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Les diagrammes suivants illustrent la mAthode. 1 2 3 32X 1 2 3 4 5 6 ^ ^^ LIFE ASSURANCE. ■# fits awaiting 12.537-63 itr <»i- mi; llnx, Ki.izri! \Vi!i<;iir, I.atk ixmI'|i.\n< k < AMiiiKTM. f Dominion Stock - - . . $50,000.00 " Shareholders ( Montreal Consolidated Fund - 2 [,200.00 ' . ' ' Reserve reqi^ir Debentures — Citv, Town. County, ) Township and Harbour - \ 354.656.75 and Profits t Claims under Mortgai;es on Real Estate Gas Company Stock Bills Receivable - . . . 293,264.95 3,040.00 1,643.68 - ■' i payment, (al Due Depositor Cash Profits u Loans on Policies - - . - 29,800.80 ' V • Re-assurance | " on Debentures and Stock 3,300.00 1 Savings' Bank A« count - - - 1,027.21 Real Estate I 16,192.19 1 Current int. accrued on Debentures - 10,123.47 884,249.05 , i 74,709.27 , 1,648.71 1 Surplus Fu> Deferred and half-credit Premiums secured Policies ------- 1 Office l''urniture- - - - - Cash on hand and in Bank - - 7.382.05 i Cash and Renewal Receipts in course mission by Af^entsand others, (and s of trans- | nee j)aid) \ I t on losses i 39.870.34 ■ < : 1 i 1 Deduct amf. lick' in reserve, continc^en ,007,859.42 •9.7I853 ' •' 988,140.89 Hi'.AI) OlIICK, llANril TON, ()\T.. N(")\ . I 869. Ihiinili Office for I. (K< th of this^ ue, and the everybody !Y-IIOLDER9 Companies order that idvantages g extracts will judge he case of from the 000, upon m interest generally of three, and not exceeding six per cent, per annum.** These unpaid notes sitice retired by payment to the makers of $100,000 in cash, out of the funds of the Company. The i^^tna Life, at same date, had a capital paid up of $60,G00 ; unpaid $89,i00. During the years 18') 2-07, the stockholders received an interest dividend of six per cent, per annum, amounting to $3,636 on $60,600, and a profit dividend of $169,368 including one and a half per cent, on participating premiums from September 1861, to January 1868, and in 1868 their stock was quoted at 550 per cent. Tlve TFitna's newspaper advertison:ents states that it is PURELY MUTUAL. Entire profits divided among policy-holders, S^c, S^c, while their Prospectus (see 1867) reads as follows: — It is a STOCK COMPANY, issuing policies upon the participating as well as non- participating plan, ft gives to the insured these advantages over ti purely Mutual {Company, Sfc, S^c. Judging from these counter state- ments, it would appear to bo a little " MfXKD." The Phceuix Mutual, at same date, with a paid up capital of only $16,000, divided among their stockholders six per cent, per annum on capital, and no less than $70,560 as proft dividend, between the years 1854 and 1867. , • •' With reference to the Atlantic Mutual, article 3, sec. 1, of its charter provitles that the corporate powers shall be vested in a board of trustees of not less than six nor more than nine persons, each to hold not less tlian ten shares of the capital stock, and a majority of these to be citizens of the State of New York. Respecting the return for the capital thus employed, article 5, section 2, provides that there shall be first paid to the stockholdijis within 30 days after the annual valuation, 7 per cent, upon the amount of the capital ; next, one-fifth of the surplus shall be placed to tlie credit of the stockholders every year, upon which one-fifth they are also to receive 7 per cent, interest annually. Then, out of the remaining four-fifths ii depo>it shall be reserved of $100,000 to be used upon the retirement of thecapi'at stock, after which the r< sidue (?) of the four-fifths shall bo placed to the credit of the policyholders, which credit shall be represented by scrip. Article 6, sec. 4, provides that the scrip and credit to policy-holders shall be exhausted iu the payment of the liabilities of the Company before the capital stock shall he impaired, and the scrip issued shall contain et provision to that effect, (ihat appears to bo truly mutual). Lastly,— — art. 6, sec. 1, — when the sum thus accumulating to the credit of stockliolders (interest being paid thereon all the while at 7 per cent.) shall equal the par value of the original stock, and there- appear to the satisfaction of the Superintendent of the Insurance Department, that 4her& is sufficient besides to provide for all other Tiabilities, the stock may be retired (but not until a law be passed for that purpose) hy paying the stockholders the amoimt thereof and the accumttlatiOH equal in amoimt to the original stock — that is to say, tTie stockholders receive all their stock back at par, interest thereon every yeiir at 7 per cent* until retired, interest upon the fund accumulating to th«r credit, and finally the fund itself, anK>unting to no less than KK) per cent, upon their money, or 14 per cent, interest on their original capital until its. retirement by payinent of double the money. Kvery dollar of this $10(),(K)0 has to be paid out of the prenuuins of the poKcy-hoMers^ who have likewise to pay 7 {>er cent, interest upon the money thu» eontributed by them, until withdrawn by legislative enactment. Of the Elquitable Life Assurance Society of New York, the Commissioners for Massachusetts, in their Reports, page 156^, say, " It is essentially a perpetual Slock Company, though by its constitution^ Hnder the general Act aforesaid, (Act 1853) its Directors may, by a three-fonrth vote, autiiorize policy-holders insnreil for fife to the amount of $5000, to vote personally, (not by proxy.) in the election of Dii-ectors, — owners of fivk si?a.kks or imire of CAprTAL stock^ only being eligible. The annual inten^t of ctipital is limited to seven per cent., and once in five years each jx>licv-holder is to be credited with an 'Equitable Share' of the surplus. — (Division now mad^ annually). The rest appears to be left to the shareholders." Compare the above with the assertion "That the 'Mutiuit' Corn- pan iis are conducted for the Ijenefit of the roucY iioldeus.'* Agjtin : — " Iftiv! t'hitrters ot^such stock convpnraes arc exHinuw*!, it will he fooni! that it is the cMpititl stock which U cai-ed tor iiixl protected, nixl thiit the sur|)lus fiiirds, or necest^iry iK'ciiin\ilntioii tor the protection of the risks wirrieil is 0TCr>liui>;FRHl ; th& money makers thus, in their anxiety to protect thcnksdves, wlwlly tUsrefrnnriiisr th& tru'y paiiunonitt rifihtsol tlie policy-holders — whkh shows the ulteriy sdfisb imtura of tiie scheme. "^ (I'«>?e 4.) " 'Y\Mi Stutc of New York ?bis pn>vi(le(l, since 1845), tlmt no Jifo rtxnpnny should 1)0 foniMMt in the State until a uminiutee ciipitnl of flOO.DOO should he put up hy the ])rom(>ters of the Contpimy ; hut this iimount «>t' ^iitinuvteo t'uiMl is only ilt*sin the $!()0,(i() is displaa'(l hy the insurance resene nccnmnlnted from the pn.Mniun>s naid by the innurcd; and in all well or„'ani7n.'dl CoinipiiiHeH the interest cmi tbo mock is limited to its own eaniiiigs." (Pujj^e 5.) It is a great pity to spoil a good story, but a reference to the exam.