> this ¢ the business, In respect to our own BE he. $17,726,831 8 Sitanaanns, ar aens 1185,613 $30,329 365 38 The new business any previous of th A I BE : fie s2i EF Es surance per year, and for this they not the Eos make a8 I ofits for mT" Mrofite over $30,000,000, chairman » putea Flicus ui $3,200,973 37 . - 4 - tarda en "ts ere Gees byl ha rey nan 1 49 to Ea ny } a teal enieg $5,460.568 64 ---- GAINS IN 1905 urances applied for..................... year in the Company's 500,000.00 which had boen added fo OUF reset ves somewhat sooner than re- quired by law has not been lait or di- vetted from the policyholders any than has the $10,000,000 of ve- e fund held by the bank of Mon treal bows; diverted from its sharehold- indeed, there is added security to t policyholder, in that the portion of 'this fund represented by his policy is credited direct to his policy ae- count, The amount hes héen. carefully invested providing additional security for: policyholders and eaming addition. al jnterest, which will increase their Gy EE 4 Vy persons not unders - nature and function of rea Ji urance, I may just say that IL Is entirely different frown A "® In a bank or ordinary Joint Mork company, In a life company grows out of the idea of a tee, Bremium, Jor while the level um is greater than is wired cover the mortality risk In the rears of the policy, it is less would be required for the later even yment with interest in constitutes the reserve, and is distinct lability, and absolutely Sopesary to enable the company to fy out its rcs, Without thi: claims Instalment Fund ........... aon Tusa testes 261,030 01 Dividend to Polioyholders in Course of Pay- LIABILITIES insurance Reserve Fund (Hm. 3) per 35,843 a1 Policies which may be revived . 41,088 00 Ri a tribu aaa ie Bhatt wanes een 91,190 68 t PAYMENTS paid for in 1905 wes greate history. Ve Meeting and a complete list of the invested assets will appear in the at assumed in advance the arged up against { vears of the as explained, was sire of justice between | sion of our busi I'prout policies, Kingdom, by mipmum prepiiums | branches in the the comparison with | improved organization at home. The opening up of new tetritory, the the policy. This, it w, were is shown by other plans made by Senator Cox : 1876. Age. Full profit. of fies where the premium Atthe Uivfsion of At the division of ision of profits in showing that the THE EXPENSE RATIO. expense panies have of late Canada mus)... Bonus addi. Stisipa Bonar . $3,279,081 45 a 739,615 27 267,270 Y0 1,110,701 » INCREASE $814 831 | 282076 1.003.541 5,875,038 | mount than that of policies specified that say, 40 per cent. of the total . f amount ate of profit camed was {for 'the fast siX "yeats, as ARaitint 60 per cent. for the previous fifty-three Qmpany's history. This has been accomplished by the exten. opening Whole Life Rates, 1876. 1876. 1900 Non-profit. Minimum, Prasent profit rates. 15.40 $12.80 819.40 17.30 14.70 21.30 17.50 24.25 21.70 32.60 35.70 17.05 illustrate the working of this 'minitum system, xample 7O0n a 10,000.00 policy itsned in 1S was $204.00 ; 1880 the amount added to thé polic was $625.00 profits in 1885 the amount added to the Ply was. 687.50 1890 the amount added to the policy was. 625, 8 in 1995 the amount added to the policy was the amount deducted from the policy was unt deducted from th licy , "of at $11,937 life com, | Mcréaso of new hus made" iif have no ; | . | mind that it will ultimately be haa. Mekiniess i, Yr¥ great benefit to the Company 3 i Fg 3 : bra. AR may. he effectually erad- it is to a large extent the outcome of a well id policy. that the di- rectors deliberately entered upon when decided to extend our business i m and to farther extend it in tho United States. It will be seen by reference cords that our new paiddor business for the year 1900 was $6,397,943.00, | whereas for 1905 it was 813,014,146.43 'total amount of business in force as at the 3lst December, 1005, $107,081 883.00; of the amount $12,- 1] 464,931.00 has been placed (books since January Jst, Yelusive of the large { per "annum. This rate of bonus, which our present assets of $3,000,000.00 for each quinguennial period of distribution. Tq overcome to comply with the government re. fuirements in the strengthening of our reserves, and to pursue, 4s wo have done, a progressive policy in the ex- tension of our business to the United Kingdom, will satisfy any fair-minded man that the attacks which have been made upon the company and usea by our competitors in distant fields, are unpatriotic, disloyal and false, nese, to the United { A