The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-08-10
SLY POLICY HOLDERS.
Who Felt Themselves Sighted
by President Mccall
ATTEMPT TO ANSWER HIM.
And Show That the Adoption OF Free
silver Policy WIN Add TO Life
Insurance Revenues.

Denver. Aug. s-H. P. Martin, Z G.
LantEenhts@r, A. c. Sherman. c. =. Chand-
Ter, II. * Preston. s. r Crawford. Samuel
Schany. J. A Stafford. agents for the
New York Life Insurance Company, have
addressed the following letter 10 John A.
Mccall. president Of the company:
Dear Sir: The official agency bulletin
OF the company. under dats Of July 3.
1856. IN large red letters says. Talk policy.
not politics. This Is indeed excellent adj
vice. and could be well applied by some
people other than agents We have as
sieuously talked policies, not politics.
until q few DAYS ago. but since the circu-
lation or your letter OF political advice 70
policy holders. we find our vocation gone
and are forced now 20 talk politics. not
policy. What II right in the president Of
the company cannot be wrong IN It's repre-
sentatfves. so as the company's Interests
are concerned and this Is our excuse for
addressing you this semi-positlcal letter.
LAS policy holders in. and agents and
advocates or. the Old reliable New York
Life Insurance Company, We are, OF course.
deeply interested in everything that per-
tains 70 its success, and We would not
willingly vote at the coming election in
such A manner as would unfavorahly affect
the company with which we are asso-
ciated. and we write 10 ask for informa-
ton and answers TO the following Ques-
tons, that we may be able TO cast intel
ligent ballots ourselves and possibly in
huence a few others to do likewise:
in your circular letter TO policy hold
ers, with copies OF which we are not
favored. and therefore. as policy holders.
We feel sighted. you refer to the nine
billions and over of insurance in force.
which must be paid some day, ana you
ask in what IL shall be paid One hundred
cent dollars or 5S-cent dollars? The sum
is most too large 10 handle conveniently.
so We take the New York LIES share OF
this, which on January 1. 1896. was $780,
OF. GO. To represent this outstanding in
surance account the company has a fund
OF sl74. 79l. 990.54. Of which S24,0SS.e fa.Ss Is
surplus or profits, and the balance, Sl5o.-
753 50, is policy reserve, assume IL all
10 be reserve. That amount, with COM
pound interest al per cent. on the basis
OF mortality tables accepted by the COM
pany. will be exactly adequate to pay 10
the policy holder at death or oaturity
dollar for dollar the amount of his policy,
and leave the surplus. S2i.oaS. 6H.ss. abso-
lutely untouched, even II the company
had ceased 10 do any business since Janu-
airy 1. 1926.
THE question naturally arising is. in
what class OF securities Is this sum In
vested? Is It not all. or very nearly all,
Understanding gold bonds. stocks and
first mortgages. with a comparatively
small amount In real estate, absolutely
owned by the company We take IL for
granted 1t is. Now, what proportion OF
the outstanding insurance does the COM
pany specifically agree 10 pay in goldg
For every such contract issued by the
company does II not sti7ulate that pre-
miums must also be paid in goldf II so,
this small percentage OF the business VIII
have no effect whatever, for the company
could just as easily agree TO pay GER
tain weight IN diamonds. for proper
tomato premium and interest In diamonds.
The gold policies tof which but one for
$4,000 has been written by this agency
force during several years connection with
the company. and that one for an English
mani viii certainly take care OF them
selves.
THE vast majority Of the business. how
ever. is payable In dollars-just plain, or
binary, every day dollars. The policy
holders pay the company In dollars-the
conpany pays them in dollars. X the
dollars received by the company have been
into gold or ioo-cent dollars,
and the company pays IT'S policy holders
in so-caIIed Scent dollars. cannot the
company well afford to pay policy holders
almost twice as much as their policies
cali for7 The company will certainly make
a profit OF n cents on every 81, and what
is 10 become Of this profit? II must 80
into the surplus. Being a purely mutual
company, this surplus belongs 10 the
policy holders and to them only, and VIII
they not get the additional a. cents. either
IN Increased dividends or In additional
paid up policies?
'"rhe same principle applies 20 the sur
plus on January /. 1856. Of s2Aos.s SIS.
This amount is also invested In gold In
terest securities, which when converted
into so-calied 5S-cent dollars, Will give the
company almost twiee the surplus II holds
and accordingly make II almost twice as
strong as II is nov. instead OF making II
tnso,vent as some able Hnancisrs would
have US believe.
you may answer these questions by
stating the company Will not on account or
the scarcity OF gold. be able TO collect
in gold on its securities. II these securi-
ties are not paid IN gold as agreed. viii
the company not foreciose on the proper
ties on which the securities are b9set. ar1