New-York tribune., 1909-06-28

large New York companies we're peculiarly de-
ferred dividend conpanies-f. 2. were writing the
class Of policies which most criticised by the
Investigation Their agents, having been instructed
10 urge this class Of insurance. have not yet been
able readtust their arguments and activities 10
the annual dividend and simpler forms of policies
nov required by the law In this connection the
report says
or the eight New York companies which de
ception Of TWO small companies which suffered for
other reasons had been our and OUT deferred divi-
dend companies OF the three companies Of other
states which showed a decrease in insurance in
force all had more deferred dividend than annual
eighteen companies of other states which showed
pr4c[lGsty q par 5 gittdena Insurance
on their books. and. in the aggregate many times
eron as Ifn ,b above facts that an important reason
NJ S +t New York State con7panies have decreased
in insurance in force is because as . Class '!es
may conclude that companies of other states have
increased in insurance IN force nor a.bet
cause they happened TO De lncorporated M
than New York, but because as class lntE
or later 1overfaEe anv bIsiness involving virtual
fngiy
While thus recognizing the falling of in the Ne0
York oorapanies and the causes therefor the report
brings out the fact that While the Ne" York com
panies went backward S260oo691 in business IN
force IN 1906 the decrease in 1913 was only $2o'RVF
showing gradual recovery from the efecfs OF 'He
facts brought out by the investigation
Apparently in answer 70 recent public discussion
as TO the limitation TO Sl500oG0 of new business
enforced by the Armstrong amendments, the report
gives the nercentages Of business written 10
new business pernitted of each of the thirty-tour
companies. clearly indicating that only one Ne"
York company was by any possihntE aIIecteo oy
such limitation. and that had the law apPIeo 10
nor-stste conapanies doing business in New AorA
not one OF them would have been within striking
distance Of such limitation. It also may ne op-
served from the figures furnished that the New
York company thus perhaps affected by the amend
rrent IS the company which shows terr1llFa
tiors other than By death maturity in excess OF
S140n 0n000n
THE FRESH BLOOD" FALLACY-
The so-called fresh blood fallacy is also dis
c,Issed in the report. which concludes that II -
error TO suppose that fresh blood IS an inheTeh'
recessitv for the success of any well conducted lie
insurance company While ! normal growth in IN
surance in force is in most cases desirable. an in
stituon which cannot mature all the risks on lis
books without single fresh recruit IS r2athe-E2atl-
cay insovent- and car hope to save itself only by
infringing on the equitable rights Of future mem
bers-"
As Indicating the large increase in assets by the
New York companies. even since the investigation |
attention IS called TO the aggregated assets OF the
three largest IN 1sos. viz Sl5650o''7 an increase
rom 1915 Of up9-ard OF $I50G100. similarly there
has been 4 notable increase IN these three com
panies in the average percentage Of interest earned
10 interest required tc maintain reserves. the exact
figures being from approximately 1S4 per cent IN |
1905 1z3 per cent N 1905
But the figures most interesting TO poEcyho!oers |
ere those indicating great saving II expenses. the
report stating: There has been saving 70 policy
holders during the wear 1906 Of $ so in acquisi-
ton expenses end 81 $3.50 IN general management
expenses a lotal Of % 6S2odo what would have
been expended. other thIrgs being equal # the
limitations imposed BY the Neu- York insurance Law
had not existed" Of the last mentioned amount
more than 81 $4,000 represents savings in year
to polcvhoIders who are citizens OF New york
State
The report also discusses various criticisms which
have been aimed at the New York law because ot
It's alleged discrimination against home companies,
calling attention among other things. 70 the fact
that Section q. limiting thA expenses of new bust
ness mas always applied to both domestic and nom
state companies. and also that any discrimination
which existed SO far as standard policy forms are
concerned has been eliminated by the amendments
Of 1903. The report hopefully concludes:
It Is difficult 10 gainsay the excellent practical
results Of the insurance laws Of 1906, taken as
whole. The business Of life insurance has been
ourged Of much that was undesirable and to the
safety which has long been Characteristic OF IN
,rrance in the large New York companies has been
ldded prospect Of increasing economy and q N,
id "a 7be prsstigA Of hese institutions and greatly
oeneft the community whole
Superintendent Hotchtiss when asked today n
% had ANYTHING 10 say relative 70 the recent agta
ion. annarentlv directed against the limitations on
,er business prescribed bv Section as. pointed to
he figures Of the report indicating the examinations
If policies other than for death maturity and
erca-ked-
Companies which complain of restrictions should
zive more attention 10 their terminations Until
he sp,got hole gets smaller than the bung the
evel Of business force IS not likely to ino- ease