|)le of a " Mutual/' liaving its head quarters iu the very capital of the objectic j equal fd i and liii^ ', of the In 8ioners,| • by Cot not redj ,. belief Evel believe, profital Hot departn I " It Mutual panics, advaiitt "E\ site dan membe dividen of the Report So Th( "E; Mutual miums cent. Th quote( In Coinji on th — wli say u 1, \ •Vluti • I & appear to the apartment, that ittes, the stock at purpose) by mttlatton equal lolders receiv* at 7 per cent, wr credit, and 3er cent, upon *pital until it& dollar of thi» >o?icjr-IioMers^ e monej thus cttaent. w York, the ISe, s{»v, " It constitution^ ^ra may, hy a f Mfe to the 1 the electiott ITAL STOCK,. te(\ to seven ' be credited n i»ow niad'> lers." itiuif Cona- '■ fbanti that it f|)lus fiiiMls, or sliiUfjfitMt: th& srepucKiiy the- i>elfi!>K initure ifo ronipnny should he put CiirMl is only 'cry s«M>» tlie rorniiujw paid » thfo stock is nee to the rerjr capital of the State of New York, (see page 5,) will shew that the very objections urged against the Proprietary Companies applies with equal force to the so-called Mutual, and that the displacement of stock and limitation of interest exist only in the fertile and fanciful braia of the writer. In view of all this, it is well said by the Massachusetts Commis- sioners, "That the somewhat frequent adoption of the term 'Mutual' by Companies having a specific and permanent guarantee capital, and not redeemable at the pleasure of the assured, implies a well-grounded belief that the word has a pecuiiar charm with the public." Even purely Mutual Companies are not as some would have us believe, necessarily the best mannged, or the safest, or the moat profitable. Hon. Wm. Barnes, Superintendent of the New York Insurance department, says, in his report for 1868 : — "It does not always follow, as is sometimes supposed, that a purely Mutual Company is the most profitable to the insurer. Mixed Com- panies, or those substantially Mutual, may, by superior skill and other advantages, actually make the largest dividend of surplus." " Every Mutual Life Insurance Company is exposed to two oppo- site dangers, over accumulation on the one hand, by which the earlier members may be defrauded to enrich the later ones, and excessive diindends by which the earlier member-:, are benefitted to the injury of the later, and perhaps to the bankruptcy of the Company." — Mass. Reports, p. 1 4. So much for tht name " Mutual." The next observation calling for notice, is to effect that : — " Experience has fully demonstrated that the Annual Dividends in well managed Mutual Companies have been nearly or (piitc one-half, or 50 per cent, of the pre- miums paid, while Stock Companies reduce their premiums about 25 or 30 per cent, only." This last remark directly contradicts the allegation previously quoted, that "ALL the profits are divided among the stockholders." In treating of the question of Dividends, we shall note what a Company can do and what a Company cannot do, quoting authorities on tiie subject, and shewing — what old and successful Companies say, — what (xovernment authorities say, and — what Actuaries and others say upon the subject. ... :, , :. 1. What old and successful Companies say : — a We select as representatives of their class, two of the oldest purely ■Vlutual Insurance Companies in the United States, who have certainly 8 done as well by their policy-holders as any, (to say nothing of doing better.) ■,-,•(, '. •- >■ ■ '..' ■ ■ . :m j ..^ .. ,. .-. -^n- The New England Mutual, whose dividends paid to policy-holders exceed the amount of their death claims, remarks in a late annual report : — " It is not out of place at this time to reiterate what has often been alluded to in previous reports concerning the delusive anticipa- tions of large returns of surplus, or, as they are frequently mis-called, ' profits,' or ' dividends.' A Mutual Life Insurance Company returns to its members the over-payments that have been made; every member is charged with the risk he has run, and his proportion of the expense of conducting the business ; he is credited with his share of the gain upon mortality and per-centage of expenses, and the excess of interest which his funds — deducting cost of insurance — have realized, and this is all he can equitably claim. Our members will therefore see that no anticipations of enormous dividends, large profits, Sfc, can by the very nature of things be realized. To urge insurance upon any member of a community by means of promises which can never be fulfilled, is a gross fraud, — and the Directors of this Company request that if any Agent or Solicitor acting on their behalf, is found guilty of such a dereliction of duty, the fact may be brought to his notice that his services may be dispensed with. If Companies would combine to frown down this growing evil, less forfeitures would ensue, and the business done through Solicitors become more reputable, in some respects, than it now is." The Mutual Life of New York, the largest in America, says : — " The dividends of this Company are simply the restitution op SURPLUS PREMIUMS in the proportions overpaid by each person." In other words, if a person pays 100 dollars for a policy of Assurance, and it is found that 80 dollars will cover the risk, tlie surplus 20 dol- lars are restored to him. If it suit his fancy to suppose ho is getting 20 per cent, for his outlay of 100 dollars, no one has a right to com- plain of his arithmetic. There is " nobody hurt." 2. What Government authorities say : — The Hon. Elizur Wright, late Commissioner of Insurance for Massachusetts, delivers his opinion on this subject, under date of Ist June, 1807, as follows : — " If tables of mortality and arithmetical logic are worthy of any confidence, it cannot bo believed that even with moderate expenses, dividends as high as thirty per cent, can ho main- tained without int est higher than six per cent., or profits from forfeiture." '^ The s| geems to Bersons |et half tl| idvertisei fifty per c| done bt/ insolvent. been don< years ago,! ]||(is annual nothing. tcgal intei it is proba feceived ii ||remiums If others i Bttisappreh sinking ou 3. Wl The h compiled 1 true divid Insurance the gover Iwelvc of lion, and per cent., one to fo) INIr. D. «»The pro ;||ave died lost may 1 |iave bcMHi j|ilditloiis In all the Future m w clear th h life poll jhr or agi I *a»^ ■kf'^1>^4 '. %^*:' >*V.fe.i 9 •thing of doing policy-holders a late annual what has often usive anticipa- iitly mis-called, mpany returns every member of the expense re of the gain 3es8 of interest ilized, and this efore see that c, can by the ice upon any can never be opauy request Dund guilty of lis notice that Id combine to nsue, and the )le, in