St. Paul daily globe., 1889-02-26
Total expenditure ... 5000, l44 e4

ptHSco Ol uldH6StluGut Oc4,cOO
lakes. S94' 3S3 60 81
Total expenditure ........ Sc, 6,699, 144 64
Leaving a balance of S7224 3S331 80 to be
carried to increase net or ledger assets.
MORTALITY.
The death losses for the year were
somewhat above Onr average eXpe-
rience, out were so far inside the NOR
tality to be expected by the table and
provided for by our premiums as to
leave saving of about S4S0,000. For
two years the death rate has been above
our average. But even at its 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
regard 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 company has reached any con-
siderable size, not only is it better for
both old and new members that new
business should be taken only at such a
price as does not reduce the dividends
on the old, but that there should be a
general tendency to reduction In the
expense ratio to Offset the slowly in
creasing difficulty of earning large
dividends. Whatever is got in violation
of this principle is source of ultimate
weakness and not of strength, whatever
its magnitude. 1t is a great satisfaction
to the management that the company
has been able to increase its business at
reduced rate of expense. Its new
business is, therefore, peculiarly yalua-
bic. The expense ratio for 1855 was
only S.96 per cent, ratio less than that
of any other company.
INTERESTS and RENTS.
The income from investments during
the year, while yielding good margin
for surplus, indicates the difficulty of
finding quite as ready and satisfactory
employment for money as in the preyi-
Gus year.
PROFITS AND SALES.
In 1883 we sold for S77775, T62.44 real es-
tate which cost US 1853, 5000; net
profit of SS6.092 10.
This brings real estate sales to Jan. 1,
1883, up to grand total of 81, ,16S, ,726. 10
of property witich cost US $3.50, Ass. 81;
a net profit of SS3S, 2267.
OF the twenty-eight parcels sold dur
ing the year twenty-siX sold at profit
of SIS. .175.20, and two sold at loss OF
s., ,OS3. .05-balance, SS6. .092. Is.
On bonds sold and paid at maturity
during the year there was net profit
OF S45,0T5; on sundry items there was
loss of s2,246.74, giving total income
from profits and loss items Of Sl2S,920.41.
Loss.
For the first time in its history of
forty-three years the company has to
record loss by the default of one of
It's financial correspondents, class of
men through whom most of its 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 most important and
confidential relations which they hold;
men who. except in this instance, have
served this company with rare 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
loss from this cause proves to be $685.
44S.01: deducting the income from profit
and loss above stated, the balance
charged to profit and loss is S3354. .527 80.
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
distracted this correspondent handled
correctly over s17, ,000, 900, and possessed
not only our own confidence, but that
of the business men of his own city and
state in very marked degree. His fit
ness was unquaiifiedly Endorsed by the
most competent men who knew him
intimately.
To rightly appreciate the effect of this
loss upon the standing of the company
and the safety of its contracts it should
be considered in its proportions and not
simply in its aggregate. That is small
to one concern which is large to another.
A bank with Sl,000000 of resources. OF
which S10D.Ooe was surplus. could meet
a loss of $4,000 without thought of In
Jury to it's credit. But less than what
S1( 900 is to such bank, S4S4. 900 IS to
company with $57, 500, 900 of resources.
and with $5.565,0S0 surplus remaining
after the loss. 1t will not affect the
company's dividend.
The conditions which, apart from our
entire confidence in the man, made this
loss and its concealment possible were
peculiar to the times in indianapolis
following the financial depression of the
last decade, and the metho IS by which
it was effected were skillfully framed
out of those conditions. No such con-
dition exists elsewhere. nor has since
that period. 1t is probably needless to
saw that whatever lessons as to meth
ods 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 S442, ,2S7.50.
We have purchased bonds costing
81 .492, ,040.25; making our holding at
cost on Jan. l. 1889, $3.50. 1854. The
excellent character of these bonds will
appear from an inspection of the item
lied schedule.
REAL ESTATE LOANS.
We have loaned during the year upon
real estate security S5.794. l70.46; loans
have been paid off to the amount of
81 .00S, ,3s5 90, leaving the amount so in
vested S31, ,630, 44S.60. Concerning these
we can only say that they are made
with constantly increasing care. in only
those localities where values are of the
most permanent character.
STANDING OF THE COMPANY.
= =