Show PREST TYREE SPEAKS I IL L ON LIFE INSURANCE I Tuesday evening In San Fran Francisco cisco at a I reception held helt to celebrate the opening I of ot un of the Life Insurance and 1111 Investment com company pany Ial President Tyree rel W V 8 S McCornick nick lk F 1 c Jensen J Ml 11 member of ot the directory were In attendance Following IH III a n report of ot President Plc Tyrees speech Il c h on tho ola On behalf of tin the director of ot the Life e and Investment Company I welcome you Oll to this reception rc given on III tho occasion of tho establishing e a n g In III this city elt The of ot cuch puch a Il u II you OU well know kno Is I to meet socially lint and get better acquainted with each other Wo We Invited 1 the of ot and directors the In San iian and the agent who havu ben been working In this territory and those have he recently hero to connect with the thc company In this field fieldI l lI I wish to thin evening some Orne re remarks roo marks upon n the t Tile The Contin Continental Lite Why Wh Organized anti and for Does Doell It Stand but HO J I would lo 10 offer some comments upon the subject of ot life Insurance In general which will probably piove of lit Interest lint and will furnish Mime rea reasons sons OIlS why we wu met meet thin evening as l pec Interested In the tho success of ot this new company The Insurance department of the state of or New York Il d In 1859 At that time 11 of ot the leading companies companell of or the United States had In force Corce of ot Insurance a of and a 1111 surplus ot o On Dec 31 last 42 companies making report to this department showed In Insurance In force toree of ot over oer of ot more mOle than OO and surplus of ot over The Tho In Increase crease of ot the assets of ot companies dur during ing Iliff this period was per cent and ami the Increase In III surplus nearly per cent To 10 Rive he you an Idea of or thin as compared with other lines of ot say III that Increase in the ns ets of ot nil all thu tho rail railroads roads In III the United States during tho mime period only 1100 per Iler cent and the entire material wealth of or the United during the tho same period had Increased to only about per percent cent Tho lh percentage of ot e of ot life Insurance this period lias hua been 10 times time greater that of or our rail reads and 20 times greater grenter than that of ot the material wealth of or the country There hun not been blen a II single Ringle failure of ot nn old line Insurance company dur during lug ing the pat past 10 years but according to the Ilia of ot the commercial agencies there ther have hIL been beell more thun commercial failures with lia la liabilities of oC over oel there bus hus bf n luring tile trie came period mor thui lOCO bank allure in the United with of over WO und more thun railroad receiverships In Involving 1 2000 miles of ot railroad and stock and bond Issues of ot more mOle than These statements statement lire are given you ou to show that we 0 are uru interested In a 11 Hn of or business that thul I Is the no Test amI I managed with moro more care than any other of ot the large lurge business enterpriser In organized society This statement Is of t special Import Importance Inc ance In view of the fact that the tho public mind Is In danger of ot beng ben grossly mis misled led In the opinion it U 14 forming of ot life lIro lit It Is true and always will willbo bo as liS long nit human Is what It t l that the of ot tho thu bust bustness ness nes has not been that the recent t ent Investigations and 1111 clo Ure In connection with the tho larga lare companies have hae shown good for fol severe criticism there Is no disposition In In quarter 1 FO 0 nn ilK 1 I know to shield sh I 1111 the persons guilty guilt of or these theae offenses but as ns a are re suit ault of ot these Investigations I J prophesy y that there will not be Le one reech receiver er appointed for any life Insurance com company pany You will agree that It Is IK much better to lo have hae nn Investigator than thon a I receiver We e must t not then allow allOi our ourselves ourselves selves because of ot the tho disclosures that t have havo been made of lit Individual short und and of ot certain practices which cannot cn meet with approval to tn condemn without reserve the most beneficent In Institution In society Let UJ keep clearly clearl In mind this distinction that It Is not the subject of ot life lite In urance that Is 11 being Investigated Int or la Is laon Ison on trial but the tho misdeeds of Indi IntI Individuals connected with the tho Institutions During the recent period of ot ln In and public comment much has been Mid that was waR good and much more lias hus been Leen said that was wa had hod There are those who desire to take Ilke ad of or the situation to bring them themselves selves selvo before the public In III magazines an l newspaper and pose n ns authorities ties on life Insurance Careful read ing of ot many man of ot these articles by any anyone one ut all familiar with the Hie subject will disclose a u vast amount of ot Ignorance Ignorance ance I make these remarks not with any desire to shield what was wrong In the conduct of 01 these thue companies but butto butto to cull call attention to tu the fact that the presH various state legislatures and