some rica, says : — riTUTION OF ach person." f Assurance, plus 20 dol- is getting ■ght to com- 9 II ranee for date of Ist netical loffic even with in he main- »rolits from The same authority, in his Massachusetts report, says : — *' There feems to be a constant effort on the part of many Companies to make Jersons who are solicited to take policies believe that they are sure to et half their premiums back again in the shape of dividends. Their idvertisements often unqualifiedly boast of, and promise dividends of fifty per cent, on the premiums paid. If such a thing had really been done by them, many of these Companies would now be hopelessly insolvent. They are, fortunately, quite otherwise. What has really been done is this : fifty per cent, of a premium paid three, four, or five years ago, is returned to the policy-holder who has persisted in paying liis annual premiums; to those who have in the meantime discontinued, nothing. Fifty per cent, payable at the end of four years, assuming tegal interest, is not quite forty per cent.; and when it comes to be paid, i% is probably forty per cent, of only about two-thirds of the premium received in the year to which it pertains, — that is, it is 26'66 of the l^remiums paid, and more than that may be returned to some member. If others are defrauded ! Why bring about both public and private Bttisapprehension, by ignoring time, which is money in this case, and •inking out of sight all who lose their dividends by discontinuance ?" 3. What Actuaries and writers on Insurance say : — The Insurance Monitor for November, 1869, publishes a chart compiled by an eminent actuary, Mr. D. P. Fackler, exhibiting the ta-ue dividend-paying ability of each of tlie forty-one Mutual Life Insurances Companies doing business in Massachusetts, computed by Ihe government standard adopted by that State, which shews that Iwelve of these, have no suri'lus, hut are labouring under a diminu- tion, and of the remainder the surplus varies from 1'73 to 3l'll per cent., and has been accumulating during periods varying from one to four years. IMr. DeGroot, Actuary of the United States Life Company, says : — • ** The profits of a Company arise in these ways. — fewer persoi»s may ||ave died than the number charged for in the net premium ; the money St may have been below the average ; a higher rate of interest may ave been realized than the calculations pre-supposed ; the marsinal ijdditioiis received during past ym^m^mmimm 10 Taking from the New York State reports the first two examph "-"Ohscrve of Companies doing business in Canada, we find the following figures'll"'^'"*^'','.''"" ■^ ® ' too qP^ n policy .XAMl-KE 1st. 2it»ti.»n .U Atlantic Mutual Ijife Assurance Company. Ip m/re fi\w Aggregate iimt. of Liabilities, includinjr paid-up stock to Dec. 31, 1868. .?n90,408.^N(^'^ *"•* <'''^''^'* " " all Assets, except future premiums 378,414.C 'Phe Cits Deficiency of Assets as compared with Liabilities $11 ,994.*re not so Example 2nd. ^ ■ Equitable Life Assurance Society. Aggregate amount of all Assets, except future premiums, of which $4,479,196.00 or 58% were received in 1868 $7,721, 077.(w4:„i, ,...»,^, Liabilities 7,009, ,389.r"'' Surplus $711,688.(1,, ^*flf>j^i,,s „ Total Picniium receipts for year ending Dec. 31, 1868, $4,479,196.00, shewing^^^^ thirdlv surplus for division among policy-holders of less than 16 per cent, on premiun^ received. mOTQ receii Judged by the Massachusetts st»ndard their position is as followM^'^ made to this \Hy\k k Propriot: (see lust Mass. reports.) Atlantic Mutual. Equitable. Cash Capital $110,000 $100,000 Cross Inconip 23.'),495 4,840,1 57 Gross Expenditures 128,403 2,538,018 Gross Assets 302,234 7,721,077 Gross Liabilities 378,414 7,370.149 928 ^"'' holdm'"'""'''"'^' ^""^''^ \ 76,180 350, ciency as regards stock J „„ ,2q Surplus as regards ) g,^ „j,g )lders ) '"■ stockholders ) ' Defi holden ties held in amount of t rAsiiiON an for the Soittt again. (S<: No won( which is th ilka re whtcl " The hu! •Qinnton. Ri The f )llowing e.vtracts are given as specimens of the reckless state ments pervading the whole: — Ae trusteoshi " III disastrous times, however, if such should come, the Company has a right t - Opinioni use the undivided siirplun premium to protect its obligations." (Page 3.) , Qnen/ — How can that be called surplus premium, which is requirei^ ' ' '} to protect the Company's obligations? States, bu " The interests of the policy-holders in the Afntnal Company arc thus fully prc^M\nkers ar tected, while a largo profit is earned for them." (Page 3.) Insurance. Large profit earned ! How ? by the use of the so-called surplus i!^ j,.,,st f„|, paying obligations ? Worthy? " In the Siod- fJotnpnnies, on the other hand, the premium is never reduced l'j claimed for thoin,) it is not easy to perceive what security beyond thei f reserves (hey have to fall back u[)on in disastrous times. Vff .v;?»!t^-:.#V-ri,:"«^;.f ,»i1i^.-jfai4a^ .* ■ »/*'' 11 rst two exampu ^ " Ohserve now the pt-nctioal workitjj; of the tivo systems : Mr. Ralph Pl'fcc, the followiiiff fitrures'il"'''*'"'-**'''*^"*' "* *''" " E(|uitiiblo Ijle," of Ijomlon, a purely Mntiml Coinpimy, *• " qpc a policy on his life for $5,000 ; at his duuth, his policy, with acciimiiliUcd pro- Jamountod to $25,000. On tlie other hand, a person who insnrcfl in a Stock itution at tlic same time, would l»ave left to tlie beneficiaries under his ])i>liey, mere faci> tlwireof, wliile the premiums which had been paid, with intererolicy, which would have also incireased bad he been insured in which » rietary one, but for the following reasons ho paid: First, - QQ,j ^QQ^Iligh rate of premiuni, in other words, he paid for a tar^rli/ increasing 9^icy. Secondly, the Compai.y in which be was insured conducted 'ttl affairs with econonny, and vras very successful in its investments^ r9,196.00, shewinpgii,^ jl^i,,,^!] ^^^^ chiefly, 5ee';«w he lived to ninetu-two year» of age, r cent, on jiremtun^ • -^ j ,f .' ;f B(|nre recently some of the older Life Companies in the United States tion is as followM^'^ made large profits out of their Civil War, by cancelling all poU- tifs held in the Southern Slates, tjuis I'elieving themselves of a large Eqnitahle. amount of their liabilities, the vaUie of which they distributed tontine 4^84o'n7 9A.^\\\0'!( among their Northern policy-holders. — but it was '■'• hard lines . 2,.')38,018 for the South" and they are not likely to meet with such a *' dividend '* 7,370:149 *«*'"• (Seepage 15.) 350 928 ^^ wonder Tontine dividends are large, the simple explanation of Is ) ifhicb is that those who hold on longest, get their own share* and a > 250 928 o ' o ^ > ' " linrc which is not their own. le reckless state ' '^^^^ business of Bankinj?, and the science of IJfo Insurance have nothing in common. Rankei-s and opcnitors in the Public Funds should not interuieddle in Ae trusteeship business of^Life Insurance."' (PaKf 5.) fKe'lIV* "^^^^ Opinions might differ as to the obje<;t or good taste of this remark, I'hich is reauirc!