POLICYHOLDERS' DIRECTOR. United States and hy President's address, He expressed him- self as personally greatly pleaped that the goverament had issited a 'conimis- ston, and as hoping the examination would be thorough, fearless searching. He aamitted frankly that it was hardly possible that its findings wonlc. endorse the judgment of the directors of any or . all life Tasubance companies, Canadian, British 'and Am. erican, in all théir methods of doing business or securing investments, He hoped, however, that it would estab- lish the good faith and honor of the men who sat on the respective boards: For himseli and his fellow-directors he folt he that any possible errors were due to limitations of their human judgment, let me give 76 at age 35, acter as the errors all men make at othe Lime or other in their own busi- ness affairs. Of one thing he w; and as policyholders' difector ie to emphasize, that at no time ang Sisvetor or body of di temp to secure advantace for Can- ada Life shareholders against poli- evholders. Ti 89. %yinst poli 3 planting of new agencies and the rapid r : 0 iness are invariab- | orititized, and ly and unavoidably accompanied by an Nos ful etna Expense Ratio. ]! and unanimous! Gra He Sino d BY, y ° ull re. in Se but. the hese muy, of having advised it, and tever in my own ey invested in Canada devel of the record as read by Senator Cox : I say that after holders during the past year outlay. mitted to their care. From its organization fo the end of 1905 the com- pany has received in remiums from poliey- holders past wb Paid policyholders and beneficiaries ...830,911,309 Credited to pol- ieyholders ...... 29,329,365 Ratio of amounts paid or credited to policyhold- ers to preminms received from policyholders ..... ers. Further, of the amount received from premiums, while the larger part. is for "with profit" policies, yet a consider able portion is also in connection with Ronparticipating and annuity policies, and it may interest you to know whit we have paid or allotted in profits te policyholders over $11,000,000.00 or over 20 per cent, of all premiums (both from. policyholders, and that, 100, 'ex- red at different periods' from the sur plus to strengthen the policyholders' reserve, owing to the fall in the rate of interest ftom tinie 16 ime. 'T we exclude the non-patticipating premi- ums, and considerations received for annuities, the ratio of profit allotted to premiums received is approximately 25 per cent. If a uniform bonus of 2 pet cent. per annum, or. $20.00 per thousand had been allotted to the policyholders for every year since the company cafe in- to existence, that would have been an exceptionally good record, and we should havé been able to strengthen our reserves fo & 34 per dent. basis without making any reduction whatev- or inthe profits, hut for many years the bonus additions to the policies were $25.00 and $26.25 per thousand was quite too liberal for the years be- tween 1865 and 1890, could not be maintained when the average rate of interest earned by the company on its investments fell at least 2 per cent. per anpum. It was easier to obtain 63 per cent. per annum during that time than it is now, on equally good security, to earn 4} per cent. If you compute . the difference of 2 per cent. annum on £30,000,000.00 you will see the loss in interest am- ounts to $400,000.00 per annum, or that difference in our interest earnings, the policholders' directors, lle, spoke at 'some 'length points touched upon in the fo"s annual report and, the and could say without reservation ere of the same inadvertent char. at- Ho | a OWE 1 It he ory ae oa po b Tu FTE directly. charged, that directors use : RARE Be a to the sguaiey; 31 1 had Begn the moneys. of. tiie TH 2 what "com ny has done x its na Rolicyholders fh this regard the le can hall 2 ™ i with the best companies in the world. Here is its i f A i comm . have had p, : o folkd for ransaction have iad no joing to purchase bonus additions to underwriting; pi participated in holders. nearly 31 200,000.00, a be ing the Jast quinquennial ad the transfer to the new reserve basis We were able besides to allot to Sey: 000.00, I do not think that this com- : » pany or 'its directors or agents have, suggested that this com. any reason to be 'ashamed of the re- cord, especially when that record was accomplished at a time when we were na that sone rapidly extending our cies to new id, tim i 1 territories at a considerable initial me to holster up its Position, 1 would Tike to place afae yo [Sion assets. It has also bos, briefly a statement of the profit