Morning journal and courier., 1889-02-18

| 5.4I Profit and loss. ......-...... 54,527. 60
 Total expenditure - se,6g9, IA e4
 Leaving balance of SPA, ,831 32 to be car ! ried to increase net or ledger assets. ! MORTALITY.
 ! The death losses for the year were some | what above our average experience, but were I so far inside the mortality to be expected by the table and provided for by our premiums as to leave saving of about $480, ,000. For \ two years the death rate has been above our average. But even at It's highest it has been
 far below the mortality table, proving at | once the careful selection of our business and the abundant safety of the table on which | our operations are based.
 Our losses have been paid with equal re- gard to the prompt satisfaction of every just claim and to the protection of the honest \ members against every unjust claim. EXPENSES.
 | We still follow the principle that when a ! company has reached any considerable size, | not only is it better for both old and new mem | bers that new business should be taken only ! at such price as does not reduce the divi- ! dends orkthe old, but that there should be 8 general tendency to reduction in the ex- pense ratio to offset the slowly increasing diff \ ficulty of earning large dividends. Whatever is got in violation of this principle is source I of ultimate weakness and not Of strength, whatever it's magnitude. It is great satis- faction to the management that the company has been able to increase it's business at re- ! duced rate of expense. It's new business is, therefore, peculiarly valuable. The expense ratio for 1888 WAS only 8.96 per cent, a ratio less than that of any other company. INTEREST AND RENTS. | Theincome from investments during the year, while yielding good margin for sur plus, indicates the difficulty of finding quite as ready and satisfactory employment for ] money as in the previous year. 1 PROFITS ON SALES. In 1888 we sold for SITS, ,7e2 A real estate \ which cost us $689, ,670.29, net profit of ! $86, ,O92. 15. This brings real estate sales to January 1st, property which cost us $6, 330, ,458. ST, net ! profit of $s3s, ,2s7.32.
 Of the 2S parcels sold during the year 26 sold at profit of $SS, 175.20, and sold at loss of $2, ,083 .05; balance $s6, ,e9215. On bonds sold and paid at maturity during on sundry items there was loss of &, ,246. "A; giving total income from profits and loss items of $12S, ,920.41.
 LOSS.
 For the first time in it's history of forty ! three years the company has to record loss | by the default of one of it's financial corre- | spondents, @ class of men through whom | most of it's loans are placed according to the ! general business custom in such investments, | and who are selected with exceptional care | for the character and ability requisite for the I most important and confidential relations l which they hold; men who, except in this | instance, have served this company with rare 1 fidelity and success in all these years; to whose wisdom and faithful service much of the success of this company has been due The amount chargeable to profit and logs from this cause proves to be $453, AS. .01; de- | ducting the eincome from profit and loss above
 stated, the balance charged to profit and loss | is S354, ,527 60 No credit is taken for the value of property restored to us, nor will | there be until it is realized by sale. During the time this money was being ab stracted this correspondent handled correctly ! over SIT, ,000, 900 and possessed not only our 1 own confidence, but that of the business men of his own city and State in very marked de | gree. His fitness was unquali6edly endorsed | by the most com mpetent men who knew him intimately.
 To rightly appreciate the effect of this loss | upon the standing of the company and the ! safety of it's contracts it should be considered
 in it's prportions and not simply in its aggre- gate. That is small to one concern, which is large to another. A bank with $1, ,O0O, ,000 of
 resources, of which $100,000 was surplus, ! could meet loss of $10, 900 without thought
 of injury to its credit. But less than what | $10, 900 is to such bank, $484 900 is to 6 company with $57 ,500, ,000 of resources, and
 with $5, ,565, ,080 surplus remaining after the | loss. It will not affect the company's divid- end.
 l The conditions which, apart from our en- \ tire confidence in the man, made this loss
 and it's coneealment possible were peculiar to
 the times in Indianapolis following the fran \ cial depression in the last decade, and the
 methods by which it was effected were skill | fully framed out of those conditions. No | such condition exists elsewhere, nor has | since that period It is probably needless to ' say that whatever lessons as to methods there
 are in this matter will be properly applied. BONDS.
 During the year we have sold, in order to
 save the premiums and have paid off bonds
 that had cost us $442, PSF. 5O. We have pur- \ chased bonds costing $1 ,492, ,040.25: making
 onr holding at cost on January 1st, 1889, $9, | $40, ,575 34. The excellent character of these
 bonds will appear from an inspection of the ! itimized schedule.
 REAL ESTATE LOANS. | We have loaned during the year upon real
 estate security $5, 794, 170.46; loans have been
 paid off to the amount of $7, ,00S, 1885. 90, leav- l ng the amount so invested $31 ,630, ,44S. 60.
 are made with constantly increasing care, in ! only those localities where values are of the | most permanent character.
 STANDING OF THE COMPANY.
 The company had in force December 31, 1888, 63, 860 policies, insuring $151 ,361 ,913. ! Its assets on that day were $57, ,46O, GAS. 20; it's liabilities by the highest legal standard of
 solvency were $51 .s95, ,569. 61, leaving a clear l surplus of $5, ,565, ,07S. .59. Our own standard l 1882, is higher than any legal standard or l that of any other company, and requires us ! to carry an additional reserve of $350, ,370, leaving the surplus by our own standard $5, ! 214, ,709. 59.
 l The premiums and reserves of the compa- | ny are grounded upon the most conservative | bases, which hve been approved by experi- l ence again and again; its contracts are of the 1 simplest, most legitimate character. devoid | of speculative features it's business is select ! ed with gr eat care; it's economy of manage ment is unrivalled; in actual cost of insurance ! furnished it's record is believed to be at least ! unsurpassed; it's growth is wholly healthful, being worth more than it costs to those al ready insured; it's assets are not to be ev- celled for solidity and productiveness; it's surplus is ample to provide for every adverse contingency.
 In it's forty-three years of business this company has
 For For REnfsrass and rents s s For balance profit and loss ......... 6s5,i1o 45 ss14,5s5.s4l 76
 
 For death claims and endowment ~ .$6s S5o, TT 90 For surplus returned d.......,..... 46 229 520 80
 For apsed and surrendered policies 19082. .1S6 45 For expenses. es................ 1S065, ,501 57 For taxes 6455, ,O55 r For balance, net assets -. - 55, ,s5s ss9s s7 S2l4, ,535, ,9n .76 $134, ,162, ,4s5. 15 has been already returned l to policy-holders or their benefciaries, by | payment of death claims, endowments, divi- | dends, and for lapsed and surrendered poll ciss; $55, ,952, ,S99.S7 is held as net assets to l protect existing policies; that is to say, we
 have returned to policy-holders or still hold
 for their protection, $190, ,015, 1885, 02, or $34,- l 591 ,348 O5 more than the entire premiums received from them. We submit this as no slight evidence of financial management, of which we need not be ashamed. These remarkable results have been accom- pllshed at an average expense ratio of S4 | per cent. of the income.
 Upon these facts we stand; and to all who desire the protection of their families we Of
 fer experience, equity, simplicity, economy | and strength.