New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-02-19

surplus returned to policy. -
Allowed on apscd and sur.
r T1%&STsd d 3edf Iasass5 =
Held in net assets for O'O'0oO
reserve, etc............-.- 620i2.4o2 10
Nearly So per cent OF its entire premiums have been
over So per cent OF its entire income has been so
returned. Ia held the sufficient and surplus
TO protect it, existing insurances while the average
expense Of creating handling and distributing this great
business has been but 30 per cent OF the income.
These results challenge comparison as 10 their
intrinsic character, mark tho highest standard OF
achievement in the history Of the business hitherto.
prove the absolute safety OF the scheme OF legitimate NE
Insurance. and exhibit completeness OF success far
fs insurance Ss Iroporly administered first among
modern methods OF self-hep ana social benehoence
project his family from financial suffering end from
disruption by his DEATH and through this protection
family ie and therefore the whole social order Is fted
TO a higher because seourer plane.
THE OPERATIONS AND RESULTS or 1885.
During the year Just closed the Company has assumed
Increase premium paying risks of 1884 Of
Sl,79S $50, or about IS per cent.
on tor ssa 81 esfsGe
S520,525 80 ian income Of S29i9237 AZ from prop;
income OF 65l213 IT, an increase over that OF 1884
of Sllo'l9s ~ ,,,,,,.os,.,,,,,rs
Tho income has been appropriated follows: For
death losses and matured endowmens, S3.959sl6 20;
surplus returned to members 81 2O2 So 3d. allowances
for lapsed and surrendered policies S6G2,6lO 92; an
aggregate payment to members and their benaacares
including real estate expenses S75966l 81 Tor taxes
S342.3ll o. balance of income carried to net assets
S72I,70l Gl..
The Companys liabilities by the highest legal standard
OF sovency were, January 1850. Sl01O3507 o.; by
against which It holds gross assets Sji3s3,6i9 90,
giving surplus by the egal s'ag91rd OF CSn4seGHt
higher standard Of Si,5j7,977 81.
Its gross assets have increased S953Gl7 o. and its
J
Careful attention asked 10 the schedule OF assets and
liabilities accompanying this report
MORTALITY IN 1855.
The mortality OF tho past year has been nearly as
frequency among those nsnrsi Tor larger amon17 the
money loss by death S3lS4sS larger than In that
exceptionally favorable year, though far Inside our
Expenses.
Economy has been carefully studied in all eHpendi-
with other Interests OF tho Company and to secure
from them the largest proportionae results The ratio
Of expenses TO Income for the year was 993 per cent
INTEREST EARNED.
earned n 1874; but It i, increasingly difficult
or renew Investments at steady rates on safe security
view Of the constant tendency toward lower Iae OF
ION to The that our new business il based
upon the assumption OF earning only per cent through
out It's Duration instead Of per cent.
RENTS OF REAL ESTATE.
Tn our report for 1884 said: There Indications
that following the depression OF the last year and more
bappy 10 say that our fear was not realized
our actual rental Income on smaller holding OF real
property, and depression In some places 1t Will bo
PROFIT AND Loss.
From the sale payment at maturity OF certain bonds
the Company received S5525 - over cost and on Ger
tain otnera made loss OF S3.39l 55 net gain this
class OF securities OF 1913 80 From the sales OF real
estate received Sl59o32 20 over cost and on tH9
loss from real estate sales OF Sl56577 making an
aggregate balance to profit ana loss OF s2Jll rms
In All
REAL ESTATE.
During the year the Company has closed ont all the
property taken under certain foreclosures st cost TO 1t
OF Sg57iI ~ which has ed 81 1898 81
Of our real estate owned and that on which Interest was
in default IN 1879 by t9e Insurance pep4rtmsPt made
S2Oi5lS - less tnan they had cost and l,O01 80
less than they have sold for.
entire properties which cost us Si;26s,sH az for
S4S so be @e' o san cd a. IL hes o
S7O9 81 80 less than thoy cost ana F@9-o9| 81 less
These facts are Instructive they satisfactory.
They prove what we have always claimed. that real
in OF DEF resson Ike those from 1873 TO
1850 10y foreclosure OF loans that were fairly made
time. is rather source OF ultimate profit than OF
danger to the company that has to take II ana hod fo
a proper market
THE CONDITION AND STRENGTH OF THE COMPANY.
Grad rs the magnitude of the figures set before
what these arr to-day OF what they likely to be
with reference to probable iuture
of the value aud suciency Of assets there Is no
need 10 speak except ID refer to them.
our liabilities are computed upon more conservative
b sis than those Of any other American company.
The highest legal standard OF sOlvoncy In this country
requires premiums aud reserves 10 DC calculated on the
a.sumpton that Investments Will at least per
cent animal Interest for all the time risks
which those premiums and reserves Apply nay DO IN
force Much OF business mnst De expected TO run
from forty to seventy years To assume that we cab
sarna hghcr Of Interest durng all that time than
Is reasonably certain to DO earned Is 10 uehoetatey
invite bankruptcy somewhere In the future All our
business taksn prior to April J. lesZ rests on tno per
interest basis A. that time the rate OF interest on
Government bonds and some OF tho best state bonds had
railway bonds OF the first class was al or nearly down
To rIceDt with manifest tendency To go lower as
wealth Increased ana no real cause III ssnI 70 oary ~
higher IN th1long run We believed we oonlu not say
that We reasonably certain TO earn per cent On
could right'uy ask to commit the future welfare
OF for families into our hands upon tnat issue anu we
rate 10 assume 20 during all that time. We there
fore based all business from that date on That
Tn1 Company alone OF American companies has taken
this step toward greater safety. II gives US position
which we are glad occupy II will enable us to select
securities more closely and remove anxiety as 10 the
simply earn SO much nrs SiS 70
Meantime II ia interesting to note how the course OF
events has confirmed our view Government ooIds
last year issued large AMOUNT OF pei cent bonds at
premium C Issued 3lS pei Gent p S4nhs
issues per cent bond at nearly per cent premium
St. Louis Issues like bond nc premlului NeW-haNeu
al 3a per cent Northampton at per cent ana score
OF others at corresponding rates according 10 tlei,
ability can borrow adyantageOuslyi the securities OF
Boston and Its suburbs but about IN per cent the
rate the best railway bonds Is correspond
ingy low ranging from below per cent TO IA per cent
the rate nrrtra mortgages has fallen equally Anu
what existing cause Is to change all this permanently
Many things may change II temp0raryj out tho
prudent course seems clear; for wealth Is increasing
stsr than o.ptal IA demanded for and safe uses
Upon the business issued since April l. lss2. we hou
therefore $l22,l6o larger than that reqFeu
by law.
INCREASE OF SURPLUS.
ON the 3lst December 1870, the Company held
snrnns of ~ IO3237 II gross assets OF @3O0lo,,
97 o. The then directors OF the Company considered
II no longer necessary to hold so large surplus ana
Incident TO continue longer the modes or business by
which t mad been accumulated plan for the gradual
dsrnfon the creator paIt OF THIS surplus was SUI