Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-02-03

than NAV 4 bly n ynece herea ftar.
Second-The buildings were located will
a view to future deveIopment or their re
| spective cities
Any one who has observed the rapfC
necessity of considering the future ever
more than the present in the location of al
office building Present revenue was there
fore not SO much of a consideration as thai
future may tend constantly to increase ant
not to decrease the rent-produeini
will understand OF course, that investments
of this character arc valuable because the
element OF risk in reinvestment is practi
cally eliminated. The money expended IL
this way is . fixed item for a long period o
years. The full wisdom, or folly, OF such
will be Interested to know, however, tina
one OF these buildings is already.
y,.,a,,~ n. r.,- R.turr
m tho ,v,,o,..,, ,aIo f,,.,.r ,a
vised by competent authority that since the
date of our purchase of the real estate or
which these buildings are situated there ha.
been q net appreciation I'm its selling
value of $500. 600. MS shown bv ap
praisals made ut tho close OF 1890 and
by purchase Of adjoining property since
made by other people. In entering these
properties on our books and in submitting
our estimate Of their value to the Superin
tendent, which he accepted, we did not take
this evident increase into account as evi
Qence that the erection OF this chain ol
western buildings was well considered.
point you to the fact that the investment
was entered upon after discussion and ap-
proval by the Board OF Trustees. 1t is my
theory that 1t is only fair to the members OF
company like this, the nature OF whose
business makes large accommodations OF
money necessary, that the money to be
invested should go as far as is practica.
bic to those sections Of the country
whence it emanates. In this case.
part OF the money received was
invested amongst the people who paid it.
Sa sness
vestments is one which discredits the future
growtn OF the western States The report
notlces tnat AS sadVertlsements OF the conn
q considerable value" This is eminently
true. Inc territory In which, these oullu-
lngs serve especially
To Advertise the Company.
anciudes the states OF Minnesota North ana
South Dakota, Montana, Iowa, Nebraska,
Kansas Missouri, Texas and Indian Terri
tory. The people Of the States have con-
eeah' business anu Social intercourse WIN
in,e. =, ,oIo @ on .ue oisies TN VI wE t,d, .ne puu
therefore becomms widelv Tnoxn fos az % the
Superintendent's report saws. Zach OF
them forms one of the attractions of the city
In Wnlch it Is located"
Inc evil lnnuence upon the company's
the year before the buildings were begun,
tne aggregate new insurance written by the
company &C IN the territory in question was
so,oal ,ZW. inns aggregate has steadily IN,
TO s9s s69, $50, which is the largest business
tnat was secured In that field during that
year py any lie insurance company. And
not only was the quantity OF the business re-
markable, but It's quality was such as to
make 1t most desirable in every way. and
without the buildings 1t is safe to say such
results could not have been obtained.
l may add, BY way OF general comment on
real estate matters, that while the Superin-
tendent notices that the company owns lH
parcels OF real estate, and has 900 other par
that these nrOnsrtfes are r sos ttered NOT oniv
through many States of this country, but
over two continents, the nature OF his duties
rnaue rnaue II necessary perhaps, 70 omie com
Which nrofsts be~a I.an ren1iHaS nnS 20 20
confine himself practically to the four par
GELS which he discusses; but your interests
reach further, and you
win NaturaIIv Ba t,l.ased
tolearn in this wav not onlv the relation OF
the items criticized to the company's total
holdings, but also the circumstances sur
each case Ir these related facts
tell you anything it is the probable exist
ence TO-DAY, OF surplus largely In excess
Of $1,000 0,000 We all accept the Superin-
e. nsures. YET Ss you ana are pecu,
permitted between ourselves to view the
possible effect OF these facts. suppose, for
example, that the superintendent had &C
cepSeo tne wel,known OPINION OF one
ot tne neaviest hoIoers OF New fork real es-
q q T5o' OooOand that he had accented the
value of our home Office building on a rental
basis OF per cent net and that he had ac-
ISp Ge sHe irsus OF tne imsPectors s Oh
Paris nrnnertv his net rednctions on real
estate Including his heavy deductions on
Hall, would have been only $780,
'o9 25. This alone would increase our sur
plus $500, 900.
s~.. H..rx
go.
Under the head funds of agency manage
nent," the Superintendent of Insurance
avs that funds of the company to the extent
n bnndrad. Of thonsands ~ do,Iars h.va
'een advanced 60 THESE agents without IN
crest and upon insufficient security. To
persons unfamiliar with the life insurance
business his statement wouldseemto indicate
he worst possible management Of. our
Lgepcy department. The facts. therefore.
iced to be fully explained, The general
ystem upon which advances have been
made to agents by this company and by
,ther life companies NAV be illustrated as
ollows 1.-THE figures used being merely
and not the terms OF
nv actual existing contract): The
company, 1 will saw, enters into a
with Brown. who is general AGENT
or a State. that he shall receive n commits
ion of 25 per cent of the first vesr;s nre-
MUM on ali policies placed by him. and a
enevaI Commission Of ! per cent on each
enewaI nremium maid ON sucb noiicies
-
a new Arrangements Maoe necessary.
Brown, of course, finds it necessary to en-
loy Jones and others as sub-agents. and be
s:...;,--.-, -. ar. or - -. - -
mission allowed him by the compan on first |
ear premiums. Brown relies upon his re- |
ewal commissions for his own eompensa-