The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-02-24

the cost OF policy is the difference be-
tween the premium charged and the CUR
plus returned. and the schemes OF these
companies postpone all returns OF surplus
for fifteen or twenty years. the greater and
actual cost OF their policies Is concealed
from their policy holders during all that
time IL a. only when they fall out by the
way, or when the settling day OF the specu-
lation comes. and II is seen-as has always
been the caSe-how much less than the estf-
mate or illustration the result Is, that IL Ii
realized how dear has been the bargain.
One great company has I'm the last ff-
teen years about doubled it's expense ra-
ito and halved its returns OF surplus 10 its
members on the older and nonspeculative
plans. But il is keeping up in the race for
magnitude so far.
The Chances OF Reform.
But now one OF the greatest OF the racers
announces that its directors have decided
that its officers have been paying too much;
that the business has been forced: that.
however much they may write in this way.
they lose nearly as much: that IL Is in
creasingly difficult TO buy new business
faster than the Odd drops out. and that
after all IL is only the business that stays
that is worth having. although that is one
OF the companies that depends on the leav-
ings Of those who go out for the specula-
ton fund of those who stay in. But those
leavings have been largely eaten up by the
expense necessary TO get new business
enough 10 keep ahead Ii does not yet APP
pear what will be the outcome of this more
prudent view of the situation Whatever
has been or may be done about the ex-
penses, other recent things nave shown
pretty conclusivey that the company has
at present no mind TO be eclipsed In size
What method of competition. except THAT
of high pay TO agents, Will be adopted 10
prevent falling behind remains 10 be seem
1t is much to have the truth acknowledged
Ii Is devoutly 10 be wished that its man.
agement may rise TO all the practicai cour-
age of its new convictions
Meantime il is significant that the faitn
so steadily contended for by The Connecti-
cut Mutual is thus at last confessed by one
of its severest and longtime critics.
Another Possible Reform.
That same company is alsb rendering
tribute to the principle of life Insurance.
for the use of the family rather than as
scheme for the personal profit or conven-
fence OF the policy-holder. 1t has an
nounced its recognition of the fact that the
policy-holder can't use up his policy with
out his family losing Ii.
To the attraction OF a policy which lets
the man into a personal speculation In the
losses of others land OF others In MS
Iosses) the racers are adding the agreement
to loan him all or even more than the re-
serve on his policy; feature which con-
sistently completes the purely personal ana
speculative view by which they draw men
by self-interest rather than by leading
them to plain but unselfish duty. No doubt
it is agreeable to many men TO think they
can borrow at will for their own conven-
fence and put up their policy as collateral.
There must be few who. in cold blood.
would do IL IL they could really In fore
vision put themselves in the place OF the
widow coming with her dependent flock.
with hope in her heart for them, to realize
the promise In her policy, and Unexpectedly
receiving in its fulfillment but fraction
of that which will clothe and feed. and Tor
the rest the Cancelled note which has served
the personal convenience OF the husband
and father. Few officers OF companies can
really desire to face such disappointing set
Elements; such heart-breaking failures or
promised protection at the saddest crisis
of stricken lives. Yet few hesitate TO COM
pete for business by Offering TO do IT. While
it has not pointed out the limitations upon
this practice the company referred to has
emphatically declared that IL may be ana
is being carried too far.
The Exchanging Facts.
Time is slowly demonstrating to those
who would force the growth Of their COM
panies by other theories, that the only true
use of life insurance is the protection of the
family; that any other use Of IT can be had
only by the more or less complete destruc-
ton of its protective value; that the work.
| ing expenses of 1t, even reduced 90 the low
| est terms by which safe and true men can
| be employed in its promotion, are so much
greater than those of any other instrument
| tality for the investment and care of other
peoples money that no one can legitimate
| ly afford TO use IL or any OF the schemes
offered in its name, for personal profit or
convenience. There can be no profit In IL
| to one which does not come from the great
| er loss of another: there can be no personal
convenience which does not cost far more
| than IL is worth or which could not be had
at less cost in another way.
1t is slower building. IL is harder work.
| 1t is less snowy on the surface. to persuade
men to take life insurance at its own value
only, as the only wholly competent means
| of doing their unselfish but imperative duty
| to their dependent ones, and with all Its
details adjusted to their most complete and
| abiding protection, asking for ones self
only that the cost of this duty shall be
| made as small as possible by prudence as
| careful and conscientious as the duty Is sa-
| cred. But the work so done endures. 1t
disappoints neither those who trust II nor
| those who pay its cost The road to the
| highest results is not along the lines or
least resistance; nor Is IL much thronged
| with those who applaud. But the truth re-
| mains and returns. And genuine convfc-
| ton of and loyalty to sound principle are
| the most enduring basis and the strongest
| binding tie, OF human institutions.
Operations of Fifty-Four Years.
| In the fifty-four years Of its work The
| Connecticut Mutual has received:
1 For premiums. .......... s2Os. SO. o05.5o
/ For interest............... 6A6z.SeLU
Bar rssi profii and loss. i.I77Sssss
Total receipts AZ. sss %