Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-02-25


Commissions e agents, salaries,
medical examiners fees. printing,
advertising, legal, real estate. and
all other expenses of management I6S6O4 IS
Taxes ...-........................ 30S Isl 81
Total expenditure. 81. GIG 399 SO
Leaving a balance of S7S4, ,S21 81 to be
carried to net or ledger assets.
At the beginning of the year the company
began paying death claims on receipt of
satisfactory proofs, instead of 30 or 80 days,
as formerly, and, during the II months of
1889, it, therefore, paid the losses for 13
mouths otherwise, the amount carried TO
the increase of net assets would have been
larger by several hundred thousand dollars.
1t is of interest to note that during the
year the company paid its members and
benefciaries on various accounts, 81 ,42O,-
976 "a more than it received from them in
premiums.
MORTALITY.
The death losses for the year 1889 were
well within the tabular expectation, giving
a saving on the cost of insurance of about
1916, 900. 1t is believed that no company
takes more careful measures to restrict its
business to safe localities, and those which
will not tend to increase its average NOR
talitY, or In the personal selection of its
risks, and its success in this direction is at
tested by a uniform and large saving upon
the mortality cost of its insurance from year
to year. Every Just claim has been promptly
paid, while equal care has been taken to
protect the members from imposition
through fraudulent claims.
EXPENSES.
Extraordinary expenses to a considerable
amount were incurred by the company dur
ing the past year on account of Its troubles
at the beginning of the year at Indianapolis,
the examinations by the Commissioners of
Connecticut and Indiana, and the advertis-
ing of their results and other matters neces-
sarily incident thereto, so that the ratio of
expenses to the income for the year was 9. .98
per cent, an increase over the usual low
ratio, but still very far within that accom-
plished by most companies, and lower than
that of any other company. These matters
are all happily ended, and there is no
reason known at present why the expense
ratio for 1890 should not return to its usual
average low point. The increased expense
for 1889 did not, however, interfere with the
compsny's ability to declare its usual divi-
dend for the year 1890 1t has not increased
its expenses for procuring new business, of
which, however, it gained an increasing
share.
INTEREST AND RENTS.
The income from investments during the
past year shows an improvement over that
of the previous year, and is believed to be
quite as satisfactory as could be expected
from any other body of assets selected with
q like regard to ultimate security. The
difficulties of such investment at satisfac-
tory rates are by no means growing any less
on the average. 1t is a cause of constant
and increasing satisfaction that in 1882 we
based all our new business upon the assump-
tion of earning only per cent interest in |
stead OF per cent (Which is the basis used
by other companies), and that so large a |
proportion of our reserve is already meas |
ured by that standard. Already the mana /
gers of some of the companies are said to be
considering the possible future usefulness
of the great amounts of deferred dividend |
surplus held by them in enabling them to |
establish per cent instead of a per cent |
reserve, or in applying it to supply the de- |
fciency of the per cent basis. There is no |
doubt that this company took its conserva-
tive step in this direction in ample time to |
prevent the necessity of the disturbance of |
any existing relations in the complete pro- |
lection Of an ample reserve.
Il NAV be of interest to know that the in |
come of the company from rents does not |
include any allowance for its occupancy of |
its own extensive and valuable accommoda- |
tions.
PROFIT AND LOSS.
Dnring the year the company has sold |
IL pieces of property at loss of S10,94O % |
on their cost to it. 1t has sold 80 pieces of |
property at a gain of S15S, ,566 80. 1t has |
received net upon the sale OF certain |
properties turned over to it on the defalca- |
tlon of Joseph A. Moore, S43. .23O 90 1t |
has also received certain other sundry items
of profit and loss, making the entire balance |
from this source in its favor during the |
year S217, ,479 &c. 1t still has other property
received from Mr.. Moore, upon which it has
never put an appraisal, but which will ap-
pear in its profit and loss account as it is
sold and converted into money. IL will be
remembered that the entire loss by him was
charged off at once.
REAL ESTATE.
During the wear 1889 we sold for s87e-
GIG 80 properties which had cost S729. .373 IS.
gain over cost of $3.50, $40 81. This makes
a total sale, out of property taken by the
company for foreclosure or satisfaction of |
debt, of properties costing in the aggregate
S., S24, ,7O6 46 for 81 SIC, ,599 95, gain over
cost of 1886, ,S93 49.
1t has been deemed best BY your directors
to reduce somewhat the figure at which the
company's home Office in Hartford stands in
It's schedule OF assets. The corner upon which |
this building stands is one of the most valu-
able in this city or in this State The build
ing erected upon it was begun in 1870, and
built in a time of very high prices for mate
rial and labor. 1t is thoroughly fireproof and
admirably appointed in every particular: is
a building which has not deprecated by
time, and will not for many years
to come. Its cost, together with the
land upon which it stands, was 81. .104,-
S79 "a, and it is at this figure of cost at
which it has been carried unon tba oonn-
pany's books. 1t has been decided to de-
duct from that cost the sum of S3O4. S79 o.
leaving it to stand at an even $500. 900. The
land has materially appreciated in yalue.
and is still approaching, while it is the
judgment of the directors that buildinp
of worthy and suitable character for the
protection OF the compsny's securities and
the enormous collections of valuable pApers
and with an equal renting capacity. could
not be put on the ground at the present
time at less sum than that which has been
fixed, while it would probably exceed that
The directors believe there can be no reason
able Question that the value OF the property
10 the company, for its own uses as its per-
manent home, and for the accommodation
and protection of the business transacted
here, and as an investment, fully warrants
he figure at which thev have fixed its
future standing on our books, and that that
IS fairly conservative valuation. In his
report of an examination of this company,
70 which we shall presently refer,
he Insurance Commissioner of this
State appraised this property at 500, 900
supon the basis of its value as an invest
nent to the company" He iurther said:
TT is absolutely fre-proof and its vaults
Afford a security Tor its books, papers, and
securities nowhere else obtainable in Hart