*''^ '^ pii|M>r viddressed " To the liankers and Capitalists of the United States," but it would l>etter servo the object in view to >how why are thus fully pnBankers are unfit to " internviddle irk the trusteeship busii»ess'* of Life lOsuranw. Is it meant that Bunkers are unfit to be the depositaries called surplus ii^ t,.„st f,„„i8 . jf ^o, why ? Who are more trusted, or more trust- worthy? If this is not meant, then what /s meant? If the wi iter had s never reduced li||4nsn|t(Hl the directories of Life rnsurrmce Companies, he would find r in the \\.\v of swM . , back in disastrou ft*i>kers in nearly all of thorn, four for example, ou the Hoard of the Ies illustrating the advantages to Policy-hoiders of the " Mutual " T W"^ ^^^ over the " Stock " Plan, from actual cases in Mutual Companies, taking o^^j^xwQ it a the respective premiums charged by each Company. .4|pulicy-lu ORDINARY LIFE POLICY. fljOiods uau " mutual" COMPANY. fl^e. If ll Cost of Insurance. fe, it IS clefl Age 31. Amount ^y.OOO ^^^^^ jj. 23 years in force. • ;/• . ^ . Annual Premium, $121. .50 "•*^-^ ^'^^^' Amount ©f Cash Value Additions 0|«USe, St Premiums _. .f, ,,, -T^i iM frolU llll P.iid. Dividends. dividends. *•» "" $2,794.50 $1,944.17 $4,068.25 a* not occ Amount of Premiums 3W paulO > paid $2,794.50 As the premises will be slieva increased Less casli value of divi- to be false, no comparison can 1»A man's dends 1,944.17 made, and the example of tifgcontaine Net cost of Insurance, $850.33 stock company is therefore us*. -. ,FT r. I- looQ Fersons a! tost 17 per cent on folicy. *^==- . , A , , f T -1 1 ifltively, sui Average cash value or divulena on .,, premium ".91 per cent. '*«>"«^*' '^'" Value of Policy in case of death, <|pe can be $9,068.25. Ilia, or rese * Future Premiums. a|liding obli Annual Premiums to be paid, l^^ater. T NOTHING. i^ers fores Present annual cash income, avail- f|K>8e expei able to the Policy-holder, increas- \^ pj^ge Qf ing every year-$48.60. IJte, these In other words the example of the Mutual Company may be statij|;^^|jj^t^ j^ \ as follows :— ti*kdily a su The person insure J at age .31, for .f 5,000 00 jj^ ^ ^^^^ Mas in 2.'} years |)iiid in prciniiuns $2,7'.)4 .50 But the Ca.sh value of liis dividends beiny. . 1,944 17 yj.and D, V\ Have rcduec 25 wLgq. L^ Upon which he has no more to pay. But this is not all : al;;:>)ugh oiiixilmore sii 54 years of age, hi.s money has purchased for iiim not only h paid-iinff|h facts, j policy for more than ten times its net cost, but in addition ati ji.niuity ti fe life, commencing with $48.60, and increasing every yea;', being (! M. begin with) nearly six per cent, upon the (alleged) net cjst of liinf * policy ! 1 ! :?fi,^;^?^ 13 '■ the " Mutual " /M-^^ statement is rather a good one, bat it may be of service to Companies^ takimj ofpnine it a little. Tlie reader will observe that if this were the case, »'p()l icy -holder would have had his surplus returned, in all the three lods named ; whereas, the truth is that he has the option of the e. If he receives his surplus in dividends or profits during his !#, it is clear he cannot have it in addition to his policy, — in \\V' anner if he take the benefit of an addition to his policy, he cannot 'mself receive the surplus which purchases, or exi\\i\G% him to that Olease, — so likewise, if his premiums have been sufRcient to exempt uoi from iurther payments and purchase an annuity, (though this last Mb not occur for many years, and only when high premiums have aen paid.) it is equally evident that ho cannot enjoy the advantage of lises will be shev^i i»t^reased policy, or early returns of surplus. It is simply an insult comparison can i) a man's understanding, to palm off upon him such statements as exam{)le of ti^igcontained in the foregoing figures. ' IS therefore us 1 fe & fe fersons assured must perceive that if they do not contribute, col- ifljively, such sums of money, as, with the accumulated compound iterest, will enable a Company to redeem its policies as they fall in, liire can be but one result,namely, failure. There wims^ ic a sufftcient iQd, or reserve, in possession of the Company to redeem these out- af^ding obligations, every one of which will become a claim sooner R^ater. The 18G8 report of the Massachusetts Insurance Commis- If^ers foreshadows the disasters which must arise to those Companies r&ose expenses absorb so large a portion of their cash receipts. In t^ case of the forty-four Companies doing business in New York »||te, these averaged in 1807, 28 per cent, of their entire income, my may be statij^ttijj^t it j^ oj,t ^^ tl,ei,. power to adopt a sound policy of funding tfUdily a sutticient sum year by year to meet these inevitable claims. .|If A receives an "immense profit," he does so at the expense of B, }|i,and D, who in like manner must partake in what does not belong ty-^hem, and so on until " De'il tak* the hindmost." ^There is no legenlftmain or supernatural power over money in anif JSc Assurance Company, to enable them to do such extraordinary l»gs. Let it be shewn hoto these results are aimed at, which will more satisfactory than the publication of fancy figures at variance ot oiil\ a paid-ii^fljji facts, although purporting to be ^^ actual examples." on ail iMuiiity fii f t 4 ^^ ""^ come to the " actual example " of an " endowment " lev : — |i5,000 00 4,0(5) 25 $9,()i Ural; iiough oiiij yea;'. I)eing ( net tMst of hi 14 ENDOWMENT INSURANCE, "MUTITAI." COMPANY. Endowment Payable at deatli or in 20 years. Age 35. Amount, $10,000 Annmtl Prrmiitm $456.10 Amount of ri'C'iniinns I'iiiil. Cfcuh Valii* of Dividends^ Additions fnini DividelKia, $9,122.00 $3,879.05 $G,777.1 Amount of Premiums paid,. $0,122.00 Less cash value of dividends 3,879.05 fSucli is Igear, at it jpareil \i| -a-duys,[ |t are als| I' 'eiults are See, alsd *GooD UeI •etnnis tluit 1)1 ynt oiliest Coi n^i'y puid td Net cost of Endowment,. $5,242.95 ^"J}"' " ''';' Per centage of Cost to amount of Endowment 52.42 per cent. jMn aciomi)!! WM })iv!)(lhli/ I A few lines will dispose oflhis "actual example." raots as n')) The pamjtlilet from which it is taken was published in 1868. Ap^^ o^ i,ai that (late there were not in the United Slates half a doxen Iindownienf^"^*"'P /'"" policies tioenly years old, and not onk o/ $10,000, and the stutement^e tliis with is a pttre invention— *" o«/_j^ that and nothing more" Endow mi Let us know where to find it, and there will be numbers foun(*'4'^™' -^ ^\'' COIJipilllK'S to anxious to take similar policies. sary reserve fi Tho following remarks will shew that such results never have been, and never can be attained, and it is the veriest nonsense, (not - ' to SUV worse,) on the part of an agent, to induce any policy-holder?