The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-03-05

have been returned to its policy holders or their
benefciaries; over 88. 8 per cent. OF Its entire IN
ZONE has been so returned, or is held as the suffi-
eient reserve and surplus to protect its existing
assurances; while the average expense of Great
Ing, handling and distributing this great business
has been but 8.3 per cent. of the income.
These results challenge comparison as to their
Intrinsic character, mark the highest standard OF
achievement in the history of the bu siness hith-
serto, prove the absolute safety OF the scheme OF
legitimate life insurance, and exhibit a complete
ness of success far beyond any reasonable early
anticipation. They place life insurance, proper
Hy administered, first among modern methods OF
Belf-help and social beneicience. They show
shat here even the poor man can surely protect
his family from financial suffering and from dis
ruption by his death; and, through this protection,
family life, and therefore the whole social order
is lifted to a higher because a securer plane.
THE OPERATIONS N RESULTS OF 1885.
During the year just closed, the company has
assumed new risks amounting to 81, 845, 947; this
Includes an increase over the new premium pay
Ing risks of 1884 of 81, 798, $50, or about IS per
cent
It received for premiums, s. ,542, 264. "a; for in
terest on investments. 81, 428. Ill 81; for rents on
real estate, 1920, 525. SO Ian income of So. 949. 237. 43
from property; for balance of profit and loss,
$159, Ill; a total income of 81, 651. 213. II, an in
crease over that of 1884 of $149. 1927
DISBURSEMENTS.
Y The income has been appropriated as follows:
For death losses and matured e~ndowments, 49,
p59. BIG. 20; surplus returned to members. 81. 2O2,-
a56. So; allowances for lapsed and surrendered
policies, $685., 610. go; an aggregate payment to
members and their benefciaries of So, 1924. 584. Is;
for expenses of management, including real es-
tate expenses, $3.50, 661. "a; for taxes, $342, 3l1.O4
balance of income carried to net assets, STA
T01.61.
The company's liabilities by the highest legal
standard of solvency were, Jan. l, 1885, $49,-
703, 507. Cd; by its own higher standard, they were
s$49, 825, 672 Oh; against which it holds gross as
STANDARD of Connecticut and Massachusetts of
@4,68O, 142 81, and by its own higher standard of
81 57, 977. 81.
Its gross assets have increased 1858, 617.04 and
its surplus 1896, 153. "a. although the dividend
paid was larger thar in 1884.
Careful attention is asked to the schedule Of
assets and liabilities accompanying this report.
MORTALITY IN 1885.
The mortality of the past year has been nearly
as favorable as in 1884, but as the deaths fell
with unusual frequency among those insured for
larger amounts, the money loss by death was
1918. 486 larger than in that exceptionally favor
able year, though far inside our Expected loss
EXPENSES.
Economy has been carefully studied in all ex-
penditures. both to keep them at the lowest point
consistent with the other interests of the COM
pany and to secure from them the largest pro-
portionate results. The ratio of expenses to in
come for the year was 9.93 per cent.
INTEREST ARNED
The rate of interest earned in 1885 was as
good as that earned in 1884. but it is increasingly
difficult to make or renew Investments at steady
rates on safe security. In view OF the constant
tendency toward a lower rate of interest. 1t is a
source Of constant and profound satisfaction to
The management that our new business is based
upon the assumption of earning only 3 per cent.
khpouCh0ut itS duration. instead OF 4 Der cent.
RENTS OF REAL ESTATE.
In our report for 1884 we said: ''There are
Indications that, following the depression of the
last year and more. rents may not rule as favor
ably for 1885, We are happy to say that our
fear was not realized, and that our actual rental
little larger than in 1884. Owing to sales of
property and depression in some places, it will
be smaller in 1886.
PROFIT AND LOSS.
From the sale or payment at maturity of GER
tain bonds the company received 80, 1904 over
cost. and on certain others made a loss of
So, 391. 55-a net gain on this class of securities of
So, 1873. SO. From the sales of real estate we re-
ceived $3.50, 022. 20 over cost, and on two pieces
made a loss of So. 445. 59-a net gain to profit and
loss from real estate sales of 1856, 577.1l making
an aggreg gate balance to profit and loss of 1859,
gil. This is not counted in ascertaining our
ERte of interest earned on investments.
REAL ESTATE.
DuriuR tQ6 year IL COLupdhJ HIS SiOSOu "
al the property taken under certain foreclosures
at a cost to it Of 1895, IA 81, for which it has re-
Eceived 81. 152, 321. 38-a gain over cost OF $l56,
9TH. The special appraisal OF our real estate
owned, and that on which interest was In default
in 1879, by the Insurance Department. made
these properties worth at that time only $751;
R26. 42. or 1904. SIS. 85 less than they had cost,
and 1861. 095. 96 less than they have sold for.
Since that apprisal was made, in 1879, we
have sold entire properties which cost US $4. 268,
BAT. u for 81. 852. 04L. "a, a net gain of 1888. 1910
These properties were then appraised at S., 500,
&4. 90, or 500. 1853 40 less than they cost. and
81, 292, 5a7.5 81 less than they sold for.
These facts are as instructive as they are sat
4sfactory. They prove what we have always
claimed, that real estate taken in times of de-
Dression, like those from 1873 to 1880, by the
foreclosure of loans that were fairly made at the
time, is rather a source of ultimate profit than
of danger to the company that has to take 1t and
hold 1t for a proper market
THE CONDITION N STRENGTH OF Il COM
PANY.
Grand as is the magnitude of the figures we set
before you, real strength is a question not of mag
nitude so much as Of proportion and of quality;
and not only OF what these are to-day. but of
what they are likely TO be in the future. Are
the lines or present action well laid with refer
ence to a probable future9
OF the value and suficiency of our assets
there Is no need to speak, except to refer to
them.
Our liabilities are computed upon a more con.
servative basis than those of any other American
company.
The highest legal standard Of solvency in this
country requires premiums and reserves to be
calculated on the assumption that investments
will earn at least A per cent. annual interest for
Mll the time that the risks TO which those premi-
AIMS and reserves apply may be in force. Much
of our business must be expected to run from
forty 70 seventy years. To assume that we can
earn o higher rate of interest during all that
sine than is reasonably certain to be earned is
90 deliberately Invite bankruptcy somewhere in
She future. All our business taken prior to April
!, 1882. rests on the 4 per cent interest basis
AT that time the rate of interest on government
beads and some Of the best State bonds had fall
en- below 4 per cent, while on many municipal
and railway bonds of the frss class ii was at or
nessly down TO 4 per cent. with a manifest ten
dency to go lower as wealth increased and no
run. We believed we could not say that We