The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1881-08-11
Estimated amount of reserve

Estimated amount of reserve
fund on 1st Sept, 1882. :. 3A773 sc
Or if we deduct Salts SO, to meet any
possible unforeseen contingencies, the
amount Of the reserved fund will still be
$50, 900.
AS soon as Congress shall have taken
action in regard to the mode of funding
the national debt, it is the purpose of the
Board of Directors to invest the whole
amount of the reserved fund in U. S.
bonds, their object being to look, not to
a rate of interest, but to perfect security,
and ready convertibility of the principal
into cash, if it should become necessary.
The President very properly remarked
in his report to the July meeting, "when
this condition of o II affairs is made known
to the public, and the policy-holders
learn that we have on hand now, in per
fectly safe securities, a reserved fund of
over SIS, 900, and that at the end of next
year, that amount will be more than
doubled, and that during each successive
year thereafter, not less than $40, 900 will
be added to the same fund, the credit of
the company will be placed on basis
that can not be shaken"
1t will be observed, too, that when an
assessment is now made for death loss of
$4,000, owing to. the increase in the
number of policy holders, the assessment
yields S5,7IS A, which not only pays
the, loss, but leaves surplus of S2,718 "A
(less cost of collection) to be placed to
the credit of Death Loss Account, and
used in paying the next loss that may &C.
cur 1t will be seen, therefore, as long
as this condition of things exists, there
will be no occasion to make any inroad
on the reserve fund, which is provided to
meet any possible demand which might
arise, by such falling off in the member
ship, as would cause the assessment to
fall short of the death loss.
1t may further DO satisfactory to the
policy-holders to know, that it is the
purpose of the Board of Directors, to
steadily pursue the policy of adding an
nually to the reserved fund until it shall
have attained the maximum allowed by
the charter.
1t will probably be asked by some per-
sons, how has the company been able to
achieve these great results in so short
time We answer, it has been accom-
plished by strict economy and vigilant
attention to business.
If any one will take the trouble to
look at the causes which have led to the
failure of so many insurance companies,
he will find that they may be charged
under the following heads: 1st. Extrav-
agant salaries to officers. ed. Large in
t vestments inpalatial buildings and sump-
tuous furniture. sd. Holding under the
control of officers large amounts of mon
ey, which are a constant temptation to
speculation and extravaganza.
The VALLEY MUTUAL has carefully
steered clear of all these dangers. For
the first year the officers all served with
cut any compensation. For the second
year the compensation to most of them
was very small, and even now, when the
institution has grown to such magnitude,
the largest salary paid to any officer the
secretary who devotes his whole time and
attention to the business) is but $1,000.
I'd. We have been equally careful to
avoid the second danger which has eaus-
ed the wreck of SO many companies. We
own no real estate. We rent modest
office ON moderate terms, and the whole.
amount of our outfit consists of few
desks and chairs, and twofre- proof safes
for the preservation of our books and pa
pers from loss by fire.
sd. Instead of accommodating large sums
in the hands of the officers, we leave the
funds necessary to meet death losses in
the Herkets Of the policy holders until
the necessity arises to call for them. The
policy holders are therefore the eustodians
of their own money, and the real heasur
eys Of the company.
The whole expenditures of the compa
ny are therefore limited to the moderate
salaries of a few officers, the wages of two
clerks, office reps, stationary, postage,
fuel, lights, and servant attendance. The
excess above these necessary expenditures
goes to build up the reserved fTSna. Illus
far there has been no dividend declared
on the stock, butts IS hoped that at the
end Of next year. the circumstances OF
the company will be such. as to justify a
dividend ranging from six sq. ten Per cent
upon the stock of the company.
We have thus given a full, and We trust
a satisfactory statement of the condition
and prospects Of the VALLEY MUTUAL
LIFE ASSOCIATION, and an exposition of