New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-02-06

OF the S227 81 sS6 80 which The Connecticut MutzrMe
has received from it's policy-hoders. IL has
turned to them paid to their benenciaries xzZ.-
1s.s941s. or 80 80 per cent. What it has paid
back and what il still holds security for policy
OF it, rsSsi5ss 800 $3.50 49,, or ;, % ~
done at an expense ratio Of only rs cent Of tho
Nature of Present Competition
The competition for public favor in life Insurance.
continues to travel largely three distinct abnor
NAL lines: First pOstpOnement Of all dividends foR
ten TO twenty years whereby effect OF extrava,-
CANT expense is concealed TIL the end OF period.
serves Of those who droo out In tbe neanttfns fss
pected to be about two-thirds Of the whole In
remain through; speculation for the few lucky &c
the expense Of the many unlucky mutual pollcy>
Second. by the so-calIed incontestabis policy.
which puts upon the honest policy-holder the pay
ment OF the loss the dishonest ons TO whom
alone such feature would presumably be Attrao.
tive:
Third. by giving every policy-holder by way Of an
annual cash value the right to withdraw his
trfbuton to the reserves in any year. which
thus gives all the poncy-holders the right
demand all the reserves IN any year to tho COM
plete destruction OF the Company; and this de-
mand IS first lien all the and a n-xa
obligation the part Of the Company. which ths
Insurance feature is a mere temporary and easilr
sbly for life Insurance have string them,
be used at WILL which converts the Company into
actual Savings Bank without the interest on de-
posts which makes II to the personal advantages
ordinary circumstances; and with the further and
great difference. that whatever one deposits IN the
bank suffers subtraction from face.
ceives IN addition all the earned less rel
ativey slight expense account. while the premiums
paid to the life insurance company must annually
contribute to losses and to relatively heavy ex-
Is a rule much smaller than the sum OF ths
premiums he has paid IN. and his privilege costs
him out OF all decent proportion
And not the least mischief Of this practice the
fact that IN reality and IN the resulting attitude OF
mind OF the insured II subordinates the duty pro-
lection. for which alone life Insurance. exists and
without which II would never be used and could
never have been conceved to the changing PERSONAL
rests Under multitude Of candtioSs he Is fre-
quently tempted to use for himself the fund which
his duty and his most serious duty because Of their
necessity and their constant danger. He no longer
drawn from the exigencies OF his business and ss-
once toward his own His Contract at oncs and
always prefers his claim to theirs.
And II will not be many years before the great
Of the life Insurance business OF the country
will stand this basis. It's continuance and
only the welfare but the existence OF the com
panies contingent the non-exercise the right
Of withdrawal Of any and all funds at will.
In the midst Of this sort of competition, which
brings enormous business but with enormous
waste. expense which Is reckless as IL 10
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 integrity
OF the Company itself can be assured. The Connec-
ticut Mutual holds steadfast TO the truth which, be
1t never widely or lightly disregarded. neves
be denied. that the paramount purpose OF life IN
surance. the one and only peculiar service IL 10
constructed and fitted render. which
alone render. and the only one worth
Its necessary cost even az minimum. and
the spring OF It's high motive Is ito defend and
provide for those whose welfare depends the
continuance OF ones life and who must suffer in all
by its loss: that Mutual Life Insurance.
Is the equal cooperation in good faith Of those
whom rests the sacred privileges and duty TO protect
TO the end that the needed protection may be most
certainly and effectively given and that by such
equal cooperation the cost to each may be made
small possible: that the Company which
dertakes 10 become the Instrument OF such cooper
alton "a therefore bound to shape its every plan
and practice to conform to those conditions which
enable 1t fulfill those ends in the highest degree
and with the greatest certainty in that far future
which its contracts extend.
That benehcent function Of Mutual Life Insur-
ance in that view OF Its intrinsic morality. The
Connecticut Mutual has fulfilled with unequaled
success for hfty-eight years. and II moves toward
its future Of benehcent uses adequately prepared
Respectfully submitted,
JACOB L. GREENE,
President