HI1ADELPHIA LIFE ISIM
One of the most noticeable results of the insurance investigation has been the organization of a large
number of life compauies in various parts of the country. Some of theso will be successful and some will not.
The pioneer along this line and the one which has made a noteworthy success is the Philadelphia Life Insusance
Company, which, since its organization in October, 1905, has steadily and rapidly enlarged its activities till at
the.time of its last report, December 31st, 1907, it had over $18,000,000 of paid for insurance and had built np
anagency force capable of producing an increasing amount of good business year by year. This company was
the first one organized after the Armstrong investigation to voluntarily adopt every practical recommendation
of that body, and the idea of expenses limited to the policy loading, individual accounting to policyholders,
elimination of unnecessary surplus, and the investment of its assets in non-fluctuating securities, have been the
cardinal principles on which this company has been built. Conservatism and energy have been combined in
the personnel of its officers and managers, and the record of the company shows how the public appreciates the
fair treatment it receives at the hands of this company.
The record of this company in 1907, despite the financial stringency for several months, shows assets at
the date of its report of $1,248,163 an increase of $347,322 for the year. Besides the very large increase of
reserves, due to so much of its business being on the higher priced forms of insurance, the surplus of the com
pany increased $54,289, to $280,547.43, and this, after setting aside $38,390 for dividends accruing to policies
during 1908. The investments of the Philadelphia Life seem to have been selected carefully, and include gov
ernment, municipal and other bonds to the amount of $893,954.33. It also holds $110,700 of first mortgage
liens on real estate, while the only collateral loans on its books are $10,000, and that amount is on securities
worth fifty per cent in excess of this sum. Its other assets consist of interest-bearing certificates of deposit,
loans to policy holders and cash in bank, and it is noteworthy that only $1,630.36 practically a days receipts
is not earning interest. The expense account of the Philadelphia Life is limited and its policy contract pro
vides for an individual account to be kept with each policy, crediting it with the net premiums received and
interest earned thereon and charging it with its proportion of losses. This precludes the possibility of building
up a large surplus with the policyholders' money. Of the $1,000,000 authorized capital of the company, of
which $559,590 has been taken, nearly every share has been sold above par. The option price of the remaining
shares has been fixed at $40, and at this price four times its par value its officers report it will soon all be
taken. The stock of the Philrdelphia Life is now owned by over 3,000 people, and at the annual meeting in
January so large was the personal attendance that a public hall had to be engaged to accommodate those who
were present. Commenting on the record of the company, a prominent official of the Philadelphia Life said to
a representative of The Spectator:
"In proof of the fact that the policyholders are justly and equitably treated may be mentioned that the
dividends paid to them are as large, if not larger, than those of the older companies, when it is considered that
the premium rates of the Philadelphia Life on the forms of insurance usually taken are four to eight per cent
lower than its competitors, For instance, two other annual, dividend paying companies of the Quaker . City
charge respectively $273.90 and $265.90 for $10,000 on the whole-life plan at age thirty-five, while the Philadel
phia rate for the same form of policy is $262. The initial dividends paid last year by the two other companies
bring the net rate dawn to $240.90 and $233.50, respectively, while that paid by the Philadelphia Life brings'
.their rate to $221.20. A comparison with the New York companies makes a still better showing for the Phila
delphia Life, while even with no increase beyond the initial dividend, its net rate is below that of non-participating
companies; but with a policy that absolutely and unqualifiedly guarantees to the policy holder every
dollar of saving in mortality and every cent of earning on his Bhare of the reserves, there seems to be no ques
tion that future dividends will be larger than those now being paid. But the most remarkable and gratifying
incident to the stockholders was the announcement at the annual meeting of a six per cent dividend on the
stock, and checks for this amount have been sent out. This, I believe, is the first instance in life insurance
history where life insurance stock has earned and paid any dividends within five years from date of the com
pany's organization."
f VThe fact that the Philadelphia Life last year made a substantial increase in every department speaks well
foTthe management of President A. J. Maloney and Manager of Agents James H. Perry, both of whom have
been identified with the company from its inception.
As announced by the president, A. J. Maloney, at the annual meeting, the policy cf the company is to go
on to larger things and extend the activities of the company as rapidly as a just regard for the interests of its
stockholders and policyholders will allow, and, as the management asserts, it has so far always secured and
maintained its business on a profitable basis, there is no reason why there should not again show a large gain
in assets, surplus and insurance in force, as well as increased dividends to both stockholders and policyholders.
The company's home and agency offices are located on the twelfth and thirteenth floors of the North Amer
ican building, in Philadelphia, and are admirably adapted to the prompt and efficient handling of the com
pany's rapidly increasing business. ,
J. H. Leedham, District Manager for the company, has been Bpending several weeks in this vicinity and
has been very successful in securing a large volume of business among the leading citizens of Jefferson county,
Hewilfremairi at the Imperial H6tefa"f ew days longer for the purpose of securing a
To the right kind of man, this opportunity ia worth more than any political Job in this county. Call and see
me and I will prove it to you. But do not take up my time unless you are sure that you possess all of the
above requirements.
Good, Live, Hustling, Honest Representative
J. H. LEEDHAM, District
Manager,
IMPERIAL HOTEL.
RE YNO LDS VILLE, PA.