458 OSWALD J. ARNOLD 



insurance companies; it is from this fund that dividends are 

 paid. 



During 1904 the American legal reserve companies in- 

 creased their reserve funds from $1,978,166,083 to $2,168,- 

 468,541, being an increase of $190,302,458. In the same time 

 they increased their surplus funds from $268,621,596 to $330,- 

 492,427, being an increase in surplus of $43,870,931. The 

 assets — reserve and surplus — of all the legal reserve or "old 

 line" life insurance companies on Dec. 31 , last, amounted to 

 $2,498,960,968. 



The last few months have made the question as to where 

 this enormous reserve and surplus fund of insurance com- 

 panies is invested a pertinent one. A careful compilation of 

 the investments of the ninety three regular and industrial old 

 line companies of the United States shows that on Dec. 31, 

 1904, the investments were distributed as follows: 



Real estate, $180,875,035; bonds and mortgages, $671,- 

 577,813; bonds owned, $1,067,027,851; stocks owned, $172,- 

 582,075; collateral loans, $42,715,261; premium notes, $19,- 

 300,755; loans on policies, $170,438,024; cash in office and 

 bank, $104,027,124; net deferred and unpaid premiums, $45,- 

 879,455; all other assets, $24,636,705. Total, $2,408,960,968. 



