Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-03-25
To the Poiicy-IIolders OF the Northwestern
Mutual Life Insurance Company.

To the Policy folders OF the NorthWestcrn
Mutual Life Insurance Company.
Tn presenting their thrty-slxth annual
reuort. the Executive Committee invite
special attention to the character OF the
assets Of the Northwestern. believing that
no better or safer can be found. Not
one dollar OF stocks or speculative secu-
rites enters therein. and recent events
has most fully exemplified the wisdom of
the restrictions In our charter. which alb
solutely prohibit such investments. Not
for many years. II ever. have the busi-
ness interests OF the country been so dis
turbed as during 1893. Railroads. banks,
and manufacturing enterprises Of every
description failed in large numbers. and
in many instances the value of the stock
wag greatly impaired. II not wholly de-
stroyed almost without warning. 1t is said
that the failures Of 1888 exceeded by 1900
those OF any other year In the history OF
the country. and that during the
wear 81. 200, 100 900 Of the railroad property
Of the country was placed in the hands
Of receivers.
However much the securities OF some
companies may have been affected. 1t is
most gratifying that no regular life in
surance company failed. or even wayered
in meeting It's obligations during the year.
Can this be said OF any other line OF BUSH
ness?
In his annual report, In 1854, the Super
intendent OF the Insurance Department
OF the State Of New York, spoke I'm no
uncertain tone with regard TO the invest
mcnt OF life insurance funds as follows:
while II may be true that a bear mar
ker In the Stock Exchange would aft ct
the valuation OF all listed securities,
whether loaned upon or owned absolutely,
II Is submitted that loans on securities
| needing constant watching, by reason OF
the Kaleidoscope changes OF the street.
are sadly out OF place In a statement Of
trust funds. The superstructure Of life
Insurance is based on permanency, bOth
In values and investments"
Unquestionably the safest and most
stable securities are well-selected mort
cages on improved real estate. and where
the valuations are conservative anu a
proper margin Is required the danger OF
loss is reduced 10 the minimum. The rate
OF interest is fixed by the contract and re-
mains the same until the loan is repaid.
On the contrary. the dividends on spech.
: lative securities are subject to the whims
and caprces OF the stock market, ana
when reduced. or, as sometimes happens.
passed altogether the amount so lost is
rarely If ever reSained, to say nothing
of the depreciation in the value Of the
stocks caused thereby. The mortgage
loans OF this company. comprising over
50 per cent. Of its entire assets. amount
/ to $5lil2.7SSZS. and are secured by hrst
mortgages on improved real estate valued
at $i5i.lG290. Their superior quality IS
attested by the fact that Of the total in
tcrest that fell due In 1885, amounting 10
S267f37O2}, only $lS9 1895 remained UNI
on M "a
Uhe greater part Of which was not due
until the last four months IS rapidly be
ins reduced. The real estate acquired
under foreclosure and now owned. after
an experience Of over a third Of a CEN
tury. during which time more than $lVJ,-
10000 was invested IN mortgage loans,
amounts to hut SOS 95G 50, an increase OF
only .5j jlS during the year. The liabilities
OF the company increased $j,9ii,o-LO IN
1893, and the amount added 10 surplus
was 81, S9l, 072 %; this IS the largest Increase
i'm surplus ever made in one year 10y the
Northwestern. and we believe viii com
pare most favoraby with that made by
B any other company during 1888.
/ The ,atio Of expenses Of management %
! income. which for years has been lower IN
the Northwestern than in any other COM
pany writing so large an amount Of ne"
business. was reduced nearly per cent.
I'm 1872 ana almost per cent I'm ls&.
The strife Tor supremacy In amount Of
business written. it'll all Of It's attendant
evils, which for some years las marked
the course OF several of the leading COM
panies as yet. We regret 20 say. shows 40
SIGNS Of abatement In this strife the
Northwestern has never participated; It's
ambition has been less To be large than 20
be safe. its aim is to rank first in bene-
fits to polcy-holders rather than first In
size. NaluInG quality above quantity II
has preferred 70 secure it, business
under certain salutdry restrictions and
Limitations rather than to write u much
larger business at the possible sacrifice
OF those valuable points which have made
/ the Northwestern pre-emlnently the poll
/ cy-hoder's company
The deaih-ratio for the year was only
/ l.Gl per cent OF the mean amount at risk.
/ The average rate OF all companies report
j ing to the Massachusetts Insurance De
partment in 1895 cannot now be ascer-
! tanned but in lsJ2 IL was l.39-i. e., more
/ than one third greater.
1 The annual statement in another col
umn page ~ shows the income ana dis
: Lurscments for the year 1898. and the con-
/ dition OF the company on December 3lst.
! The assets are $6iO7l. lS2.9S. and the sur
plus sii,35s, $3.50. an increase during the
| year OF 81. So. 093 Sc I'm assets and $l,sM.-
/ O72.2s in surplus. The statement shows
that the securities in which the ass-ts
are invested are Of superior quality re-
I q,.ireI by the charter and justified by the
/ experience OF the company
! For Information as TO rates. plans. or
agencies in Virginia and North Carolina.
address John Il. Cary & Son. General
Agents No. 1921 Main street. Richmond,