Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-02-28

ing. advertising, legal, real es-
tate and all other expenses OF
management Observation-Disclosures. 76S. 604 90
Taxes. ACKNOWLEDGEMENTS. sos, 2Sl 81
Total expenditure. So GIG. 399 96
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 salts
factory proofs instead of thirty or ninety DAYS.
as formerly, and during the twelve months of
1889 1t, therefore, paid the losses for thirteen
months, 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 curing the year
the company paid its members and benefici-
aries on various accounts Sl.42O. 9I6.s 81 more
than 1t 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 RbOat Si75. 900. It
Is believed that no company takes more care
full measures to restrict its business to safe
localities, and those which will not tend to in
crease Its average mortality. or in the personal
selection of Its risks. and its success in this
direction Is at:ested by 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 during
the past year ON account of its troubles at the
beginning of the year at Indianapolis the ex-
aminatlOns by the commissioners of Connecti-
cut and Indiana and the advertising of their
results and other matters necessarily incident
thereto, so that the ratio of expenses to income
for the year was .. yS per cent, an increase over
the usual low ratio. but still very far within
that accomplished 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
Tor loO should not return to its usual average
low point. Inc increased expense for 1889 Gid
not, however, interfere with the company's
ability TO declare its usual dividend for the wear
1870. 1t has not increased its expenses for pro-
curing new business, of which, however, it
gained an increasing share.
INTEREST AND RENTS.
The income from investments during the past
year shows ali Improvement over that of the
previous year, and Is believed to be quite as
satisfactory as could De expected from any
other body OF assets selected with a like regard
to ultimate security. The difficulties of such
investment at satisfactory rates are by no means
growing any less on tue average. 1t is a cause
OF CONSTANT ana increasing satisfaction that in
1857 We based AL our new business upon the
assumption OF earning only 8 per cent interest
instead of per cent (which is the basis u,ed
by other eompanles), ana that SO large a pro-
poruon OF our reserve Is already measured by
that standard. Already tine managers of some
OF the companies are said to be consider
ing the possible future usefulness Of the
great amounts of deferred dividend surplus
held by them In enabling them to establish a
per cent instead of d per cent reserve or in
applying It to supply the deficiency of the
per cent basis. There is no doubt that this
company took its conservative step in this d.
rection IN ample time to prevent the necessity
Oh the disturbance of any existing relations in
the complete protection of an ample reserve.
1t may be OF interest to know that the in
come OF the company for rents does not in
Guide any allowance Tor its occupancy of its
own extensive and valuable accommodations
PROFIT AND LOSS.
During the year the company has sold eleven
pieces OF property at loss of $40 1902 on
their cost 10 It 1t has sold thirty-two pieces
OF property at a gain of Sl58, 500 50 IL has re-
ceived net upon the safe of certain properties
turned over to 1t on the defalcation OF Joseph
A Moore s43. 20. Ii has also received certain
other sundry items of profit and loss, making
the entire balance from this source in its favor
during the year Ell ,479.36. II still has other
property received from Mr. Moore upon which
II mas never put an appraisal, but which will
appear In Its profit and loss account as il ia sold
and converted into money. 1t will be remem-
bered that the entire loss by him was charged
on ~ once.
during the year 1889 We sold for 1919 GIG. SO
properties which had cost S729 373 IS a gain
over cost Of Sl50,54297. This makes a total
sale, out OF property taken by the company for
foreclosure or satisfaction of debt of proper
Ties costing In the aggregate sc, s24 7O6 46 for
81 ,olO, 59s. IS, gain over cost of 1855 s93 40
III mas been deemed best by your directors to
reduce some what the figure at which the COM
Panys home office in Hartford stands in its
scneauie OF assets. The corner upon which this
Dunoing stands IL one Of the most valuable in
TINS city or In this state. The building erected
upon 1t was begun in 1870, and built in a time
OF very high prices for material and labor. II
10 thoroughly nre-proof and admirably ap-
Poin.eu IA every particular; Is a building which
mas not deprecated by time and will not for
many years 70 come. Its cost, together with
tne Land upon which IL stands, was 81 IO4 :
ef9sA, and 1t Is at this figure of cost at which
~ mas been carried upon the company's books.
IL has been decided TO deduct from that cost the
sum Of sS04.o7y ~. leaving il to stand AT an
even soOv,OOO. The land has materially an
precisted In value, and is still appreciatinu
while II 10 the judgment OF the directors that a
puiIolng OF worthy and suitable character for
ns protecuon OF the company securities and
the enormous colIec lions of valuable nsners
and with an equal renting capacity could not
De put on the ground at the present time al
. less rum than that which has been fixed
snhs 1t would probably exceed that. The
directors believe there can be no reasonable
question that the value of the propsrty tn
the company, for its own uses as it's permanent
nome and Tor the accommodation and protec-
aon OF lne business transacted here, and a. AN
investment fully warrants the figure at which
tney nave liked Its future standing on our
DOCKS, and that that is q fairly Conservative
vauAuon- In his report of an examination of
ms company, to which we shall PRESENTLY 70
ier, the insurance commissioner of this state
appraised this property at 100000 upon the
OASIS OF It's value an investment to the COM
pany." He further said: 1T is absolutely fre.
proof and Its vaults afford a security for its
books, papers and securities nowhere else Oh
tainable IN Hartford. 1t is one of the most i'm
posing edifices IN the state and has a value out.
side Of its income production as all advertisine
medium and as a home for the largest corpora
ton of New England"
We're the property for sale no valuation and
no change IN Its status on our books would have
been made.
The present real estate holdings of the com.
PAny now aggregate q cost of only 1885,.
207.03.
The company has received payment for, OF
mas sold durin g the past year, bonds costing i,
t4Sl,S77.6o IL has purchased during the
same period bonds costing Sl,S25.6zi65 Its
totai holding Of this class of securities at the
close Of the ear was ell, ia. SD 49, A care
fui scrutiny Of the hist Of bonds of this com.
Pany VIII reveal their unif orm and unusual ex.
cellencs.
REAL ESTATE LOANS
during the year the company loaned on real
estate security 81, 44i,092 81. There were paid
on OF such loans sc, ls0, s99.ll There we're iu
force ~ the end Of the year loans for s3l $40
o.. Al Inc cOmDanv rpceixsd r.sl,