The morning call., 1891-02-17

EST AND RENTS.
The interest income shows a natural in
crease over the previous year The rents
have diminished in volume, though not in
percentage, by reason Of the continual sale
OF real estate, the funds from which pass
into Understanding securities, which, dur
ing the year OF sale and reinYestment, affect
the item OF accrued interest more than that
of interest received.
1t is satisfaction to US to learn that an
other cOmpany-One of the largest in New
England-ls seriously considering the re-
duction of the rate of interest assumed in
It's calculations from per cent to per cent.
thus practically indorsing the like action OF
this company i'll 1882 in which we have
hitherto stood alone Each years expert
ence increases our satisfaction at having
taken so important step at so early a date
and before its necessity exerts an actual
pressure on existing contracts
PROFIT AND LOSS.
During 1890 the company completed sales
OF three pieces OF real estate at a loss of
S3I29 20 on IFS cost, and of forty-one pieces
at a proht OF S2gl ,l47 II over cost, net gain
OF S29l, All 81. From the sale and exchange
OF securities and from sundry sources 1t
made further profit of S77,992 81, making a
total profit of 1863. 40 81.
REAL ESTATE
During the year 1890 we made completed
sales OF properties that had cost us under
foreclosure S1,O4l, lST n for 81 $50 COS IA a
gain over cost OF 1921, Az 81.
In the aggregate tile company has sold of
such foreclosed property, acquired at yari
Gus times. an amount which has cost il
So, 1882 90 for $40, 1863, 79S 81. a gain over
cost OF 81, 307, SO5 90. This statement in
cludes all SAFES, whether closing out prop
critics or not; but no profit is credited until
the entire property taken in any case has
been sold. or enough of 1t sold to cover the
cost Of the whole, in which case subsequent
sales are credited to profit. In several in
stances enough of the property has been
sold to pay the cost and the remainder
stands at nothing on our books and makes
no figure IN our income or assets until actu-
ally sold.
The cest of present holdings of real estate.
lncllomg the eompany'S office building, is
1866, S65 "a.
Wehave sold or have had matured and paid
during the year bonds costing S6l4 9O2 80
and have purchased bonds costing $685..
la 70. Our aggregate holding of Govern
ment, municipal and railroad bonds stands
at cost OF S11, 155. AGA "a. Their high char
aeter is evidenced by their slight shrinkage
IN value during the financial Stringency of
the past year, which materially affected the
average price Of bonds.
REAL ESTATE LOANS.
During the year loans to the amount of
81, S8l, 622 80 have been paid and loans have
pCeii ihetto amounting W Si,OOO,iOJ 10. his
class OF loans now amounts to 35,6T4,-
5S5 80.
MORTALITY.
The general death rate of 1890 was consid-
eraby increased by the prevalence of winter
epIdemlcs, and We did not wholly escape
their effects effects But our mortality has been
well within the expectation. giving us a
saving on tabular cost of about S440,0GO
1t seems proper TO point out to our MEM
Ders that IN respect OF the death hazard we
are pursuing what Is fast becoming, by COM
parison, a very conservative course and one
which VIII give them an increasing relative
advantage IN the cost of their insurance
We spare no pains to secure the most COM
petent medical examiners, who are wholly
IN cur interest and in the closest con iiden-
tai relations: Our standard of selection is
high and rlgidly maintained. Our ambition
Tor great quantity is not such as to lead us
to cover the globe with our agencies thus
exposing ourselves to loss hazard not al
ways well known, leaving the selection of
foreign Risks to be made without the posi-
billy Of effective control, and necessitaliug
the permanent deposit with foreign govern
mentS OF great and growing proportion of
the assets held for common protection. We
believe that these things must unfavorably
a1ect the cost OF insurance in the long run
and that the administrative duties imposed
by the principle of mutually are best dis
charged Oy restriction of the business tc
our own country, where the hazard is thor
oughly known, where we can fully control
selection OF risks and retain complete and
unembarrassed control OF the resources
with which we must meet our contracts.
EXPENSES.
The ratio of expenses of MANAGEMENT to
income for 1890 Was 9.37 per cent as against
99S IN 1889; reduction of over six-tenths
OF per cent from a ratio which was lower
tnan that OF any other company and not
one-half that of our greatest competitors.
Economy Is modest quality. 1t does not
dazzle the Imagination with the glitter of its
effects. 1t quietly nourishes its charge into
great frutfulnesS; but it is suggestive OF re-
strained and calculated effort rather than of
that unbOunded ambition which grasps so
widely as to compel the use of all possible
means regardless of their cost. Magnitude
OF operations and boldness of enterprise are
Today chief attractions constantly dWelt
upon by most OF the great companies to win
the applause Of all euterprlsing public, re-
gardless OF their unprecedented and enor-
nous expense. The sober way is for the
moment discredited with the majority, for
its want of brilliancy.
But the truth never changes 10 suit our
moods or ambition. Security being assured,
the thing OF chief importance TO the policy
nolder Is the individual yearly cost of his
policy. He is the man that pays the ex-
penses His premiums pay the losses and
expenses. and furnish the invested assets
that earn the interest. No one else is Co.
ing it for him. Many of the companies that
q few years ago took only $40 to SIS for ex-
penses out of every 500 OF premiums and
interest are to-day taking from $50 to S25-
all for the race for magnitude. That extra
$40 or S15 for eXpanSas mt af aVprV G100