The Columbus weekly dispatch., 1907-03-14
Voluntary Economy.

York State although the expense
against the Mutual Benefit than
against New York companies. It's
close economy did not, however,
check its progress, which was greater
last year than in any previous year.
Having, of its own volition, kept
within the close expense limits pre-
scribed for il by the newly enacted
statutes of New York State, it is but
reasonable TO suppose that the net
cost of its insurance will continue to
be less than that of companies which
have heretofore, through choice, been
extravagantly managed, and the ex-
penses of which are not now as close
ly limited by law as are those of the
Mutual Benefit
The fact that the Mutual Benefit
has been living well within the
amount specifically allowed by the
law for expense purposes (notwith
standing that $42,S48,355 of it's in
surance is paid up) is of the greatest
practical Importance and is of eco
nomic value.
1t is remarkable showing because
of the fact that $235,242, ,885.40
(face values) or almost Sc per cent.
of it's outstanding insurance face
valuesD is now on a 3 per cent. re-
serve basis, written since January /,
1900. at rates which specifically pro-
F., Of mt
on all kinds of policies and at all ages
than did the scale of premiums in
use prior to that date for four per
cent. reserve policies; rates which
also contributed less to the expense
fund than did the premiums of our
leading competitors. Our insurance
expenses last year were 22.2 per cent.
of the net premiums, and 85.i per
cent of the expense provisions of
the gross premiums.
The company's ability to transact
it's business we'll within the sum col
lected for expenses was explained to
Mr.. Hughes by the Actuary of one
of our competitors, who testified that
the Mutual Benefit did not have to
meet competition, but made it. His
explanation, being interpreted, means
that, having an easy proposition to
sell and a company history which
needs no defense, we are able to get
right-minded agents at a less rate of
commission than those companies
which have hard propositions to sell
iu+n of OF
every turn.
Our ratio of expenses and taxes to
total income was reduced last year
from 1888 to 14.S1, Notwithstanding
that our Investment Expenses in
creased s49,592.5O by reason of the
fact that the expenses incident to Sc
curing Western farm loans were in
the aggregate larger than has hith
erto been the case, and in face of the
general increase in cost of supplies.
The principle of economy of admin
istration of life insurance companies
is being given thoughtful considera |
tion. The institution of life insur |
ance is the product of thrift. Level |
premium insurance combines the |
functions of saving bank with those |
of an insurance company, and i'm
poses a special obligation on man |
ayers to SO administer their trust as
not to impoverish the investment.
The managers of the Mutual Bene- |
fit have regulated the expenses of the |
company by coupling together low |
rates, high guarantees and annual |
dividends. Administrative economy |
has thus been enforced, with results |
wholly satisfactory to our policy |
holders.
The Significance of II Reduced
Lapse Rate
The insurance voluntarily relin- |
quished during the year of 1906 |
amounted to SIS, ,699,980 (commuted |
values), which is only per cent. of |
the insurance in force at the begin |
ming of the year. The corresponding |
percentage in 1905 was 43 and in |
1904, Al. This low rate strikingly |
shows that the company enjoys the |
confidence of its membership, even in |
these disturbed times, when indis- |
criminate criticism of Life compan- |
les is rife.
he WISuOH Oh appealing 10 CHe |
discriminating faculties of the public /
is made manifest by the small waste |
experienced by the company. 1t is |
gratifying indeed to have this evil
dence of the public's appreciation of |
high standards 1t vindicates the |
company's long continued policy of |
publicity in all essential affairs and |
the enlightenment of its membership |
and agency corps in the general prin-
ciples of the business.
1907 Dividends.
Policies whose condition is un-
changed receive a larger dividend in
1907 than in 1906. The dividends