Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1905-11-28

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yesterday the Appeal reporter met
Mr.. r. b. Phillips, who has besn
writing . number Of articles ON In
surance matters. Mr.. Phillips IL the
agent for the Reliance Life Insurance
Company Of Pittsburg. Pa. and na.-
uarally believes in the old line life.
AS he has questioned the ability at
the fraternal organizations to meet
their obligations the reporter asked
him il It were possible for the lodges
to meet their obligations and how?
In reply he stated:
by charging the net legal reserve
premium, which at the age Of 20
would be $1S.2S; the legal reserve for
the first year would be $1O.49; at IS
premium $21.0S. reserve $12.SS; at
40, STATS, reserve 1856.
Take for example-if a man has paid
aor ten years and needs money more
than insurance he can draw down his
legal reserve which at the prese 1T
time cannot be done by the fraternal
insurance. At the age of IS the legal
reserve would be $146.01 and the pol
icy should be SO written that any time
through life he could draw his legal
reserve, so at IS years of age the re-
serve would be $52292.
By taking good risks the mortality
Is not over 60 per cent for the first
few years as shown by the tables, and
the profits to the company would bear
the expenses. In case of the profits
not meeting this requirement by in
sorting an assessment clause the ex-
penses could always be met
BY the many failures that have oc-
cured in the last few years and has
been demonstrated by the past, that
all assessments as now written must
prove a failure. Most of the States
will pass laws prohibiting this class
of business, and l predict that within
ten years most of the insurance will
be written on this plan, as it is the
best way to get insurance at the
least cost. Insurance could be o0-
tanned in this way at less cost than
in the old line companies.
HAS there ever been any failures
in old line companies
Eyes. In the years of 1S62-69 and
20 there was an insurance craze, and
many stock companies started with
but little foundation, writing quite
a business, and in the panic of 1871;
and IA, forty-six of this class of com
panies failed. Four re-inSuring sol
vent companies ten met their obligA
tiovsst and the balance paid from II
per cent up on their liabilities, max
ing a loss of thirty-five millions &C
the policy holders. The only theme
or scheme ever devised or concocte:
by the brain of man that has no
proven failure, even in governments
is mutual life insurance All othe
schemes have failed.
'The oldest Mutual Company in thi
country is Presbyterian Preacher
Association which was organized :
1716, re-incorporated in 1853. The.
began right on legal reserve basis
and today the company is as solid :.
the rock of ages.
after the failure of these CON
panies came the financial assessmen
craze In Pennsylvania alone, in tn
years of 1873 to 90, thirty-seven mi
lions of dollars we're lost to the polio
holders. There are many fraterna
insurance companies that have gon
on a legal reserve basis that are OF
colored trying to write business an
most of them are resorting to all til
tricks that are known in the bu,
ness, even the vile Advisory Boa,
s scheme, which no honest compa I
has ever written. In the end. tn
class of insurance must fail. Eve
in Nevada this is being resorted to
s. what profits can come to one Ia
ing out insurance in a solid cor
pany?"
! "A man taking a twenty pay III
policy, If he viii count his protectic
that his policy guarantees to him fro
year to year, for no man knows VIII
he will be called home and should
3 live, the result Of the settlement
that time will have paid HIM mo
Aaney than he could have invest,
8 in an safe manner
M Notice.