MAKES. A SPLENDID SHOWING
NEBRASKA LIFE COMPANY BE
GINS NEW YEAR UNDER MOST
FAVORABLE CONDITIONS.
PHENOMENAL RECORD PAST YEAR
Bankers Reserve Life Leads Annual
Report of President B. II. Robison
. to the Officers, Directors and
Policy Holders, Jan. 21, '03
The three opening years of the 20th
century furnish interesting history.
The events are many and have exer
cised a mighty influence on the nations
of the earth. The United States is a
well recognized world power. Its in
fluence is manifest in commerce,
transportation, navigation, finance and
diplomacy throughout the whole
world.
ITS FLAG FLOATS ON LAND AND SEA
It is a potent factor in civilization
wherever its flag floats on land and
sea. It is the recognized protector of
the western nations; the arbiter of the
eastern dynasties; the genius of civil
and religious liberty in the tribunals
oflhe nations.
A COUNTRY RICH IN RESOURCES
The country is rich in natural re
sources, is unequaled in land3, min
erals, precious metals, coal, timber,
cereals, live stock, climate and crude
materials. The country excels in
skilled labor, improved machinery
and methods, which combined embrace
the elements essential to the develop
ment of a mighty nation and the main
tenance of a vast population within iU
own borders, while its trade and en
lightening influences are extended to
the islands of the sea, are reflected to
the ends of the earth.
The development of the vast re
sources, the expansion of its trade
with the countries of the eastern and
western hemispheres is in its infancy.
Who can forecast or estimate its pos
sibilities or determine the limit of
the country's influence and power?
THE GREAT CENTRAL WEST
The great west embraces more than
two-thirds the area of the United
States, is an important factor in the
dominion of the greater America. Its
boundless prairies, rich valleys, moun
tains, river3, lakes, plains and salu
brious climate combined will support
a dense population and will perma
nently supply the natural resources
for agriculture, horticulture, grazing,
mining, fuel, power, live stock and
manufactories, which combined will
be sufficient to maintain, feed and
clothe the inhabitants of the whol3
country and are destined to make
rich the people of the great west.
THE HIGHER CIVILIZATION
The development of the natural re
sources of the great west will be at
tended with a keener, broader civili
zation, the natural evolution of a high
er education. The free public schools,
colleges and universities, permanently
endowed by liberal grants of lands,
give assurance the higher civilization
will dominate and control the people
and destiny of the west. The records
of every village, city, county and state
in the west show nearly one-half of
the " public expenditures to be for
school and educational purposes.
THE WEST EHULATES THE EAST
The west profits by the experience
of the older cities and institutions of
the east, adopts the best results, im
proves on them. It is universally
recognized that the schools; banks,
railways, public buildings and utili
ties of the western cities, and states
are newer and superior to those of the
older sections.
LIFE INSURANCE IN THE WEST
The present and future development
of the resources and institutions of
the great west makes absolutely essen
tial the maintenance of strong life in
gurance and savings institutions in
the west for the convenience of west
ern ''people and protection of western
interests.
j It has been demonstrated that first
-and foremost of the fiduciary institu
tions of the country are the life Insur
ance companies, which receive, hold,
invest and distribute - to the policy
holder the moneys and savings en
trusted to them, exactly in proportion
to the deposit or premiums paid, and
in addition thereto protect and reim
burse the estate or family in event of
death of the policy holder for the full
amount of his policy, while no other
form of investment or banking un
dertakes to return more than the
moneys paid.
STAND UP FOR THE WEST
Keep your money at home. Trade
with home people. Help to build up
your own town, state and section, and
thereby expand your own business.
These economic principles apply in
your payments for life insurance.
BANKERS AND BUSINESS MEN
The citizens of our section may
well pause and consider this import
ant subject. .No one would think of
sending the daily bank deposits of this
section to eastern banks or cities, for
to do so would be to destroy west
ern trade, and ultimately wreck every
western bank, and perpetuate eastern
control and supremacy.
1 HE FINANCIAL. DRAIN SHOULD STOP
It is equally disastrous to western
commercial interests to send the peo
ple's savings from each western state
of from $1,000,000 to $3,000,000 annual
ly to the money congested centers of
the east never to return, not one dol
lar of which is available to western
banks or policy holders in time of fi
nancial distress or panic.
