Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1899-02-01
Full Text Of Forty.Ninth Annual Report
Presented at the Policy-holders' Meet
ing January 3lst. Prosperity
Clearly Shown by 1893 Re-
suits and Comparisons
by Five. Year Periods.

Directors, Mr. David G.. Hamilton, 80
houses have been erected, and WILL
within few months, be entirely COM
pleted and conveyed by sale to pur-
chasers. thus changing. some $3.50, 900
from unproductive property into In
come bearing securities. We believe
this would have already been accom-
plished except for uncomfortable
strikes. which interrupted the progress
of the work of construction. thus de-
laying the completion Of the houses and
The sale of the property several
months.
With the present increasing demand
Tor real estate in Chicago. and the con-
stantly appreciating value of this class
of property. this temporary postpone
ment is likely to prove an advantage
rather than disadvantage in the final
disposition of this real estate. II il
confidently expected that within a
short time the 80 houses about COM
pleted will be sold. and that the re-
naming SO lots will be improved and
marketed by pursuing with them the
policy adopted to convert the portion IF
the property already in process of i'm
provement.
The history OF institutions created
for the purpose of holding in trust. in
vesting and controlling funds belong
ing to numerous individuals or estates
has established and demonstrated the
principle that the guardians of such
property that have secured the greatest
prosperity to their clients whose
possessions they have held in trust. are
such as have adhered 10 the well-de-
fined rule of safety. first; convertibility.
second: and income, third.
We are aware that in periods of
plenteous money. commercial expan-
sion. advancing prices and extending
credits. conservative investors become
unduly credulous. and sometimes are
Influenced. by their desire to accumu-
late large profits, to invest in class of
securities which. though promising to
yield high rate of income afterwards
become Improbable, and perhaps
worthless. ny change which reverses
general business conditions.
Just at present this country is enjoy
ing an almost Unprecedented season CT
good business. abundant money and
rapidly increasing value of properties
of every description. High-grade Sc
curities like United States bonds. bonds
| issued by states and municipalities. or
first liens upon railroads that have
earned dividends upon their stocks for
many years without interruption. conf
mand price in the market which nee
essariy makes the investment yield an
income far below the four per cent
basis. The temptation is, therefore.
great to depart from the rule which has
proved so wise in the past. and seek
investment of trust funds in mortgages
upon farms. which for the past two
years have been raising immense crops,
marketable at double the price of such
products four years ago.
X is true that. unlike savings banks
Life Insurance companies are not in
danger of withdrawal of assets by
patrons who lose confidence in the
ability Of the institution holding Their
money to Immediately convert the
same in a way to promptly meet out
standing obligations. Regarding only
the present. it is apparent that large
income can be derived by disposing of
the high grade securities held. and in
vesting the proceeds in credits that
yield Il larger rate of interest Assum-
ing that it is essential to provide for
obligations which may not mature for
decade. il seems probable that within
that period the time will come when
Government bonds will command about
the same price at which they are SELL
ing today. and speculative securities,
which now seem 50 attractive. can he
I,lf :
for which they are now available to in
veStors.
1t is the policy Of your management
in providing for the present to bear in
mind that history repeats ITSELF and
to so invest the income belonging to
the Policy holders of the Company that
the latter may rely with confidence
that whatever changes may occur in
the financial and commercial conditions
OF the country. the premiums they shall
have paid for Insurance will be so in
vested that all maturing obligations
shall be honored in accordance with
outstanding contracts.
Respectfully submitted,
FRED f. RICHARDS.
President.
ARTHUR L. BATES.
Vice President,
JOSIAH Fl. DRUMMOND,
PERCIVAL BONNEY,
MARQUIS r. KING.
EDWARD A. MOVES.
FREDERICK ROBBIE.
FRANK e. ALLEN.
SELDEN CONNOR,
DAVID G. HAMILTON.
j. FRANK. LANG.
HENRY B. CLEAVES.
Directors.
Portland. Maine. January 81. 1899.
FORT NINTH ANNUAL STATEMENT
OF THE UNION MUTUAL LIFE IN
SURANCE COMPANY OF PORT
LAND MAINE: FOR THE YEAR