Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-02-06

OF the 1927 s47. sse. 50 which The Connecticut
Mutual has received from its holders. 1t has
returned to them paid to their benetciaries S22,
lis, S94 IT, 90. 80 per cent. What it has paid
back and what It still holds security for policy
contracts aggregates SOP O52 AL 49, 1873 As per
cent of its receipts from policy holders. This has
been done expense ratio of only 9.2S per
cent of the total receipts.
NATURE OF PRESENT COMPETITION.
The competition for public favor in life insurance
continues to travel largely three distinct abnor-
NAL lines: First, n postponement Of all dividends
for ten to twenty years. whereby the effect of ex-
travagant expense Is concealed till the end OF the
period and whereby the savings on the premiums
and reserves of those who drop out in the mean
time Expected to be about two thirds of the whole
in twenty years. to be divided among those only
who remain through speculation for the few
lucky at the expense of the many unucky mutual
policy holders
Second. by the so-called ncontestable policy,
which puts upon the honest pOlicy-holde the pay
ment of the loss on the dishonest one. to whom
alone such feature would presumably be att,ac-
tive
Third, by giving every policy holder by way " an
annual cash value the right to withdraw lis
contribution to the reserves in any year, which
thus gives all the policY-holders the right to de-
mand all the reserves in any year to the complete
destruction of the Company and this demand Is a
first lien all the assets and first Obliga ton
on the part of the Company, to which the insurance
feature is mere temporary and easily iffeasibe
incident. The premiums paid in Ostensibly for life
insurance have string to them, to be used ut
will, which converts the Company into an actual
Savings Bank. without the interest deposits
which makes it to the personal advantage of the
depostor not to withdraw his deposits under or
binary circumstances: and with the further and
great difference. that whatever deposits n the
bank suffers subtraction from its face. and re-
ceives in addition all the interest earned less
relatively slight expense account, while the prem
iums paid to the life insurance company must an
nually contribute losses and to relatively heavy
expenses that the reserve which cali be with
drawn is as a rule much smaller than the sum OF
the premiums he has paid In. and his privilege
costs him out of all decent proportion.
And the least mischief Of this practice Is the
fact that in reality and in the resulting attitude
Of mind of the insured 1t subordnates the duty OF
protection for which lone life insurance exists and
without which 1t would never be used and cQuid
have been conceived to the changing personal
interests of him whom that duty constantly
rests. Under a multitude of conditions he is fire.
quently tempted to for himself the fund which
alone that protection to others which is still
his duty and his serious duty because OF their
necessity and their constant danger. lie no longer
regards his payments fund permanently with
drawn from the exigencies OF his business and
sacredly devoted the performance of his unselfsh
always prefers his claim to theirs.
And IL will not be many years before the great
mass of the life Insurance business OF the country
will stand on this basis its continuance, and not
only the welfare, but the existence Of the compa-
MES contingent the non-exercise Of the right
of withdrawal of any and all funds at will.
In the midst Of this sort Of competition, which
brings an enormous business but with enormous
waste, at expense which is reckless as ii is
unnecessary, and which contradicts every principle
and method by which proper and adequate results
as TO the security of contracts, the cost Of in
surance, equity between members. and the integ-
rity Of the Company itself be assured. The
Connecticut Mutual holds steadfast to the truth
which. be It widely lightly disregarded,
never be denied, that the paramount purpose
OF life insurance the and only peculiar service
IL is constructed and fitted to render, which 1t
alone can render and the only worth Its
essary a minimum, aud the spring
of its high motive is "to defend and provide for
those whose welfare depends the continuance
of ones life and who must suffer In all their fu-
ture by it's loss; that Mutual Life Insurance is the
eqnal cooperation In good faith of those whom
rests the sacred privilege and duty to protect, to
the end that the needed protection may be most
certainly and effectively given. aud that by such
equal eooperai ton the cost to each may be made as
| small possible that the Company which under
takes TO become the instrument Of such co-opera-
tion is therefore bound shape its every plan aud
| practice 10 conform to those conditions which
able II TO fuhll those ends in the highest degree
and with the greatest certainty in that far future
TO which its contracts extend.
| That benefcent function of Mutual life Insur-
ance. IN that view of its intrinsic morality. The
Connecticut Mutual has fulfilled with unequaled
success for ffty-eight years; and it toward
| its future Of benehcent uses adequately prepared
| Respectfully submitted
| JACOB L. GREENE.
| President
| Hartford, January IS, 1904.
/