The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-01-01
Surplus a FER cent. reserve.......* 2.ss72s5 62

LOANS BONDS, REAL ESTATE, ETC.
The investments of the company 10 loans on mort
cages on real estate amount 10 81 ,o4G,l O4.32,
being nearly two thirds of It's total asScfs Inc eX-
animation OF this item develops the most yirilant
care and iaifhlulnc~s in determining the validity OF
title. and the certainty of first liens on the property
Us preliminary 10 the placing of loans. The margin
# security appears In every instance 10 pave nnc
laws Of the different states being In the aggregate
nearly four times greater tsEIh the ~l"ie amount
thus loaned.
But I'm view Of the present deprecated value Of
real and The existing :lstra;t Ill the SoIency
mission kavc caused rcvaiuatiom Of all the real
estate which the cnmnlny has placed Us luans.
THIS REvALUATIoS HAS BEEN MADE ENTIRE
INDEPENDENT OF TIE COMPANY OR ITS NAN
AGERs BY COMPETENT AND EXPERIESCED Ar.
pRAIsERS, APPOINTED BIZ TIE COMMISSION IN
EACH OF THE SEVENTEEN STATES IN WHICH
THE LOANS ARE DISTRIBUTED. UNDER THIS
NEW APpRAIsEMES? THE VALUE or THE FRO
10 BE DOUBLE, OR MORE THAN DOUBLE. THE
AMOUNT or THE LOANS THEREON. TIE GhoSs
BEING S34,254:4n5, on I'VE, VERY NEARLY Ne THREE
exani'n ltion of the company'S books iiScloSeS
the fact that rule the interest on these loans has
of default the mortgage has gone to foreclosure.
The accrued interest accounts in This and other de-
partments have been carefully coinpuleu' ana the
result s appear In the statement OF assets.
The bonds owned by the company have been cX-
amincd and verified at market rates ~ OF july l.
The conpany'S real estate Is the building aud land
which it occupies in the city of Milwaukee; This
la valued by the commission. upon tue Dt>t
accessible at The sum Of 35O 900. the
same value fixed BY the company, which Is nearly
les o ns na eli Rea E,e un
der foreclosure has been valued bf the commission
in the same manner anu by tue same ptrlns WI"
The valuation of this class or property amounts l"
S490,6S3
FERRED, PREMIUMS, ETC.
II will he seen that the premium notes now held
Inv the company, amounting t, S3,536.9G5.94 con-
,iiute about fifth OF its enIlre uses PRIOR 10
1872 the COMPANY accepted somewhat more nan
ono third or It's premiums in thai class of >ccurrics
These notes have personally examined ana Vcr-
ded ana havo been founi in every instance To APP
neriain 10 policies actually In force and are there
fore secure and valid asset bo rs against the poll
rrs themselves and their computed premium re-
serves. ,..,. ,,. -, ,,ou
ries I'm force have been invariably found 10 cover
unIy limited portion of The reserve In each case
and are therefore equally secure.
1t Is also found hat AL premium no'cs. With ac-
noIity-cailns when the latter become payable, Snch
usage being of itcf an additional guaranty Oh me
repiesentcI value or the notes a also OF the ohcF-
4nra &c good faith towards all the members OF the
company. .,,.,, .,,,,,,,,,,,, amounts
I'm We been examined item hy item. and their correct
ness fully verified. II Is proper To add that no ~
stance ppeais in which The reserve on any policy
is no, largely ia OF the premium n4e~ de-
fcrrr,l premiums. ami accrued Interest. when the
latter occur nor Is it believed that the notes are In
anv case in excess or "ilst Inc c"iiPlh9 COMPUTES
rs fair surrender
PREMIUM RESERVE. SURPLUS, DIVIDENDS.
ETC.
