Scientific American Supplement, No. 455, September 20, 1884

etc., of foreign orders; crowns and diadems of sapphire; rubies; pearls that afford curious specimens of French art at the beginning o

d mines of the Cape, where one may see all the details of this prosperous exploitation by means of photographs and specimens. The art bronzes, the objects of jewelry, of goldsmith's w

CONOMY OF THE EXPENSES OF M

anies has hitherto been an unsettled question, and I think no serious attempt has been m

he following statement, I respectfull

case. No exhaustive reason has been shown for preferring one of these bases of ratio to another, and, indeed, no reason well supported by argument has been shown for employing either. On the other hand, no better evidence is needed of the importance of establishing a uniform and demonstrably sound basis, than the f

ell recognized to need illustration, and it only needs to be called to mind, to perceive both the error of ratios of expense based on pr

miums paid, but by comparison specifically with the resulting advantages in fact secured by such payment

which has become a claim over its premium reserve, or value, for the latter being the balance (with interest) of the policy hold

nto its treasury by the policy holders generally, to meet each death claim which arises; or can only be called an advantage of distribution, or process of collecting aid f

; in every sense so, since it comes wholly from outside sources, and accrues proportionally to all members

er that incidental to investment, which parts are to be compared respectively with the insurance claims met, and interest receipts of the company for

period under observation it has served its policy-holders more economically, and the test is therefore scientific. Though, if one company shows a higher rate of interest, while the other shows a lower ratio of insurance expense, it will st

g equal, it is always cheapest to belong to that company which has the lowest death rate), the rat

also its practical simplicity, may be more clearly perceived b

ed by the New Mode, of Companies Doing Busi

ce or Net insurance furnished. Expense on the score of Insurance. Expense per $100 of claim

ank. Ra

6,605 $161,524 $122,779 75.

5,117 144,487 [8]228,566 15

,215 340,780 232,400 68.2

94 235,630 804,064 311,879

2,493 99,476 98,839 99.4

510 938,297 460,014 49.0

639 15,624 72,015 46,113

9 881,600 1,985,889 622,941 3

,950 2,588,282 1,884,108 72.

50 456,122 325,662 71.4

157,318 155,192 98.6 1

,340 29,270 48,734 166.

450 503,721 266,305 44.9

8,322 620,317 1,161,893 187

7,700 3,764,575 1,480,198 39

550,890 1,610,101 521,829 32

127 145,640 77,861 53.5

74,150 1,834,484 1,995,102 108

92 190,500 800,192 630,582 78

107,600 494,025 309,858 6

0,817 49,865 230,952 222,665

875 1,828 23,047 51,608 23

42,243 192,758 144,621 75

88,520 289,027 237,913 82

69,245 214,059 277,919 129.

42 11,458 13,613 118.8

1,820 284,469 289,461 101

9 $18,796,369 $12,177,655 64

Societies Doing Business in the

s $735,383

e on death claims, which, as well as the division of the total expenses of each company into insurance and investment expenses, I have estimated o

ures I have used, moreover, have no occasion to complain of this, as my estimate certainly gives all ratios of insurance expense lower than they would appear i

made them. Expense which is not ascribed to insurance must be ascribed to investment, and as in comparing any two companies, their two ratios of one kind or the

pass judgment on the economy or extravagance of any ratio of expense shown in the table. It is not a fact exhibited for the first time by my figures, that the ratios of some companies are more than double those of others. The same fact would be displayed in about as high

lained is the only intelligible and scientific one, and the only

s a preventive of extravagance, is not the least valuable service the new mode may render. It may be seen that there are eight cases in the table, in which the ratio of insurance expense points to expenses exceeding the insurance claims met in the same time, yet the reader need not hasten to conclude th

ss, the advantage of which will appear later, etc. But I leave to the companies themselves to show to what extent such circumstances have affected their ratios; except that, in regard to the several net rates of interest earned, it is proper to say that in all cases in which they c

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