The Birmingham age-herald., 1911-01-18


 
 for the splendid showing made for the first years business.
 We believe our company has a bright | future and recommend it's policies to the | insuring public.
 l we especially commend the conserva- | tism of the mana cement and call especial attention to small ratios of first years expenses to first years premium income l this being less than that of any compet- l ing company of which we have record. Resolved, further. that we as stock | holders, do hereby pledge our individual | support, efforts and influence to aid in the upbuilding of the south's greatest casualty company"
 President Woods Address The annual address of President w D. Wood was as follows:
 In reviewing for your information and | consideration the affairs of the Interstate Casualty Company for the first year, | and therefore the most crucial period of it's existence, as is the case with all new companies, l am sure it will be fully appreciated by all, that much greater difficulties. are experienced in making | good successful start, than in afterWards l going ahead successfully
 We have had to overcome. not only the | ordinary difficulties and obstacles inci- | dent to the launching of such a company
 as this. However, the record the com | pany has made is not only bet
 ter than is usual for similar compa-
 nies to make in getting started, but really affords the greatest encouragement for l even better results in the future. This | Is shown:
 First. by our loss ratio, actually paid out, being only about F per cent of the I premium income of S6S. 759.S5 booked for 1 l910 this premium income was exceeded | by only three of the largest and strongest casualty insurance companies in the I United States doing business in Alabama; ; | these making records for 1909, of S7sl79, | SIS 9s6. S75S11. respectively, none of which declared d!-..aa=.sls for the first year. we | were not only ahead of 46 other estab- | lshed casualty companies doing business | in Alabama in 1909, but have practically | doubled their average.
 Second, by comparison with the records | of some of the most successful insurance
 companies today in the east. would
 mention one in Baltimore. the first off cial report of which company shows a premium income of S3U30 as against total expense of s12.5S. or over four times as much paid out as the amount or It's re- ceipts It began business with the same amount of capital stock as our company, $25O GOO, but today has capital of 2,Ooo,- O0O with total assets December S1. lsO9,) of s5,21S,S97. and net premium receipts of s. 1s3, 327 I should say also that various other companies have had rough sailing in getting started, as shown by official records, and while some have not sue ceeded others have achieved great sue cess and accumulated millions. and have organizations even more valuable. I feel no doubt that any who will go thoroughly into the records of various companies with me will be inspired with great confidence in our company. especial ly when our entire expense shows a total of $35, 2s, as against $63, 759S5 premium income, it being very unusual for nsur- ance companies to play even the first year, because of the extraordinary ex- pense in building home office organi- zation to take the best care of the bus mess all of which not only takes time and hard, persistent work. but is expen- sive: but without which it is not possi- ble for insurance companies to make success. This expense is further empha- sized by the statement of Hon. Frank N.
 Julian, ex-secretary of state and insur- ance commissioner of Alabama. now as- socate railroad commissoner-elect, and General Manager of the Alabama Fidelity
 and Casualty Company. who says: gro plant an agency force for a life insurance or casualty company an outlay of prac- tcaiIy S5OOO to $sO0o Is required. flor mu-
 nicipal licenses and taxes alone have information from a most reliable
 source, one of the high employees, that
 the second oldest and one of the wealth. fest and strongest casualty and accident
 companies in Great Britain. and conse
 quently, in the world spent within one year. about $l6S 000, entering l2 states of tine United States, in the payment of fees, planting agencies, supplying printed mat ter and other incidental expenses. In addition to what has been accom- plished as above outlined in the produc- ton of our premium income tas compared with the expense of the company. we have gained admission into four other states besides Alabama, namely, Georgia, Florida, Mississippi and Louisiana. and we have negotiations about completed to enter Tennessee.
 Great difficulties have been overcome ;n gaining admission into these states,
 chief among which I would mention was that the funds of the company consisting
 almost entirely of certificates of deposit
 in various banks, did not meet the re- quirements of the laws of these states,
 naning it absolutely necessary for your executive and finance committees to pro- cure the highest class of gilt-edge secu- rites, mostly bonds, with a limited pro-
 portion of first mortgage loans on real estate valued by the insurance depart
 nent of the state at more than twice the amount of the loans. This has been done. so that now, our company is really safer financial proposition than the safe banks, for the reason that we have de- posted in the treasury department in
 Montgomery more than our entire capital
 stock of $25o00o. in approved securities.
 together with more than $5o.o0o invested in Louisiana state bonds and deposited with the insurance department in Baton kcuse. all for the security of the policy