The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-02-08
STATEMENT.
NEW YORK LIFE INSURANCE cOAFs
PANY.
A Great Business Fully Set Forth.

The fifty-third annual statement of the
New York Life Insurance Company, print
ed on the eighth page of this paper, is a
statement of unusual interest. 1t sets fortn
a business of vast magnitude and inn
portance with unusual detail and gives tho
intending insurer just what he should wish
to know concerning life company which
seeks his patronage. Much has been said
OF late about the pressure for new business
and of its effect in increasing the expense
rate, but the New York Life announces
that it did about $14,OO0OOO more new busi-
ness than In 1886 and its outstanding risks
now exceed $S7500O,00O. Nearly 100000
were paid TO policy holders in 1897 and the
company added to its accumulated funds
enough to carry them beyond the $20O, 00O,-
900 mark. The conpany's report answers q
question which is doubtless often asked,
viz; In what securities are the funds OF
the great life insurance companies invest-
ed? The company's statement shows the
list in detail. even to the rate per cent.
and time of maturity in the case of all
bonds owned. The most significant poinu
in the report is the funds reserved for the
security and future payment of outstand-
ing contracts are now sufficient for these
requirements even though only per cent.
interest should hereafter be received. All
interest earned in excess of 3 per cent.
will go to the surplus fund, from which
dividends will be paid. The rate of interest
assumed in computing the reserve fund OF
life companies was first established by law
in the State of New York in 1866 at per
cent. In 1865 the rate was fixed at Az per
cent. In 1884 the law was changed, to take
effect on Dec. 81, 1887, the new rate being
vad OF A Vnrl 60
now sets aside over $l6,O00,OO0 more than
the laws of any State require. The decline
in the actual rate of interest received has
been about per cent. during the past TWEEN
ty years, so that per cent. rate is now
no more conservative than a per cent.
rate was twenty years ago. The nature
of life insurance requires that above all
else it should be safe. BY keeping on hand
reserved funds that will be sufficient If only
3 per cent. is earned the New York Life
will command the confidence OF conserva-
tive investors, and will be prepared for any
further depreciation in the interest rate
that may take place during the next quar-
ter of a century. This means Increased
security to policy holders, and the fact that
it is to be done without increasing premium
rates shows determination to conduct the
business economically.
No corporations in the country except
the largest railroads even approach the
great life companies in the magnitude of
their operations and none are more closely
connected with the well-being of the peo-
pie. Life insurance is the best form of
socialism extant-a system which provides
for the needs of all through the love of
each for his own When Mr.. Mccall be-
came president of the New York Life in
1892 he announced that he believed in, a
frequent and full accounting to policy hold
ers. and each succeeding report shows how
well he keeps his word. His administra-
ton has been marked by great energy in
securing new business, by the issue of an
unrestricted policy combining unusual
privileges to the insured and by the ut
most frankness in the publicity of details