The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-01-01
IMPORTANT ANNOUNCEMENT.
The, Southern Stock Mutual and Under
writer's of Greensboro Insurance
Companies.
Greensboro Record.)

| The following important announce
Of the Southern Stock Mutual Insurance
| Company and the Underwriters OF
| Greensboro.
while the year 1901 has been in some
| respects the most successful year in the
| history of the Southern Stock Mutual In
snrance Company and The Underwriters
of Greensboro, for reasons given below,
change of policy in the matter of divi-
dends to policy-holders has become
| necessary and public announcement of
this fact is proper, just as we enter upen
new under writing.year.
From 1896 to 1900 our dividends to
policy holders were twenty per cent per
annum. In November, 1899, the South
eastern Tariff Association made a sweep
ing reduction in rates, confined to North
Carolina, on dwellings, churches, school
buildings and public buildings being Just
those preferred classes to which we had
largely confined our underwriting UP to
that time. The reduction amounted to
% per cent in the smaller towns and
3" 1-3 per cent in the large towns, After
this reduction was made, and in spite Of
it,, we paid two dividends of 10 per cent
per annum; but after meeting the re-
duced rates for two years, the manage
nient finds that the dividend on the BUSH
ness of the year 1901 will be materially
reduced, and is of the opinion that for
the future it will be unwiSe to pay divi-
dends to policy holders wherever and as
long as the reduced rates on preferred
classes are maintained, and until further
notice, we desire that our North Carolina
agents shall not hold out the policy
holders dividend as an inducement for
business. The dividends earned OH all
policies issued up to December 3lst, 1901,
Will be paid at maturity.
Our friends can readily understand
that it will be iniudicious to continue
longer to pay dividends to policy holders
when our premium from every preferred
risk is from 20 per cent to SO 1-3 per
cent less than it was when we were pay
ing 20 per cent dividends. We are pay
ing the dividend and more, and will con-
tinue to do so in the reduced rate. 1t is
we'll understood by all, Notwithstanding
certain efforts to disguise it, that it was
our dividend to policy-holders in the
face of relentless. opposition that brought
about the reduced rates in North Caro-
lima, and that the resultant benefit and
saving to the people of North Carolina
emounts to more than 100000 per an
NUNS And besides this the Southern
Stock Mutual Insurance Company and.
the Underwriters of Greensboro have
paid back in dividends to policy holders
not less than 100000 We believe that
the people of North Carolina will remem-
Der these things, and we shall now set
ourselves to the task of building up the
assets of the Southern Stock Mutual
and the Underwriters of Greensboro
until they have become North Cardinals
strongest financial institutions. These
companies have added more to their as
sets, surplus and emergency funds during
the year 1901 than in any previous year,
and will enter upon the next fiscal year
with assets aggregating over $500, 000
The fiscal year ends January 1st, and
the annual statement of each company
will be published at the usual time early
in January"