MONEY WITHDRAWN EXCEEDS BANKING
CAPITAL
The citizens of the west may well
pause and reflect on the effect of send
ing east every ten years in withdraw
als of money from western banks for
life insurance premiums an amount
exceeding the combined banking capi
tal of each western state. The sum
withdrawn from Nebraska, banks and
sent to a few eastern companies con
stituting the great life insurance trust,
the mother of the other trusts, dur
ing the past ten years exceeds $15,000,-
000 in excess of the money returned to
the policy holders by the alien com
panies, as shown by the sworn re
ports of these companies on file with
the insurance department of Nebraska
TAXES 5JTALL, LITTLE REVENUE TO NE
BRASKA
The immense sums annually with
drawn from western banks sent out of
Nebraska to outside life insurance
companies almost wholly escapes
taxation. Nebraska stands practical
ly alone among the states in extend
ing alien life companies the privilege
of doing business in the state and in
not securing in return a contribution
or tax of outside companies for an
equitable share of the expense of
maintaining the insurance depart
ment, institutions and government of
the state, while every vestige of real
estate and personal property, includ
ing the property and franchises of
the railroads and other corporations,
is taxed, ine nome lite companies
contribute to the revenues of the
state, keep the money at home for in
vestment and are compelled to pay
taxes in every other state where ad
mitted.
AN INSTITUTION OF, FOR AND BY THE
WEST
The Bankers Reserve Life Associa
tion, recognizing the possibilities, con
ditions and opportunities of the west,
its management by well known west
ern insurance and business men, who
have an abiding faith in the loyalty
of the citizens of the west to safe
jmnrrl ennnnrt nrul tnointoin o
vigorous western company, have de
voted their energies, money and time
to the founding and building of the
institution.
The splendid results already
achieved have been mostly secured
uunug me past tnree years, since
commencing to write the presen
rorms or superior standard policies
The business during this period has
been increased from $500,000 to $5,
234,500 and the annual premium in
come has increased during the same
time from $10,000 to $180,000. The
growth has been phenomenal.
INCOME FOR 193
The premium income of $179,509.14
shows an increase of $68,197.42, being
62 per cent more than that of previous
year and $3,000 more than the prem
ium income of the two preceding
years. The income from other sourc
es, in addition to premiums, including
cash received from previous year,
makes a total of $224,288.39.
A LOW DEATH RATE
The death claims were four, amount
ing to $8,500, of which $2,750 was re
imbursed by reinsurance from other
companies, leaving net death losses
sustained $5,750, which includes a
claim of $2,500 of previous year, leav
ing the net death loss only $3,250 for
1902, a record without parallel, being
the lowest mortality record of any
American company. All death claims
were paid immediately on the receipt
of final proofs. The record shows al1
other bills and obligations promptlj
paid on presentation.
SELECTED RISKS AND REINSURANCE
The company's risks are most care
fully selected and inspected, and are
confined to the healthful sections and
preferred occupations of the central
western states.
The charter provides policies may
be written on a single life for $500 to
$10,000. In all instances where a pol-
.1 n rAA
icy is written for more man
it has been the custom to reinsure the
excess, rne total reinsurance uu m
force exceeds $1,740,000, making a
double assurance for the policy holder
and an effective asset for the com;
pany.
NEW BUSINESS SECURED IN 1902.
The record of new business written
on the lives of leading citizens of the
state is not equaled by any other com
pany operating in the west, as will be
observed by a comparison of the fol-
owing exhibit:
APPLICATIONS WRITTEN IN 1902
No.
ns. applied for 931
Applications rejected,
reduced, suspended
or incomplete 83
Amount.
