The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-08-12

granted it is, Now what proportion OF
the outstanding insurance does the COM
pany specifically agree to pay in soid
For every such contract issued by the
company, does it not stipulare that pre-
miums must also be paid in gold! IL
so. this small percentage of the business
will have no effect whatever, for the
company could just as easily agree TO
pay a certain weight in diamonds. for
proportionate premium and interest in
diamonds. The gold policies( OF which
but one for $4,000 has been written by
this agency force during our several
years connection 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, ordin-
airy, every day dollars. The policy hold.
ers pay the company in dollars, the COM
pany pays them in dollars. II the doi-
lars received by the company has been
converted into gold or 100-cent dollars.
and the company pays its policy holders
in so-caned 53-cent dollars, cannot the
company we'll afford to pays Its policy
holders almost twice as much as their
policies call for? The company VIII cer~
tainly make profit of AZ cents ON every
dollar, and what is to become Of this
profit. 1t must go into the surplus.
Being a purely mutual company, this
surplus belongs to the policy holders and
to them only, and will they not get the
additional AZ cents, either in Increased
dividends or in additional paid-up in
surance. The same principle applies to
the surplus as of January 1, 1896, Of
s24 ,03S, 677.S9. This amount is also in
vested in gold interest bearing securities
which, when converted into so-called o.
cent dollars, will give the company al
most twice the surplus ii holds, and &C
cordingiy make it twice as strong as 1t
now is instead of making it insolvent,
as some able financierS would nave us
believe.
You may answer these questions by
stating the company will not, on ac-
count of the scarcity of gold. be able TO
collect in gold on its securities III
these securities are not paid in gold as
agreed. viii the company not ioreclose
on the properties on which the securl-
ties are based and get possession or
them for the average loan value OF, say
oper cent OF 100-cent dollars or gold
pa sis, and then dispose OF these proper
ties at their full value on the basis OF
53-cent dollars, which will give the COM
pany profit of, say 100 per cent Of their
value on a 100-cent dollar basis and an
additional profit of Of AZ cents on the
Scent valuation? Or, in other words,
the company, TO illustrate. on the valua-
ton Of $1,000, lends $500, interest and
principle payable in gold. The mortga-
gor cannot pay in gold. The company
comes into possession Of the $1,000 piece
OF property for $500. There is a profit Of
$500, or leo per cent. 1t then sells the
property on a so-called Scent dollar ba-
sis, the value of which has been en-
HANGED to nearly $1,000, which the com
pany receives. thereby converting their
original $500 gold loan into about 5000
so-called 53-cent dollars, which its po-
Icy holders will be willing 10 accept, as
their poicies call for dollars, and sth.
leave profit OF, say $1,000 10 be added
10 the profits OF policy holders.
II the bimtallic standard Is adouted
in this country, would not the assets OF
the company. instead OF being 1I4.1a,-
go. "a. be neary twice that amount
And, being a legal dollar, would be ac-
ceptei in payment OF Gains
If our statements are incorrect we
woull esteem il a favor II You would
kindly disabuse our minds OF our falla-
cies. Yours truly.
l.. G. LAUTZENHIsEN.
SAMUEL SCHARH.
H. p MARTIN.
j. :. STAFFORD.
II h PRESTON.
{. p. CHANDLER.
s. p. CRAWFORD.
c A. SHEARMAN.