Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-02-07

after the date specified. new policies will
be upon basis of reserve accumulation
that, IL but per cent. is earned upon
the assets OF tho company. IL will be able
TO successfully carry out every contract
upon its books. In view OF the fact that
the average rate OF interest earned upon
the mean Invested assets OF the company
for the last i've years IL considerably In
excess OF per cent. the change In re-
serve calculation may seem 10 some pre-
mature and unnecessary. Owing t. tho
fact, however. that policy contracts OF
the company run many years into the
future. 1t has been thought wise 10 put
them upon a basis OF stability which shall
be beyond possible question. The busi-
ness now upon the books will cot be cis-
turbed. since no question exists as TO tho
ability OF the company 70 complete .ts
old contracts on the present basis. To
change the old business TO q per cent.
reserve basis would require tho transfer
from surplus account TO reserve account
of several millions OF dollars. a step OF
doubtful propriety unless absolutely re-
quired. and certainly no such necessity
exists or is likely 10 arise in the futare.
The adoption OF tho 3 per cent reserve
basis for accumulation necessItates a
slightly increased premium. 1t is not,
however, anticipated that the average
cost of the insurance for a term OF years
will be increased. as upon eithor baSis or
reserve the surplus earnings are returned
I'm the form of dividends, and assuming
the same rate, the surplus arising from
interest will be greater upon per cent
| than upon a per cent. basis
simultaneously with the adoption Of
| the per cent. reserve basis, new forms
OF policies will go into effect. These poll
| cies, It Is believed. viii be found TO pos
| sess an adaptability to change in cip-
cumstances, Of the insured and benesf-
ciary, not contained In any other policies
issued, thus covering contingencies not
| usually embraced in one contract. X IL
! the intention 10 furnish to the insurSds
| lust so far as rs consistent with the sa1D1v
OF the company and the general good of
its policy holders, everything desirable IN
life insurance.
During the forty years covered by tha
| operations OF the company the interest,"
| earnings on the invested assets have been
sufficient 10 pay all the expenses of con-
Quoting the business and leave margin
of profit to the poicy-holders OF nearly
| twenty-three millions of dollars. This re-
markable showing was made possible only
by the most rigid economy OF MANAGE
ment and conservative investments Dub
ring the past year the increase in assets
| added 10 payment 10 policy-holders ex-
| ceeds the premiums received by f2,722,-
GJ612. the largest gain ever mado In
| single year showing that there Is no
| reason TO anticipate material decline I'm
the ability OF the company TO secure Ia
vorable results for poicy-holders. While
it is a fact that the average rates Of In
terest obtained are lower than formerly.
and the possibility OF still lower rate
| exists. Il is also a fact that any decline
I'm surplus interest Is likely TO be largely
met by increasing savings in expense ana
mortality resulting from conservatism in
management and care in the acceptance
of risks Especial attention Is asked 10
the class Of assets In which the funds OF
the company are invested, and their SUI
perlor character will be apparent upon
examination. -
The new business for the year 1888 or
the Virginia and North Carolina general
agency was the largest in it's history OF
twenty-one years Applications for agen~
cies i'm the above States should be adj
dressed TO Il. \. Cary, 1901 Main street,
Richmond.