The times. [volume] (Richmond, Va.) 1890-1903, 1894-05-13
To the PoIicv-HoIdcrs Of the North"es's'A
Mutual Life Insurance company

r. tb. PoIicv- Holders Of the Northwestern
Mutual Life Insurance company.
=, nr.ser,,ng their thirty-sixth annual
~.rort the Executive COMMITTEES invite
.,,aciai attention TO the character OF ,ne
assets Of the Northwestern. believing ina.
&c better or safer can be round WI
80 dollar Of stocks or speculative secn-
rites enters therein. and recon. ,'e"es
have NOSE fully exemplifed the "isuoih VI
tho restrictions in our charter "hich az
soIutelv prohibit sucn investments Noe
Tor many years. II ever, nave the DUST
ness interests OF the country peen so uis-
turhed as during 1898. Railroads. banks
and manufacturing enterprises or every
Sascr1ntIon failed in large numbers. and
an many instances the value of the stock
vas greatly impaired, II not wholly de-
stroyed almost without warning. IL Is
said that the failures of 1898 exceeded by
400 those Of any other year In the
history OF the country, and that during
the year 81 200, 10000 Of the railroad prop
erty OF the country was placed In the
hands OF receivers.
However much the securities OF some
companies may have been affected, II Is
most gratifying that no regular lire III
surance company failed, or even waVer-
ed in meeting it's obligations during the
year. Can this be said of any other line
OF business?
In his annual report. In 1884. the super
intendent OF the Insurance Department
of the State of New York. spoke in no
uncertain tone with regard to the invest
ment Of life insurance funds as fol-
lows: while Il may be true that
bear market in the Stock Exchange
would affect the valuation OF all listed
securities. whether loaned upon or owned
absolutely, Il is submitted that loans on
securities needing constant watching by
reason OF the Kaleidoscope changes OF
the street are sadly out OF place IN
q statement OF trust funds. The super
structure Of life insurance is based on
permanency, both in values and invest
ments."
Unquestlonably the safest and most
stable securities arc well-selected mort
cages on improved real state. and where
the valuations are conservative and a
proper margin is required the danger OF
loss Is reduced TO the minimum. The
rate Of interest is fixed by the contract
and remains the same until the loan Is
repaid. On the contrary, the dividends
on speculative securities are subject to
the whims and caprices OF the stock
market. and when reduced, or, as some
times happens, passed altogether, the
amount so lost Is rarely If ever regained,
to say nothing of the depreciation in the
value Of the stocks caused thereby. The
mortgage-loans OF this company, com
prising over 50 per cent Of its entire
assets amount to $5l ,4l2, 1888, and are
secured by first mortgages on improved
real estate valued at $lj4.162, $40. Their
superior quality is attested by the fact
that Of the total interest that fell due
IL, amounting ~ GA f-0 ~ only
$l39. 1900 remained unpaid on December
31st, and this amount Ghe greater part
of which was not due until the last four
months is rapidly being reduced. The
real estate acquired under foreclosure
and now owned. after an experience
Of over a third of a century, during
which time more than 100000 was in
vested in mortgage loans. amounts 10
but 1906. 1862, an increase Of only $55.5i8
during the year The liabilities OF the
company increased S5,944. l.60 in 1893. and
the amount added TO surplus was Sl,S9l,-
07296: this is the largest increase in
surplus ever made in one year by the
Northwestern, and we believe will com
pare most favorably with that made
by any other company during 1898.
The ratio OF expenses Of management
TO income which for years has been
lower in the Northwestern than in any
other company writing so large an amount
Of new business. was reduced nearly l
per cent. in 1892, and almost 2 per cent.
in 1895
The strife for supremacy In amount OF
business written, with all Of its atten-
dant evils. which for some years has
marked the course of several Of the
leading companies, as yet, we regret to
say, shows no signs Of abatement. In
this strife the Northwestern has never
participated, its ambition has been less
to be large than 10 be safe; It's aim is
to rank first In benefits to policy
holders rather than first in size. Valung
quality above quantity II has preferred
to secure its business under certain salu-
tary restrictions and limitations rather
than TO write much larger business
at the possible sacrifice Of those valuable
points which have made the Northwestern
pre-.minently the policy-hOlder's COM
pany.
The death-ratio for the year was only
i0l per cent. OF the mean amount at
risk. The average rate Of all companies
reporting 20 the Massachusetts Insurance
department IN 1898 cannot now be ascer-
tanned. but in 1892 il was 1871. e., more
than one-third greater.
The annual statement shows the income
anu NiSpui StihthtS lof the year 1917, ana
the condition of the company on De-
cember 31st. The assets are $6i,07I. 1928,
and the surplus Sll,3jS $3.50. an increase
during the year Of 1855. 093S6 in assets
and N,8l.OI226 In surplus. The state
ment shows that the securities in which
the assets are invested are Of a superior
quality required By the charter and
justified by the experience Of the COM
pany.
For information as to rates. plans. or
agencies In Virginia and North Carolina.
address John y. Cary & Son, general
agents, No 1901 Main street, Richmond,
Va.