ac. = thay ol ection count between the company and its Br on gen s of Soamn s policyholders since its. com nent s lo rectors or their > to the end of 1905. Tt is 0 dif- Yeiende. and which blocks of commen fienlt for one not intimately acquaint- |* ought to be the property of (1, ¢d with our total récotd ' to realize |°OMPany. Subject to correction, Just how well the directors of this rs to say that this company ha company in the past fifty-nine years 0 an underwriter, except on very have managed the great trust "eom-jPare occasions. Its moneys have not ..852,630,923 Total paid or credited $60,240,674 In other words, during the past fii. ty-nine years the company has paid or credited to policyholders, on the aver- age the sum of $11450 for cach $100 received in premiums from policyhold- with and without profits) received: amounts transfer: dohed "they had of securities, and we," the Hl profits hecauss of uh Des h relation, suggested thay jt he -- Shortly after - the close of the year 1904 we proceeded to calculate and.al- I wish to say on behalf of a8 Bb Sha date. that every such statement or 5, an improper gnd wrong ny self 18 unirie in every Particular, | ave borrowed no ave h : no pal profit, I wish 10 ga E29 Jerecn. my associate directors that gs far gq} know they arc in the same position 1 believe that the whole field of conje ture and unkind inference js and re Y on behal of has y and its moneys ge underwriting tran ectors or others were used ip Sactions to help to make money be made of with the public by the discovery of with such tock I de S not been uséd in und, its directors or their friends. It $100,000.00 of the original underwrit- ing of the Electrical Developuient. com. pany's bonds; received with underwrit- ing, which was practically a pure). ase, $100,000.00 of common stock stock will be found in the publi statement of securities now before and has been carried in the assets the company from the first. puny had an underwriting transaction mm Grand Trunk Pacific bonds, which also was a purchase. No common stock, however, was issund with {hese bonds. Iam not aware that it has had any-other underwriting transge- tions. I am not aware that it has had any common stock, as a bonus, except in two instances, where it purchased securities. In one of these the securi- ties were the Mexican Light & Power company bonds, and were purchased from the Dominion Securities company, These bonds' and common stock wera subsequently soid'at a profit, hence do not appear on the list of published se. curities. In the other instance the se eurities are still held and appear on the published list on the table. There have not been any silent assets. No director to my knowledge has had common stock attached to any bonds the company has bought. No director to my knowledge has had any per sonal profits arising out of his con- nection. with the company. No director to my knowledge has had any loan on stocks or securities from the company or has had any transaction in which the company and the directors were sharers in the profits or losses. It has been implied that the marked difference in the volume of call loans against securities at present, as com- pared to a few vears ago, indicated some improper relations at the time that call loans were larger, and that if a truthful explanation were forth coming it would show how improper these call loans had been. The answer is both a simple and natural one. The reduction comes from two causes : First, for a number of years three 'separate and distinct large call loans were carried against Cenada Atlantic bonds; against Lake Erie & Detroit River Railway com pany bonds; against Bay of Quinte railway bonds. These loans aggregat ed two and one-half millions of dol lars, The borrowers were gentlemen having no connegtion, directly or in- directly, with the directors, and the loans were made prior to the present administration. of the company Either the sale of the railways or a reorganization of their securities led to the paying off of these loans. These threo items alone, therefore, represent more than three-quarters of the myste- rious reduction. The remaining one quarter is to be accounted for by the fact that, with 'the high rates prevail ing for money, it was possible to buy long-date, high-grade securities on fa- vorable terms, and your directors be lieved it would be sound policy to fur ther reduce their call loans and use the money thus called in to incr their holdings of high-grade securi- ties, I can think of no question which might be asked in relation to the in- vestments of the company, which could not be answered in the same simple and natural way. Until my association with the Can- ada Life I had had little experience in investment companies. 