New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-01
BUSINESS EXPANDING!
The Life Association of America
Noues Into Larger Offices.
NEW IDEA SUCCESSFUL.

The Life Association Of America OF which Mr.. II.
p TOwnsIey is president. moves its head office on
May 1 from No. 1856 Broadway to more commodi-
GUS quarters. at No. 100 Broadway. New-Tori,
where 1t VIII occupy one-half Of the fifteenth floor
of that large building.
This change is made necessary. il is said by the
remarkable increase of business that has rewarded
the prudent. yet enterprising management of this
company, the prudence being clearly shown by the
large surplus in proportion to capitalization and
policies in force that the company has in its
Golfers. and the enterprise demonstrated, and
amply justified by results in the idea that tho
company recently put into force Of admitting It's
polcyhOlders as stockholders on the ground floor
Prudence in insurance, as in other affairs is the
true road to security which Is Of the
important points in selecting insurance company
for no matter what terms may be offered or prom
ises made, If a company is not strong financially
1t becomes more or less Of experiment specu-
lation, which one is justified in making with his
NE insurance. The security offered by the Life
Association Of America is it's assets Of over 100000
surplus OF more than 100000 and annual premium
The supreme test of a company's strength is it's
ratio Of assets to liabilities and here the Life Asso-
citation OF America challenges comparison. The
G4 10 OF assets TO liabilities Of the three Giants
OF insurance the companies handling the largest
volume Of buslness). is 125 per cent The ratio Of
Association Of America is so per cent This is re
pGted 10 be the largest ratio OF assets to liabilities
u B any insurance insurance company IN the world, % a.
attractiveness If ts cost tS The ns g5 mstepaS
increases the burden annual premiums. The cost
Of ne INSURANCE depends. in the hrst place, upon
the expense of management, and. in the second.
upon the ratio Of mortality.
The Life Association Of America reports that
as result of its offering 10 its pOlicyhOders the
privilege OF becoming interested in the company it
much lower expense than is possible without such
aT9iqonaI Sssstance TO the agent The great say
ances TO agents lessons the expense of management.
as source of future dividends to pohcyholders.
Inc low mortality is an advantage offered by al
companies in their early years After ten or twenty
years the mortality approxnates the expected rate
But the company that carefully husbands its re-
sources during these early years and conducts its
fund and at the same time inspire confidence and
attract new polcyholders in Increasing numbers
as the seasons pass hnds itself firmly estaollsned
and an unsuitable institution when the twenty
that it does not have TO increase its premiums;
The LIE Association Of america was organlzed
on August 4 1903 on total insurance in force OF
Sa3ies Is abot SO ne 81 o5 While Of course this
low mortality rate cannot tinue for many years.
indeed il must In the ordiH AIRY course OF nature
ing in the 'i beginning Of its operations might Wen
figures would for some time to come make pro-
portonately favorable showing -.- 49,,
TFa 49soci5fion ~ Rmerica captazed an 500 900
with 500 900 paid In on foundation makes no tring
concession apparently, when II permits us p9Icys
all successful Life Insurance Companies have IN
the past proven Variable gold mines 10 the early
surance Company Of New-Jersey- Regarding this
cR Rs.tts5 in hi his report Of 1903 says
1.-The amount paid in to the Prudential company
So OOO 600 Of Capta stock has from stock dtv-
dends besides which there has been pald 10 per
cent in cash dividends annually since s93 In other
words for every 900 paid in the stockholders hold
S22 900 of stock upon which they receive $40 an
nualy-that Is. each year for ten years they nave
received in cash dividends more than twice the
original investment Indeed the seer 90 .Lle
Prudential made afidavit in the case hereafter re-
viewed to the effect that Of the eomplalnanI
stockholders had hs sold his present holdings OF
he could have done would have received the sum
OF S32s SOS 80 altogether including DIVIDENDS STOCK
October. 1875. There appears. therefore. 10 nave
been profits to distribute" ,-, /
Life Insurance Company. And Mr.. Townsley' the |
president OF the Life Association OF Amerlca dff
is his hone and ambition that history shan repeat
itself He points 10 the fact that WINE Ine IL
1875 and its statement for 1872. over Iour ySl aSS:
shows Insurance IN force SSS69lS assets n "a - 49,
( lie Association Of Anerisa makes e n1ucn more |
favorable showing In It's Flrst Alnqa a. ifSI data
- CrgaTza+ion namely: Insurance In force SouUU-
no. assets over SS95,04s; premium income. over
~ sI not attempt to discount the future. said
Mr. Townsley, by venturlng @ be0r,s too
snail for US NV motto Is hasten Slowly. 1 al \
sometimes charged with being too eauIOuS fy a5e
AZ 10 100 broadway are capable OF recommending 4
a STAFF that will be able to handle oQsIL i '~I ~
roy+ hove When that volume is exceeded II VIII 4
ia time to cast about structure that will place
lLfpl~ our stockholders and pOhcyholders may oe I
sure OF and that IS that We snail not, geI me i
80 Se running expenses viii be strictly adhered
~ In the move we have just made we utilized l
nc IN r1oiSe new purchases When the time
'or us to hire purchase more extensive premises
7erity imperatively demands the change not other
sise''