^ ' ^ * . *i iih and wha to expect them. ^* The Mutual Life, of New York, which stands at the head of all Americin h-"^ ' Companies— -in giving ihc actual result of matured en- doivmpHi ">ilcies, sajt*, "A number of policies of this class having matured duriiiff the past year, (1866,) have been paid to the -. owners. Ihe sums so disbursed have proved a support for ad- j ^ vanced age, or the foundation fof successful business. The annual"^ Suppose (T say $50 licy) for ce. In preiuiuins which have been p'lid upon these policies could not have^ )licy so *1 1 1 been vevy burdensome to the individual, and it is fair to presume tliat. ^ ,' in soint! instances, those premiums would not have been saved in any™ '^ other way. When we add that the sums paid by the Company c(/ual^ the whole amount of premiums accwnnlated, at an average of nearly ^ * six per eeitt. componnd interest, besides the benefits of Life Insurance™. , . , * • f *u ^ ■ c £ ' . . r .1 • Ifithm thi for a series ot years, the argument in favour of an investment of tins £ tte loss kind, 'tssitrning that the experience of the future shall eoual that of (he W II . • •» 11 . • ui 1 i»»ual p past, appeals almost inevitably to every insurable person who can r «p;ue e\on a small sum from his annual income." .yments W^W- W'-'^^m^:'f^'' 15 fears. Additions from Dividetlila. $6,777.11 M 22.00 1,879.05 ,242.95 2.42 per cent. 5uch is the testimony of experience, which is, as will shortly iear, at least as favourable as is likely to be realized in the future. ipareil with the promises held out respecting endowment policies -a-days, which are to be not only self-sustaining after a few years, ft are also to yield an annual dividend in the meantime, these eiults are meagre and modest in the extreme. See, also, N. Y. Insurance Times, Dec, 1869. *GooD TJetorts. — Wc liave often rciul with grept sntisfiiction of the large riis that have l)ecn realized hy jjersonB holding E 'owiiKiit Policies in some of itff oldest Companies. They liave realized in some instunees 5 and even 6% on the ley paid to the CJonipany. We mean to say that the ( Vnnpany has aeted in a -folti capacity ; first, they have given insurance for nothing ; and secondly, they e as a saving's hank given .') or (>% interest on deposit, and paid hoth deposit ud^ interest at the maturity of the policy. ' This is admirahle, liut we hdieve seJ- Ifl^ accomplished. The ctrciimsfanctK which rendned such an achieveineut. possible „ I0W jirolxd'li/ )wirr he rmliscd tiyuin, and it would he unsafe, j)crliaps, to state such faQts as a jdcdge of future performances. We shall not iiavk another t ■ lara .SWfllTHEHN KIWIKLLIOX, and THEUEKOKE no more SLAL'GHTEIt OF THE 9UR- ' "' lODO. -^MtJS* OK LARGE NUMBERS OF SOUTHERN' POLICY-HOLDERS. We hdVe )I0 more hzen, J{ndoWnienfV'^'^'"fl }wlici»'e placing these observations in the hands of the reader, we y policv-holden*P® '^'*^ opportunity to add a few remarks as to what Life Assurance i|| and what may, and may not be expected from it. he head of -ill -^ Suppose a person, age 30, wishes to effect an assurance on his life, t of matured en-^ ^^^' $;3000. The company with whom he deals, give ' ' -a bond (or lis cla.ss h'lvirpJS^^'^^^ ^"' ^^'"^ amount payable at his death, whenever liitH' '»ay take t paid to tlfSp'*^^' ill order to enable them to do this, let it be borne in mind, Unnort for -i l.'l^* ^^'f'y *'<"*' be placed in funds for that purpose, in other words, Life s. The 'in II I i4«ssuiance costs the Company money. If he pay for this bond or could not IfivplP^'^y ^'^ ^'^"S '^^ ''® ^'^®' ^'^ ^^^ ^^ ^^^ ^"^^ ^ ^""^ every year as nresnme tli- 1 ^''' ^^'^'^'^ improved at interest, not only equal the amount of his n .saved in -u 5?*''^.V ^" '■^ given number of years, (called the expectancy of life, Como'inv e( I ^ ^^'^ average number of years which it has been ascertained persons of 'eraoe o? nei -I i ^ "=^^' ^^''' ''^^ — '" ^'"''' ^^^'^' ^^^^^^ ^^^ years), but a further sum, to Life Insiii'ii ^'^^'"''^'it'e toward his chances of dying, or to pay the death claims JstnuMit of tl ■ ^^'''''" *''^ period, otherwise the company would not only suffer fiial that nf th ^® ^^^^ occasioned by payment of the bond, but that of the .«^r».. ..,1 ibnual premium, payment which would cease at his death. If 1 son who can # ^ t j Hyments extend (not during life, but) for p. limited number of -i^^'Sp%: le years only, say from 10 to 30, or by a single payment, the calculation are adapted to meet the case ; the longer the period over which thi-j money is payable, the less will be the annual payment, but (if the lift l)e an average one) the greater amount will be paid in the lonj run. The reader will understand that whore the premiums are pait during the fewer years, the larger annual payment aided by tht greater amount of interest receivable upon it, compensate for tin shortness of the time through which it is paid, as compared with tht whole life. If an Endowment Policy is desired the bargain is a different one. In this case as distinguished from a simple life i»olicy, the money i? payable to the assured on a fixed day during his lifetime, or at his death, if before then, so that the company have to omit their long live* from the calculation altogether. For example, tlie same person, age 30, wishes to take out a policy payable to himself at 55 or to his heirs at his death, if sooner. It is obvious that his 55th birth-day is the latest day at which the company can be called upon for the money, besides which they run the risk of his dying at any intermediate time. Hence the increased premium payable on this class of policies, which are nevertheless considered among the most desirable, for in the case above noted, the holder would not only be 25 years older himself, but his children would be also 25 years older, and would probably be the less in need of this aid, while he might require it the more. These are the policies most in use at the present day. There are other forms, such as short term assurances, payable only if the assured die within a given time, generally from one to ten years, useful during their duration as collateral security ; survivorships, payable on the death of the first or second of two or three lives, applicable to part- nerships, whereby the capital of a deceased partner may be covered by the policy, without impairing the joint stock of a firm, &c., &c. Annuities are not much sought after in this country, being more adapted to a community like that of Great Britain, where small sums of money cannot be well invested, and where a low rate of inter- est prevails. It will be readily perceived that a Life Assurance Company thus constantly issuing policies, each and all of lohich will some day fall due, can only do so, by steadily funding its receipts and the interest derivable therefrom; hence the necessity of a large reserve fund, regularly increasing with the age of the company. For the same reason, it is clear that security being the first object sought, the vestmer rest onll to years der to mpanie^ jflter cent. JG^tendcntl EXI'ENSI llese steps least, iiii itras, in tf Ited comi ctcd fcsou entire re ■^ There tying the which an Answered, Is THl TIVE IN ■ Theet pf and ant " The 81 compared ^ half the car Insure mort d— docs no iierienccd h Klaxation expect the 4t' remainin * This [ IbUowing Dec. 18G ' Ejicess Srecedente( t deaths fi teems to I old man \ |ircumstan medical ex ^at in ma And that < mended as competent piiums rec Is n Quoting fl^48!