likely to go to the other extreme I think that out of ot all these dl will certainly come although for tor the time being a u great t deal of or damage has been done on ac nc account count of or the sweeping criticism raus Ing tK the surrender of ot many policies In hI nearly every company doing business at It the present time Ther Is I a great difference between tearing down und building up W have nil ull noticed that when any nil truc structure I ture a building for tor example Is III torn lorn down any an ordinary workmen may be employed to 10 do the greater of It 1 but when I u II building 1 9 to tobo tobo bo constructed men experienced In III their work lire required It ItIs Is III very er easy to criticize but much more mort to suggest n a remedy The remarks apply to director and stockholders In individual companies us 11 well as all to the public attitude toward the ct of ot life Insurance In general There Thore Is n 1 distinction between con conducting ducting the business of ot n II life Insurance company and that thit of ot u 0 savings bank with which It I often compared or I with that of at commercial banking In Inthe Inthe n i the case of ot a 1 JI hank bank no particular effort Is Id made to c I t deposits depo except by b ordinary Ing In rn fact It II I considered bud taste upon the of Dt bank to di directly solicit business The depositors bring their money to the thc bank all 1111 they expect Is IR the tho return of ot tho money to together ether gether with a Il stipulated amount of ot In Interest terest lerest nt at a n time Tho life lito I Insurance company proposes to do eto quite I a II different thing for Its depositor depo or I Hir In mind that nil forms of ot policies have 1110 a 1 date data of ot ma maturity I just the same ns liS deposits In n II savings bank but the th Insurance com I In to paying the tho amount of or deposits with the ordinary rote rate of ot Interest of ot the savings bank nt stipulated periods agrees to pay a guaran guaranteed teed amount upon the death of ot the Th essential feature of ot nn Insurance contract Is the tho provision for tor torn forn n stated amount to be paid In the event of or the tho of ot the depositor or lit t certain other designated de periods mentioned In the tho contract Human nature is la that hut but few men will make for tor the tho maintenance of ot those thoM dependent nl upon them their death without being urged to todo do 0 so Q by some one soliciting the busi nn It 11 la l not so with material things that they the are Me handling from tiny day to tu today tutla day such Ruch us lIa the protection of ot build buildings ings InsH live stock grain lIel h and other by hy lire insurance or 01 even eln the th provision of ot milking deposits of or cash Ilish cashIn In Lanky bunks for Cor earnings A life Insurance company cannot i without th solicitor A In u 11 recent article that to conduct tho of life successfully requires neither energy nor Initiative 1101 Probably ably the most of ot you IU If It nut lIot nil all ard II Insured InBur I should like to It have each ench one of or you yourself If It you would be bo carrying the tho policies you now have had It nut been for tor the and Ini Initiative of or the agents who secured your our applications 11 till It must II st have oc uc occurred c to you OU that back of ot tho tl there thero was energy to tu help hel keep kr IJ Him nt work Initiative that brought out tl the modern mOllem contract that you buy to J Theo The work of ot the lire life insurance ng nl l Is a 1 high hl h because he compel men to provide for Cor their own thoy tho uri uro and gone 1 I know ot no other work in men melt arc now noli engaged hut IK more commendable and I think there thero is nn more lure u citizen than the who gives Ives up hi hl life to tn in men to do their duties to their families 1 speak of or the tho work of or the from till the fact that Home critics of or American lire life Insurance companies state that the h companies do donot donut nut not and nn therefore conduct their s 1 with less leall ex expenses 0 fillet with better results result to tho public I 1 wish wl h to tn emphasize lz thi th fact that If Ir life lit Insurance U u II Institution then the tho more people that can be Induced to ll service thin institution gives KIes to human humanity ity I 1 ft ay emphatically that ll the mistaken that hue been made the tho American Life Ilfe companion have hae been beon lire arc the which have hao done dOllo more molo good to tho masks maSIa of the tho people of or tin United lilted States than nil other lither financial organ I Tho extent to which life lito Insurance would bo be taken without agents may be he Inferred In tn the of the old Society of Lon 1011 London don organised In 1762 whole business s conducted without agents for a tL period of ot years It hUll Insurance ut at the present time of o about not much more than one of or your our small California companies which ban been li 11 existence only on five 1111 years and not any more than thon the Continental Life expects to have hll ve upon u lon Its books within the next two years There Is another phase of or the sub suh subject which I wish to mention und Is the tho criticism by b the tha public of ot the mst amount of ot assets and the surplus earnings accumulated