addressing the 79th Annual Meeting of

PAGE. TIEEN -_

our and a llali Million Canadians

Own Lile insurance Says President Mutual Life 0f Canada

Encouragement of Thrift Essential in sound National Policy‘

- Mutual Life Record Outstanding Example of Value of independence Created Through Personal Effort

Reviews Outlook for Canadians

Waterloo, OnL, February 3rd.

"Freedom has been experiencetl in widcst degree in tliose countries where men have earned their S(‘(‘tll‘ll) by their uivn efforts," declared Mr. Louis L. Lang. President of The Mutual Life of Ctinada, when policyholders of the Company today. He emphasized that the results of the Company's operations for the policyholders are a very pointed example of the social and economic security which can be obtained through the initiative of free men in a free society

When dealing \\llll \\Ol'l(l affairs Mr. Lang expressed the opinion that. although the prospects of avoiding a third world war are becoming brighter. rill nations must lie well prepared. “We mtist protect our lives, our liberties dnd our possessions. nnil this cannot be done without pay- ing the price in lll0ti2lil, effort. niid itioncy." he said.

Mr. Lang; forestiw continued liiqh production in Canada. the heavy backlog of orders in many lines precluding the likelihood of any serious downswing in the production trend of t'0liS\ll7il‘l‘ goods; but. as PfOtlllC- tion increases. the hunt for new markets for Canadian products will ii- time become more intensive. ‘

A practical and liumzinitncian interest in uorltl affairs, stabilization of wages and siiiuiies. economy in government expenditures, and u (‘fIIlLlDUOUS emphasis on the value of thrift. were some of the essentials of wise Ciiiiiitlitin p "v advocated b_v Mr. Lung.

Speaking specifically n1‘ the iirogr e" of The Mutual Life of Canada. he pointed out tliiit the lll niilliqii tlcfllnrs |>riitl to policyholders in divi- dends sincc 156'.) iicic (‘tllllvillflil to 20% of the total premiums received. these refunds retiucini; substantially the cost of protection and consti- tuting conviiicing evidence of the Company's low net cost record. .

A condensation of Mr. Lang's address. rind the address delivered by Nlr. A. lii. Peciuerzniit. Gcnernl Alnntigcr. who commented on the Annual ‘iiatcnieiit. follow; ‘

contractual obligations of the life insurance enterprise. regimentation of the individual with loss of free- cloun "would surely follow".

flnsurancc in Force Reaches Billion Mark

The year 1948 was more than just another year for The Mutual Lift» of Canada: it W55 a year of ni<~ii1oiwibli~ richieicincnt. ft rcp- l'(‘5(‘i1lS the milestone of a Billion Dollars of insurance in Force. The provision of economic security to sucli a large family of policyholders and their beneficiaries did not just happen. 1t has been said niany times that instii-ance is not. bought —it has to be sold. 1n 1948 insur- ance protection was exucndeil by this Company to citizens of Canada and Newfoundland at the rate of more than Two Million Dollars per neck. This was accomplished by a sales force of 682 full-time and 27:3 part-time representatives — trained mcn and women, approach- ing daily thousands of citizens in , all walks of life. in all parts of Canada, discussing their financial needs and arranging lllSllYtlrRCC programs to meet lll the best pos- sible manner the insurance needs of the individual.

lIr. Louis L. Lang President

_LIJ‘II Percentage of Population A Own Life Insurance

owruexslup 9f nearly S13 liiliioll of life insurance by some 4': till!- llon Canadians is convincing proof of the very important place occu- pied by the institution of life insurance in the social and eco- nomic structure of our nativit- Basically. there are three malvl‘ functlona pcrfornted by a life in- surance company: the gathering together of small sums from a large number of people liito a common fund to provide protection against the hazards of death and to accumulate savings for old age: the husbandtng oi these funds through safe and~nationally pro- ductive investments; and. at the needful time, their distribution to policyholders‘ beneficiaries or to living policyholders. The efficiency and effectiveness with which these three major functions are per- formed measure the contribution of the life insurance industry to the nation.

The history of The Mutual Life is truly "A Romance of Co-opcra- tion.“ The financial measure of tho results of the Company's opera- tions is before you today. The individual co-operative method

World Outlook l

There are many dark places in the world today. Asia, with half the world population, is in dire straits; the northern part. of Africa are in I. state of confusion. Russia and her latellites occupy a land of mystery. from which little information comes; conditions in Western Europe, although far ‘D61 low normal. continue to improve. The danger of war, which was serious last summer, has dimin- ished and prospects of avoiding a third world war are becoming brighter. Communism in Western Europe is waning. These facts arc mentioned because we must. con- tinue to be vitally interested in world affairs.