#'*«!W69^^-'i!i!l'5^#^'#»''*'*''*-'***^^ it, the calculation I over which thi ut, but (if the lift paid in the lon< lemiums are paii ut aided by th( iipensate for tin 17 ivostments must be of that class which yield a moderate rate of in- (rest only. The great impetus given to Life Assurance business of Uo years, has in many cases, led to an extravagant expenditure in rder to obtain it, us will be seen by perusing the reports of various )mpanies whose expenditures, have in some cases, been as high as it cent, on their cash income, which is thus commented ou by Super- Expenses. — There arc to-day American Companies that have taken some of , ... iDtendent Barnes in his last report : — arapared with tlu Ipese steps on the road to financial ruin. Thu necessary reserves, are nominally is a different one. |^ least, maintained, but the wasteful commissions, heavy expenses, salaries and , . actras, in divers forms, advances to agents on mere {icrsonal securities on antici- icy, tne money u j^ted commissions, the dedaration of excessive dividends, based mainly on uncol- lifetime, or at hi> S^ted resources, the inordinate rates of uureixlized to realised assets, all need reform, .. ., • , ,. fir entire revolution. It tfieir long lives r ,„„„ ; There are other vital and vastly more important questions under- same person, age h i > rr j°. wing the practice of Life Assurance than " Mutual t'«. Stock?" 55th birtl 1 ' W^-^^^ ^^ intending policy holder will do well to have satisfactorily n for the mo7ey •^^'^^'^^^ ^^^^^'^ '■ itermediate time ^^ ^^^ Company known as being careful and conserva- f policies which ^^^ ^^ ^^^ selection of the lives assured? 3, for in the case ^'^^ effect of the growing laxity in this respect, was thus spoken der himself but 0^ ^"<^ anticipated in the United States as long ago as 18G4. probably be the " '^''^ standard of medical selection seems to have been somewhat lowered as compared with former years. ♦ « « Their is cither little more than half the carefulness of selection there was, or else the companies have concluded to insure more hazardous risks. The relaxation in the medical selection — if such it ]g — docs not seem to be confined to any particular company. The mortality ex- •erienccd in 1864, in the first year, is about that of Enj^lish offices, and with this ielaxation of the standard of selection, or admission of hazardous risks, we maj I jxpcct the mortality hereafter to approximate that of the Actuaries rate, instead payable on the of remaining as it now is, remarkably below it." ilicable to part- • This prediction has been too well fulfilled, as will be seen by the lay be covered lollowing extract from a prominent New York Insurance Journal, rm, &c., &G. Dec. 18G9 :— try, being more E::ce88ive Mortality. — Several of our life companies are realizing an un- where small Ifccedeuted mortality of their policy-holders this current year. Usually the number Ot deaths falls far below the number indicated by the experience tables. This year W rate of inter- ieems to be an exception, and the death claims come pouring in as though the old man with the scythe was having his year of plenty. How far this is due to iijircumstances beyond human control, and how far it is due to the inefficiency of Company thus laedical examiners, are questions of serious import. We have no doubt, however, 7 ^ ,. Viat in many cases improper relations between the examiner and the solicitor exist, ^"^ J<^li' gnd that doubtful cases, which ought in every instance to bo rejected, are recom- id the interest mended as in all respects fit subjects of life insurance. More money is lost by in- „ J competent or dishonest physicians than is paid for agents' commissions on pre- reserve tund, ^iums received. " ' more. lay. There are ly if the assured PS, useful during This leak ought to be stopped. Is it economical in the administration of its affairs? 5ct sought, the Quoting once more from the Mass. Reports of 1869 :— For the same I 18 It takes al)oat twice as much of the income to do the business as it did in 1858, or, stating it in another way, it the business had Ixscn done the last year as cheap!} as in 1858, it would have saved 96,000,000 to the i>oli(ry-hoIder8, — enough to make every dividend of surplus thoy received, more than nalt larger. To sec the tendency of this increase of expense, we must also observe that while the per ccntages of ex- pense have risen from ten and eleven per cent to eighteen and twenty per cent, respectively, the per centage o/aurpliu has fallen from its highest point of /orty-foar per cent, in 1862, to thirteen per cent, m 1868. A Life Insurance Com]>any has no power to coin money, and there is a limit to the enpacity of its premiums. It can- not spend ten cents more of each dollar of premium for expenses, without having ton cents less for its reserve or surplus. Somewhere it will tell with certain, if not fatal effect, — if nowhere else, in the promised dividend to the assured. If wo are to assume that the rate of expense of ten years ago was reasonable and must admit that some increase is unavoidable, we shall still stop considerably short of justifying as reasonable the spending on on averoge of twenty cents of every dol- lar of premium, note as well as cash, for expenses ; and the actual pritctice of some of the most successful companies, proves tnnt it is wholly unnecessary The cost at which business is conducted at the present time, is not fairly or mainly due to any real necessity. It grows directly or indirectly out of an almost desperate struggle and competition for foothold and growth, one of the main causes of which we shall notice presently ; and which have so pervaded and demoralized the whole business, that it is next to impossible for a company to grow at all, un- less it joins in the race with a reckless indifference to the cost or the consequence. The r(x;k on which so many companies have been wrecked in England and towards which some of our own are inevitably drifting, is extravagance. We set up the beacon of warning, and wait hopefully for the day when economy will be the shibboleth that speaks success, and surely wins the