New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-03-01
leaving balance Of srG5737s 20 to DO carried
10 Increase net ledger assets
MORTALITY.

leaving balance Of sr.o573Ts % to DO carried
to Increase net ledger assets
MORTALITY.
The death losses in 1e57 weIe heavier Than those
IN the previous year. but they were less than to
be expected by cur table OF mortality, making a
saving Of about 100000
The payment of dcafh claims is the end for which
ife Insurance company Is created, and the only
legitimate service 1t can render. 1t would seem self
evident that. in mutual company least the duty
OF los managers Is 10 Pay all honest losses promptly,
end to resist all dishonest losses frauds on tho
nonesI mcmbers whose money pays tbs claims Many
companies compete for public favor by pretending 10
make their policies incontestable' We have In
sisted That this aGains; the rights OF honest In
snrers and public morals, a direct premium for
fraud fraud In no other business have men assuming
great financial responsibilities, dared to give up de-
fences against frauds their frnds
81 IN recent case where the jury found The Insurer
han committed -iiicidn while perfectly sane. h said
In letter arranging for the deposition of his affairs
aftcr his concentrated s'ifd sirrction: All NV In
snrance policies have been tafen in eonranes VIII eh
perhaps one exception and that waS a ms;taks'
EXPENSES
No part Of the cost of insurance Is directly and
really uuder the control OF the management the
expense accnnt n Is easinr 70 save money than TO
earn II anu tho possible savings are largo part OF
the possible dividends The company with low
pense ratio IS certan in the long II otherwise
Wen managed. TO paw better dividends than one with
high expense ratio and economy does not generally
go with bid management in Other respects.
We have steadily r'fus"d to incur the expense
necessary 10 cnmprre fnr business In the ways
employed ~ principal competitors. 70 take
b"S'nrss al a cost which would onipel 70 reduce
dividends 10 present members. Consequently eur
ratio of cxDcTTcs Is only about on"haf that OF the
most pushing companies and tho fact IL dir ctlv and
forcihy rceri"d in dividends. and In the actual
Gust Of Our insurance.
healthy insnrpr must rp1Snnahiv cVnsrt 70 ray
premiums for several years at least. perhaps many.
The amount Of his first payment IS therefore Of m"ch
rs Importance than that Of his future payn"n's,
which VIII drrrnd on dividends: and th'se VIII d.
rend more urnn economy than any other ealise which
he pres m
IN, r-.'n Of Expenses ~ management 70 INCOME in
f5s7 Is % per cent: trino lcss than that for 1856
INTTRTST AND RENTS
Tho income on investments from interest and rents
In 1887 satisfactory Under existing conditions of
the money market, and affords notable matter Of
comment.
PROFIT AND LOSS.
During 1857 have sold nineteen parcels of real
estate al a profit of Sf3.e4s % and five parcels
loss Of S5114 D. balance, profit on real estate
We have received by maturity and exchange of
securities profit or ss5 % and have lost in Hike
maurer sIG072 balance % Oft exchanges, etc,
SIS, 1875; total balance profit, Ss6.I27 H.
REAL ESTATE SALES
During 1887 the company has sold for SJc6.T7T OIL
real estate a+eo.et,
This brings the sales OF real e-tate up TO January
I. grand total Of S.3p2. 9e} IS, FER property
which haa cost Us $5,64o,75e 80, net profit Of
S752,17J II.
Some Of the bonds held by the company have
maturcd and been paid dnrins tho year and some
run OF rapidly By the approach of maturity have
be-, sold The cost Of bonds thus paid and sold az
grccalcd T2O557G6 Al the cost OF bonds pure based
aggregated S90s, 1870.
The market ,aiuc of bonds now held cost
IS -i52=6o o1 but their par value Is sJ'OS78 90 less
than their present market vaine The greater part OF
this difference VIC hope TO capitalize and save by
changing securities at the proper time, as has been
done during previous years, by which largo saving
has been effected
REAL ESTATE LOANS
During the year loans have been paid amounting
70 S5.192.3os OF: and loans have been made asge
eating r.. sol 81 80 the total amount thus invested
is H. 664 o.. These investments made only
those rolnts where The facilities for great and
varied production, easy dis tributon and the rapid
development of all tho resources OF civilization.
furnish in the greatest number and the greatest
permancnce. rhc elements of Intrinsic value. 1hey
are male in the natural well the actual areas
and centre, wealth and population. That fact aud
the care with which they made, and the results
had from them 50 far. are the grounds for conf
dencc in their absolute safety.
STANDING.
Tho company had in force December 81, 1857,
CO 49, policies insurng 81 30 92.40s; IT. gross
sets were S5GGi3I9s 30 its pr sent liabilities by the
highest legal standard of sovency. s51 ,I57,O67 ~,
leaving a claar surplus Of S3,4s6,430 81. But that
standard OF solvency ASSUMES thar the company viii
aly-ays earn per cent annual interest and IN l6o2
We decided thai a. business done thereafter II was
a proper conserv atism to assume that we could not
durnG the sixty seventy years som" OF that bus
ness must be expected IL rTiL TINS assumption COM
pcls us to carry gh;r reserve than the legal one
the difference. December 81 being S260 692. making
orr liability. by own higher standard, S1l Az
80 ~ and tho surplus S5.225,73 o.
In view Of III, consery basis and character Of
the companys contracts the character OF the assets
which protect thrm the vOlnme and margin Of sur
plus and te methods Of orr hnsin IS we submit that
no company IN the world mora certainly furnishes
that absolute stability without which life insurance
becomes worse than worth 5 for family protection
which Is is emily legitimate purpose
GRAND TOTALS TCI FOErYTwO YEARS.
Since its organization In 1916 the company has
Received
For Pr-niuns. %
Inter..t and Rrnts ..--..-.. 55.IJ9.6) 3 -
balance Profit aud Less .......... I.O.9.63S O5
s2O7 1913 10