Lyon County times. [volume] (Silver City, Nev.) 1874-1907, 1897-10-09
A PITHY ANALYSIS.

The A. 0. U. w. Bulletin of San
Francisco contains the following
analysis of the insurance question
1t Is quite leugthly, and we publish
only about half of the article this
week; the balance will appear next
week:
Western men, especially about
Colorado, and the sunsetward to the
Pacific oceon, are very apt not to be
content with the metal which may
show on the outside of a chunk of
ore, or estimate it's worth per ton by
the surface display. They generally
run it through the quartz MILL and
then analyze and pro rata results.
The rule is not inappropriate when
Judging of other matters. 1t always
pays to look at propositions, state
ments, assertions, etc., inpartially
before deciding, and this is just
what a level-headed correspondent of
the Pacific Woodn1d1t has recently
done, and in said journal gives the
result of his 'panning cut
Among other pithy remarks he
says:
1 carry fraternal insurance and
consequently everything in the in
surance line interests me.
A short time ago a circular of the
Mutual Life of New York was hand
ed me, telling how, under policy No.
28I,I71, it carried $4,000 insurance for
Rev. Sam Jones ten years for actual
cost of $1,000 insurance for each year
-SI.8e. The right kind of cheap in
surance.
Now, as the fraternals have charg-
ed me much more than that for the
last seven years, my first impression
was, that does settle it. Level pre-
MUM life is the best after all. The
fraternals are nothing but bunco in
stitutions, and have worked their
game on me to perfection. set
about an analysis of system of in
surance that could carry $1,000 for
SI.So per year. The circular set forth
that Rev. Sam Jones was 80 years
old at the issue of policy and paid
S2o5 annual premium. Then follows
the cash statement:
Total premium paid
in ten years. $3.50. S2,o5o 90
Reserve at matu'tyS2,oo3 IS
Dividend accumula-
tions. 762 80
Total cash value. ASS 65
Actual cost of $4,000
ins'nce for 10 yrs. "a IS
The Mutual Life say they did it,
and not only say 80, but give the fig
ures to prove it.
For the purpose of a study of facts
l assume that they did, but my at
tention at once fell on the important
item of reserve at maturity, $2,o93.-
35,' trifle over 10 per cent of Rev.
j IOldA pay AAASAANS' ~
may be assumed that the company
did not forget in any year the ex-
pense element. The mortality ele-
1nent had to be met or shut up shop,
and from the report of the fair sum
Of 'S762. 80 dividend accu1nulations,
proper attention seems to have been
given to that element.
Sworn statements of this company
for 1895 and previous years, and an
examination of these, shows such an
average for these items of expendi-
ture that l deduce the following
That level premium, or old-line life
company, requires of their premium
income 81 per cent for mortality, 26
per cent for actual expense, and can
at best have only 43 per cent tor re-
serve, leaving out the important item
of dividends.
In 1895, which year take as the
last sworn report of the company at
hand, the Mutual Life had pre-
MUM income of $3S s24,S67, total
income of $4s,5o7,43I, death losses
S12,5o51I3 paid for actual expenses
SqS96, 1888, and paid dividends to pol
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