Production Increases Will Require New afarkcts

Because of conditions existing in

Asia and Eastern Europe. a great

illustrated by the successful record of our Company. Caiiadfis original mutual. ls in sharp contrast. to that envisioned by the "cradle to the grave“ philosophy which involves Government financial support in huge amounts and saddles the productive workers with the dead

,welght of burdensome taxation.

High Returns t0 Policyholders

In the seicnty-niiie years since this Company was formed. over $374 million has been distributed to policyholders and beneficiaries. $112 million was paid in death benefits: the balance of $262 mil- lion was paid to living policyhold- ofs. $111 million consisted of divi- dends-refunds of portions of pre- mium payments whieh served to reduce substantially the cost of protection. These dividends are equivalent to 20% of the total premiums received.

Size. in itself, is nol. a principal objective of our Company. Through the years our fundamental func- tions and our principles of opera- tion have remained the same. We have grown because there has been a real need for our product. and the public has found it. good.

Security Attained Through Individual Effort

The size of L0lfllS_fll‘€St‘lllCl'l to- day is a very pointed example of the social and economic security which can be obtained through the initiative of free men lii a free society. To obtain sectirity for themselves and their dependents and yet, at the same time. tn re- main free. is the goal of men in the» greater part of the world. Wherever the individual has turned to the state for security. loss of freedom has been the result. Free- dam has been experienced in widen degree in than countries whore men have earned their security by their own efforts. If

part of the world is isolated from other parts. There is great need iii all these curtalned areas for enormous supplies of manufac- tured goods. food and other neces- sities. but they are partly or com- pletely closed to the producers. merchants and businessmen of other countries who could supply .<omi- of these needs. For the time being. there are such shortages in the great producing countries that tiicre are few surplus problems at llOllif‘. but as production increases this situation will be more inten-

sive. Canadians are compelled to take a practical. as well as a humanitarian. thieves‘. in world

problems.

It. is clear that: those who want peace and wish to avoid war must submit to sacrifices in order to restore the military forces of the democratic nations to a point where any combination of othel nations ivill refrain from attack, and this standard of preparedness must be maintained-regardless of cost or personal effort involved.

Buslnels Expansion in Canada

The steady growth in production, national income. trade, capital de- ielopment and employment in Canada during the past. three years has been remarkable. There has been an immense market during the past three years for all that we in Canada and the United States can grow and make. Never- theless. North America. cannot sustain and supply the rost of the world indefinitely. and it should he our aim to assist stricken countries to recover and to resume their iinturnl plants in lhn economy of the ivorld.

i (fanullan Outlook for I040 ' Much of our economy will be dependent upon conditions outside our own boundaries and beyond our control. Activity in imoortunt

tho state. wm fiddled with the

capital goods industries i still

"high - any appreciable EIOWlHZ- doim which has been apparent be- ing in consumer goods. This may

a greater extent than has been experienced in the recent past-a condition which will be welcomed by people hard-pressed by prevail- mg high prices. The importance of maintaining production at the highest. possible levels in all fields is amparent in that production and national income are the foundation of our present standards and condi- tions. providing the base for all improvement and development.

Further Wage Increases Unwlse

_ 'l'lhere have recently been some indications of lower prices. leading to the hope that’ the cost of living may be stabilizing or turning downward. ‘The earnings of corpo- rations and other businesses, con-- sidered in the light of their pur-

cllilfilllg POW". have been just as greatly affected by high costs as has been the housewife 1f our competitive position in world markets is to be retained. the 1m. portance of arresting unreasonable demands for higher incomes 1s evident. 1f met. they can Qnlv result lll delay in the lowering of Prices. or oi en encourage the eon. iinuance of tiie upward trend, New

buildings. machinery and the m5, of finding markets and many other factors must come out of reserves Etlltl profits or prQgfess Wm be diminished and. in some case-s

‘liiippeil. lii the long run. it 15' M." Pflllw to accept reasonable wages and salaries lll order to Permit the accumulation of i-ea. sortable reserves to carry pro- duction enterprise through 111959 periods iiheii profits are l0\v 0r non-existent and lo diminish un- PIPPIQYment should markets shrink than to demand and secure all ealmngs f“ Present division and COllSUmpLiQII.

