Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-02-25
Total receipts.

To'alr'oeips'..-................. s7.sssezs 9.
During the year It paid out
For claims by death
and mstured endow-
Surplus returned to
| policy holders. 1890. 1,100,367 a
Lapsed and surren-
dered policies........ 52e22s Sc
Total paid policy holder. 80. 5;ass. SO a
medical exsminers' fees, printing,
advertising, legal, real estate and
all other expenses Of manage
| ment..-.......-... 664, S85 "a
aaxee. .................... g04,363 ~
Total expenditure. 1883, IA q
Leaving q balance Of STA, 331 SO to be carried
to Increase net or ledger sssets.
| MORTALITY.
The death losses for the year were somewhat
above our average experience, but were so far
inside the mortality to be expected by the
| table and provided for by our premiums as to
leave saving Of about e4S0,O00. For two
years the death rate has been above our aver
below the mortality table, proving at once the
careful selection Of our business and the
abundant safety Of the table on which our oper-
atoms 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 q com.
pany has reached any considerable size, not
| only ia 1t 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 q general ten
dency to reduction in the expense ratio to
offset the slowly increasing difficulty Of earn
ing large dividends. Whatever is got in viola
ton Of this principle is a source Of ultimate
weakness and not of strength, whatever its
| magnitude. 1t is great satisfaction to the
| management that the company has been able
to increase its business at o reduced rate Of ex-
pense. Its new business is, therefore, peculiarly
valuable. The expense ratio for 1888 was only
s.96per cent, a 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 employmens for money as in
the previous year.
PROFITS ON SALES
| In 1888 We sold for SITS, 1924 real estate
which cost us cess, $40. 20; net profit Of $780,
09215.
This brings real estate sales to January /,
1888, up to grand total of 81, 16S 726 10 of prop
erty which cost us Sc, $50, 45S.S7; netprofit OF
$83S, 267.32
OF the twenty-eight parcels sold during the
year twenty-six sold at profit of SSS, f75. 20,
and two sold at loss of Ie2,OS3 05-balance,
$S6,092.15.
On bonds sold and paid at maturity during
the year there was net profit of S45. 075 90; on
sundry items there was loss of e2,246. "a; Civ
ing total income from profits and loss items Of
S128, 92O.41
For the first time in its history of forth-three
years the company has to record q loss by the
default of one Of its financial correspondents. a
class of men through whom most Of its loans are
placed according to the general business Gus
tom 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 $483 448O OF; deductine
the income from profit and loss above stated,
the balance charged to profit and loss is 1854,
oZf6O. NO credit ID taken for the value of
property restored to Us, nor will there be until
1t is realized by sale.
During the time this money was being abb
stracted this correspondent handled correctly
over 81, 600, 600. and possessed not only our
own cofidence, but that of the business men of
his own city and state in q very marked degree
| His fitness was unqualifiedly Endorsed by
the most competent men who knew him init
mately.
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 aggre-
gate. That Is small to one concern which is
large to another. A bank with 81 600 900 Of
resources, Of which 100000 was surplus,
could meet loss of $4,000 without Thought
OF injury to its credit. But less than what
900 is to such bank. $4S4,0O0 is to a COM
pany with $57, 500 900 Of resources, and with
30. $50, 0SO 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 methods
by which 1t was effected were skillfully framed
out of those conditions No such condition
exists elsewhere, nor has since that period II
Is probably needless to say that whatever les
sons as to methods there are in this matter will
be properly applied.
During the wear We have .o,a :, o~a.r -
save the premiums and have had paid of. bonds
that had cost us $442, 2S7.5O. We have pur.
| chased bonds costing 81, 1872 040 rs; making our
holding at cost on Jan. l, 1889, $3.50 575. "a.
The excellent character of these bonds will ap-
pear from an inspection of the itemized
schedule.
| REAL ESTATE LOANS.
We have loaned during the year upon real
estate security 50, 1874. ITO. 46; loans have been
paid OF to the amount of S7,OO8, 1856 90 leay-
ing the amount SO invested S31 $50 AS go. Con-
corning 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
The company had in force December 81, 1888,
63, 660 policies insuring a151 1861, 1913. It's as
sets on that day were $57 460 649 20; its labili-
ties by the highest legal standard Of solvency
were s51 1876, 500 81, leaving clear surplus Of
S5,565,O7959. Our own standard of reserve on
business written since April, 1882. is higher
than any legal standard or that of any other
company, and requires us to carry an additional
reserve Of $3.50, $40; leaving the surplus by our
own standard 1924, 70959
The premiums and reserves of the company
are grounded upon the most conservative basis,
which have been approved by experience again
and again; its contracts are Of the simplest
most legitimate character, devoid of speculative
features; its business is selected with great
care; its economy Of management Is unrivaled
In actual cost Of insurance furnished its record
Is believed to be at least unsurpassed; its
growth II wholly healthful. being worth more
than its cost to those already insured its assets
are not to be excelled for solidity and pro-
ductiveness; its surplus is ample to provide for
every adverse contingency.
In its forty-three years of business this COM
pany has received:
For Premiums. ...............S l55, 424 O36 81
interest ana rents. ............. OF, 426, 794 "a
balance pront ana loss. ........ $50, ITO A