St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1913-01-29

phase of life insurance affords it's
patrons more pleasure and satisfac-
ton, because of the sure incomes
which life annuities supply, free
from all need of care, If
properly placed. Because the
actual profit or loss on a policy
of this kind can be known only when
| life ends, it is necessary to capitalize
the contract while it exists, and that
fact constitutes the limitation upon
its application to the existing needs
of society. During 1912 the Com
pany received $615, 063.56 on sales
of new annuities and it paid annui-
tants of 9,039.88. The so-caIled
actuarial net gain in this branch of
the work was 2,124.03. Twenty
eight annuitants died during the
year, disseminating yearly payments
OF $17, 950.33 and releasing termina
reserves from liability account of
1923, 369.13. On a pure arithmeti-
cal calculation of experience under
these terminated annuity policies, al
lowing for income and outgo at Cur
rent rates of interest, the net profit
TO the Company was $82,902.42.
There has been placed in liability ac-
count $4,947,071 as a reserve for
the care of life annuities outstand-
/ ing.
THE BASIS OF ACCOUNTING
1t has been pointed out already
that the assets reported, in this
statement are upon the basis of a.
market value SO far as that can be
fairly ascertained. Your specifi,
attention is called to the liabilities
with which the Company charge.
l
count. The items of insurance and
annuity reserves represent the ac-
tuarial present value, according to
law, of the Company's outstanding
insurance 'and annuity promises
THESE amount, by the Company's
calculation, to $47,337,794. The
Department Of Insurance for Yer
mont has employed qualified out
side actuaries to check up our re-
port anu they make the amount
SAT, 1897 ,069, or $725 less. The
item of Life Rate Endowment Re-
serves" $174, O48.84, represents the
surplus in excess of insurance re-
serves credited in individual &C
counts to this class of policies. The
item Trust Fund Reserves" $685.
1874, represents proceeds of settled
claims left with the Company as a
trustee for the use OF beneficiaries
The item of Policy Claims unad-
justed," $10O,482.79, includes all
reported and known deaths in
which the proofs have not been
completed. Premiums paid in adj
vance $1O,550.23, surrender values
unclaimed $4,528.62, and all other
accrued liabilities $96,O76.22, a
total of Sill, 155.07 includes all
known and accrued debts of every
nature as of the close of the year.
Taxes accrued but not DUE" $751;
578.27, explains itself and should
impress itself on the mind of the in
dividual policyholder as the extent
to which the margin in his premium
has been gradually but successfully
attacked by taxation. Finally, we
have included in liabilities the en-
tire dividends payable in 1918.
Thus the utmost effort has been
made to supply you with a statement
in which assets are appraised at
their true present worth and in
which liabilities are made all-incIus-
i've of every known, accrued or con-
tingent liability, while at the same
time the Company's return of divi-
dends upon this conservative basis
of accounting insures to both old
members and new insurants the best
possible service at low net cost. Our
accounting also supplies you with
tables, printed in this report, indi-
eating Cd Payments to Policyhold-
ers by States, Cd Causes of Death,
CD Insurance Issued by States, (4)
Distribution of Risks by Occupation,
CD Insurance outstanding by
States, 60 Investments by States
Cd Details of Investment by
States, (8) The Names and Resi-
dences of the Company's General
Agents, and CD A Comparative
Table showing the growth and ser
vice of the Company during the last
ten years. 1t is our wish to supply
the members of the Company with
the most complete adVices about it,
condition and transactions. We in
vite inquiries for additional infor-
nation on any subject or on any
item in this report.
STATEMENT OF POSITION
The Company, chartered in 1S4S
beginning business in 1850 and since
continuing in an active and progress
sive life insurance service, has de-
voted it's work to the exclusive uses
of it's members in every way. 1t has
thought it wise, especially in view Of
it's location and environment, to ad
here to the science of the business
as closely as that could be ascertain.
ed, to devote III it's constantly
growing funds to the extension of
public ere dts and to maintain all
practice upon a mutual and conser-
vative basis. Therefore it again
makes the report that it re-insures
no part of it's own risks and insurei
none of other companies. 1t is not
identified directly or indirectly with
any other institution. 1t has no
agreement, contract or engagement,
in fact or by inference, with any per-
son, firm, bank, trust company or
other combination which in the
slightest degree limits or liens it's
capacity to control directly it's own
acts in all things for the benefit
and service of its policyholders. 1t
is at liberty in law and in fact and