The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1900-10-12


Northwestern poiicy-holders was, on
September l, added to the business al
ready in force in the Mutual Reserve.
When, about eighteen months ago,
Mr.. c. E. Mabie became president of the
Northwest Life, it was to inaugnrate a
policy of management based upon the
standard rate Of premiums and the main
tenance Of the standard reserve. upon
the same table Of mortality and the same
rate of interest as that employed by, So
called, "old-line" companies. Unfor,u-
nately the position of the business Of the
company was such as to convince Mr..
Mabie that the entire energy of the
management must be directed to placing
the existing risks upon this standard
basis at the earliest possible date.
The management under Mr.. Mabie,
looking to the interests of all members
under their charge, decided on two
things:
First: That equity and fair dealing
demanded that all members SHOULD be
upon the same basis and that the one
that is everywhere recognized as sufficient
to enable the contracts to be discharge:
Second: That the best results for all
demanded that the membership should
at once have the advantages of an insti-
tuition which is engaged in doing new
business at standard rates.
To accomplish this, in the most COM
plete manner and with promptitude, a
transfer to going institution presented
the best medium. In the discharge of
the duties resting upon him, Mr.. Mabie
decided to recommend and did recon-
mend this course.
The Mutual Reserve becomes the
selected company for securing these re-
suits to the Northwestern membership
for the following, among other, reasons:
l. Its charter rights are such as to leave
no question open as to its power in the
premises:
2. Its business in force, its income and
its claim-paying ability are vastly the
largest of any company in such position:
g. Its management is strong and ener.
yetic and among the very first to give
approval to and place in practical opera
ton the full standard rates:
4. All of its business is being written
on such standard rates and subject to
such standard reserve and it is thorough
ly organized for new business and is
actively doing it.
5. 1t is operating in practically all the
states; is able to protect all the members
of the Northwestern; and has complied
fully with the law in Massachusetts, which
places this class of companies under the
legal reserve requirements:
6. 1t can better care for the members
of the Northwestern, with less modiica-
ton of their contracts, than can any
other life insurance organization in the
country E: .:..s..
1t is matter for congratulation on be-
half of the members of the Northwestern
that the Mutual Reserve was able and
willing to present basis for the assump-
ton of the business, just and protective
to them, and safe and equitable for its
own members.
Every member of the Northwestern is
protected and is placed on the standard
basis of rates and reserve. That is, the
Mutual Reserve assumes no dollar of
risk that is not charged with the full re.
serve and which does not pay the full
rates required by the Actuaries' table
with interest at 4 per cent. This is right:
right as regards the members of the
Northwestern who had assented to the
change:-right as regards those who still
retain the old contracts:-rght as regards
the present members of the Mutual Re-
serve. Any less requirement would have
shown the management careless of the
rights of its own membership and ready,
merely for a present apparent gain, to
take chances Of future trouble and dis
appointment. That the management
has refused steadfastly to take any but
this straightforward and safe course
should be the best evidence possible to
the membership of the Northwestern
that they are in safe hands and at last in
haven of rest.
The first requisite to the fulfillment OF
a contract is ability to fulfill it, and to
this first requisite the management OF the
Mutual Reserve has strictly adhered.
The Mutual Reserve becomes with this
addition company Of 1O0, 600 members;
carrying s225, COO, 900 Of insurance. l,
has an annual income basis of about
sS, OOO, 600; and resources, including loan
liens on account Of reserve, of nearly
SIG, DOC, 600. There will he added to the
management under President Burnham
the energy. force and life insurance abili.
ty of Mr.. c. E. Mabie, WHO becomes a
vice-president Mr.. Eldridge continuing
as vice-president and actuary. Mr..