The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-03-07
AS TO MUTUAL RESERVE.
Col. Hinsdale Says it is Reliable and
Thoroughly Solvent.

To the Editor: The article published
in the News and Observer of last Sat-
urday, headed "Wild Cat Company Goug-
es Insurers" does great injustice to the
Mutual Reserve Fund Life Association
and is calculated to injure it and it's
10000 members, and their helpless bene
ficiares, scattered all over North Caro-
lima, the United States, Canada and
Great Britain, who. are vitality interest
ed in upholdng the company, and who
will lose all that they have paid in if
it is to be thus destroyed.
This company is not in any sense a
wild cat company. On the contrary, it
is honestly and ably managed upon con-
servative business principles. For the
last eighteen years it has afforded in
surance at less than one-half the cost
mold lien companies. In this time it has
paid out to it's members insurance
amounting to thirty-fve millions of
dollars.
The article quotes from Commissioner
Young to the effect that from one half
to three fourths of all the law suits
in the State to which insurance COM
, panies are parties, are brought by pol
city holders against this company FOR
ONE REASON OR ANOTHER and the
inference is plainly suggested that the
company does not pay it's death losses
in this State.
The truth is, all of the suits which
are now pending in North Carolina
against the company, have been institu-
ted upon the alleged illegality of the
increase of assessments, which were rem
dered necessary by the fact that the
older members were not paying the act
ual cost of their insurance. There is
not single case in the North
Carolina courts where the company is
contesting a death loss, nor has there
been but one of such cases in five
years. And, in that case, although the
company had a perfectly valid defence,
it compromised the claim at Sc cents on
the dollar.
The association is thoroughly solvetn-
Louis f. Payn, insurance superintendent
of New York, in his official report, dated
May 31st, 1898. says:
''The result of the examination shows that the
Association is solvent and pays III full every
death claim that is a proper charge upon the
mortuarv funds contributed by the members,
and that in every case OF settlement OF com
promise, the character of the claim mas peen
such to make it the duty of the management
to protect the members against an unjust de-
mand.'
And in his report of May 18th, 1892 he
says:
Under date of May 31st, 1898, in giving to the
policy holders of the association the result OF
the examination of its condition and affairs then
Just completed, in the closing paragraph of
my report, | stated The result of the exam
nation shows that the association is solvent
A study of the accompanying report of the
Chief Examiner. compels me to make the
statement.
This This report, coming from an in
surance superintendent favorable to old
line companies and prejudiced against
the assessment plan of insurance, is
strong evidence in favor of The asso-
citation.
1t is utterly untrue that 100000 of its
policies have lapsed since January, 1897.
or that $4,000. 600 900 of insurance has
lapsed in the last four years. There
has been a lapsation, caused by the in
crease of assessments, which was au
thorized by the contracts of Insurance,
was necessary in order 20 enable the
association to meet it's death losses, and
vas expressly directed by the insurance