by hr life Insurance Insurance ance companies They The forget Coret that the liabilities Increase In proportion to tha tho thon assets n and a surplus In a life In Insurance Burance company IH absolutely oh uary on account of ot the nature of or the contracts made with policy holders These contracts do not mature as liS n a arule rule for tor a 11 term of or years rears and therefore It Is for tor the companies to hold surplus funds to t meet emergencies cies cles that may ma arise which cannot bo foremen 1 I wish to say IW that the policy pol Ie of oC writ writIng Ing dividends into by b tho American Life Insurance In com companies for the very purpose of ot mutating this surplus to strengthen the companies and thereby protect the policy holder and this form torm of ot a policy has hM certainly met mel with approval of ot the public for the tho reason that thal since the deferred dividend policy was placed upon the tho market the amount of or Insurance ance sold Bolt has hils greatly Increased And AndI nd I 1 will state statu further that companies writing the deferred policies write most of ot tho business hll done dono In thu tho Unit United I ed II States shows that this form I of ot n a policy meets meetH public approval To Illustrate The lending com COlli companies that have been paying out their surplus earnings tram from year PIlI to year In Inthe the tho form of ot annual dividends had In force In 1868 of or Insurance and on the thc 1st ht day of ot last January had only In force showing nn Increased In 37 years of ot while tour four deferred dividend companies had In force toree In 1868 on Jan 1 1 the sum of or 15 5 or an un Increase of ot O during 3 years nurs or In round numbers ten times greater than thu tho Increase of ot the tho live annuli annual I dividend companies I J give rh this Information because I thought possibly po home Mma of ot you ou would not have access acce s to 10 the and seeing sect III BO so much criticism In 10 the press on deterred deferred divi policies It will be worth some something thing to you OU to know the real nul facts as 08 the exist We Wo often hear people say that life Insurance costs too much Some of or our shrewdest t best business bu men often otten make this and we e also uIRt hear henr statements to 10 tho effect that life lite Insurance In urance in the United States costs more than it does docs tn In foreign countries hilt but lire the facts In the cue case The average premium of ot a n whole life lite policy In 69 companies Is I 2809 por 1000 of ot the tho leading French companies an average aera e of ot the 30 39 2862 while the tho average premium of ot the leading Amer mer ican life Insurance companies Is I 2741 being less le than the tho average of or either the English French or German com companies The necessity ne for safety In life lite In Insurance requires that n 1 premium some somewhat somewhat what larger or that Is supposed to bo absolutely necessary Is charged for life Insurance for tur tho ren reu MII pon It II runs run over n a long period perl l of ot and alid no ono cnn can look Into the future with certainty de termine Just Juit what the condition will be For Instance what fire firo insurance would be III willing to In fix a 1 uniform rate that would be ho charged for the next 25 or 80 50 year 1 That Is the Life Lite Insurance com companies panIcs by b their contracts must do What manufacturer or what railroad com company pany would be he willing to agree upon ulon a permanent rate for tor a 1 commodity or ns a n carrying charge for tor the next net 10 or r la J years In IHo Insurance n rate IH I charged which experience has hns taught tn be he adequate ntH re ra turned tUrn 1 to policy holders holden In III what Is known ns dividends BO 80 that In th th y get ct Insurance for tor the Ihl o lute cost co l the company conducts It on n f plan that may be he regard regarded ed ell ns nil Hate nn all human ingenuity cnn d II vise Iso It Is well known that thousands of or A companies have started tn this country during the post 25 yearn with a n view to furnishing lire life In for Cor about oll It coats co the reg regular ro ular companies All exists of thi most mo t of ot them Is H II memory Bud this U IJ Uthe the result that usually follows when Homebody undertakes to furnish an nn ar II I for IMS lilt than It costs I have hae made malic the explanation defences Ilet because b I believe It is our duty to give the facts so to we le will not he misled by the criticisms And dt dill In the tho press otherwise and that lire likely to con continue for tor some time wo 1 ns AS directors and solicitors of thin Ihl new newe e tern should be he ever on th to 10 defend that which Is IR good 1001 In hi all life ln companies as well ns nil to avoid that which Is 18 not desirable I shall ft 1 few tew to the In which wn WI nil Inter Iel lh FT A T UFE IN TN T COM N There should bo be n a motive back of lr nn prent enterprise Wh er r life ln In company win WM th question which I oft n n kerl mv f wn often d of ot m n th HI rv work w is In tn th way of ot getting to tile the CAr cap Ital stock of ot tho company compall und Us 1 cussing 1111 plans of ot organization eer I tilt the Held was already covered by hy I I Iman many man excellent companies organized In the east und anti |