confidence of the public. Mean- time, if we are aslked to designate the companies most likely to fulfil tbc trusts com- mitted to them, we point, without a moment's hesitation, to those above all others which still retain this almost extinct virtue. Is IT CARSrUL TO BIAINTAIN ITS RESERVE UNIMPAIRED, AND OP WHAT CHARACTER ARE ITS ASSETS ? Once more, our attention is called to the significant remarks of the Massachusetts Commissioner, plainly indicating the danger into which some are drifltng. He says, page xvii.. Report 1869 : — " We should not only transgress our rule, but probably render a doubtful service, if we attempted to comment upon, or account for, the standing of particular companies as shown in these important Tables, and the rise or fall of their per centages from year to year. An in- spection of the Tables will show that twenty-one of the companies having a guaranteed capital, do not make good their reserve, without calling in a portion of the capital to make up the requisite amount of assets, — all but one of which have commenced business within five years, and fifteen ot them within three years. There is no company^ however, which does not, with the aid of its cash capital, now furnish the measure of security to its policy-holders which our law has pre- scribed ; our only fear need be in regard to its tendencies for the future, — whether the road it is travelling lies wholly within the domain of safety, or whether it leads outward and beyond Considered a» Mutual companies, or excluding capital from assets, fifteen out of forty- six companies of more than one years' standing show a larger per centage of surplus, and thirty-one a smaller per centage than the year before. Counting capital as assets, all but seven of them show » •ays :— " If t^ to pay th» himself tc 78, says :- meut." « We one of th its death extent o would nu good as express c A plain V to all tl notes as «tability as a gem its prein ■ reserve, cash con — Muss. The i class of basiness B,.;.'-3g[ 1* ^ssasitdid in I85ff, •8,— cno^uuh'to mak' t^*'*^'®'" P^*" rentage; and taking all companies together , the iurplui it To sec the tcndoncT V either case three and a half per cent, lower than the pretnotu year. per ccnutgcfl of ox- This, as we Bhall presently see, is a decline from still higher figures as pofiirof /*' 7°'" '^^ 8° funl'er back in the* Reports. It is obvious that this retrograde e ComiMny'haa n ^^^"^^^ continue much longer, without some of the companies touching premiums. It can- ^^ '' ^"^ water mark," above which with a fair margin, is the line of ics, without having tafety." with certain, if not -»-»/-^ 4i • ../.i « iurcd. NoTB CoMTANiKS. — A glancc at the composition of the assets of was reasonable and ^liese companies will suffice to show that not one of them could cents of eve'rydol- l^insure its risks with its cash or realised assets alone; yet many of lal practice of some |heir agents are in the constant practice of asserting that the notes taken icesaarjr The cost a. . * r *u • n i u • i i i- a a or mainly due to **'' P^*"' P*y™6nt of tbe premiums will always bo paid by dividends, almost desperate frhereas in order to cover their liabilities they would be compelled to ne main causes of ,. r -.^ m^ ^ , • d and demoraliied ^^^'^ t'ld* notes from Id to 75 per cent, of their amount. tlfcoiTsequence""' ^^ ^''®^® ^^^^^ ^^^ ^'**^- Coairaissioner in his Report in 1868, in England and •ays : — ^ojumiy^willbe t^' " If the policy-holder expects that he or his money, is not bound he public. Mean- ^^ pay these to the last cent, of principal and interest he simply allows Ifil tbo trusts com- himself to be deluded." Superintendent Barnes in his report 1868, p. e above all others 78, gays : — " These notcH are generally subject by charter to assess- ment." MPAiRED, AND u We are informed, and with some show of evidence, that at least one of the leading note companies is making a practice of paying all remarks of the its deaili clstims in full, with no deductions for notes except to the . ,. «xt(Mit of the interest accrued; and that another company, which w icn would make a poor show of assetts unless its notes were held to be as ■" good as cash for the payment of claims, is incorporating this as an bably render a express condition in some of its policic?. If this is true, it is not only ccount for, the * plain violation . txviii. law has pre- The following is the official statement of the proportion which this les jor the class of asMts, bears to the entire funds of the various companies doing in the domain u • . r. i Considered as *»"«'"e8s m Canada:— 1 out of forty- Atlantic Mutual 43.14 a larger per -^tna 69.22 han the year Connecticut Mutual 44.82 hem show a Pha;nix Mutual 59.80 Union Mutual 54.06 I 20 One of these, the ^tna, with a paid up capital of some $60,000 had in 1867, made cash loans of nearly $70,000 — of which its president figures for over $38,000, and other officers smaller sums, so that all the stock holders capital and 15 per cent, more has been held in their own hands and those of their friends. {'^Purely Mutual! J") Is IT FAIR AND UPRIGHT IN ITS DEALINGS WITH ITS CONSTITU- ENTS, AND IN ITS STATEMENTS TO THE PUBLIC ? Enough has already been advanced to show that in some quarters there has been more ingenuity than ingenuousness displayed in placing the merits of Life Assurance before the public, and while all refuse to permit their agents to predict the future "dividends " to be received, yet this is too often completely neutralized in practice. The Equit- able Life with great truth and force observes : — "Agents and compa- nies who are over-eager to obtain business, sometimes, even at the expense of the truth, promise such dividends as from tiio very nature of the case no company can ever pay and remain solvent. The public would do well to look a little deeper than this." These are some of the vital points to bo cons;idered, for it may well happen — and the present experience of many Companies is bear- ing unmistakable testimony to the fact — that the expenses which are now incurred in obtaining business, and the excessive mortality now prevailii)g, are fast impairing the dividend paying ability of even strong companies. An appropriate conclusion to these pages will be found in the language of the late Commissioner of Ma-sachusetts, who says : — "This literature of the Life Insurance Companies appears to us to need a strong infusion of frankness, to mako it worthy of the high position they occupy, and the humane principles on which they profess to be founded." Halifax, January, 1870. CAl i The CI V^on the ^vesting foreign fpcercises fie pror poard of of the O the best their soli The ta ts large ; Unqucsti profits, \ tution. to the G or perm policy-h selves ( taken f Wright, regard! 1 At3( of BOBt( Q )r mo Ijuted iome $60,000 had !' - m.-^l^o'ini'™! 