The Fargo forum and daily republican., 1906-03-06

ton seven out of every thirteen direc-
tors are chosen from the poiicyholders,
thereby giving the policyholders twenty
eight out of fifty-two. directors, being a
ltsnaiority of four Mr.. Cleveland lis the
fsieefion With the society has been purely
advisory, 81, Il.
@T'he financial position of the society
1 lis as sound as the bank Of England.
Over and above all liabilities it has a
surplus reserve amounting to nearly
$4,000, 900. a. : "a.
Considerable apprehension exists as
to the exact meaning of the term Sur
plus. A large proportion of the So
ciety's policies are issued on the deferred
dividend plan, under which profits are
not realized until the expiration OF a
specified period generally ten. fifteen or
twenty years from the date of issue.
When this period arrives the policies
which remain in force are entitled to
an equitable share Of the surplus ac-
cumtllated during the term Of their life.
The. effect. however. of the deferred div
idend plants that only portion of the
annual profits is Immediately distributed,
namely, on annual dividend and matured
dividend policies. AT the present time
approximately seven eighths of the sur
plus Of the society is held ais reserve
fund accomplishing for division among
existing deferred dividend policies sat
their maturity, and the remaining one
eighth is free surplus reserve available
for annual dividends and other contifl-
gencies. But these proportions have no
reference to any definite amount, OF sur-
plus, and any increase or decrease might
apply relatively to both. ,s.
The average bank balance carried
last year by this society was Sac; 600 900,
on which il received approximately 3
|per cent interest We have reduced
these bank balances BY the Investment
.of $2s,ooo,ooo on a basis of a per cent
Tor more, which alone increases the in
come Of the society 100000 per a1nunl.
| In addition to this we have told the
banks and trust companies that we must
lhave one half Of per cert more on
Iour daily balances, which now amount
/ to from $Io,ooo,0oo to SIeoooooo and
that means over 100000 additional in
come per ann,inl, making a net increase
Eifl the revenues of the society from this
| one item alone Of $55oooo year.
IN Notwithstanding all the sensations
and agitations, the Equi table society paid
out daily during the year 1905, in death
claims, endown1ents, surrender values
and other benefits, an average of about
$II8, 900 per day, which went into the
| pockets of the people. Our income IS
Approximately 100000 a day, the diff
Ifereilce less the expense of conducting
| the business going into Our assets &
Has public confidence been impaired
| by the Investigations
Yes. public confidence has been inn
Ipaired by the disclosures, said Presi-
Ident Morton People have been start
led BY some of the facts brought OUT
Fin the investigation, andsi the insurance
companies had not been So strong the
Ibssiness might have been ruined but
if any one thing has been emphasized
linpre than another By the investigation
Iit Ii el1e financial strength Of these large
| institutions do not want iii any way
Ito BE Dit iii the position uf defending
FOR apoIogizing for those who Have pre-
eefleki me, but cannot refrain from
saying thai tile Investments of the So
ciety as 4 class are of high character,
aud the men who made them are entitled
|to much credit for tho judgment dis
played The amount of money the so-
eiety has made bv careful investments
/ has greatly exceeded any tsaisapp ropria-
tion of funds he assets Of the insti-
tllliofls have net ii my respect deprec-