The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-03-08
1898, &c
$6,4o7,9s3.57


Leaving balance of 1867, 37S. Is TO be car
Fied to increase net or ledger assets.
MORTALITY.
The death losses in 1887 were heavier than
those in the previous year; but they were less
than to be expected by table of mortal
ity. making a saving of about $430.000.
The pay ment of death claims is the end for
which a life insurance company is created, and
the only legitimate service it can render. It
would seem sslf-evident thar. in mutual
pany at least, the duty of it's managers is TO
pay all honest losses promptly. and to resist all
dishonest losses as frauds the honest mem
bers whose money pays the claims. Many com
psnies compete for public favor By pretending
to make their policies ''incOntestable." We
have insisted that this was against the rights
of honest insurers and public morals, IS direct
premium for fraud In other business have
men. assuming great fnancia! responsibilities.
dared to give up defenses against frauds on their
funds.
In a recent case where the jury found the in
snrer had committed suicide while perfectly
sane. ne said in letter arranging for the dis
position of his affairs after his contemplated
self-destruction: "All my insurance policies
have been taken IN companies which will make
no conditions as to cause of death, with per-
baps one exception, and that was mistake"
EXPENSES.
No part of the cost of insurance is so directly
aud really under the control of the management
as the expense account It is easier TO save
money than TO earn it; and the possible savings
are large part of the possible dividends. The
company with low expense ratio is certain in
the long run, if otherwise as we'll managed, to
pay better dividends than with high ex-
pense ratio; and economy does not generally 60
~. - r..
We have steadily refused to incur the expense
necessary to compete for new business in the
ways employed by principal competitors, or
TO take new business ~ q cost which would
compel as TO reduce dixidrudsto present mem
bers Consequently ratio of expenses is
only about one half that of the most pushing
companies, and the fact is directly and forcibly
reflected in our dividends and in the actual cost
of our insurance.
A healthy insurer must reasonably expect 70
pay premiums for several years at least. per-
baps many. The amount of his first payment
is therefore Of much Dss importance than that
of his future payments, which will depend
dividends; and these will depend more upon
economy than any other cause which he can at
present measure.
The ratio of expenses of management to in
come in 1887 is % per cent trife less than
for 1886.
INTEREST AND RENTS.
The income on investments from interest and
rents in 1887 was satisfactory under existing
conditions of the money market and affords
notable matter of comment.
PROFIT AND Loss.
During 1887 we have sold nineteen parcels of
real estate at a net profit OF s43. &c. and five
parcels at a loss of $5.1l4 %; balance profit on
real estate sales, $685. 534 Is.
We have received by maturity and exchange
of securities profit of s65 I65 90. and have lost
in like manner $l6972.O %; balances profit on ex-
changes, etc. $4s, 1913; total balance profit. $780,
727.1S
REAL ESTATE SALES.
During 1887 the company has sold for $685.
~. Oh real estate which cost it S4S8, 242 S.
This brings the sales of real estate. up to JAM
], TO grand total of Sc 1872 $685. 20 for property
which had cost US $500, 1858, net profit of
s752, ITa17.
Some Of the bonds held by The company have
matured and been pail during the year. aud
sOme which bore high premium that was
beginning to run off rapidly by the approach of
maturity have been sold. The cost of bonds !
thus paid and sold aggregated So 055. Al, the
cost OF bonds purchased aggregated 1896, 800.
The market value of bonds now held, over /
cost, is 1852 266 06; their per value is $780,
1856 less than their present market value.
The greater part of this differences We hope to
capitalize and save By changing securities at the
proper time. as has been done during previous
years, by which large saving has been effected.
REAL ESTATE LOANS
During the year loans have been paid amount
inc 20 s5. l92, 1893 %; and loans have been made
aggregating IS SOL. TAI go; the total amount thus
invested is sS2, 81, 664 o. These investments
are made only at those points where thu FAIL
tiles for great and varied production. easy dis
tribution, and the rapid development of all the
resources OF our civilizations. furnish in the
greatest number and the greatest permanence,
the elements of intrinsic value. They are made
10 the natural as we'll the actual areas and
centers Of wealth and population. That fact,
and the with which they made, and the
results had from them far. thu grounds
for our confidence in their absolute safety.
STANDING.
The company had in force, December 81, 1887,
50, 4s3 policies insurine $780, 1922 49s It's gross as
sets were SO. 643 4983 So; its present liabilities,
by the highest legal standard Of solvency, were
$5l. l57 067. IL leaving a clear surplus of 80 1885,
430-6l. But that standard OF solvsncy assumes
that the company wiz always earn 4 per cent
annual interest and II 1882 decided that
TO business doEe thereafter, proper
ssryatism to assume that we could not count
with certainty on earning over per cent. dur
ing the sixty or seventy years some OF that bust
ness must be expected to run. This assumption
eompeis US TO carry higher reserve than the
legal one. the difference. December 81 being
e26o,6 making our liability. BY our own high
err standard s5l AT 20 n, and the surplus s5,-
225. 73s sl
Ia view OF the conservative basis and char
49, StMr I !