1 have little or no knowl of haw investments are 'made in other life insurance corpora- tions. The impression which has been left upon me as the result of associa tion with the Canada Life is that its ihvestments were made w'th conserva tive care and with excellent judgment. During the entire period of my identity with the company, H. B. Walker, now the associate manager of the Cana erwriting on behalf of This shed You of The com. < «dian Bank of Commerce in New York, or Mr. Watt, the present treasurer, have been the treasurers of the com- pany, 'snd each transaction which came to the board came on the re commendation of the treasurer or in- vestment committee. Tt has bot alleged that the direc. tors have been careful of shareholders interests and careless of policyholders interests; that if the policyholders' di rectors had been true to their trust 'would have protected polictiold i acts which were ers from the Mpropes "by directors of In to this 1 beg to say that ini time I have been on the 1 have known of no effort made by any director or body of directors Continued § Page 7.) papi, $ nd 10 be taken ¥ "wd gultivation of the and iy Ean Eider is deceased) an how Bile 10 make © "Cie Act vo bE atered for by such send. | Before ; settler must give six months' n | jn writing CEY! Because of its deli 25¢., 30e¢., 4 HIGHEST AW * v OF CANADIAN AORTH-W 3 TEAD REGULATIONS J E i section of Don : t bi or the a es. excepting 8 am . fee ro Somesteaded upon vo is the sole head of mule over 18 years - extent of one-quarter " - acres more or less. ho, o be made personally at 7 i for tho district in Wi dad oft , is situated, or if 0s, he may, on ay y ester of the inter a the ner of Immi Rion SBISLer qn Comrhithe local agent nnipeg. hich the land is 8 (Se district in W ie Gai authority for some one "ne Fe entry fo Bi : A settler ST y entev for. a he anted ar * jus been RT od to perfsrm t ied 8 required therewith under of gions. convected wing Sans athe residence 1 at least six 1 each three vears. the term of (or wether, if of any person wi iestend entry a @ If the futher mh he iri uma girements of this Act a the Feat Fo Obtaining Sutent \e satisbed by such person residing fhe father or mother. . I the settler has his perm s upon farming land owned ty of biz homestead. bin ta Bhevicind a ACL as to resic oay bemtisied bv "residence upon wi bad, TON FOR PATENT sb f APPLICATION Lh Eo the Bal Avent, Sub-Ageut © of three years, omest S| or. Rag nlications for ps or or of ta the Comimssioner o mision Los at Ottawa, of his inte {18 OF CANADIAN NOI MINING REGULATION! EW FE Qeale~Uoal lands may he purchase re for soft coal and $2¢ nate. Not more than 320 acres fe acquired by one individual or gary. Royalty at the rate of ten Jer fo of 2,000 pounds shall be coll E @ tho gross output Qurtz.--A free miner's certificat smnted upon payment in advane £ per annus for an individual, $50 to $100 per annum for a § Way according to capital. miner, havin discovered mi Ne may, locate & claim 1,50 £0 feet ® for recording a claim is int $100 must be expended © dai ea ur or paid to the minin: ltr §5 lieu thereof. When $50( UM expended or paid, the locator EW having a survey made, and BMmlfing with other requirements, Fo the land at <1 an acre. b Mepateot provides for the payme z of 24 per cent on the sales. UBER mining claims gemerall: L100fet square ; entry fce $5, rene yrly., A free miner mar obtain two leas #ndee for gold of five miles each am of twenty years, yenewable a f dimstion of the Ministe§ of the Int The lessee shall have a dredge in ation within one season from the ds fellas for each five miles. Renta EF ™tapsum for each mile of river I Hoyalty at the rate of 24 per cent © Moathe output after it excueds $1 . W Ww. CORY ty of the Minister of the In NB.~Unauthorized phhlication « Mwertissment will not be paid fo At Strachan's Hard Inssavancacaninan "THERE 1S 4 TIME FOR ALL THINGS." Now, while prices low, is the 0H to your coal bin with | quality SCRANTON © from P: Walsh's Ya BARRACK STREET. A 'WARM SUBJ Therw's nothing 1n the warld much Interested in as Coal at ti of Ue year, 1y may sound ¢ Weak of coal buying and. en bos that's what we've, x Mportant discoveries 1d gg Ate that complete satistas E stoners pays best, and E "7 to win business is to deser Booth & ( FOOT OF WEST ST. 133. | EMBOSSING ox for Paper and En | ENGRAVING 2 Letter all classes of © Tete Irom a card to a volu WHIG, Kis Besides