The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-08-10
POLICIES AND GOLD
Denver Agents Reply TO a Circular by
Asking Few Questions.
Wall OF THE NEW YORK LIFE
II the eimetallio Standard Be
Adopted his Company Is
Shown How It Would or Could
Profit by the system
WALL OF THE NEW YORK LIFE

Denver, Aug. oh, p, Martin, l.. G.
Lantbenhlser, A. G. Sherman. c. p.
Chandler, III. X. Preston, S. II Craw-
ford. Samuel Schany and J. A. Stafford,
agents Tor the New York Life Insur-
ance company. addressed the following
letter TO John A. Mccall, president Of
the company; Dear Sir: The cnicIal
agency bulletin OF the company, under
date Of July %. 1886. In large, red l%t-
tiers, says. Talk policy, no, politics.
This Is indeed excellent advice and
could be well applied by some people
other than agents. We hlvs assldu-
ously talked policy. not politics, until
a few days ago, but since the circula-
tion OF your letter # political advice
to policy holders, we lind our vocation
gone and are forced now to Lalk poll
tics. not policy. What Is right IN the
president of the company canna. be
wrong in its representatives, SO FAR as
the company's interests are concerned,
and il Is our excuse for addressing you
this semi-political letter.
AS policy holders in, and agents and
advocates for. the old reliable New
York Life Insurance company. we are,
of course, deeply interested in every
thing that pertains to its success, and
We would not willingly vote at the COM
ing election in such manner as would
unfavorably affect the company with
which we are associated, and write to
ask for Information and answers to the
following questions, that we may be
able to cast intelligent ballots ourselves
and possibly influence few others to
"A a tikaxx-tgA In ,ircttla, Iatt ~,
policy holders, with copies OF which we
were not favored and therefore. as poll
icy holders We felt sighted, you refer
to the nine billions and over of insur-
ance in force. which must be paid some
day. and you ask In what II shall be
paid. 100-cent dollars or 53-cent dollars?
The sum Is most too large to handle
conveniently, SO We take the New York
Life's share OF this. which. on Jan. I.
1896, was $799, 9,o27 900. To represent this
outstanding insurance account, the
company has a fund of STA. .791, 800 "a,
of which s2i.03S.677.S9 Is surplus or
profits. the balance. $3.50. .753. .31265 with
the exception of few items), in policy
reserve, assume II all to be reserve
That amount. with compound interest
at per cent on the basis Of mortality
table accepted by the company. will
be exactly adequate to pay to the pol
Icy holders at death or maturity, dol
lar for dollar. the amount of his policy
and leave the surplus. s24. .0SS, ,677. SO, alb
solutely untouched, even II the COM
pany had ceased to do any business
since Jan. !, 1896.
"The question naturally arises, in
what class of securities Is this sum in
vested? Is II not all, or very nearly
n in in t-hA
stocks and first mortgages, with a COM
paratvely small amount in real estate
absolutely owned by the company?
Now. what proportion Of the outstand-
ing insurance does the company spe-
cifically agree to pay in gold? For
every such contract issued by the COM
pany Goes II not stipulate that prem
iums must also be paid in gold? II so,
this small percentage of the business
will have no effect whatever. for the
company could just as easily
agree to pay certain weight
In diamonds for proportionate
premium and interest in diamonds The
gold policies tof which but one for
$4,000 has been written by this agency
force during our several years connec-
tion with the company and that one
for an Englishman). will certainly take
care Of themselves. The vast majority
OF the business, however. Is payable in
dollars-just plain. everyday dollars.
The policy holders pay the company in
dollars. the company pays them In dol
lars If the dollars received by the COM
pany have been converted into gold or
10o-cent dollars. and the company pays
policy holders in so-called 53-cent dol
lars. cannot the company well afford
In pay rolicy holders almost twice as
much as their policies call for? The
company will certainly make profit of
AZ cents on every dollar, and what is
! TO become Of this profit OF a cents on
every dollar. and what Is to become of
this profit? II must go into the sur
! plus. and being purely mutual COM
pany,. this surplus belongs to the policy
holders and to them only. and will they
not get the additional ~ cents. either
in increased dividends or In additional
paid-up insurance? The same principle
applies to the surplus. as Of Jan. l,
1896. of s24,0s3,6 ,677ss This amount is
also invested in gold interest bearing
securities, which. when converted into
so-called 53-cent dollars, will give the
company almost twice the surplus IL
holds. and accordingly make It almost
twice as strong as II Is now. instead of
making 1t insolvent. as some able fin
/ anciers would have us believe.
You may answer these questions by
stating the company will not. on ac-
count of the scarcity OF gold. be able
! 10 collect In gold on It's securities. II
these securities are not paid In gold. as
agreed, viii the company not foreclose
, on the properties on which the securi-
ties are based and get possession Of
7 them for the average loan value of
/ say 90 per cent OF a i00-cent dollar of
gold basis. and then dispose Of these
properties at their full value as a basis
! on a 53-cent dollar. which will give the
| country a profit OF. say 100 per cent OF
| their value on a 100-cent dollar basis
and an additional profit Of i7 cents on
the 53-cent valuation? or. In other
words, the company. to illustrate, on
the valuation OF $1,000 lends $500 inter
est and principal payable In gold. The
mortga gor cannot pay In gold. The
| company comes into possession of the
1 81 900 piece Of property for $500 Here
/ Is a profit Of $500 or 100 per cent. II
then sells the property on a so-called
/ 53-cent dollar basis. the value OF which
/ has been enhanced 10 nearly $1,000
which the company receives. thereby
/ converting IN ir original $500 gold loan
| into about S2.UO1, so-c1lled Scent dol
lars, which ITS policy holders viii be
willing to accept. as their policies call