Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-17

The effect, however, OF the deferred dfvi-
dend plan H. that only . proportion of the
annual profits is Immediately distributable,
namely. on annual dividend and maiured
dividend policies. At the present time ap-
proxfmately seyen-eighths of the surplus OF
the society Is held a reserve fund ac-
cumuIat1ng for division among existing de-
ferred dividend policies at their maturity,
and the remaining one-eighth is a free sur
plus reserve available for annual dividends
and other contingencies. But these proper
tons have no reference to any definite
amount of surplus and any increase or de-
crease might apply relatively to both.
The average bank balance carried last
year by this society was S36 600 GOO on
which it received approximately per cent
interest. We have reduced these bank bal
ances by the investment of So 900 600 on a
OASIS or per cent or more, which alone in
creases the income of the society $500 Geo
per annum. In addition to this, we have
told the banks and trust companies that we
must have one-half of per cent more on
our daily balances, which now amount to
from S10,00O.0O0 to S12,OO0O0O and that
means over $4,000 additional income per
annum, making a net increase In the rev.
enues of the society from this one item
alone of SJ50,0o0 a year
Notwithstanding all the sensations and
agitations, the Equitable Society has paid
out daily during the year 1903 in deatah
claims, endowments. surrender values and
other benefits an average OF about Si1So00
per day, which went into the pockets of the
people. Our income is approximately $500
eco a day, the difference going into our as
SETS
Has public confidence been impaired by
the Investigations"
Public Confidence Impaired.
Yes, public confidence has been i'm
paired by the disclosures" said President
Morton. People have been startled by
some of the facts brought out in the in
vestigations, and. If the insurance COM
panfes had not been so strong the bust
ness might have been ruined; but If any
one thing has been emphasized more than
another by the investigation it Is the finan-
clai strength of these large institutions. l
do not want In any way to be put in the
position of defending or apologizing for
those who have preceded me, but l cannot
refrain from saying that the investments of
this society as class are Of high charac-
ter, and the men who made them are en-
titled to much credit for the Judgment dis
played. The amount Of money the society
has made by careful investments has great
ly exceeded any misrepresentation Of funds.
The assets of the institution have not In
any respect deprecated in value by the
disclosures, and the insuring public ought
to congratulate themselves that the in
vestigations have been made and that hon
esty of management hereafter Is sure to
follow
Business has fallen off materially be-
cause of the lack Of confidence. The larg-
est companies have been the most vigorous
ly attacked, and many policies have been
forfeited by timid people who have been
frightened by the newspapers and by the
agents of other companies. who have had a
great harvest In twisting policies from
the companies attacked to their own.
think all of the companies have suffered
more or less, but 1 am certain that they
will recover. and that confidence is gradual
ly being restored.
What are you going to do for people
who have forfeited their policies and want
to come back?
This society will make it as easy as
possible for policyholders who have been
frightened to restore their policies, al
though there will undoubtedly be cases in
which 1t cannot legally be accomplished.