The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-12-01
INSURANCE WAR Is on.
Mutual Reserve Company Scores
a Notable Victory.
Decision Of State Insurance Departs
ment I'm Favor of the Mutual Re-
serve-Charxes Made By Its Al
Iesed Calumniators Are Refuted,
One ana AiI-InstiEators of Libel
to he Prosecuted.

NEW YORK, Nov. 3O.--The Mutual Re-
serve Fund Life Association has met with
perfect SUCCESS In Its fight with the So
called old line companies and the company
minded people throughout tho country. 1t
had a great deal to contend against. for
the charges were very broad and had to
e srss st pHnt 0y po s ans and T.
ness In business dealing that the verdict
OF the insurance department was as sweep
Ing in favor Of the company az It was.
1t Is impossible to take up item by item
the charges that were made, and the results
OF the investigation by the state insurance
department, so comprehensive and full It
was. Enough 40 matter OF news to state
that the insurance department declared the
Mutual Reserve to be ip a flourishing con.
dition and declared that the dealings OF
the company through Its officers had been
The source OF the charges made against
the Mutual Reserve was not very difficult
to find. 1t has been openly stated that they
were the work of a band Of conspirators
who numbered In their ranks q number Of
men pressed into service by other insur-
ance companies.
investigation possible, and placed every
thing at the disposal OF the insurance COM
missioner to help the department in the
also placed themselves at the disposal Of
the insurance department and aided in
every way they could to make the exact
stass Of Affairs known In ths way the
precise financial standing Of the associa-
ton. A determination was shown to clear
the name Of the Mutual Reserve from the
foul stain cast upon 1t by the gang Of con-
spirators. The association was satisfied to
let the public know the inside history Of
all its doings from the time Of Its origin
The natural feeling among the policy
holders and friends Of the Mutual Reserve
is now consequently one OF relief that the
the dark clouds that threatened, and that
bright future Is opened before 1t. Con-
gratulatory letters In large numbers have
been be- received at the company's office
enlargement far beyond what the writer
Imagined
The Mutual Reserve is not, 1t is under
dictated itself before the New York state
insurance department. Proceedings have
been begun against the persons who in
the eminent New York lawyer, is counsel
for the company. Col. James has spent
considerable time examining the charges
and preparing the case Of the plaintiff
for trial. and his opinion as to the merit
OF the charges Is consequently OF great
value He gives It as his opinion, after
the most careful and microscopic search,
that the charges failed because they had
no fact to rest upon. 1t Is not strange,
therefore, that In rendering IFS decision,
the insurance department upheld the COM
pany in such unqualified words.
Some of the newspapers responsible for
the publication Of the charges have taken
the first opportunity to congratulate the
company upon It's yStosy .S One news
after the decision OF the insurance de-
partment had been received, and has
been made a defendant with the 9TH
ers in the suit for damages. The COM
plant Is now being printed, and the COM
pany informs your correspondent that the
suit will be actively pushed.
the part of the Mutual Reserve Is Of great
public interest, as the company does a
vast amount of business in this section OF
the county and the charges at first made
business is being steadily increased by
that metropolitan spirit OF energetic busi-
ness warfare which has always character
lied the Mutual Reserve.
1t Is perhaps not out Of place In this
article to say a few words about the man.
agement Of the company. There have been
aside from the mere obtaining of business.
The contracts originally issued were not
based upon the maintenance of reserve
as the term is used in life insurance. but
provided for current insurance only--a sim
pie form. but entailing the payment OF
increasing cost as 1t took place. There
was a demand for this insurance, as is
shown by the large amount formerly writ
ten. The management has been wise in
recognizing the changing disposition Of
the public. and without undue haste or
the Mutual Reserve has moved steadily
to the work Of placing Its business under
the provisions of the general law as re-
CARDS the maintenance Of reserve. Had
ton this would have been an inconsequen-
tial task but with business ranking in
amount among the first dozen In the land.
1t required SKILL courage, honestly Of pur-
pose and that calm Judgment and patience
which can take time to do a thing well.
1t is now little more thar, eighteen
ing business The office force was at first
a small one, comprising but single clerk.
Today its officers can look with pride on
claims. No less than $l7,25O, 900 Of this has
been paid since the middle of 1895. At the
time the present management came into
power. and from the middle of May of
have amounted to $1,500,00O, which shows
the steady and splendid progress that the
Mutual Reserve has made In the payment
In June last the management had SO far
perfected Its plan as to announce that IL
would write all business that came In from
and after July LIST under contracts provid-
ing for the full reserve by the most strin-
gent statutory requirements. II got up
new and complete tables of rates for very
the score OF sufficiency are beyond chai-
lenge. That this action was wise and
timely is shown by the promptness with
which from all quarters came commenda-
ton and support. and the company's bust
ness affairs assumed a prosperity that 1t
had never known before.
The association Is now enabled to make
the further announcement that former
members may change freely to the reserve
basis, under conditions that will permit
them to carry the reserve which would be
required to date as loan, exactly as
though they had from the start been In
sured under the plan calling for reserve,
and had borrowed the amount thereof from
the company. Alternate, but entirely
scientific and equitable methods of max
ing the change are also offered, but the
above gives the central idea.
Your correspondent has given In these
few facts a resume Of the investigation
that has been made having been upheld by
the highest authority on insurance matters
In the United States and the New York
state insurance department. The Mutual
Reserve and It's many policy holders may