The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-02-20


Add net assets, Jan /, 1892 ... IS, 2O7,794 IS
Net assets. Jan l, 1898 ........ $50 037, 395 "A
Add interest due and &C.
crued, market vaiuesof
stocks aud bonds over
cost, and net deferred
quarterly aud semi
annual premiums al
per ltemized state
ment herewith. Observation-Disclosures. 1.7A,iH Is
Gross assets. Jan. 1. 1893 ,5aS SO
lotdi u9Ollltleo. o4,S34, o2D VI
Surplus, Jan. I. 1893. ..........$ 8, 6,9Y So
FINANCIAL OPERATIONS.
INTEREsr.
The intereat received in 1892 was e ISL, ISL 70
The overdue interest January ], 1898. was only
$5l,4ll49, ON Sd. IA 759.O2 mortgage loans, or
one-sevsnth of l per cent On $l2 .967, 7.43 of
bonds and stocks nothing was overdue.
RENTS
in 1892 were $296 Sss 81, decrease from the pre-
viOus year of So, Is on materially decreased
holding of real estate
The rent account includes no allowance for
ing.
PROFIT AND LosA
During 1892 real estate taken under fore
closure at = cost of $536. 1854, was sold for
S74l.22l.15. and some pieces remaining from
property to which they belonged were also sold,
10 that the entire profit received on real estate
sales was $212. 26lA On the other hand, Ger.
$ls,5s9Sl. leaving net gain OF Si9s.72o6s from
that source.
Very considerable changes were made in our
and sales. on some OF which the loss by shrink
ages of premiums and by payments at less than
cost amounted to sl27, 602 IS On the other hand,
vance over cost to the amount of $35,268 Is.
leaving net loss on these changes of 81. IS,
to which were added sundry small items, max
Ing the net balance to the good OF $9i,6427l on
both real estate aud bond transactions.
During the year the company has had paid or
has sold bonds which had cost 81, 100, 22l q; II
purchased bonds costing $2,26l.Oo0. II now
holds bonds at par. 81. l64, 200 which cost 49,,
5sl.677. is. the market value OF which has al
vanced since their purchase to $13 LII, $50 50 at
very conservative estimate
From ten to fifteen years ago the company
purchased many bonds of high grade bearing
6 and per cent interest, and paying a high
premium therefor. These have been gradually
disposed of and their place taken by bonds of
the highest class for security. but OF more re-
cent issue and bearing rates of interest adjusted
to the present time. 1t may be noted that our
present holding at par Of $12, l64.2OO cost US but
$4l7,477 more than their face, or an average
price OF only $l03 40 Nearly all of them have a
long time to run and are therefore likely to
least for many yeara. Some of our most import
ant pure hases in recent years have been ON very
favorable terms.
REAL ESTATE.
There Is little to be noted respecting real e.
tate beyond the items already given under
profit and loss. Since 1879 we have sold prop
crty taken under foreclosure at q cost OF IS gD7.
1881 for $iU,553, 62t6l: q gain OF 81 6i5 9O5 ~
1t IL interesting to remember that for many
years our rivals and detractors loudly prophe-
sled the cOmpany's ruin from this same real es-
tate.
LOANS ON REAL ESTATE
During the year loans amounting to g. 75l-
1907 have been made, and loans amounting to
$6.32I, lO4 81 have been paid leaving $36 79 OF
outstanding. We have taken every precaution
TO make them sale beyond peradventure.
INSURANCE OPERATIONS.
MORTALITY.
The mortality of 1892 has been far within the
amount expected. and has thus given the mem
bers a saving of about 5000
Favorable mortality is due to good selection.
and good selection requires two Things:
Fyst-Careful selection of the individual from
q physical point OF view, ana also rs to the
moral hazard: and,
Second-Careful selection OF the localities from
which business IL taken. The best localities
healthy climate, which produce an abunda uce
OF wholesome food and which have an inielli.
gent, moral, cleanly, industrious and generally
prosperous population.
1t 10 then necessary to the best success in
selection that business should not be extended
over more territory than admits of cons tant and
IL
ice. In proportion a. business il remote and
scattered in foreign countries, requiring the ln-
tervention OF numerous and distant representa-
tives acting largely at discretion, with great
powers aud upon only general instructions, and
without the possibility OF close control BY the
management, selection becomes uncertain from
every point OF view.
Much Of our success 10 due to the fact that we
have, in observance OF these conditions re-
stricSed our business to our own country, and
to such portions of it as involve no extraordi-
nary climatic hazards, ana where sanitary
measures are reasonably regarded.
NEW BUSINESS
We have made a fair gain in new business
over that written in 1891, and At no loss to pres.
ent members.
A gratifying feature Of our business is its per-
sistence, in which respect il is probably unri-
rivaied. our members have taken thor policies
Tor protection and not for speculation; that
protection - made a. secure As human care and
Industry can make it. IL 10 treated in abso ute
equity; 1t 10 given at less average cost than
In any other company. Our loss Of business by
lapse and surrender Is, therefore, extremely
small
The amount at risk January 1, 1898, was 1851.
1887, gain from the previous year of
%!.Vy4,a7
EXPENSE ACCOUNT.
The usual careful regard for strict economy
mas been had during the past year, and the ratio
OF expense oil management to income was only
ID L per cent, ratio materially less than that
OF any other company.
This is the most controliable item in the cost
OF insurance. 1t 10 the one which II generally
the most ignored.
In every other known branch of business COM
Petition has always tended to lower cost Of pro-
ouction by more and more economical processes
and methods. In life insurance the reverse has
oeen true For the last twenty years eompeti-
tion has been directed, not to giving cheaper
ana oatel luaCrAuca and occurring graatar eouity