Encouragement of Thrift Essential

A great portion of our tax burden is the result of two wills.- thc Ullclcsli on the national debt incurred is a definite factor in all tar.- bills: there an increasing de- mand from citizens for increased social services and capital expendi- turies. improvement in social serv- iccs is commendable and should be continued so long as it is kept ivith- in bOUIlde. but otherwise it will slowly but surely destroy our economy. in the long" run the Government has no money except what it takes froi-ii the people in the form of taxes. Money diverted to unproductive. although neces- sary. purposes leaves so much less for itivestmeiit in the expansion of enterprises in all the great fields of production ivbicli, when devel- oped, create more employment and provide larger incomes for the people in all parts of the country. Those between approximately twenty and seventy years of age. who are actually working and (‘Bllliflfl- illl-‘Port and provide for all others. including children, the aged the‘ afflicted and the unemployect This is an additional reason why the ancient virtue of thrift must be encouraged in a sound national policy. Accomplishments Through Free Enterprise

Canada. iii spite of some state ownership and control, is still overwhelmingly a free enterprise country. Canadians recognize that governments have their duties in some particular fields of operation. which cannot be delegated to pri- vale citizens. but the great. ms.- jorlty remember that free enter- prise and adventure developed the British Commonwealth of Nations and the United Slates and wish to maintain, improve and expand the system which produced such un- PflTHPlled results iii these two leading world political, economic and social organizations.

It has been said. but it cannot be repeated too often. that the great- est asset of Canadians l! their faith and character. Faith and character have helped them to build the Can- ada of today, and will help them to prepare for and mect the problems of the future. The same may be said of The Mutual Life. A com- pany that has the inspiration of seventy-nine years of prcgrggslvg management. the benefits of which have shown so consistently 1n its restilts. ‘can be expected to prosper in the years to come.

Elmsdale and Vicinity Mrs. James Johnston returned to her home the early part of the

week with licr infant son from the Western Hospital.

Messrs. A. D. O'Brien, Ivan O‘Brien and Basil MacNaill motor- ed to Bummeralde and Albany on Monday. -—- E.

Mrs. Leonard BarTneti. has re- turned to her home much improv-

IRUISES

11': lolilll II IF| "lift R "If Dill”- noting.

lLINIMENT

result in competitive markets to '

iaiemin- Annlylod by Mr. A. a. Poquogaat, General Manger

Mr. A. E. Pequegngt,

General Manager

N11 Pfiquegnat. when referring to the life insurance written in Canada. {JOLIIIGG out that the aggre- gate life insurance coverage in cillladii l5 ill! equivalent of the national income for one year. He urged that Canadians consider the lovrei- purchasing poorer of the dollar today as compared with l0 tears aso when arranging their insurance programmes.

’l'.’he average size policy issued by Fhe Mutual Life has risen from $2890 in i946 t0 $3501 in 1948. Forty per cent of the Company's business is placed on the lives of existing policyholders.

Mr- Pequesnai poinied out that in? CQmPQYW l3 Plcued to be ivrlt- {"8 a substantial volume of new insurance for moderate individual “Mums 0T1 Young people with modest incomes who are beginning their life insurance programmes. He emphasized the iralue of lll_ stiraiice on permanent plans which provide income for later years. as Vflmllared ‘with temporary instir- ance.

Low Lapse Rate

Pequegiiat reported that the lapse rate of The Mutual Lire or Canada is outstanding on the North American continent.

lmllrovcment in Mortality

_'I‘ltn iesulis of the past year lil- rlicate that the economic functions of‘ the nation are finding definite stabilization on a’ new plane. While fulllllllgs on the 1l‘i\‘€E~tlilCl’1fS of life insurance companies are no longer available at. as high a rare as iolmefll’. the actual mortality ex- P9Fl9n¢¢d flmmlg Mliovholders has, in recent years. shown a definite lmllrovement. thus reducing the actualacosl of such protection. ‘Illhlollb the ratio of actual death Ella-i to that provided by the n.0,. 11f?» tables used ln the calculation 9f Pfllicy reserves was 46.15% and Lie savings contributed sunroof) to the surplus earnings of the Com- P0P)‘. Last year. the ratio stood at almost the same rate. 46.34"» but the corresponding mortality Saving °" "l" larger coverage was $3 341,. ‘:00’ "Th" average ratio for the ""5"? Period. which included all war claims, was 53.37%.

Interest Earnings

This generally favorable mortal- ity experience was offset to some degree by a decline in interest and ilividends on the Companys invest- ments. 1n 193B interest earnings exceeded the amount required to maintain the Company's policy lia- bilities by 821226.000. In i048 this excess interest item stood a‘: approximately $2 Million on invest- ments almost 8092» higher. The average rate earned on the Con]- pany‘s invested assets. which stood at 4.68% in 1938. declined to 3.8072. in 1948. However. the decline for the past year was but .040» as com.- pared with 12% the previous year and .3195 the year prior. thus indi- cating that the base of the interest earning curve has been reached. ‘This is further substantiated by the trend of average rate of earn- ings on new investments during the past decade. In i938 the rate realized on the bond investments of the year was 3.55%. This de- clined steadily to 2.78% in 1947. but in 1948 increased to 3.12%. Combining all types of new invest- ments. the rates were 4.82% in 1938 and 4.25% in 1948, with the low in 1045 of 3.34%.

