Daily capital journal. (Salem, Oregon) 1903-1919, 1906-12-28
Bulletin No. 475.--New York, Dec


sued for ten years, and as you know, mainly upon
Endowment tables-Increasing Life and Endow-
ment policies and Twenty-year Endowments form
ing very large proportion, in some years over 80
per cent, of our total business. One disadvantage
OF this table has been that II largely increased the
reserve. Our childrens Increasing Life and En-
dowment policies have been endowments payable
after periods of AZ years and upwards according to
age at issue. Compared with the Whole Life tables
issued by other companies these have made neces-
sary the accumulation of an increase of many mill
lions of dollars in reserve. Unthinking persons
to the conclusion that this piles up the wealth
of the Company, forgetting that along with the in
crease of assets runs the increase of liabilities, and
that the wealth of company consists In It's SUR
plus and completely overlooking the remarkable
fact that we have deliberately kent down our sur
plus to about per cent of assets by annual dis
trlbutions OF the excess OF surplus earned 90 the
policy holders who contributed to It. Public onin-
ion has changed and end now cares more Tor d'"tn
benefits than endowments. We are IN business 10
please the public We have a good deal OF eVl-
denca that Ordinary Life and Limited Payment lile
contracts are thought preferable to Endowments'
We have resolved therefore TO discontinue our IN
creasing Life and Endowment policies, which were
designed to meet the public demand formerly eN-
isting and which were. We believe, the nrsl lapies
ever really scientifically constructed Tor ihduAu1
nolices Our new Industrial policies VIII
therefore be Whole Life contracts But we
think that as TO these there are signs Oh
belief on the part of the public that payment OF pU
n,iurn ought 10 cease with old age. II Is nara luI
naonlo IN see what TO any mathematician Is SELF
evident that In life insurance the eom9anies ai w.
enabled to pay the policies In iull on hveS OF "Use
who die soon after Insurance ohg ny ns nt
receipt of premium from those "ho ~. -
and bevond their expectations ana tha' ,, tne
onnarent hardship upon those Wno ~,
torg &c only the contribution 10 the uh'or'una' h'or,
which Is the essential basis OF nle nos Tor lin
ever Il Is possible OF course to make taoes io' IA a.
,ted nayments and the problem Is therefore :" Ha NV
an age that shall not be so young aS W. ,rIat .u In
nreminms or (what s the same IN lhuusu'a , ,ho
a. ha
suIahce W. W. irsnTance1 10 reduce the Dement'S un-
Sniy, and on the other hand TO iN tue ast ase ~ ~
oId that the benefits OF the limits Oh pay u,n m ,b
premium shall be lost we ha'S 49,. nAou ~ that age
limit of payment OF premiums Deeause ~ az hereNts
% o enabled 10 only slightly reduce the p'u.i -,
during life and because we have hot ,ns mn
or,nlant of the necessity OF paglnb pI'.t,t tb,t
~ tbat ace And 10 the occasional compla'ns 'or 49,
10 'ra , ,,or live 10 such old age, we may uuan.
~ In 1906 we shall have voluntary ,,,ss a. on
of grace paid about 200 claims a. s reaching
noiicles issued as Whole LIE on years or over.
co "a after paying premiums LOT 10 those four
"hI ,r,,cting n table OF dement's upon 49, ,N.,,,s..
r,ncinIes-Whole Life instead ot II ot onr old .
- recent mortality experience lna' '.,,,ses. and
our Iv..", -, ,ronortioned TO our reduced eNpens'
a loauine ~ - nremiums ceasing atter abv 80,
th' lU lU mt forth for 1907 new thplss ~ - com.
we % %sno,' ',partment which are better thah uny I,e
nonv has heretofore issued ana pe''''
py0r before this felt safe 10 ls7u'' t,,,ua
eve. ,st striking change H. In the miami,
,i because there we substitute lAie .ao'ss W., 49,,
'"N,e' '"'t ~ uremlums limited 10 age 90 '"i 80. -.
pa. la,i,oly No. short Increasing Endowment ,apl H.
, In use and are therefore ena9ieu ,J ' @ 80
,oets what we have been compelleu W 49, ~. "
I,, liability upon the endowment lea,ui,'s much
our new Infantile tables VIII pay ~ ~ne' a., cent,
- 18th benefits for a weekly premium Vl uI,,,,tnn
~ m NE have heretofore paid for Weeels, ,hot an,
- ~, cents II Is Of course uhdeIs11"u 1', cbu.
OF 'tn a. a maximum OF benefits payable up"1 ne
ia" ~ a ,his We cannot exceed. we haNv l'' a.
dreh e'.sa1 e'l1 the benefits al the latet ab'o '0
~ ~ ,tsnce Thus at age two AZ ehl,y ~ bene
80 of death az age nine Is Sl'o WI, ninc si so
ih ~ ..so tbree al entry dying at age oi nm - Mn,
III d. a. hne6t age four az entry dylhk q, as "a,
ana W. ond 80 on This Is a reeognl'i%on % ~ 80, @
,ttnr,ai wears for which premiums To- ha aeatl
, ~, those entering at earlier ases ,bIs iaTg
palu ~ he same age II follows lI"hl "ias,,r n,
occurs AZ hene6ts for FIVE cents that he.ea a.
inciease M he issued under the lniantils ~
poloy va, ,,i,,r OF more than hye cehts. Irsa
lolal Psire Cor less insurance, especlalg ~ ienc
tsties We have a table Win pIopo'',,e
iamille', v,eaklv premlum OF three een's' AZ IN
hts lo' ,rlt TABLES show an increase ol 49, s ,oblo
-, Inc premium based strictly W. ~ A. 1qiL pc
lhe lhertsllty Al age ten the ihoIes'e s-iy IS pe
OF .o 80 our present Life table anu t,6oN,men
cen. o,',r our Increasing Lie anN ~. per cen
cent o'. go ga the Increase Is over hlns ~ 4,
table A ,,.r cent respectively al ebS sv - cs,
ana o'Sl -oariv six per cent and nearly ~ - cer
crease - -. a. age 40 the increase la ~" A.
respec,lY'i1sq' r,er cent respectively ana 30 'N