The Indianapolis journal., 1903-02-06

pany. II selects its risks with great care,
In limited area, where the conditions OF
hfe and health are well known; IL seeks
safety and fair returns on its investmentSs
IL Keeps down its expense rate as low as
possible; all I'm order To save as much as
possible OF the premiums received by II. TO
De returned each year to those from whom
they were received, so that each mans In
surance shall cost him little as possible,
and only what IL has cost the company: and
good faith Of true mutuality with those
VINO lapse or die. that one * plucked
for the advantage of some one else.
IN word, II IL doing and seeks 10 do
business as real mutual life insurance
company, for life insurance purposes.
knowing that never before was pure life
insurance so much needed as now. and ali
the more so because so much has it, place
Deen usurped by that which is not pure life
insurance at all. and the funds for which
can no longer be held with any certainty
Tor any purpose Of life insurance.
IL is in this light-as a real mutual life
insurance company-that its operations are
TO be viewed. and their results weighed.
THE EXPERIENCE OF ls2.
In general, the experience OF the COM
pany during the past year has been OF that
steady. even-going character which should
characterize an old. acknowledgements
company, conservative I'm holding TO the
real purpose OF life insurance and TO all
that best effectuates IL, and yet progressive
in that which will the better commend il !,
TO those who want IL only for that purpose.
The new business taken i'm 1902 was
somewhat more than that OF the previous
year.
The old business has persisted in the
usual remarkable degree, so that the
amount OF business in force at the end OF
the year shows the same steady gain
for several years past.
The mortality cost for the year 1902 was
a hat tod md
provided for, effecting saving OF S5f5 80.
The expenses OF management for the
year were less than for the year lsol-
INTEREST.
For several years the abundance OF
money seeking conservative investments
has caused progressive decline in the rate
OF interest on good securities. and this
company has been somewhat affected there
by in common with all other financial in
stitutions which derive their interest in
come from investments of a permanent
character. Our interest income has, how
ever, been satisfactory, considering exist
ing conditions. and a considerable margin
above reserve requirements has been saved.
Owing to the very low rate OF interest
obtaining early In the year and during 1901.
the market value Of our bond holdings was
very nigh, even on conservative view OF
the market During the year the money
market so radically changed, carrying the
rates or interest so high as TO cause some
thing of decrease in market values,
though very slight as a percentage on our
large noloings, indicating their strong char
acter Such changes do not affect at all
the income from them, and with return
OF former conditions return Of former
values is TO be expected
With the exception of two items OF Texas
municipal bonds, interest has been very
closely collected on all securities
The real estate market in 1902 was not
very favorable one for selling, but the
company disposed OF eighty-n.ne pieces
of foreclosed property. costing ss2i.ss Lao.
As our members are already aware, the
company has, during the last three years,
been erecting a new Office building. which
is practically completed; IL has also been
making such changes in its old building
as increase its capacity, add greatly TO its
convenience and attractiveness for tenants,
and connect IL with and adapt IL to the new
edifice. This work is near completion. and
the whole seems likely to prove tudicious
undertaking 10 satisfactory result.
The surplus at the end of the year stands
at s6sas; Ssz 4S: by the legal standard it is
over $yOOO,O0O. Ii was reduced during the
year by the temporary shrinkage I'm mar
ket values of bonds already referred to- by
a balance of profit and loss of 1878 on
sales OF real estate an0 various other minor
items, and also by the fact that We re-
turned surplus to our policy-holders on the
same scale OF dividend that we have main-
tanned for twenty-five years.
From 1881, when our surplus was <3.-
351 ,l55, we not only returned this high rate
or dividend, increasing IL somewhat In 1897,
but added to the surplus each year until
1898, when il stood at S7,521,909. Since
then ii has been more or less drawn upon
each year in order that the cash payments
by our policy-holders need not be increased.
and in order TO tide over, as far as may
prove practicable, the conditions which ara
still unfavorable 20 so large a saving OF
surplus as was possible for so many years
The maintenance of the low cost TO our
members during unfavorable years was one
of the purposes of that great accumulation,
and our present scale will be maintained
until it shall seem expedient to draw no
further on the surplus fund.
Attention is called to the list OF assets and
liabilities published elsewhere.
We also ask careful consideration of the
following summary of our financial history
of fifty-seven years: