REPORT.
The Directors of the Mutual Benefit Life Insurance Company present the following as their .Fifth Annual Report to the members. It is with much satisfaction they submit the statements which show the Company in so prosperous a condition.
The past has been a year of much apprehension on account of the epidemic which has scourged the land, and the general mortality has been greater than any year since the existence of the Company. We
have, notwithstanding, promptly met all our liafor losses, without, drawing on our permanent or invested funds, both of which have been largely in-creased (luring the year. Much time and attention have been given to perfect our system of business—the whole Company has been more thoroughly organized, and we can recommend it with increased confidence to the members and the community at large. When the Company was organized, Life Insurance was comparaa new subject in this country. The Mutual principle had not been thoroughly tried or its merits developed. When we issued our proposals and stated our plan of operations, many doubted its success, and
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'others openly opposed it. For nearly five years, incluthe last cholera year, we have steadily pursued our course without encountering those disasters which inteopponents so confidently predicted, and the Comnow stands before the public acknowledged to be one of the safest, and most equitable institutions of the kind in the country.
The secret of this success is to he found in the fact that those who have managed the business have been so industrious in protecting the interests of the Company, so prompt to correct errors that might occur, so thorimbued with the mutuality of our system and their accountability to the members, that they have avoided threatened dangers and protected themselves from errors into which others less cautious have f lien.
During the past year our system has been carefully examined, and a rigid scrutiny instituted into all our business, under the direction of the best mathematical talent that could be procured iii the country. Every transaction of the Company from its organization to the present time, has been examined and accurately calculated. The result has been to prove that the business has been so conducted, and our calculations so made, as to secure the Company against every possible conWe have the satisfaction of knowing that we have the means of meeting every obligation in the payment of losses as they occur, and of dividends deto the members.
As an earnest of this, the Directors, having paid the
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losses that have occurred and defrayed all expenses of the Company, have declared a dividend of thirty per cent. on the business of the year ending January 1st, 1849, payable with interest; and having calculated the value of' every policy existing in the Company and laid aside the aggregate amount thereof as a reserve fund ; having also reserved the sum of $200,000 of declared profits, as required by our By-laws ; they commence the pre-sent year by ordering the payment of the First and Second dividends, being those declared in 1847 and 1848. Those members holding scrip are to be paid on and after March 1st, 1850, the interest ceasing at that date. Those whose dividends have been placed to their credit are to receive the amount with the interest by a credit on their notes as they mature, on and after Jan'y 1st, 1850, or if the notes are paid in full they receive the dividends in cash. In adopting this measure the Directors have proceeded with great caution. It has been with the assurance that we have fully provided for the future wants of the Company by the ample reserve fund we have created, that we have come to this concluWe have been anxious to do what is right rather than what would be popular.
We declare dividends only on what we know to be the actual earnings of the Company ; we declare them only after we have reserved a sum sufficient according to the tables to meet all our obligations and policies out-standing ; and when according to our rules they become
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due, we promptly redeem our pledges and pay them to the members.
The assets now held by the Company, and secured as by statement annexed, amount to $935,994 96.
The dividend statement made to January 1st,1849, shows the invested reserve fund to that date to be $376,320 14; a larger reserve, we can confidently say, than that of any other Company in the country, with the same number of policies having the same time to run.
The cash investments, as will be seen by the statement now amount to $315,075 15.
Retaining on hand the reserve fund above named, with the .addition of the $200,000 of declared profits we now find ourselves able to declare the dividend above referred to on the business; of 1848, and also to pay off the two first dividends, thus redeeming the pledges given in the first years of the Company's existence, and provto the members that we have not held " the word of promise to the ear and broke it to the sense."
