The Barre daily times. (Barre, Vt.) 1897-1959, 1909-01-07
GREAT GAIN BY
NATIONAL LIFE
Pres. DeBOer Declares 1908
Co.'s Most Prosperous Year.
A STRONG STATEMENT
Expenses Have Been Reduced, Mortality
Was Very Favorable, and Earnings
from Investment the Largest
of SO Years.
STRONG STATEMENT

MOHtpcntT, Jdn. - lnt NdttOHtl liAc
Insurance company has issued its 69th
annual statement, declared by its presi-
dent to represent tho most prosperous
year in its entire history, Expenses have
been reduced, the mortality was very
favorable, and the earning from invest
ment was the largest OF any year. In
surance outstanding amounts to Sl54,-
| LAT 643. The insurance issued and paid
for during 1908 equalled l6,l59,02l. Dur
ing the past year the company's income
from premiums was S5,33S ,02s.0S; from
| interest and rents, Sl,0l5,s55.l0; from
annuities, $446.453.4S; from other
sources, $57,60l.00; toatl of $685.
56s.56, of which S3,24S ,O0937 was saved
and added to the permanently invested
assets for policyholders' use.
Protective Service.
There was paid to policyholders dur.
ing 1908 the sum of S3.457 ,467. 02, of
which the detail Is as follows: claims
by death, 81 ,4s3, 5s7 80; dividends, $780,
S0s,l4; annuities, $2s5,303.s6; matured
endowments, $554,64l73; cash surrender
values, 1854, 1887. In addition to what
precedes, the company loaned TO it's mem
befs on the collateral OF their policies
81 ,5Ss, 303.l4, bringing the total Of such
loans outstanding up to S5,476,0l2.47. in
connection with its liberal system of
reservations, increases and exchange OF
policies, the company handled transac.
tons for its members during the past
year amounting to $l,4S0,45l.
Solid Investments.
Gross assets on December 81, 1908,
amounted OF $44,033, 965.04, Of which the
main items are bonds lentirely of the
federal, state, county and municipal
character) Sl6,4lS,2ll.24; mortgage loans
first liens) $I7,42l ,65ls5; loans to pol
icyholders, including premium notes, ST.
l06,74I7S; and cash, Sl,l2S,Tl469. The
company has no investments in collat-
eral loans, stocks, railroad securities or
corporation bonds Of any kind, limiting
its investments strictly to municipal
bonds and mortgages. Outside OF its
Office buildings in Montpelier and Boston,
which arel listed together at $250000, it
owns but S200,500 Of REAL estate, which
is probably the smallest holding Of that
nature by any life insurance company
Of any size in the United States. The
vigorous and healthy character of its
assets are indicated IN report by the fact
that not dollar Of due interest re-
manned unpaid on the entire holding Of |
bonds, and only $4,I9S OF due interest |
remained unpaid on mortgage account.
Conservative Accounting.
The total liabilities of the company,
including insurance, annuity, extra and |
trust fund reserves and all ether items
on account OF policyholders, amount to |
$50 009, $3.50, bnt in addition to this
amount the company includes in it's |
statement of liabilities, which are all
computed on market values and full |
statutory reserves, the sum of all divi- |
dends payable in 1909. namely, $536;0l0.- |
05, and also S205,72l.T4, representing all |
other accrued or due liability. In this
latter amount is included taxes payable |
by the company during the current year,
$l42, 1906S. The state Of the /
company is therefore made peculiarly
strong in that all calculations of asset /
values are made on a market basis, while
policy reserves comply with every known
legal requirement in the United States
At the same time liability account Ia
charged with all known due and accrued I
items, including all taxes and all divi. i
dends payable in 1909 This differs from
d practice which is quite common and
which trhts taxes as a current dis
bursement and dividends as an item
to be earned, either as a whole or in
part, after the date Of their deelara-
ton, when in fact they are already
lien upon the assets Of a company.
Substantial Gains.
The company made the following gains
In growth and strength during 1908, a
year of peculiar competition and change
In state laws throughout the business
world. In insurance outstanding the
gain was $2,368,000; in gross assets, 49,
ssh 900; in gross surplus, including cred
its on deferred surplus insurance, $780,
300; in general surplus, $755,000, prac-
5ieallY an increase Of 100 per cent;
while the number of policies was ad
vanced to 1884 on a paid-for basis,
and to S0,l5l on an issued basis, the
new issues being represented by S,feo
policies and SlS,047 ,227 FL of insurance.
These figures signify that the company
earned over and above its actuarial as
sumptions surplus Of over 100000 per
month and that it disposes Of said earn
ngs by increasing the total dividends
to be paid in 1909 by over 100 per cent
as compared with 1908, and increases
is general surplus account in the same
iegree, while at the same time it aug
nents all credits on account of deferred
surplus insurance by quarter Of mil
ion.
This analysis of the statement dis
loses the interesting fact that from the
standpoint of statutory reserves, of as
;et values, Of accounting for liability and