The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1890-01-29

ose Of 1889, the sales of Real
tate nv the COmnqnv hava

NE w n Nv n u uM GSs
close Of 1889, the sales Of Real
estate by the Company have
which was charged on the books at s''4oo'ozs'oo
the end OF the year preceding the
respective sales at.............. 3,4l3.e8a7o
Making profit difference of.....S 22.e35 es
These large sales Of Real Estate at prices
In advance of what 1t was valued in fhe
Company's Assets are not only remarkable
as showing the conservative values placed
upon the properties already sold, but they
also constitute reliable criterion as to the
carefulness with which the asset value has
Deen computed upon the property remaining
unsold.
FINANCIAL POLICY.
The policy of the Company of late years
has been to accumulate large proportion of
namely IN whfs Bonds sosFs aSd aS be
Securities of like kind. nearly one-half of its
| present Assets being now composed of these
| Securities and Notwithstanding the large
decline in Securities in general during the
| year. we are able to. report an increased
market value of Securities over cost during
| 1889.
STABILITY OF LIFE INSURANCE.
The history of the UNION MUTUAL sets at
rest. once and forever, the talk of those who
believe that Life Insurance is not founded
on 4 substantial and permanent basis.
This Company. while disbursing In the
time named (thirteen years. for matured
0bngatlons larger sum In proportion to its
size M than any other Company, has paid in
Dividends to Policy-holders, and added to
its Surplus during the same peri d the hand
some sum of 81, ,049, ,16501 which represents
the profit over all expenses and disbursements
for those years.
RECOGNITION OF LIABILITY
AS we remarked last year, 1t is the prac.
tlce OF the UNION MUTUAL to treat as a liza
bilitv all death-claims Of which notices have
been received during the year, Just as fully
as If the papers were filed, and the claims
allowed. In the foregoing liabilities the
sum of SS,976.61, unpaid death claims, is of
that nature.
MORTALITY EXPERIENCE.
AS evidence of the carefulness of the Com.
pany in the selection of risks, we are pleased
has been $138, ,750 019-within the Table rates
OF expected deaths: as against S59, ,O5C. 81 for
the year 1888. The profits therefore of the
last Two years from this source alone makes
the excellent showing of $197, ,s01.1O
DIVIDENDS.
The dividend question in Life Insurance
seems TO be very little understood by policy
holders. The basis of all Life Insurance
contracts-old line companies-is fixed by
law. One OF the essential features is. that n
certain portion of each premium paid into
the Company shall be laid aside and accumu-
aa.ou aaa ae loui pei oont compound interest, so
from the premiums paid and interest earned.
the premium charge will not have to be in.
creased.
Twelve or fifteen years ago six rcr cent.
city bonds sold below par, and many of
them are now selling at from twenty to sixty
per cent. premium; railway bonds yielding
seven and eight per cent. were selling below
par, and now sell Qf they have long time to
rum from fifteen to forty-eight per cent. pre-
these bonds in many cases less than four per
cent; very few first class railway bonds. and
no first class city bonds can now be pur-
chased to pay rate of interest much above
,our per cent, while bonds of such cities as
New York and Boston sell at a price that
yields the investor two and three quarters to
three and three quarters per cent, per an
Only abous stssf!xe sts~saf,xe ar .ssssstesir years $50 $50
mortgages could be placed in New York at /
nine to twelve per cent; whereas now, first |
class mortgages in New York are placed at |
four and one-half per cent, and in the West |
at from five to six per cent. generally.
In the case OF Savings Banks, this reduc- |
tion Of interest would be felt by depositors |
far differently. from what it is by policy |
holders OF Life Insurance Company. and |
Tor this reason; Assuming that twelve or |
nfteen years ago Life Insurance Company |
received on Its Western Investments eight |
K
duced to seven per cent, then, as the Insur- |
ance Company has to lay aside four per cent. |
OF this seven per cent. for a reserve, the re- |
duction OF its dividend paying power has |
o neen not one eighth. but one fourth. Then if |
the next year, interest dropped to six per
cent, the dividend paying power of the Com
pany would be reduced-not one-fourth but
one-nalf. Then next year, If the interest
ing pow er of the Company, from profits from
this source, would be reduced three fourths,
not three eighths, as in the case of the Saw
ngs Bank, and the position of the two insti-
tutions would be this: The Savings Bank
would be able to divide among its depositors
Eve per cent interest receipts, making it a
ronnd dividend OF five per cent upon the de-
posits; while the depDstor in Life Insur- |
ance Company, namely, the policy-holde
would have the benefit of the same five per
reserve fund, and only the remaining one
per cent be available for dividend paying
purposes.
A reduction of two per cent. on inter-
est income from the above causes on the as
sets OF this Company would amount to about |
$12o, 900 90. and that of itself would make |
yearly twenty per cent dividend on premi- /
ums paid by our policy holders.
FUTURE BUSINESS.
AS will be deduced from the foregoing, the |
policy OF the present administration still |
points in the direction of maintaining the |
internal affairs of the Company in strict har-
mony with sound business principles; and
that end being attained, it is intended to
apply future energies largely to the procure
ment of new business
Such policy IL pursued to its legitimate
must lead to increased business,
and more favorable exhibit of the Com
pany's affairs generally; in fact, the state
ments herewith appended show how we'll /
this principle has operated thus far, and /
in the business done by the Com
pany In 1889.
THE OUTLOOK.
Finally, the result of the past years bust
ness Is such as to make the outlook into 1890
a most auspicious one.
The increase OF Surplus augurs well for
the future, as does also the increase of In /
come, Policies and Insurance in Force. The /
Improved condition of our Assets, as shown
by the better returns from Interest, Rents /
and other sources of Income are all proof of |
careful management, and cOnduce greatly to
the prosperity of the Company The favor
able Mortality Experience, if we may Judge
the future by the past, speaks we'll for the /
of the Risks upon our books; and
the solution of the University problem has
many favorable aspects, inasmuch as it will
serve to turn an Incubus of expense into an |
early (as we hope) realization CT income.
1t has been some years since we have been
able to come before our Policy-h holders with
q record thai has in it so many agreeable |
elements, and we submit this Report know
ing that every member of the Company will
feel the pride we do in the years work.
We believe that the record on its merits |
deserves your unqualified endorsement, and
That the promise for the future hesnaa ks for |