire new hitintss N several of the
an Her life insurance companies and TIE
tqrgest bn ness Il any single ,Rsney in the
Gnit-d states Ii has been don. ri a not un-
reEsonsb expense mt he At Of it, pro-
euretnent has been Incl deA each vas In the
di hursemrnts of the COMPANY. The whcle
theory Of It's organization and the ,urlose of
tile advance is. first, 10 produce "a large
business and. secondly IN create sn incentive
for tho general agent or Ets78ser to procure
business at the 6wsAt s-ib cost in order
thGt after period of years he may b-gin to
iaAlfza relarn commensurate with the
work done As the cost OF he nus ness is
HhHrged OF each year, it becomes necessary
10 keep with the maunaHr hloftrr or eub-
led ger, apd the items aeH al Erousht Her.
ward FROM time to time, OF course tLisur 81
the illustration Houid show fn RE office q
ing NeHtY millions of new huslneee ia u y 49,
and for u series Of yeara large a pnarent
debt and tlle sup rim endent Of Insurance,
instead of viswins the business as we have
done. as simply business paid for, decide to
80 into THE sub. ledger and spread be foIe you
the sppar4n debt.
~ Money Not Due.
1t is Of first Importance that you UNDER
stand clearly that iris money is rot DUE
from L. . Sanuxem & Co. In ths ordinary
acceptance q the word debt, 1t Is due Rnder
tbs rims of their contract al such t INES aa
I 4 HI