New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-02-11


expense Of management TO income for the Scaf was US
per cent; ratio materially les than mat oil any o''''
company. .,,,. o
II quito tho fashion for rivals 70 exhibit expense
ratios based on the amount at risk OF Oh 'nc dnou u
new business written or some OF figures othcf tah inc
income. But expenses do not come out Oh u' "o"" q"
risk nor out the business, nor OUT Il Nn's ,o
In the world than the income a. long as u'I Is 'is'
enough for expenses and other tIhhss' i'"'"s "' W.
come the assets.
1t Is 70 be regretted the most pushing companies no
longer publish, except In the reports 10 ihsuran' ~
ncns such statements OF their anairs as sho" inc ~ "
income and expenditure, and as woud ehao' 'ne pu'
Judge cost which they are tranSachs
COMMISSIONS.
Tn h i,,ht NJ tho revelations now being made TO the
nulIc Of practccs existing certain great companies
seems proper inform our members that tho conihon
maid by this company for business are slrctN "a""
at tho conservative standard OF former years that our CON
with agents do not give them "ure cop'oI wv
these commissions when agency ceases the renuhea
ton the agent and such commissions as oro ~
Axcd upon the existing business OF that agency 80 70 e
new agent assist him In his work we DO not au !" '
cost OF paying mon work for us by paying aso
men who have worked u.s. after they get through; We
do submit pay enormous commissions on ne" ou'
agent who has got through "orhi"s
continue receiving commissions old business we nave
for future commissions against "h0" 'N
yanccs" or ''oans" or commutcd commissions can DC
made charged up u the agent TO make reDa'c' ou'
o. or pay absurd commissions ana brokeages out OIL on
business which Will presently DC '"' "''
liberal company by competitive measures ea"he
old mcmbcrs TO pay for tho ambitious exploit Tho re-
of this company not morSased to any
IL true that In these days OF fierce enterprise uu
competition 1t has not been easy for us TO secure "s
against the tremendous temptations held one ny '"c
"Raccrs" But have been and are slowly getting men
believe. with that success In lno insurance means
and only giving pure and absolute proecuoh W
families It's lowest possible cost; ana thas co"pV'Ic
methods worthy Of lottery scheme poor CREDENTIALS
To- commit 10 10 tho most
OF secular trusts.
50 the agents we have and get true men, and the
business they &c: stays, and pays
SUCCESS.
Insurance indemnity against loss. 1t is and can be
made nothing else. To give perfect indemnity al inc
lowest true cost Is perfect not brilliant success
nor one gratifying to ambitious manager perhaps but
IS the only there Is in the matter and awning
else that Is substituted for IT, however brilliantly IL may
for time being and until II has "ohn ie''
out, Will ultimately come 10 naught
This fact is slowly coming tho light In the case oil
the great
ToNTINE COMPANIES
In order 10 BOOM their business they ceased to t'aeh
men the sacred duty OF protecting their families Nv c
insurance and beeaR instead TO show them estimates OIL
rho nroat that might be- made the forfeiture OF pro-
lection Their experience had shown that, In heF CON
panes out OF thousand men Of middle age TAXING pn''
only about oneh.rd would pay premiums to say, '".ny
wears. about one hundred Of them would die but heany
s,x hundred Of S,m would lapsc-gve UP paying 30
they proposed should have any dNu'nu I''
say twenty years. but pay his premiums IN lu @'' AZ,
one died he should get the face Of his policy leaving Dchuu
all tho dividends his policy had earned and II any man
,anoc conidn.t ,ov-hc should forfeit all he had paid
both the dividends earned and the reserves on hs pey
at the end Of the twenty years those who had been ucV
enough to live and pay through should di'd' up "''
tho unlucky ones had Left
,r,, 49,. .o,.a ..Tontlue Insurance. this or mOfnca
,,on 81 f. A TO the amount orfca. Is now usually called
'Investmn Insurance"
Il took nightly. The estimated pronts We're very
argc and people did not rayc and I"ha, some Of h"n
d , csr mat IN. pront t"y might make the loss
O, other men their amiics and mat IN oref 70 t'
chance at Il they had TO risk their own money anu Wv
nrotec.lon Of their families The reckoning way "'
fr or and agents were tempted by tremendous commissions
and Lv contracts that allowed OF advances anu 'o"
mutation" by mort raging the compnnys margins o PIE
mlums FOR many years ahead. Business increased !" '
most brilliant such Increase became 'ne "0 "
tou OF success, hard for plain CONSERVATIVES 20
-. he,s AGAINST the .wif. rush. The glitter Of big
cur. and the rebates quite oyebor such sober iHets
tho multiplication table and the moral law
pm, In order 10 get lapse. and foTfeitures enough hey
,a, n force the speed force ns speed they have
-. :, ~, ,hel, own cargo They competed with each
,hr for business by Increasing relates and they com
ueted for Zach others agents by Increasing COMMISSIONS
and bonuses end this sort OF thing ha> eone on uhA.