$2,544,500
211,750
Applications apprvd.. 84s $&,6&,iW
POLICIES IN FORCE
olicies issued and re
vived 848 $2,332,750
'olicies of previous
year ...1,145 3,421,500
olicies at risk during
year 1,993
Policies terminated by
death, lapse or over
due premiums 193
Policies in force De-
$5,754,250
519,750
cember 31, 1902 1,800 $5,234,500
THE COST OF NEW BUSINESS
The premium income received from
new business, $50,od.i, ana irum
renewals on old business, $93,851.20,
was secured at a net cost for commis
sions, cost of collection and compensa
tions of managers and agents of $63,
860.83, being an average of about 69
per cent of the amount of the first
year's premiums, or a saving of $21,
797.11 of the gross amount received
from premiums on new business, the
savings being more than the net out
lay for death claims and for cost of
carrying $1,746,000 of reinsurance in
other companies. It is a well known
fact that the eastern life companies
secure their new business at an av
erage cost of more than the entire first
year's premiums. The sworn reports
of the larger companies on file with
the insurance departments show the
cost of new business to be in most
instances from 100 per cent to 200 per
cent of the entire first year's prem
iums. The record of the Bankers Reserve
Life for economy of management, bus
iness handled and secured and its low
mortality and lapse rate is no
equalled by any life institution in the
land writing or handling a like vol
ume or class of standard policies, col
lecting full legal reserve premiums.
INVESTMENTS AND SECURITIES
The period for investment in per
manent Interest bearing securities be
gins with the receipt of renewal
premiums on investment policies with,
every company. It it well-known that
no portion of the first year's premiums
are available for investment, the first
year's cost for placing the business
on the books, for death claims and ex
penses leaves small margin for sur
plus. The first investment policies
of this institution were issued about
three years ago. On this business or
class of policies a gross income of
$93,851.20 was received in renewal
premiums during 1902. The renewal
income received has been invested in
first-class registered twenty and ten
year school bonds, $27,600; first mort
gages on well improved farms in east
ern Nebraska, $23,350; secured loans
and cash in bank of about $42,000 ad
ditional represents the invested as
sets of $92,943.17 on December 31,
1902. Additional securities to the
amount of $11,600 have been pur
chased during the first ten days of
the new year, consisting of municipal
and school bonds, $12,500; first mort
gages on improved real estate, $2,100;
total, $14,600. " The latter securities,
with $10,000 to $20,000, for which ne
gotiations are now pending, will be
early deposited with the state of Ne
braska. The bonds and first mort
gages owned by the company Decem
ber 31, 1902.
ON DEPOSIT WITH THE STATE
OF NEBRASKA AMOUNT TO FIF
TY THOUSAND NINE HUNDRED
AND FIFTY DOLLARS for the ben
efit and protection of policy holders.
ONE HUNDRED FIFTY THOUSAND DOLLARS
is the estimated net renewal income
for 1903 to be available for invest
ment in permanent securities. This
amount, in addition to the present
investments, will rapidly increase the
deposits with the state as the renew
als are obtained, and it is estimated
will make the assets $250,000 or ove.'
by the end of 1903. All investments
are carefully made on sworn valua
tions after personal inspection, and
on improved farms are limited to 25
per cent to 40 per cent of the actual
cash value of the property.
THB ADVISORY B CARDS
The selection of several hundred
prominent members, five or ten in
each of the principal counties of the.
states, is a well recognized power.
It is the strongest single business or
ganization ever made in a state. The
boards are making their influence felt
in protecting and furthering the in
terests and business of the institu
tion in their respective localities. Th3
officers and directors extend to th3
members of the boards their thanka
and congratulations on the excellent
results achieved, largely through their
co-operation, assistance and advice.
The special advisory board plan
was formerly employed by the older
companies in opening new territory;
during the last twenty years it ha3
been little used by them. It is tho
cheapest and most effective direct
known method of introducing a new
company until its business has beea
securely placed and an agency force
established in its home and other
states.
We have the advantage of copies of
the Special Board Contracts formerly
extensively used by the New York
Life, Equitable of New York and other
leading companies. These documents
are a surprise to many of their agents,
who are opposed to the plan, since it
gives to the special board members
the advantage of the renewals that
under the usual methods help to swell
the income of these agents and which
they wish to retain rather than to
have it returned as dividends to pol
icy holders or members of advisorv
boards, as was formerly the custom
and practice of their companies.
THE EXCELLENT POLICIES AND PLANS
The strictly modern policies and
plans of the Bankers Reserve Lifj
"are not excelled in the world," have
met with universal favor. The poli
cies adopted include every known safe
option provision; are extremely lib-
