The Indianapolis journal., 1892-02-16

that the profis they might make was the
| loss OF other men and of their families and
| that in order to get chance at it they had
| to risk their own money and the protection
| of their own familiea The reckoning day
| was tar of, and agents were tempted by
tremendous commissions and by contracts
| that allow ed of advances" and ''commu-
| tations." by mortgaging the company's
margins of premiums for many years
ahead. Business increased in the most
brilliant manner: such increase became the
| ono criterion of success. 1t was hard for
PLAIN conservatives to make head against
the swift rush. The glitter of big figures
and the rebates quite overbore such sober
facts as the multiplication table and the
moral law.
But in order to get lapses and forfeItures
enough they had t. force the speed. and to
force the speed they have had to burn their
OWE cargo. They competed with each other
for business by increasing rebates. and
| they competed for each others agents by
increasing commissions and bonuses, and
this sort of thing has gone on until IL swal-
lows mp practically all of the first premiums,
( leaving nothing to cover the cost of insur-
ance; the forfeitures to the tonJiDe or in
vestment fund are drawn on to pay death
losses and provide reserves in place
OF the premiums swallowed up in
competition; the settlements of ton
| tine profits now being made are
less than one-half what they were estimated
at. and they are decreasing nearly every
year; and yet they are advertised as re-
4 aulf lfa ff,cta 1x1 <o
in betting their own money and their faUs-
lies protection to get q chance at the
| mInishing pool. Great as are the figures
of surplus advertised by these companies.
they are less than half what they were ex-
pected to be. The 1892 settlements are at
notable reduction from those of 1891, in
certain companies at least. But hundreds
of thousands of policies have contributed
their earned surplus and reserves, which
ought to have gone to protect families, to
pay the growing expenses and the dwind-
ling settlements.
The more their business grows the more
their expenses must grow. and the greater
| must be the mortgage on the future by
way Of advances" ETC.. to come out Of
! policy-holders. The managers of the great
racers recognize this; and while in one
| breath they glorify themselves over their
great volume of business, in the next they
accuse each of compelling the other to raise
the commissions to keep agents from being
stolen. to enable them still to steal agents.
and to keep up the rebates. Each confesses
the absolute necessity of REFORM the last
phase of which is the proposition to ask the
LEGISLATURE of New York to interfere and
forbid any of them to go beyond a fixed
limit of amount at risk. so that no one can
get ahead of the others.
What more startling suggestion can be
made of the tremendous strain which they
find themselves under, and of their own
conscious inability to reformf It reminds
one of the debauchee who asks to be put
under restraint until he can recover sobri-
ETY. and self-control
So the world learns again by Glow and
painful experience that the dull. plain
truth is true and alone is abiding; and that
the only thing in insurance worth paying
for, and the only thing worth trying to get
| out of ii, Is insurance and nothing more.
CONDITION OF THE COMPANY.
The real strength of the company Is not
fully stated in the figures of it's assets and
surplus, large as these are and certainly
worth as they are their full face. On the
one hand our assets are conservatlvely
valued; on the ether our liabilities are COM
puted by far stricter standard and at q
much larger relative amonnt than is the
case in any other company. Our reserve
liability on all business written since April.
1852. is computed on the assumption that
we will earn only per cent interest. in
stead Of per cent, as IS assumed by all
other companies and by the several State
insurance departments. We carry as q
liability, therefore, in reserve for the
future protection of our contracts. some
100000 more than any other company
w0nld do on their present basis, and more
than the law requires; and this difference
in our strength increases rapidly each year.
When 1t is remembered that many of the
contracts we make to-day Will not mature
for fifty, sixty, or even seventy years. hence
the Importance of basing them a rate of
interest that Is certain to be earned all that
time cannot he Overestimated. Nor can
the forecast of tho chances of adverse
change be made too early. It is q cease
less satisfaction to us that this buttress
was so early added to our structure, and is
already carrying so much of it's bulk. We
can look forward to the future without
anxiety.
SUMMARY.
In the fOrty-six years of it's existence
the Connecticut Mutual has
Received for prenums- 81 6s, ,763. 763. 80
Received for interest and rents. 67,739, ,6O9.54
Received for balance profit and
loss. -----..--..-.---..-.-.-.... 1,04s, 1906
Total receipts. $237, SOL 1903. So
It has
Paid out for death leases and en-
dowments s.---.....--..-..-..-.S SS1, $50. .69l. .l2
Paid out for dividends. 497O3, $40 O6
Paid out for surrendered policies 2O,566, l2S. 81
Total paid policy-hoders- 81 81, $50, ,76l s2
Expenses. es.-.-.--.--...----. 20,345, ,556.34
Taxes. -----.----..-.....---...-.. 7,347 500. .46
Total disbursements. .$179, ,344 ,OOS 64
Balance net assets Jan. 1, 1892 $5S, ,2O7, ,794 SO
| We ask attention to several notable