Evening star., 1933-12-10
Presidents of 81 Companies
Told of 1881, 900, 900 Rise
During Last Year.
B. H. WALKER, VIRGINIA,
ADDRESSES CONVENTION
Other Speakers Discuss Loans From
r. F. C., Mortgages and Ways
to End Depression.
BY EDWARD C. STONE.


Life insurance assets gained $751;.
100000 this year, the number of mort
cages foreclosed was small, compared
with the number outstanding. the death
rate was much lower than in most
former years. while depression prob
lens were met with unusual success
according to reports presented at the
twenty-seventh annual convention OF
the Association of Life Insurance Presi-
dents, just concluded in New York
The meeting was one which gripped
the interest of Washington insurance
men from start to finish because OF
the striking information presented
Many of the facts brought out also
are Of special importance to millions
Of policy holders.
Reviewing the years trend in life
insurance investments. President Brad
ford H. Walker of the Life Insurance
Co. Of Virginia, Richmond. reported
that the assets of the United States
life insurance companies will increase
S381, ,000, 900 in 1888 The estimated
total for the end of this year is s2l.-
135.o0o,0o0 he said.
In our great national emergency"
he said, "the institution Of life insur-
ance, by steadfastly adhering to its
primary function, protection, success
fully conserved the welfare of thousands
Of widows, orphans and other depend
ents, as well as of aged policyholders
themselves, in the years to come who
might needlessly have been robbed OF
their benefits by momentary and col
lective unreason. As result, life in
stlrance remains TODAY the same pro-
tective giant of stability
How Assets Are Invested.
Turning to the investment records Of
81 legal reserve companies holding ap-
proximately 90 per cent of the total
admitted assets Of all such companies
nounced that these companies will hold
at the end of December about $i9,-
2 $50 ,000, coo, making a. net increase Of
about S340, ,000, 900 over the 1882 figure
Of S19 9,02o ,000, 900. "Analyzing this tn
crease by classes of investments, we
find that farm mortgage loans de-
creased about s168.000.000 and city
mortgages about S311 100000, making
total decrease in mortgage loans OF
s479, 1000, 900, and shifting the percent
age of total assets held in this class of
investment from 35.7 to $685." he con-
tinued.
Bonds and stocks showed a net in
crease during the year of approximate
ly s271, 100000 This class of assets
showed gain in proportion to total
assets from 36.7 per cent to 37.4 per
cent. Government bonds increased
about S283, 900 600. chiefly due to a
$232 200, 900 increase in United States
increase in domestic State, county and
municipal bonds.
There was decrease in corporate
securities of S12000,000, railroad Sc
curities having decreased by 34.000, 900,
while public utility securities increased
by S18,000,0 900. and other corporate Sc
curities by $4,000,000. Policy loans and
premium notes showed an increase of
$40 100000, and the percentage Of as
sets so held decreased from 17.9 to 17.7.
While the gain in real estate holdings,
amounting to about $3.50, 1000, 900, was
somewhat larger than usual this year,
the percentage of assets so held in
creased only from 40 to So"
Death Rate Not Unfavorable.
Discussing the records of 81 leading
companies. DR.. William Muhlberg, vice
president and medical director Of the
Union Central Life Insurance Co.,
Cincinnati, forecast that 1888 will be
one Of the most favorable years from
the standpoint of American mortality.
Although an increase in the death rate
Among Americans is indicated for 1888,
this experience is likely to be better
than fer any previous year except 1881
and 1892, he stated.
According to the combined experience
Of the 81 companies, the death rate
among policyholders increased FROM
818.8 per 100000 in 1882 to 1854 IL
1888. representing an absolute increase
of IT'S, or a relative increase Of 81
per cent, DR.. Muhlberg said.
Explaining that although the record
for the current year might seem dis
appointing, a careful examination Of
the facts gives encouragement, the
the speaker pointed out, that this year S
mortality experience is contrasted with
that for 1882. the year showing TIE
lowest death rate on record among the
general population.
He continued: when data for the
current year are complete It Is likely
that the record for 1888 will be bet
tered only by that for 1881 and 1882.
Surely medical resources have more
than held their own against the forces
OF death"
Would End All Depressions.
Expressing the opinion that the
American economic system 'as We
know it" cannot stand the experience
OF another major depression, Hon.
Edgar N. Rhodes, Canada's Minister of
Finance. urged that public works ex-
penditures should be cut to the bore
in normal times and that the funds
thus saved be held available to finance
employment through these channels in
times Of business hardship. I.e advo-
Gated carefully planned expenditures
for public works to control, II not en-
tirely eliminate, economic depressions.
Based on the figure of $500. .000, 600,
rs given by the National Bureau OF
Economic Research and the Depart
ment OF Commerce for normal years
expenditure upon public works In the
United States, the speaker declared
that II this figure were reduced by oniy
IS per cent, and this amount placed
In reserve fund, it would provide
over q five-year period the sum Of
$4.375, 100000.
Comparatively Few r. F. C. Loans.
Discussing problems resulting from
the depression and the way they have
been met by life insurance companies
of the United States. Leroy A. Lincoln,
vice president and general counsel Of
the Metropolitan Life Insurance Co.,
said: Throughout four years Of almost
unparalleled depression in business. the
institution OF life insurance In Amer
lea has furnished an example Of
achievement that wins admiration
wherever 1t Is understood"