The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-13

stricted our business to our own country. and
to such portions Of it as involve no extraordi-
nary climatic hazards, and where sanitary
measures are reasonably regarded.
NEW BUSINESS
We have made fair gain in new business
over that written in 1884, and at no loss to pres.
ent members.
A gratifying feature of our business is its per
sistence, in which respect it is probably unri-
vailed Our members have taken their policies
for protection and not for speculation; that pro-
lection Is made as secure as human care and in
dustry can make it; it is treated in absolute
equity; it Is given at a less average cost than
in any other company. Our loss of business by
lapse and surrender is therefore extremely
small
The amount at risk Jan. /, 1s9S was s157737,-
SO2, gain from the previous year of 81, 694,-
247
EXPENSE ACCOUNT.
The usual careful regard for strict economy
has been had during the past year, and the
ratio Of expense of management to income was
only 10. IL per cent, ratio materially less than
that of any other company.
This is the most comfortable item in the cost
Of insurance. 1t is the one which is generally
the most ignored.
In every other known branch Of business
competition has always. tended to lower cost of
production by more and more economical pro-
cesses and methods. In life insurance the re-
verse has been true. For the last twenty years
competition has been directed, not to giving
cheaper and safer insurance and securing
greater equity among members, but solely
to writing the largest possible amount Of
new business at the highest rates of premium
possible, and to the most rapid accumulation
Of assets and the display of the greatest
financial exhibits. This has required an
enormous increase in the expense ac-
count. In this race many have doubled their
ratio Of expenses to income; all of the racers
have increased it very largely; that OF many
companies is from two to three times
the ratio of this company. And they
try to conceal its effect on the cost
Of insurance by schemes of business which
postpone all dividends for a long period
Of years, in the hope that so many will incur
forfeitures during that period that their losses
will make attractive dividends at the end for
those who live and pay through.
But the competition grows always fiercer, and
the expense ratio grows always larger and swal-
lows more and more of the income and leaves
less and less to be forfeited and their dividends
of forfeitures are steadily shrinking and new
plans are constantly devised TO furnish some
new veil for the facts, and to attract still more
new business to furnish new forfeitures
Against such competition it is impossible for
us to accomplish those greater economies which
would be possible under a normal and legiti-
mate competition. And we are glad that by
sheer resistance and the greatest diligence and
care we can hold steadily to our usual standard,
md Of oplr A. a
our members insurance. but even somewhat
further reduce it. Their interests have not been
sacrificed for the sake of greater display.
And we desire again to say to our members
that we are able to accomplish what we have
for them, and at the same time make q fair
growth, because we are able to secure, If a COM
parativoly small, at least faithful body of
agents; men who realize what life insurance at
its best is and ought to be, and who prefer to
help work out that ideal at far less remunera-
ton than they could easily obtain for present.
ing the speculative schemes that now secure the
great bulk of the business. They are making
a daily pecuniary sacrifice to conviction.
LIMITING BUSINESS.
The rapid growth OF certain companies to
enormous proportions, with the attendant
great and growing increase OF cost, and the
difficulties and possible dangers of public
nature necessarily incident TO such great accu-
mutations of money, have attracted attention
on the part of State officials everywhere and a
committee of State Insurance Superintendent
is now considering the practicability of devising
some legislation to put check or a limit to
course of business which managers find them
selves unable or unwilling TO apply, because
they can even approximately accomplish their
expected results only by an always increasing
amount of new business to furnish new for
FIXTURES. The speculative results they seek bind
them to the only methods by which they can be
even partially gained
CONDITION OF TIE COMPANY.
The assets Jan. /, 1885, are $50, 761, $40 80, q
gain over the previous year of 81, 023, O69 "a.
They are undoubtedly worth more than they
stand for
The surplus is Sc, 426 1929 IS, a gain of $685.
IA or over the previous year.
But by no means is all Of the company's ST.
perIor strength revealed by these figures salts
factory as they are. In ascertaining its liabili-
ties for the future, it has charged itself with
$500, 900 more of reserve than is carried on the
same business by any other company. On the
same basis Of reserve as IS used by other COM
panies its surplus is over S7300.000.
Our premiums and reserves must be calcu-
lated on the assumption that they will earn
some definite rate OF interest during the whole
term of our contracts. Originally we assumed
that rate to be per cent. These contracts are
liable to run, many Of them, from fifty to sew
enty years. In 1882 in view Of the progressive
decline in the rats of Interest in perfectly safe
investments and of the wonderfully pro-
gressive increase in capital seeking in
vestment we did not regard it prudent
longer to assume to surely earn 4 per
cent for so long a period, and changed the
assumed rate to 3 per cent. for all business
written since that time. Thus as our old per
cent. business passes Off and the new per
cent. business takes its place we are gaining
each year a strength with which to meet the
future that the figures of our financial state
ments cannot disclose, and which no other COM
many possesses, or has as yet set out TO ac-
quire.
Wereit necessary las it is uot) for US to change
our whole per cent. business to per cent
basis. we could do so and still have a surplus Of
about S2,5OO 900, and without interfering with
our dividend-paying ability
Should the Postponed Dividend" or Tontine
Companies do the like, as 1t has been intimated
they might do, it would wipe out the Postponed
Dividends altogether, and very few Of them
have surplus enough to make the change even
on those terms.
SUMMARY.
In the Sortv.seven years OF its existence the