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Caption: Board of Trustees Minutes - 1920
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232 BOARD OF TRUSTEES [March 11, they ought not to do but did not contemplate the case of a company which desired no profit but wanted to give the teachers the full benefit of the interest earned and the low mortality among teachers. Under the law, in order to provide an arrangement by which the overhead charges should be taken off, we had to make the policies nonparticipating. This does not prevent the Association later on from distributing any earned surplus either in the form of lower rates or direct payments, but is does prevent the Association from promising dividends in advance. You may be interested also in the enclosed statement concerning some of the misrepresentations which have been made. I am realizing at the moment the truth of that injunction "Blessed are ye when men revile you and say all manner of evil against you falsely." In time teachers will find out how great are the advantages which these contracts give them and Professor Rietz can show you how much better the results will be if there shall be applied to these net rates the surplus that is likely to be earned. Very sincerely yours, HENRY S. PRITCHETT P. S.—It is unusual for an insurance company to send out specimens of policies without filling in the blank spaces with specimen figures or data. As it would require some time to do this, I am sending the policies asking that some caution be used so that they may go into the hands of university people. A MISREPRESENTATION It is not possible for an agency like the Teachers Insurance and Annuity Association to reply to general misrepresentations of its purpose and of the exceptional opportunities which it offers to college and university teachers and particularly to younger men. It seems necessary, however, to call attention to the following specific misstatement of its published policy rates. In an attack made upon the Association in which it is referred to as the 'Carnegie Company* the statement is made that annuity policies can be obtained from existing companies upon terms more favorable than those offered by the Teachers Insurance and Annuity Association. In support of this assertion the following table is printed. The Annuity (male) Purchased by $1000 at Age 65: Carnegie Company $113.24 Prudential 112.61 Metropolitan 116.92 Travelers , 115.14 Foot notes are attached to the quoted rates stating that the first is payable monthly and the last three are payable annually. I t would be difficult to construct a statement more skilfully contrived to deceive the man unfamiliar with the technicalities of such policies. The first figure is misquoted from the handbook of the Teachers Insurance and Annuity Association. It should be ?114,24, The reader will naturally assume that the remaining figures are
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