For a more particular statement of the financial conof the Company, reference is made to the statehereto annexed. The Directors have had conin view, the fact that much of our future success would depend on a rigid economy in every department of the Company. They feel in reviewing the business of the year, the greatest satisfaction in stating, that while other Companies, whose affairs are considered as care-fully managed, have allowed their expenses to amount to from twelve to twenty-five per cent. on their receipts,
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our business has been so conducted, that notwithstanding some extraordinary items of expense during the last year, the whole of our expenditures of every kind, insalaries, rent, commissions, taxes on agencies, physicians' fees, &c., have amounted to but a fraction over nine per cent, an amount far below that provided for by our calculations, and unprecedented in the history of Life Insurance Companies. Much interest has been expressed as to the effects of our plan of allowing memwho desire it to pay 50 per cent. of their premium in notes drawing interest, and payable one year from date. The Directors have given particular attention to that subject during the last year, and they can now state that although in some cases the practice may become onerous on members, if they allow their notes to accuby annual additions of premiums, yet the Company is perfectly safe ; the amount due is secured by the value of the policy, and the dividends declared, which in such cases always remain with the Company as secufor the ultimate payment of the note.
While however, we believe the Company is always secured, a regard for the interests of the insured induces us to say, that the notes of parties will if allowed to accumulate,, amount in time to very considerable sum, and the insured may find it to their interest to lessen their amount, by reducing their payments of premium nearer a cash basis.
In this view of the case, the Directors have earnestly looked for the period, which has now arrived, when
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according to our rules, the dividends declared could be appropriated as the notes came due in reduction of their amount—while the privilege of paying one half of the premium by note, is in a majority of cases a valuable one to the parties insured, yet, it may not be advisable for them to continue to employ that privilege for too long a time. By keeping the note down to a sum equal to the dividends declared, the full amount of the policy would always be realized.
It must be gratifying to the members, to know that the success which has attended us hitherto, has not been accidental, but has been the legitimate result of the faithful working out of our own system—a careful attento our business—an increasing knowledge of the subject of Life Insurance—well digested plans for con-ducting the business—the most conservative rules in selecting risks—a rigid adherence to every principle which would protect us against danger and loss—added to all this, the thoroughness with which the mutual prinis incorporated in our whole system—the fairness with which every member's interest is protected—our carefully provided reserve fund, and our profits annudeclared to the members—these are the things which have placed our Company beyond the reach of suspicion or the fear of competition, and by the past, furnished the members with the best guarantee for the future.
Our system as it exists at present, we believe, affords the true benefits which should be derived from a well
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conducted organization for Life Insurance on mutual principles, a brief examination will show this assertion to be fact. The principles on which the business of the Company is transacted, will be seen by the following synopsis of its charter and by-laws, and the tables annexed.
The Company will make Insurance on lives at such rates, and for such periods of time, as are specified in the tables ; and may make extra charges of premium for sea and increased climate risks ; they also will make any other contracts, involving the duration of life.
1st. Married women may insure the lives of their husbands, secure from any demands of their creditors, if the premium does not exceed $300 per annum.
2d. Creditors may insure their debtors, or debtors themselves, for the protection of creditors.
3d. The profits of the Company having reached the limits prescribed by the Directors, they have extended the risk on a single life, to an amount not exceeding $10,000.
4th. Persons proposing for Insurance must fill and sign the application blanks furnished by the Company, and the party to be insured must be examined by a medical examiner of the Company.
5th. Parties insured at the table-rates of premium are not to pass south of the southern line of Virginia and Kentucky, or west of the settlements on the wesbank of the Mississippi River, between the first day of July and the first day of November without a
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permit from the Company ; but may reside north of the southern line named, either in the United States or Northern British Provinces.
6th. Parties insured are permitted to travel on any of the regular mail-routes, or on any of the upper lakes, by steamboat, or other common mode of conveyance.
7th. Premiums, on policies for the duration of life, if over fifty dollars per annum, may be paid as fol:—One-half in cash, and .one-half in a satisfactory note, at twelve months, bearing interest at six per cent. per annum.
Premiums, on all policies for a less period than the duration of life, must be paid in each, and do not participate in profits.
Parties who prefer, may settle their premiums by monthly or quarterly instalments, in cash, at rates specified in the tables.
Clergymen insuring for life for one thousand dollars or more, by paying one-half the annual premium in cash, may give their notes for the balance,'subject to the provisions above mentioned.
8th. Payment of such per centage on notes due for premium, as may be ordered by the Directors, will be required when they fall due ; the balance of the old note may then be merged in the new premium-note.—All notes are subject to assessments payable sixty days after notification, if deemed necessary, according to the provisions of the charter.
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9th. The party to whom a policy is transferred, must sign the note taken for premium on the same.
