St. Paul daily globe., 1892-06-16

That there may Dc no error Ill the urgil-
ment restate the substance of lustyear's s
effort, that In my Judgment 80
First-All that tho stale should re quite as
Il reserve to protect the policy holder dnrIug
an incoming year Is an amount TO be deter
mined by multiplying the amount in force at
the beginning of that year BY the average
rate of losses incurred upon the mean
amount at risk during preceding period of
some reasonable length. say five years.
SecOnd-That II should be Il matter of no
concern 10 the state whether d reserve so
computed has any particular relation to the
amountOf premiums Oh uneXplred business,
so long as that reserve is enough. and f4oov-
cred by assets. convertible into cash in an
open market beyond the amount of the cap
ital stock and accrued liabilities. -
Third-That in ali except rare cases, the, re-
lation of such Il reserve to surplus funds Wijl
Of itself be II signal of danger TO the Com
pany, il such danger is ahead in the shape of
inadequate premiums or wasieful expense
Fourth-That the adoption OF the propoSed
method of reserving for probable Iegses
alone will put the responsibility of mainiaIn-
ing the commercial standing of the comSNpy
upon the. stockholders themselves. aud re-
lieve the state from the onus of bolsteripG,up
weak concerns on the basis of rule OF thumb
which is all there is Of the splt-prefiffttm
method now i'll use: . ''fE
During lnll in the proceedings, Mr..
Merritt suggested, in a facetous, vein,
that Mr.. Whiting be given an opbOf-
at catching bass at Thousand Islands.
This created a laugh, and Maj.HWKit-I
ing retorted. II think1 did that pihce
justice at the convention a year ago,
when made the nomination. for The
place of holding the next convention -
The president ANNOUNCED the appoint
ment of the following go
Standing Committees:
Executive Commitsee-J. .F.'Talhot, Mary
land; John c. Lineham, New Hampshire; C.
II. Smith, Minnesota; Joseph Frendenfeld,
South Dakotn.
Laws and observation-disclosures S. Merrill
Massachusetts: William II. Kinder. Ohio: o.
X. Fgler, Connecticut; William X. Root, Wis
consin -. i:z -
Assets of Insurance Companies-John C.
Linehan, New Hampshire; o. r. Fyler, Con
necticut; l. Van Pael, New York; j. A. Lyon.
Iowa; William Townsend. Maryland.
Miscellaneous Affairs-W. NJ. Rost, Wis
consin: NJ. Blakely, Kansas; NJ Kennig.
Montana; Mr.. Henderson, Colorado: Mr.
GoodSell, Iowa. 4.-;-
blanks for Annual Statement-J. A. Nc
Even, Ohio; w; ); Smith, Massachusetts;
j. j. BrIukerhoff, Illinois; A. F. Harvey, Mis-
souri,; Isaac Yanderpoel New York. so
Special, on Guaranty Insurance Reserves
George B. Luper. Pennsylvania A; f. Har-
yey, missouri: j. A. McEwen, Ohio.
Special on Non Forfeiture of Life; Insur-
ance Policies-GeOrge 5. Merrill. Massachu-
sets; William Babcock, Nebraska; George
Is. Luper, Pennsylvania; A. F. Harvey, Mis-
souri,; W. D. Whiting. Maine.
Unauthorized Insurance-W. FL. Kinder,
Ohio; William Root, Wisconsin: George S.
Merritt, Massachusetts,; Z. p Eliebe, Mis-
souri,; j. F. c. Talbot, Maryla nd:
Rates of Unstable and INTEREST,". r. G.
Talbot, Maryland; W. S. Smith. Massaehu-
setts W. D. Whiting, Maine; A, F. Harvey,
Missouri; j. II. Sprague, Connecticut;
Place of Meeting and Officers for $3.50.
L T..lA naffo
Colorado; IsaaeV Vanderpoel New York: j.
j. Brnkerhoff, Missouri; j. G. Linehan,
New Hampshire. -
Special. on Standard Fire Policies and
Uniform Riders, Taxation and the Codltca-
ton of Insurance Laws-J. G. Linehan, New
Hampshire; w. II. Kindu, New Hampshire
j. F. G., Talbot. Maryland: j. III. Henderson,
Colorado; W. s. Smith. Minnesota.
There were no arguments, it should be
recited. offered upon Mr.. -HarVey's
paper. and the author noting that no
one wished to express an opinion, asked
permission to state that during his
twenty two years. experience in the in
Surance department III the state of Min
nesota, he had never heard an inSur-
ance man complain against the
Excessive Charge
of the 50 per cent reserve that the state
makes against the company, except In
such casessas a suspicion was aroused
in his own mind that the reserve was,
not enough. The company that means
to do right is willing to have it even
more. He felt. however, that from 4S
to 50 per cent for loss reserve was
ample; but the company that cuts 1t is.
the company that is going to suffer in
consequence. -
The committee on legislation report
ed that it did not deem it eXpedient to
make any recommended ion in favor of
any uniform legislation in relation to
the non-fOrfeiture of life insurance pol
icies, and it was recommend
ed that, in lieu thereof, the
suggestion of Actuary Harvey, of
Missouri. be adopted, to the effect that
in states which have non-foTfeiture'prO-
visions of law these shall be binding
upon all policies insured withiHisuch
states, unless and until the cOmpailie S
OF other states, through laws or pro-
visions in their own contracts, shall at
tach to their policies D0n-fOrfeiture pro-
visions, operative without any action on
the part of the insured, and which, in
the length of term and other conditions,
shall be of satisfactory character. The
report was accepted and the committee
continued.
The committee on rates of mortality
and interest submitted lengthy report
in pamphlet form. 1t showed a tendency
to reduce the rates on the part of the
companies to a minimum of 315 per
cent, and the statements of many of
the leading companies Of the cOuntr y
were incorporated in the report. The y
indicate a general desire for gradual
reduction of rates. The report was re-
ferred to the committee on legislation.
Chicago Next.
The committee on place of meeting
and officers for the ensuing year re-
ported the nominations of John G. Line
han for president, G. Fl. Smith for vice
president, and j. J. BrinkerhOff for sec
retary, and Chicago as the place for
holding the convention of 1893.
Now the fun began. 1t is true all the
members favored Chicago, but the
one city was without precedent, and
Mai. Merrill saw an opportunity to dis
tress the committee. He moved to
adopt the section of the report recon-
mending a list of officers. and that the
secretary be instructed to cast the bal
lot of the convention for the gentlemen
named. This being done, he de-
Iivered an eloquent speech of CEN
sure upon the committee for departing
from time-hOnOred custom of present
ing several available and desirable
cities and then let the convention make
choice by ballot. He felt that 1T will be
disastrous to go to Chicago during the
exposition. for the commissioners will
all be out for fun and to take in the
sights. The result would be that there
would be no quorum and no business
transacted. Mr.. Harvey followed hu-
morously, and the committee was sorely
troubled. 1t had been thoroughly un-
understood that Chicago was the
unanimous choice, and they couldn't
see the joke that was being perpetrated
Mr.. Merrill nominated Atlanta, and
Mr.. Harvey asserted his opinion that
Chicago will have all it can do to care
for the exposition, and he nomi mated
Portland, Me. In rapid succession,
Portland, Or: Des Moines, Bismarck,
New Orleans, Milwaukee and Kalama-
700 were nominated. A ballot was