1 ^^^A^A LIFE ASSURANCE COMPANY, ■ >ceii held in their t (Established 1847.) "'"«^''") CHIEF OFFICE, HAMILTON, ONTARIO, " ITS coNSTixu. ^ ^ j^^S^Y F.LA.&F.S.S.. IS/IANAQER. Ml some quarters _ ^hiyed in placing ^ . • while all refuse '^^^ Canada Life Assurance Company, has especial claims " to he received Hpo^ the public of the Provinces, being a Home Institution, te. The Equit- Investing its monies in the Dominion, while the receipts of nts and compa- Foreign Companies are withdrawn from circulation here. It es, even at the cpcercises a wholesome scrutiny in the selection of its risks, and the \ovy nature tile proportion of expenses is constantly diminishing. The lit. The puhlic ||oard of Directors have a personal interest in the well being of the Company, and its management is modelled on that of e< , or It may ^jjg ^jgg^ Scottish offices, which have a world wide fame for M^sthh^''*''" *h<^i'- solidity and thrift. (. are -j,^^ tables are computed with a view of giving the assured mortality now , ,. .. ., , l^jlj , as large a policy as is consistent with sound management and Unquestionable security, and the returns of surplus by way of j found in tl Profits, will, it is believed, compare favourably with any insti- . who says: tution. Annual returns are and always have been furnished •fiars to U8 to to the Government. No agent of this company is authorized y of the high ^^ permitted to promise or predict its future returns to its ^h they profess policy-holders, but the public will be able to judge for them- selves of its position, by the statement subjoined, which is taken from a valuation of its policies by the Hon, Elizur Wright, of Boston, and computed upon its net premiums, dis- regarding the loading. At 30th APRIL LAST the net valuation by Hon. Elizur Wright, Of Bostou, shov^ed a divisible Profit Surplus of $181,790. ** -^ ASSETS, $988,141 LIABILITIES 806,351 SURPLUS, $181,790 r more than a year's premium income, which will be distri- uted in 1870, with the addition of another year's surplus. ""^fillll / ^^^ representatives of its policy-holders, over $600,000 by way death claims. 22 ^reitnot oil Its constantly increasing business bears witness to the con.^* Tbleti al fidence reposed in it by the public of Canada, and it has arn^ rtn)ort aiul ved at the satisfactory condition of being able to liquidate it*^ death claims from its receipts on account of interest alone. The Canada Life Company has already distributed to thonitter ofsou The aim of the Company is to afford every advantage t(ie|Bi a pixssinj the assured, to accomplish the end of life assurance, not thc^'^^^^j^^J least of which, in a life-long contract, is — that of beinog^r. Eiizur enabled, in case of need, to keep his policy afloat by means oiS^actcr, wo a loan, so that even if in ill health, he is not under the neces-^sHjt 8^'| sity of surrendering his policy to the Company for its cash orertlSrciy disiy paid up value, as he would be obliged to do in Foreign Com- ^^^gs "from panics. . fordistriimti. T -ITT »rAT.TTXT/-i TtBTy largely J. W. MARLING, jwiy there CJ -General Agent for Lower Provinces. -^^^ opuorti Office : — 25 Prince Bt. IIalipax, N. S. OPINIONS OF THE PRESS. "TiiK Canada Life. — The report of the niroctors of this Company, which will be foiii\(l in another column, presents many features of a very satisfactory character; indeed, wc think that a greater degree of JHl)ilancc than the nianagenioni tlioiight (it to cxhiltit miylit have heen indulged in witli perfect propriety. Wc are not prepared to go into ecstasies over success, hut we are ever ready t(j do it justice. Tl"j husincss of the company has lu-cn steaer of lapsed policies appears to l)e small. Notwithstanding the com|tetition which exists here and the compara- tively limited field for operations, the (^miida I'as every reason tocongratulatt! it.sclf on the results it has achieved, owing no doubt to the zeal of its agents and the a!iility of its Manager. As a Canadian Company we wish it the greatest possible »ucees8, 'Canada of this Comi tory to all ct Company fo interest on I Out of this I become payi applied to ^Bd the larg if pollcy-hc Oaaee from t ji6 1,300) V jPermanent fter payinj c perman As a ne.t Sny is ra] e year ju ibat, thouj lliatter of Assurance " Vxsf aaadc to tl ' exl bes I Numerous Mfying e: ftirnisnes jisr- \^m .Hfi' 23 ire it not out of place to make invidious comparisons, we might show considerahle ft would ti'iiil to the advantage of the Canada, but as its agents are, doubtless, Py able aid willing to do it themselves, wo merely indicate the salient features of report iiiid express our confidence in the soundness of the Company." — Mone- Times. ness to the cod and it has arrii to liquidate it terest alone, ributed to thi, ),ooo by way c™ "Canaim Life Assukance — Amidst this uncertainty and distrust. It is a Itter of .some importance to have a clear idea of the standing and stability of the ices we hiiM' among ourselves. We cannot allow the public mind to be in doubt Kn facts aic at hand every wiiy calculated to inspire confidence ; and very oppor- tiMiely at tlie present moment a report has come into our hands respecting the advinf^cr .Canada Life Assurance Company, which is highly satisfactory, and to which at dncage [(lajiet a passing allusion should be made. The Directors of this Company hn,ve irance, not th(*H?'^"''"^^y '^^'^" anxious to satisfy both themselves and the public as to its stability ,, 'r V . atiG siifcty. With this view, they placed the accounts of the Company in the hands -tnat Oi beinfollMr. Elizur Wright, of Hoston, late Insurance Commissioner for the State of 'it bv means .Muswachusctts, whose entire independence of the Company, and high proff'ssional ■^ ^character, would give the greatest weight to any opinion he might ouer. Mr. ider the neces-^*''f?'''' '^ ''cems, has made a careful valuation of every policy and annuity obliga- for "t- K ^^ of the Company, basing his calculations upon the net or pure premiums only. Its cash OrettHroly disregarding as a source of income the margin or loading tor expenses. As KoreioTl Com *^result of .such a severe examination, he reports a most satisfactory condition of ** tkings, from which it is shown that the Company has large surplus funds available , fiwr distribution as profit next year, along with what this year may add to it. This i« highly gratifying to the Directors of the Company themselves, and must tend TIT Tvrp TWy largely to increase the confidence of the public at large. With such a Com- AVljliN Lr, P»ny there can be little risk ; on the other hand there is the prospect of great \ower Prmntk/^i, *4viiiitagc, The publication of Mr. Wright's judgment at the present moment is ttiumcet ^^^ opportune.— i7a»u7' », ./►■ 1 •»-•;■ '. ■ SBssse MllMffil l File ^sjggasiffi^msii^^ V ^xjm^ .'r ^ L-^ MFj^^^^^^fe^'^^l^^'*^^^^^^'