The sun., 1906-02-25
MUST CUT AGENCY FORCES.
ARMSTRONG BILLS WOULD
GREATLY LIMIT NEW BUSINESS.
nae Actuary says That the Big Companies
could Not Do Moro Than $50 400 600
a Year-No Agreement Vet ~ % .
Combined Opposition 70 tho Bills.


An actuary with one Of the big life insur-
.rce conn anies gave 1t as his opinion that
u the recommend ndations OF the Armstrong
.ommittee in regard to the curt ailme mt
~ the companies expenses are carried
into eject none o. the big life companies
.i,l be able to writ more than $50 900, 900
syear of new busine g.
He savs that 1t Is Lis beltAf that the big
.ompanies, under the recomrr en- dations, W i'll
not be able to pay their agents more than
n per cent. OF the first year premiums
Ths commissions of the agents now range
from 40 to 80 per cent. Of the first year
,renuilns, and in some cases higher. With
heir renewal commissions limited to four
wears and the necessary reduction in frst
,e.r commissions there will be, in the opinion
Of this actuary, 30 great falling OIL in
the agency ranks OF the big companies
,h.t none of them will be able to write
hu.iness in excess Of $50, 900, ,00O
The limit fixed by the Armstrong report
|. $3.50 900 900 year. The insurance going
ont Of force each year through the payment
n death claims, lapses or surrender is
considerably over &lOO, 900 900 in each Of
the big institutions, 80 that II there Is any
u,ch curtailment OF the business as this
,etuary fears there must necessarily follow
,he ahrinkage in the amount OF insurance
in force
AZ least one Of the big companies is seri-
ouslv considering giving up its agency
force altogether and depending on the
business which may be brought in over
The home Office counters through adver-
rising A London mutual company writes
all its business in that way, and the 10
.,lts are ,aid to be most satisfaotory to
the policyholders.
The chief recommendation in the COM
mi,tee's report which in the opinion Of
insurance men is going to curtail the busi-
ness below the fixed limit is that which
requires that the expenses Of the company
shall be kept within the loadings on the
nremiums The loadings are the esti-
mated amounts added to the net premiums
TO cover the administrative expenses Of
|, is certain that this is ono Of the recon-
mendations against which many Of the
companies will protest at the public hear
March @ There were further conferences
Yesterday between the president and his
advisers in each of the three big companies,
but no definite plans have been determined
on as yet 1t is doubtful now whether the
three big companies will be able to come
will oppose Each company has it's own
opinion as to the changes that ought to be
made and these views differ widely
According to one high official, there will
probably be a pretty general opposition to
the Recommendation curtailing the invest
York Life is not affected by the prohibi-
ton of stocks as assets. That COM
pany has, however. large holdings in COL
lateral trust bonds, which also are pro-
hlbited, and on that point it is expected to
line no with the Mutual and Equitable.
There will be no attempt on the part OF the
big mutual companies to Oppose in the
hearing the recommendation which pro-
vides for the postponenent OF all annua
meetings until November Is next and the
expiration of the terms Of all trustees on that
date IL is said that the compa nies are well
atistied with the proposition TO make all
existing proxias void, because it removes
at least for the present, Lawson as q faotor
Il is practically certain that the New York
Life will try to have the provision limiting
recommendation hits that company harder
than any other, as it wrote more than $500, !.
Yesterday hat It might suggest having
the scale OF percentages Oh which the busi-
ness Of the smaller companies is limited
is, that the amount allowable should be
ietermined by a percentage Of tho in
siranoe in force. In regard to the prohibi-
ton of the deferred dividend policies il ie
expected that the companies will be divided
Zach Of the big companies will probably
send it's own legal Representative to the,
feeling among insurance officials. though.
that no changes will be made by the Arm
strong committee and that any efforts at
One Of the men in the big companies put it
this way yesterday:
we will probably send a representative
to the hearing, merely for the purpose Of
recording our protest Then, II things turn
out wrong later, it can't be said that we
didn't object