The net premium reserve. computed Dy inc nc
trorips' table Of mortality with interest at four per
cent. on policies in force June 80 H. amounts to
296,249. about SIX times the current yearly
premium income As this reserve AMI other assets
of the culnpuny inI estcd at an annual average
interest of about EIGHT PER CENT, the surplus In
t"rcst hevond the SIS 1000 required on four per
| cent reserve thi. being The standard followed by
the company will prohanly aggregate ioT the pres
year nearly or ane re- .ndrd nf Maryani
| Wisconsin, New York, Pennsylvania, ONO anu
| many other States the surplus will he nctSuraDif
increased, showing Total, Is regards pDcy-iiold-
rrs. of about 5l.100, 600 more than the exact
Ing valuation here reportc "a tact which VIII pr"u-
ably receive due consideration ID! rolrE-ho'oct'
| resident in those States.
After makin. al! proper allowances for dcprccia-
ZION IN values, and excluding every asset OF Gue'-
regard> holders is -, ss7.2s5.G2 over tour
| wr cent rescrv"; and OF u four and a hHy Ptr
| cent reserve such surplus wouid De increased 70
| Tb0ut So ,9S7. 2S5 .62-an amount which very con-
| clusiyeIy exhibits its financial statas and ability.
Nearly half OF the surplus is annually sct apart 10
be distributed rs return premiums or dividends 10
policy -hol ders. IN consideration 81 the many pos
sible contingencies liable 10 occur in any year. scn
as unusual mortality. uneXprcieh losses. reduction
Of income etc, the division Of surplus stems TO nav
been as liberal a. prudence and equity |9niu "ar-
INDIVIDUAL POLICIES APPEARING TO BE
UNUSUALLY LARGE. ,..o,
The number of policies In force at inc .ate un.,a
was 5959 covering dIare gate risk Of St6,S32.-
O62. The premium reserve on the policies mas Dctn
| 50 carefully computed, under our direction: of e1-
| urrienccd actuaries not connected with the com
pany, that there can W ITO question: d. ~ 40 1
racy. -. =. x. ta ,.ou.r , -
satc herc th,t In Jniy 1879 this company assumed
the risks of the Minnes0ta Mutual Lie insurance
Company, anouningto 81. 100000, Oh some l.Zoo
ives Every policy-ho.der included In this arrange
ment ented thereto, and every pocy 50 assumed
has been valued Us of age and date OF issue ana lis
original conditions and all ris,t- Mccrung III coihee-
tion Herewith have been faithfully oDscr'cG.
,rrnxt.c LypESDITIRES. ETr,
Tho gross income OF the company for The first SIX
months of the current year WAS sl729373, the
annual u tof tsc eghs Of The
| NEON. accrues from premium receipts aio .ne
balance from interest and rents AS innrcaans inc inc
Character of the cdmpany's Investments anu the
large Interest thereon, 1t may be mentioned tal ne
infersst receipts hare beer, much more naR sur
acisat to pG ray s ses as nsar rs' Sast
,,i mare Than one tenth OF the annual income
Is absorbed in the working Oh me
IN agents. and the absolute ownership oy me COM
panv Of forsyone per cent OF ,ts business on %hcn
lection Is reduced TO minimum ralo. The CON-
nensaIion OF agents. including travelling expenses,
Ne veil as commissions and salaries amount 10 about
LIGHT per cent Of the premium receipts. the com.
mi .sions alone averaging but fraction over SIX anI
half per cent. These percentages inciuie olu anu
new business But the ratio Of the entire worklns
expenditure Of the company 10 lis gross income
shows higher figure, the increase accruiug Largely
from the wide dis rbution Of It" loans iadlclousy
placed as we think, in comparatively small amounts
or greater security aud more profitable INVESTMENT
The EXPENSES of travel and examinatl lon being there
by greatly enhanced.
a careful examination Of the companys oooSs
ann accounts, covering period OF s'x or seyen
wears has shown that only redsondb!e sdtdTfea
are paid to its officers and ena7'toyees and thd'
no onicer receires. directly or tnatrec,fy, dnD
com psnsdtfon ,Dhdteper, contingent on the ousl'
ness done Or by ,oay Of commit ston on Snrpt@s
other anmsf, aa eg a T, xxx
CONCLUSION
Ills due 10 the company TO state that It's DooK