208 BUSINESS OF LIFE INSURANCE

uted by the existing members is, consequently, not taxed for the benefit of new entrants, as might otherwise be supposed, and the foresight of the management is made apparent. The benefit to existing members will be in the enhanced addition to their dividends resulting from the infusion of new lives and the corresponding diminution of the average death rate thereby. In presenting this matter to the public do not fall into the error of representing it as a dis, count, rebate or dividend in advance. No divi•, dend is ever declared or paid by the company in advance. No charge is made against the policy or policyholder for any part of the premium, and the whole of it is cash to the company with-out really doing so. * * * But for the constant introduction of new lives, as above stated, the dividends must necessarily decrease. It is, therefore, to the pecuniary interest of the existing policyholders, that their money should be used, within reasonable limit, for the constant procurement of new business. How this should be done is, however, a question in which they are deeply interested. Two methods have been followed by sound and trustworthy companies. One is to pay large commissions to agents to stimulate them to greater activity in soliciting. The other is to allow a portion of the premium to the applicant as an inducement to present himself for insurance. Both plans in combina-