.vallow. NJ practically all OF the hfst prnun' 'o"nH
o,hne 10 cover tho OF Insurance.; the fonei'urs 70
the Tonrne or fund are drawn Oh to I"y d"h
losses and provide reserves In place OF mo pe'n''n'
M cOmDeffOn. the -eN4eHl'HNS u i""N''
,ront. now being made less than onehsh "hat "'9
WOW, estimated At and decreasing nearly every
year. and yet they advertised ~ results suHV''""'
tempting 10 warrant in betting their o"" money anu
their families protection % get chance at u'e ui'"'
inc ,,ol or,at a. the figures 81 surplus auNeruu
- ,ho.a c,utuni... they less than half what uey
were expected to The 1892 settlements are al not
abe reduction from those ~ 1891 In ceitan conp" a.
least But hundreds II Thousands Of policies have con-
t,ut.d their earned surplus and reserves which ought
10 have gone protect families. 10 Iay u'' growing IN
penses and the dwindling setuemcnt
The more their business grows the more u"Hr eNf''h'~
must grow and the greater must be the m''Tal' on
the future bv q ''adNanc"~' &c. L" come on1 Vi
o,,cv holders The managers OF tho great racers fccog'
nlle this and while brcah they gloify themselves
over their great oi business, In the neat they ac
cuse each q compelling tho other to raise the com
nss,s 70 keep agents from being stolen to enable them
sam 70 steal agents and TO keep up tho rebates. Each
confes,es the absolute necessity q reform ce last phase
Of which b, proposition 70 ask the Legislature OF Ne"
YORK " interfere and forid any N them to 70 beyond
nxcd limit Of amour; risk that no one can get ahead
Of tho Others.
What moro startling suggestion can bc made OF the
tremendous stra which they find themselves under and
81 their own inability 10 rformi 1t reminds
ono Of the dcbauchee who asks 70 be- put under restraint
until ba can recover GObrle,y and self-control
so the world again by slow and painful expert
ence that dull. plain truth Is true ana alone Is and
ing and that the only thing In insurance worth paying
for the only thing worth trying 10 get out OF H. IL
insurance and nothing more.
CONDITION OF THE COMPANY.
The ,c, strength Of the company fully stated
in the figures Of its assets and surplus, large these
are and certainly worth they are their full face on
tho one hand our conseryat,cy valued on the
other our liabilities computed by far seter STANDARD
and much larger relative amount than Is the case In
.ov other conpany reserve liability oil business
written since April. 1882 is computed on the Assumption
that we will only per cent interest instead Of per
cent a. assumed by all other companies and by the sew
era state Insurance Departments. We carry As liza
bty therefore for the future protection OF our
contncts some 5000 900 than any other company
would on their present basis and more than the law
requires and this difference in our strength increases
rapidly year. When IL Is remembered that many
Of contracts make to-day will not mature for hy
sAty or even seventy years hence the Importance
basng OF interest that IS certain TO be earned
oil that time cannot be ovcestimated Nor tho fore
tbs chances Of adverse change be made too early
ceaseess satisfaction 10 us that this buttress
anl