10th. A party neglecting to settle his annual pre; to pay the per centage, when called for by the Company, within thirty days after it is due ; or paying assessments within the sixty days specified in the char-ter ; or refusing to give satisfactory security upon the note ; forfeits the interest he has in the policy. Also, in case the party shall exceed the limits prescribed in the policy for residence ; or shall go upon the seas without the written consent of this Company ; or shall die by the hands of justice, or in an attempt to violate any law of the country where he may happen to be, or in a duel, or by reason of intemperance from the use of intoxicating liquors, or by his own hands ; or if the party enters into any military or naval service without per-mission ; he forfeits his policy, all moneys paid,, and all profits due thereon.
If the premium is paid within 30 days after it is due, (the party taking the risk of death, and of being in sound health duping the said 30 days,) the policy will be rewithout extra charge.
11th. Within thirty days from the first of January, in each year, a statement of the affairs of the Company, and an annual division of profits, will be made ; when all policies for the duration of life which have been renewed prior to said dividend, and then in force, shall have their per centage of profits carried to their credit.
12th. All parties insured, who have paid their pre-
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miums in full, upon which a dividend has been declared, may receive the scrip of the Company for such profits. Those who renew their notes will be credited with their proportion of profits. In case of the death of any memthe amount then standing to his or her credit shall be paid over to the representatives or assigns of said party, in the Company's scrip ; or it may be adjusted by the appropriate committee, under the powers with which they are invested.
13th. When the nett profits of the Company existing in cash or cash investments, amount to .$200,000, the excess may be applied towards the payment of divigiving priority to the 'first declared : but said amount of $200,000 must be kept entire, in addition to the accumulating and re-insurance funds. . Parties may borrow two-thirds of the amount of the scrip, at any time, provided they are not indebted in anywise for premium.
Should it be desirable at any time for a person to sell his policy when it is for the duration of life, the Comwill purchase the same at its equitable value, or they will grant a new policy whose present worth is the same as the one surrendered, securing the party without any further payment of premium an equitable sum at death.
14th. All claims for insurance will be paid within ninety days after satisfactory evidence of the death of the party is exhibited and approved; all indebtedness to the Company upon said policy to be deducted.
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15th. The election for directors is annual; and all who hold policies are entitled to vote at such election, in proportion to the amount of their interest.
16th. The strictest guard is placed on the officers ; and a succession of checks is put on all the business of the Company : its interests are watched with the most jealous care by the board, and committees appointed to attend to each branch in its details. The funds of the Company are invested in first Bonds and Mortgages on real estate, in the States of New Jersey and New York, worth at least twice the amount loaned, or in Stocks or other securities of the United States, in Stocks of the States of New Jersey and New York, or Cities of said States, or in Stocks of the City of Boston, and State of Massachusetts.
With the evidence already furnished of the manner in which the affairs of the Company are conducted, it can need no argument to induce such as desire-to effect Insurance on their lives, to embrace without delay the desirable terms offered by this Company. If arguments were needed, they could be drawn from the history of this Institution alone. It is within our knowledge., that numbers who contemplated providing for their families in this manner, delayed the matter until some unexmoment death overtook, and cut them down with this important duty unfulfilled.
Of the large sum of $388,611, which this Company has paid in losses, scarcely a case has occurred in which the amount of the policy has not been the all which a
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bereaved widow or the helpless infants of the deceased had to rely on for maintenance, education or sup-port. Aside from the benefits derived by honest deb-tors from an Insurance on their lives, it is surprising how large an amount of comfort may be realized from one institution of this kind alone, in relieving those whom death has deprived of their protector and support, Such as disregard the sacredness of meeting their just pecuniary liabilities, and the disgrace which attends the winding up of an insolvent estate—the too frequent result of a sudden death—such as care not for the widows and orphans, their death may throw on the charities of an unfeeling world—such may pass by and neglect the advantages offered them by Life Insurance. Bat surely all who desire to leave behind them that good name, which is " more to be desired than much riches," and those who desire to " provide for their own household" will avail themselves of this beneficent plan, which will in no small degree lessen the anxieties of a dying hour, and smooth their passage to that "bourne from whence no traveller returns."