The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1896-08-20

OO cenG COLLARS! lflS 10 lttOSb bOO lux SS
to handle conveniently, so we take the
New York; Life share of this, which on
january 1, 1896, was S199, O27, O0O To
represent this outstanding insurance ac-
count the company has n fund of STA
701, 800. 81, of which S24, OBS, 677. 80 is sur
plus or profits and the balance, $780,
753,312.65 with the exception of few
items) is policy reserve; assume 1T all to
be- reserve. That amount, with COM
pound interest Mt per cent on the basis
of mortality tables accepted by the COM
pany, will be exactly adequate to pay to
the policy holder at death or maturity,
dollar for dollar, the amount of his pol
icy, and leave the surplus of S24, OBS, ST.,
SO, absolutely untouched, even If the
company had ceased to do any business
since January l, 1896.
A PERTINENT QUESTION.
The question naturally rising is, in
what class of securities is this sum in
vested? Is it not all, or very nearly all,
in interest bearing gold bonds, sticks and
first mortgages, with comparatively
small amount of real estate absolutely
owned by the company? We take it for
granted it is. Now, what proportion of
the outstanding insurance does the COM
pany specifically agree to pay in gold?
For every such contract issued by the
miums must also he paid in gold? If 40,
this small percentage of the business will
have no effect whatever, for the COM
pany could just rs easily agree to pay n
certain weight i'll diamonds for a proper
tionate premium and interest in dia-
monds. The gold policies (of which but
one for so, 600 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 ma
joiity of the business, however, is paya-
BILE in dollars-just plain, ordinary, every
day dollars. The policy holders pay the
company in dollars-the company pays
them in dollars. If the dollars received
by the company have been converted into
gold or 100 cent dollars, and the company
pays its policy holders in so-called 53-
cent dollars, can not the company we'll
afford to pay policy holders almost twice
as much rs their policies call for? The
company will certainly make profit of
A cents on every dollar, and what is to
become of this profit? 1t must 90 into
the surplus Being purely mutual
company, this surplus belongs to the pol
icy holders, and to them only, and will
they not get the additional A cents,
either in increased dividends or in addi-
tional paid.up insurance? The same
principle applies to the surplus as of Jan
uary l, 1896, of 24,03S, 677.S9. This
amount is also invested in gold interest
bearing securities, which, when con-
verified into so. called 53-cent dollars, will
give the company almost twice the sur
plus it holds, and accordingly almost
make it twice rs strong as it now is, iu-
stead of making it insolvent, as some
able financiers would have us believe.
THOSE FIFTY. CENT DOLLARS.
You may answer these questions by
stating the company will not, on account
of the scarcity of gold, be able to collect
in gold on its securities. If these securi-
ties are not paid in gold, as agreed will
the company not foreclose on the proper
ties on which the securities are based
and get possession of them for the aver
age loan value of, say 80 per cent of a
lO0-cent dollar or gold basis, and then
dispose of these properties at their full
value on the basis of n J3 cent dollar.
which Will give the company profit of
say 100 per cent of their value of 100
cent dollar basis and an additional profit
of a cents on the 53-cent valuation? Or.
in other words, the company. to illus
trate, on the valuation of 81 600 lends
$500, interest and principal payable in
gold. The mortgager cannot pay in gold.
The company comes into possession of
the 81 900 piece of property for $500, or
100 per cent. 1t then sells the property
on so-called % cent dollar basis, the
value Of which has been enhanced to
nearly 81 600, which the company re-
ceives, thereby converting their original
gold loan into about s., 600 so, called 90
cent dollars, which its policy holders
will be willing to accept, as their policies
call for dollars, and still leave profit of,
Ill ~. =
policy holders.
If the bimetallic standard is adopted
in CHS country, would not the assets of
the company, instead of being $174, 701, :
99O.54, he nearly twice that amount? And
| being legal dollar, would be accepted
| in payment of claims.
If our statements are incorrect we
would esteem it favor if you will kindly
| disabuse our minds of our fallacies. Very
| truly, Samuel Schary, II. p. Martin, l..
G.. Lautzenhiser, j. A. Stafford, II. X.
| Preston, c. p. Chandler, S. r. Craw-
| ford. c. a. Shearman.
u is probable that President Mccall,
| and the other presidents who think they
know all about finances, will be called
| upon To answer any number of similar
| letters within the next few weeks, and as
| far as doing any business in Colorado or
| the West is concerned, they may as well
devote all their time to politics, for there
is no business for them. The insurance
agents in the West are all silver men
| from principle, and have the sincere sym
pathy of the people of the West, but the
| sympathy is not strong enough to aid
them to get any business. The general
agents are wild with Indignation against
| the presidents of their companies and
| privately their feelings are expressed in
language of a very dark blue character