The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-10
Buys Bonds
Major Insurance Firms
Purchase Federal
Issues.
BY W. IAN MACK
rtn.. sn.rl.I EinanriaI Writer

NEW YORK. sept. 10-The
major insurance companies are turn
ing strongly 70 government bonds in
lieu Of other outlets for their funds.
This was disclosed in a survey which
showed that companies represented
BY the Association OF Life Insur-
ance Presidents expanded their hold
ing Of federal obligations by S553,-
100000 during the last year. In that
period total resources increased by
s457OO0.OO0. Most Of the govern
ment issues purchased we're long
term bonds.
The reason for the heavy pur-
chasing Of federal issues Is generally
assumed 10 be the dearth Of new
capital offerings by firmly estao-
lished private corporations
Mortgages Liquidated
This change was effected chiefly
through the liquidation Of mortgage
investments 20 the extent OF S3l4.-
100000 and the reduction OF rail-
road bond holdings by s27, 100000
In consequence. the former declined
to S.. 800. 100000 from S5,9lO.OOO,OOO
last year. and the latter receded to
s2.586. 900 900 from 5000, 900.
Rail liens held constitute nearly y
per cent Of the nations railroad in
debtedness. while mortgage holdings
are equal 70 about 125 per cent o.
the national mortgage debt.
Government securities owned b.
the insurance units now aggregate
s2.O47 600 600. compared with sl,494,-
100000 a year ago, an increase Of
about 80 per cent. Currently. they
are equal to Il per cent Of the COM
panies' combined resources, amount
ing to si7.4s7, 900 .OO0D compared with
a ratio Of slightly more than 8 per
cent a year ago. when assets totaled
$1,000 900. 900. The portfolio OF
governments. incidentally. approx
mates 8 per cent Of the federal debt.
Utility Holdings Expands
Farm mortgages have been re-
fiecting gradual liquidation. some
through foreclosure. They declined
every month in the period from
s1.322 100000 on May 81. 1888, TO
sI.124 600 900. Likewise urban mort
cages have shown persistent de-
clines. now totaling s4.274,000,000,
against S4588. 100000 a year ago.
Public utility bond holdings eX-
banded by $50 100000 from $780,
600 900 10 SI,727. 100000. Other in
vestments. including stocks and
bonds Of a miscellaneous character,
rose S62.OOO. 900 to S559OOO.OO0.
Policy loans and premium notes
continue TO be a problem which in
surance companies find difficult to-
solve. Currently. the total out
standing is only sos, 100000 below
year ago at S2.9O7 100000
Cover Living Expenses
Most Of these loans were con-
tracted in the period Immediately
preceding the banking moratorium
of March. 1898. but the proceeds,
instead Of going into boards, as
then suspected. are understood to
have been utilized TO cover living
expenses, taxes and interest require
mentS.
Premium receipts exceed $500, 000,-
600 monthly in amounts ranging
to more than S3OO.OOOO 900 usually
collected in December. Both the
Atlantic Seaboard and Pacific
Coast states contribute more than
two-thirds Of the volume of new in
surance policies written monthly.
LapSed policies are showing a
gradual decrease, the current rate
being only Is per cent in excess of
the 1928 figure. contrasted with 81
per cent above the 1925 level in 1888.