The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-10-01

were kept correctly. ~
The outstanding and deferred prem
iums were specially scrutinized to find
if there was any attempt i'm any way
to initiate the assets. We are pleased
to state that these We're reported COR
rectly, and the item Of assets given in
the. annual statement was free from
criticism. n s 81
The items of interest due and ac-
crued were carefully checked and FOND
correct. The amount Of overdue inter-
est is surprisingly small, when the total
amount Of mortgages and Investments
is considered. We found Che records of
the company kept correctly in this re-
gard, and the proper amount reported.
Approved Investments. ID. Al
The investments and loans made by
the company are limited to those per-
mitted by the company Is charter and
the insurance laws Of the Dominion Of
Canada. All investments are first re-
commended by the treasurer and the
investment committee and then ap-
proved by the board of directors, and
are largely in bonds and debentures. as
shown by the financial statement. =
The company has recently organized
real estate loan department. for Man
itoba and the northwest, where desir-
remunerative rates Of interest. One of
your examiners made personal inspec-
ton of the branch office building Of
the company at Winnipeg, and also of
| certain mortgage loans in Manitoba
agency of the National Trust company.
We went into these latter loans very
carefully and found that it was a first
class arrangement for the company, and
that 1t was amply protected in every
loans being all guaranteed ' and the the
mortgages allotted to the Canada Life
Assurance company, and they are ali
| OF them conservative loans upon good
real estate. The records. books and
papers are all especially well Kept.
The valuation Of the policy liabilities
department. for the year ending Deem
Der 3lst, 1904, on the Actuaries' 4 Der
cent, table. The company itself has
result it was found that the com.
pany's own valuation was $l,5ll, 900 in
excess of that required. bv The Michi-
gan law; in fact, the company has the
most conservative basis of any com
pany IN America known to your exam
iners. 80"
Double Check on Liabilities. .s*...>
In checking the liabilities of the com
pany we checked from the cards on file
with the Michigan department to the
records of the company, and from these
records to the policy. register. By this
method we made a,>thorough check as
to whether the company was properly
reporting it's business in force to the
department.. - = :
We went over very carefully the in
come and disbursements and checked
the agency report with the books of
the company. No agents. balances or
advances to agents. were taken into ac-
count as an asset in any way. directly
or indirectly by the company. =
The company pays it's claims very
promptly and treats it policyholders
and their benefiiciaries in a just and lib
any unusual delay occurs after proof
of death is received, the amount
! payable under the policy is placed on
/ deposit at 4 per cent interest, and
when the claim is settled the interest
| is paid to the beneficiary. All the 9th.
| er disbursements show that the com,
pany is most carefully, honestly and
economically managed. ~ - 10
/ The Dominion Government has re
! quired that all companies should within
. a limited time bring all their Canadian
business to @3h per cent basis, but the
raanagementTof the Canada Life com
menced to strengthen it's Reserves some
\ years before the Government took thi.
i action. ! The Company has been about
fifteen years in transferring it's business
from the old ~ per cent basis to the
new 319 per cent and 8 per cent bases
this being about the time allowed by
the tent Of the DG%inieh o
requirement of the Government thu
change was completed proportionately
sooner. The Company's own basis o.
valuation is 3 II per cent for all business
prior to 1900 and per cent for all since
then. It's position as to stringency o:
Reserves is unique, and should insure
its future earning power and security.
At Least 80 per Cent of Profits to Poll
cyholders. gar4a za
The Subscribed Capital Stock of tn
Company is 100000, but until 189
only $125,000 was paid up. In that yea
it was decided to call in the balance O
the Capital Stock. This amount, 1915
900, was paid in cash to the Compan..
by the Stockholders, and at the sam
time the Dividend was reduced to pc
cent. This is the only remuneration tina
the Stockholders receive. BY the Con
pany's Charter it is provided that 9
per cent of the profits Of the Compan
shall 20 to the Policyholders and n
more than 10 per cent of the profits t
the Stockholders. When the Paid-u
| Capital was increased to 100000 tn
| Stockholders were entitled to no. large
! contribution from the profits Of tn
| Company than they might have receive
had the Paid-up Capital remained a
only $l25,O00. The Increased Paid-u
Capital stands as an additional security
while giving the Stockholders a sui
stantia1 pecuniary interest in the Com
pany. Until 500 is earned for the Pol
cyholders the Stockholders could not r,
ceive $40 Dividend. The Company hs
thus established community Of int
est between the Policyholder and tf
Stakeholder, and has combined the a.
vantages of security and continuity
management inherent in Stock e Cor
lpany with the most desirable privilege
Of a Mutual Company.
| Poncyholders' Directors. "
II In view of the attention recently a
tracted in the United States to II
/ rights Of policyholders, especially in tt
management Of life insurance comp
| MES, it is Of special interest to kno
| that plan was adopted six years as
by the Canada Life Assurance compaI
to give policyholders a voice in Il
direction Of it's affairs. In 1899 tt
shareholders voluntarily asked the D
minion Parliament to amend the col
pany's charter, with the provision tn
instead Of the directors of the compal
being all shareholders the policyhol
ers should be given the right to sele
six Of their number to represent the
on the board Of directors. This Domi
a. L oS,, 4