The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-10-22

IoSulI unless the administration OF
the accumulated assets Of the company
dishonest. The public has never had
its confidence in life insurance shaken,
brit it has been outraged by coming
su ldenly upon the knowledge that its
money has been diverted from legiti-
mate channels; that more Of it has been
taken than was necessary for the carry
ing out of the contracts made with the
insured.
q Hitherto it has only been neces-
sary to show the prospective candidate
for insurance an imposing array Of
figures labeled liabilities, assets, reserve.
and surplus and write him. But lately
there has been change in the spirit
Of the candidate. He has suddenly
come to knowledge Of the fact-given
the same rates and the same policy
that he is likely to have larger and
more certain return on policy that is
in the hands Of men whose manner Of
life and methods Of business he knows
or can find out about--than if he
be in pot with half million other
fellows contributing to pile of vast
dimensions, but of limited earning
capacity. Then there is another feature
that is attracting the public to the
smaller companies: These generally
keep the money in the section in which
prosperity. Instead of being sent to
New York for syndicate speculation,
perhaps, or even a worse purpose, the
funds that go into the hands of the
trustees of the smaller companies are
invested in real estate mortgages, on
lands in the section in which the COM
pany operates principally; at least this
[ know to be the case in the company
vryI1 of Fol, a1xy,o HSt ho,,
Mr.. O'Shaugnessy is vice president Of
the Minnesota Mutual Life of st. Paul
A Business Proposition.
1T may be partial, but it seems to me
to be the better part of business discre-
ton for man to become one Of ten
thousand policyholders in company
having $2,000,000 in assets invested in
selected real estate mortgages, bearing
from 5 to 7 per cent interest, and hav-
ing $25 100000 insurance in force, than
to become one of 100000 policyholders,
in concern with 500, 100000 in assets
or 3 per cent or lying on deposit and
drawing no more, and carrying 1885,
100000 in risks. And that is the at
titude Of the west today. I have been
all over the south and west and find
that there is nothing sectional in the
matter; that the Minnesota Mutual is
increasing is business in California and
Missouri for instance almost as rapidly
as here at home. Down in that country
they know the advantage of securities
having their basis in the land, and it
doesn' It make much difference whether
the security is an improved farm in
Minnesota or in Missouri There is no
sentiment in the matter at all. The
public may be sore at the men who
have been telling how they ran the
giant companies, but what is turning
the attention Of the people of the west
in particular to the desirability of in.
surance in the smaller companies is the
fact that these companies retain the
needed in the agricultural and CONNER.
cial centers instead of boarding it in
New York where it may be preyed up.
on and subjected to the limitations of
Wall street in the matter Of permanent
Investments II, -
At the offices of the Minnesota Mu.
tual Life figures were adduced showing
that the business of that company dur.
ing the first nine months of this year
was in excess of 100000, an increase
of As per cent, and that the increase
was very large in Minnesota and the
Dakotas: The large pei. cent Of in
S!edse LII CHe, insurance Wf1LLen IN THESE
states was ascribed by the officials tc
the fact that the people have come tc
understand that the business men OF
st. Paul and Minneapolis who consti
| tute the board of trustees and who pass
upon and scrutinize closely all invest
| ments were holding the assets of the
company in Northwestern real estate
mortgages largely, that the expense &C
| count of the company was comparative
" very small and it's policy in business
very conservative. - ~