Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-03-03
Extract from the Thirty-seventh
Annual Report Of the Executive
Committee, january IS, 1SDJ.

| Time and experience have demonstrated
| that no safer or more stable investments
are to be found than well-selected loans
secured by mortgages which are first
| liens upon improved real estate, conser-
vatiyely appraised. No leading company.
other than the Northwestern, has 80 large
proportion OF It's assets invested In such
securities, and the care and discrimlna-
ton with which its loans are placed are
well known In financial circles. There is
probably not a corporation in the United
States. nor. for that matter In the world,
the assets OF which win bear a closer
scrutiny than Will those OF this COM
pany. Being prohibited by charter re-
strictions from investing In or loaning
upon stocks or any kind OF speculative
securities, the assets OF the Northwestern
are not subject to fiuctuation, and It's
surplus. therefore Is real and tangible
quantity, not dependent upon the condi-
ton of the stock market for any portion
thereof.
1t has been said that the crucial test
of investment securities comes when the
business interests of the country are In
volved In a financial crisis" No panic,
In recent years. at least, has been 50
disastrous or widespread as that OF 1888.
Recovery therefrom WAS slow, and It's
lines OF business during the greater part
OF 1894. During such a period consider
able default both in interest and principal
might naturally be expected In business
of so great magnitude as that OF the
Northwestern. The result so far. however,
has been most gratifying. and affords addi-
tional proof OF the superior quality OF the
securities held by the company. OF the
total interest that fell due in 1891.
amounting to 1888. $685.. only s20o,l5l2 %
remained unpaid on December 3lst. and
this amount, the greater part OF which
was not due until the latter part OF the !
year, has since been largely reduced.
The entire amount OF interest due ana un- !
paid December 81, 1894. dncluding the /
500. l5l.2D amounted to but s253.05s90, or /
less than per cent. OF the interest u.s. |
628. 80 that fell due in 1898 and iSet /
Even this small amount is in no danger |
of loss. however. as IL Is amply secured /
by the property mortgaged.
The total real estate acquired under |
foreclosure and now owned after an ex-
perience of over thirty-sx years. during
which time more than one hundred and (
fifteen million dollars were invested in
mortgage loans. amounts to but $i3l. 1873 As,
an increase OF only sl32, 81, s3 during the
year. Included in the amount acquired by
foreclosure in 1894 were but three farms, /
involving only Se.7Sl2l
An examination Of the Connecticut in
surance report for the year ending De-
cember 81. 1898, (the last so far published
shows that no other company az that time
held so small an amount OF foreclosed
in proportion TO It's mortgage
loans. The mortgage loans Of this COM
pany, comprising over 90 per cent OF its
entire reserve, amounted on December g.
1894. to s55Si6. s9l09. secured by first mort
cages on improved real estate valued at
l65. 1896 40 81
Assets January I. 1895 81. 32i.eail3
Liabilities ......................... 5alis,5ssl9
Surplus over per cent. re-
serve Slf, lfb, ll0si
Ratio OF assets 10 liabilities. i2i per cent.
The increase in assets In 1894 amounted
20 s., .511.l5.
The Increase in surplus in 1894. amount
ng to S2,7S 65s.li, was equal to more
han g per cent. l3D OF the increase
II liabilities. COMPARE THIS WITH
The REPORTS OF OTHER CON-
'AN1ES. JOHN II. CARY & son,
ieneral Agents for Virginia and North {
Carolina, 1901 Main street, Richmond,