The Bridgeport evening farmer., 1912-08-02
SECURITY HIT
 BY PESSINlSM
STOCKHOLDERS TOLD DIVIDEND CANNOT BE MAINTAINED UN-
 LESS CONDITIONS IMPROVE. 6
. HEAVY LOSSES THIS YEAR
Formal Statement By President Aliing Accompanies semi-Annual 2 Per
 Cent. Payment.

New Haven, Aug. 2.-Coincident with the paying of the regular semi annual dividend of seven per cent. yesterday by the Security Insurance company of this city. came a little dash of cold water to the stockholders of the company in a, statement issued by President John w filling, giving warning that the fire losses of the past year had been very heavy and if the conditions do not substantially improve" the present rate of dividend could not be maintained by the com pany.
 Here is the statement in full as it was received yesterday by the stock holders of the company: E August 1. 1913. gro the Stockholders of the Security
 Insurance Company of New Ha-
 ven:
 "The fire losses of this company and 1910 have been abnorrnallys large, and thenet undivided profits of previous years since the San Francisco fire were taken into consideration in the dividends of 1911, in the February div idend of 1912, and in the dividend just declared.
 '.The first part of a year is ,unfavor-
 
 by fire for that period and January and February, 1912, were exceptionally bad Since that period the condition of the fire losses has improved, al- though the ratio of fire loss to pre- mium so far this year is still quite large.
 We deem it our duty to say that if fire conditions do not substantially improve, the present rate of dividend for the ensuing year cannot be main tained.
 eWe may reasonably expect such improvement.
 .sAll over the country, the public at tention has been Tiveted upon this ex-- cessive fire waste, and it will be very strange indeed if it should mot be checked
 ssThe demand for fire insurance has been very greatly intensified by this great fire loss.
 ''The net premiums of this company have been increased over these of last year to this date by the sum of $123.- 479.
 s.Also since the San Francisco fire we have set aside out of premiums for the reinsurance reserve, such amounts as that such reserve had in- creased as of June 30. 1912, by the large sum of $S13, 796; the increase since Jan uary 1, 1911. having been the sum of $252, ,154.
 'The reserve as of June 30, 1912. was $1 ,80S, ,995s '4- There is a very large equity in this reserve, but it is not available for div idendS. "The increase in the reserve is an inevitable result of increasing busi-l ness, and is to be regarded as very favorable feature in considering the coalition of the company.
 ''The- investments of the company are very satisfactory.
 Since the San Francisco fire the stockholders have wisely contributed to the surplus of the company $500, 900. which should not be used for dividend1 purposes.
 JOHN W. ALLING,
 President prominent stock dealer in New Haven. speaking about the statement last night, declared that it was an unusual statement to be issued by the president of any corporation. If the companys stock were an active trad ing one, he declared, the inference would be that some one wanted to bear the price of the stock for the purpose of buying it. The insurance rates, including the co-insurance clause, are high enough, declared this broker to easily earn the present rate