Mortgage Loan Investments

Increase The holding of Dominion bonds declined during the year by

$9,200,000 and now represents 50% of‘ the Company‘: assets, rather than 50.6% at the beginning of the year. This decline is. offset. by an increase in provincial and nllmlclpal bonds of 811300-000 and public utility and industrial bonds

ed after receiving treatment in the Western Hospital for a couple of ivceks.

Miss Beatrice O'Brien has ac- cepted the position as Principal of the Albany School and entered upon her duties on Tuesday.

The many friends of Mrs. Frank Dunn are pleased to know that she has fully recovered from her recent illness which necessitated treatment in the Western Hospital for ti few days.

Mr. Kenneth l-‘t. Matthews and daughter Velda left for Montreal on Monday where Velda will ro- celve further treatment from the famous plastic surgeon Dr. Baxter at. the Royal Victoria Hospital.

Former friends and relatives are happy tio welcome Mr. William Henry Stewart to lib native land after iin absence of 20 years in Sankltcliewan. Ho la visiting with his brother. Mr James Stewart and Mn. Stewart.

-'!Iia members of the Elmldolo Women's Inltituil met at tho

. THE GUARDIAN. _ Cl-IARLOTIETOWN

. able in the several categories of the

of $7,350,000. a gross increase in bond investments of some J10 Million.

Mortgage loan tnvestmenta 1n- creaaed by over lll Million. to a total 0f 009500.000. "WBIQBURI 15.8% of the total assets. as oom- pared with 12.62% a year ago These mortgage loam are largely reatrleted to residential properties and a substantial proportion is supported by the guarantees lvull-

Natlonal Housing Act. Not only has the Company made a distinct and widely distributed contribution to the acute housing requirements of our nation. but. our policyholders also benefit thereby through the higher interest return available on this type of investment.

Surplus Earning: and Renervel

The Surplus Earnings of the Company last year amounted to $5,538,961, an increase over the Previous year of 8106.500. Of this

trust that it will be possible to contmuefliviclends to our members

on this scale for some year; g0 COITIG.

Value of Sound and Systematic ' avlng

"Y-llc personal income of Canndmng 9W5 (“PIT Promise of continuing if DTP-bent hizli levels. $250 M11. Buns, “l: C°Yl7l1ulsory' Savings will e distributed throughout the coun.

"m" by ‘he b?“ blldset analysts 3.5 [he Oblfifitive for an adcqllate life insurance program

Importance of Life Underwriter!

In these days of social unrest. when so much stress 1s being placed on security. even if it. occasions some less of freedom. ivliat greater $8‘.‘\'1Ct' can one render his country than to advise his friends and neighbours how they can provide their own personal and family

angle-social. economic," individual contentment. family security. oom- munlty or nation building. life in- surance is good citizenship. A nation of citizens who enjoy the satisfaction and peace of mind which comes from adequate life insurance will never turn to socialism. ~

Tribute to Still

The quality of service rendered our tlirce hundred thousand mem- hers. on which the Company's splendid reputation through Can- ndn has been established. must be credited to our more than nine hundred salaried employees at Home Office and in our fifty-seven Branch Offices. together with the thousand or more Field Repre- sentatives who make daily contact with our great Mutual Family. On behalf of the Executive Officers of the Company. ‘f wish, in this public way. to pay tribute to those loyal members of our official family, Junior Officers, Branch Managers, Department Supervisors, Branch Secretaries, Senior Clerks. Stenog- raphers and other clerks who com- bine to provide an administration which. for efficiency, economy and character. holds an eminent place among the life insurance companies of Canada.

monthly meeting. Meeting opened with the Ode followed by repeating thhe Creed in unison. Roll call was responded to by 10 members. Two visitors were aim present. Minutes of last. meeting were read and approved. No reports were heard from committees and- the following were appointed: Sick committee.‘ Mrs. Robert Brennan, Mrs. Harry Wells and Mrs. Lloyd Adams. School committee. Mn. Frank Dunn and Mrs. George Mur- ray. Secretary reported having received the Red Cross Bond. A motion carried that a pantry ule and grab but: be held at the shore of J. W. Adams, pioceod: to go towards the Scholarship Fund. Mrs. James Currie kindly invited the members to hei- mime for the next meeting, roll call to be mn- ered by “Something Iriah". Lunch committee: Mrs. Prank Dunn. Mrs. James O'Brien. Mrs. John Adams. Mrs. Arthur Wells and Mu. John Gordon. At this meeting. in the absence of ilie president. Mrs. Harry Wells occupied the chair.