Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1895-12-22
ASSETS.

The titles of real estate owned were
investigated by Attorney General Myl-
rea, and were found to vest the owner
ship of each piece in the company with
out flaw or membranes. Each parcel
was valued by appraisers selected by
the chairman, with the final result OF
increasing the total value by $50, 59O.SS
over the amount claimed by the COM
pany in its December 81, 1894, state
ment
The real estate on hand acquired BY
foreclosure is remarkably small in pro-
portion 10 the large sum invested in
mortgages, and is earning a fair net
rent, as is also the Home Office Build
ing, when allowance is made for the
portion occupied by the company. This
amount for own occupancy does not en-
ter into the company's annual state
ment for rents received and paid.
The custom of the company has been
with few EXCEPTIONS to dispose of real
estate acquired by foreclosure as rapid
ly as possible and merge the net loss
into the interest earnings of the year in
which 1t is sold An analysis of the
business for twenty years shows that
only a small percentage of loans made
are foreclosed and acquired as real es-
tate. The mortgage loans, comprising
nearly so per cent. Of total assets, haye
been carefully placed and yield a gross
rate of 6-10 per cent. interest, pay
able semi-annually. About one-fourth
of the mortgages represent farm loans.
The loans are distributed in Illinois,
Wisconsin, Minnesota, Colorado, Ne
braska. Ohio, Iowa, Tennessee, Indiana,
Kansas, Michigan, Missouri, Kentucky,
and few in South Dakota, Alabama,
Texas and Georgia. About one-half of
the whole is in Illinois and Wisconsin.
The interest in default is less than one
half of one per cent, or about one
months interest. Loans are placed
through salaried local agents, without
commission from the borrower. The
titles are examined by the company's
counsel, with a corps of assistants, and
no charge is made except actual dis
buryements and fee of local counsel.
Attorney General Mylrea has exam
ined into the system and reports that
it is comprehensive and complete and
that extraordinary care is exercised in
protecting the interests of the CONS
pany in the granting of loans. The
Attorney General has also examined
the abstract of such cases as were in
volved, under foreclosure, in default Of
interest, or loans made to trustees, en-
ployes or connections of the company,
and finds the papers complete and with
out flaw.
r,Io ontailod htr fbic cxrc4or,N
is comparatively small on each loan
placed, and together with any loss
through purchase by the company on
foreclosures and subsequent sales, gives
a slight loss to be deducted from the
gross 5 6-10 per cent. interest earned, as
the extra cost of handling. This leaves
a margin of nearly a million dollars
which would have to be impaired before
any deduction could justly be made from
this item.
AS all payments Of interest or princi-
pal are made direct TO the home Office
and not through loan agents, it was
deemed unnecessary to communicate
with each borrower as to the amount of
his outstanding loan; the same being
sufficiently checked by the papers and
receipts of interest.
Loans on policies and premium notes
were checked by the notes themselves
and with the Wisconsin valuation regis
tiers. TO ascertain If the policies upon
which they are a lien were in force and
able TO sustain the loans. These items
were found to agree with the Company
books and statements.
The item of premiums in course Of col
lection and deferred were treated in like
manner, resulting in a slight difference
only from the Company's figures.
The bonds owned were counted by the
commissioners, and found to be on hand
with the exception of those deposited
with the Insurance Departments of Wis
cons.n, Virginia and Canada, for which
satisfactory certificates were furnished.
The premium for market value over par
allowed is ISL, 451.SS less than the Com
pany's statement
Cash in office and in banks, as shown
by the books, was found to be correct.
The Company's statement deducted
s1S,167.51, mostly agents credit bal
ances, from cash in Office, which has
ben corrected above by carrying the
same into liabilities.
One-half of agents debit balances was
found TO be good by payment since Dec.
81, and otherwise, and has been allowed.
The total assets found on examination
do not materially differ from the amount
claimed by the Company at the same
| date.
LIABILITIES.
The valuation registers of the Massa-
chusetts Department, being computed
on a t per cent. basis, were used for as
certain.ng the necessary reserves TO be
held on policies and annuities. These
were first checked by comparison with
the Company's registers and discrepan-
c.es inquired into and corrected. A
further check was made by comparison