, 1903-01-30

tion of interest of three and one-haif I
per cent. All policies issued since May
/ 1902. are protected by a reserve Daseo
Ipon the American Experience faple'
with interest at three per cent.
What is the effect of the interest as
symptoms
thA larger must be the reserve, OF
self-insurance fund, for such fund must
equal the face of the policy at is
maturity as an endowment, Or Oh
attaining the limit of age liked by lhe
table. Naturally, the larger TINS iuhu
tha greater are the loans which may
he made TO p~olicyholders, and the pur-
chase value is correspondingly IN
creased"
Loan and surrender values are COM
paratively modern innovations III lie
insurance. The time was when IN
surance was only for those VINO per-
sisted. Now. the equities oil those
who are forced TO withdraw are iully
recognized. and practically there IS no
such thing as forfeiture. BY TINS 1
mean that every dollar of premium palu
into an honestly managed mutual NE
insurance company is represented by
actual value secured in some form 10
the premium payer. we may say WIN
~pardonable pride thai the Pehn Mutu@i
has for wears been noted for Just casn
values. and its example has eXclted
emulation The percentage of reserve
Maid is the supreme test This may
not strike you as modest, put you
have asked for some facts and give
them"
"How was your mortality last Year,
Highly favorable. We expected d
mortality of about $3,S34,655; we IN
Cured So 0 2,945.73, or, as near az
), may be. 6S per cent. of the tabular
I For a series of years the average OF
v the compan has been about ~ pei
r cent. of the expected. l recall ina
in 1901 the death losses rose to some
thing like 50 per cent, and such Varla'
Il tions are to be expected from unusua
/ causes. The gains of surplus IRON
' This source have been very consider
st able In six years, 1896 to 1901, lnclu
IS siye. our mortality was so much les
n than the tabular that we saVed owe
y 1000, 900 to our pol~icyholders. Las
a year, as said, the saving was Sl'zSl,
700 27. A great deal of stress is proper
We laid on medical selection. take
he as a correct principle that no ma
e. should be admitted to a mutual organl
IN cation unless he presents in ms person
ly surroundings, ETC., the strong pfopa
or bility that he will live out the aVefae
IN life of men of his years. Bllnons :
life insurance could be written II u
ly companies were careless enough TO at
- lCeDl DIT dloA = =
D. sons through peculiar occupatlo
e. heredity, etc, are unlikely to reach u
expectation of life. We are envlol
of our record in this regard. HaVll
said his much, l ought to say that
e is largely due to the medical depar
en- ment, and also to the influence OF OF
Use agents. who, as honorable men, mf
be relied upon not to recommend doup
IRE ful or undesirable cases. There
OF such a thing as OVERRIDING this, nov
m ever, and carrying it so far that lie
IN persons, of any age or condition. cou
cy, get insurance. The middle groui
in this, as in other things, has prov
to be the safe one. Take our soutne
ne business, for instance. We have De
writing in North Carolina, Georg
~" Alabama, Louisiana, etc, for ma
IN u years a considerable volume OF pu'
y ness, and our losses are just the ave
ON age. This is mentioned because sc
eral companies have what hey can
81 southern class or charge an extra p
-, MUM, adhering to methods which mo
ern science and knowledge OF !
in- underwriting pronounce unjustihapl
har Where is your business mai
done2"