William Penn, 1963 (46. évfolyam, 5-23. szám)

1963-09-18 / 18. szám

PAGE 6 September 18, 1963 William Penn (Continued From Page 5) COMMONWEALTH OF PENNSYLVANIA Insurance Department Harrisburg January 22, 1960 William Penn Fraternal Society 436 Fourth Avenue Pittsburgh 19, Pennsylvania Attention: John Sabo National Auditor Dear Mr. Sabo: Sometime ago, you, together with your Actuary, Robert Bruce, your Counsel, Gay B. Banes, and possibly another, met with us for the purpose of discussing the granting of paid-up insurance policies to those of your mem­bers who met certain age and membership requirements. At that time you pointed out that it was the mandate of your recent convention that this be done. Please be advised that this Department cannot and will not approve any program calling for the granting of paid-up insurance upon the attaining of a given age and/or years of membership unless the same be an endowment type of certificate. To permit this activity would not only be discriminatory to our way of thinking, but would seriously jeopordize the reserve and mor­tuary fund of any society so doing. There have been societies which make provisions for paid-up policies, generally in an amount less than that of the face value of any existing policy held by the member. In these instances certain ground rules are laid such as years of membership, age of the member, positive proof and determination of destitution, and a requirement of complete, or near complete exhaustion of the cash surrender value of the policy. In these instances the paid-up policy is a pure charity at the discretion of the Board and is paid for out of the fund created for purposes of that type.. We would be happy to discuss this matter further should you find the need to do so. My warmest personal regards. Respectfully yours, (Signed) Thomas R. Balaban Deputy Insurance Commissioner As a result of this ruling a program of waiving monthly dues was insti­tuted for the benefit of destitute members and this program is presently in effect. Requirements for Waiver of Monthly Dues are in accord with the requirements of the Insurance Department of the Commonwealth of Pennsyl­vania. We are aware of the fact that some of the 1963 District Sessions have re­quests similar to the one which was disallowed by the Pennsylvania Insurance Department, consequently we have to remind the National Convention that the Pennsylvania Insurance Department already has passed on these pro­posals and it would be futile to attempt to bring this matter to life againi on the basis of proposals by the 1959 Convention. Only special funds created by contributions from the members, excluding monthly dues, can be u&ed for the pure charity purposes described in letter dated January 22, 1960 ' Thomas R. Balaban, Deputy Insurance Commissioner, Commonwealth of P aqnsylvania. Employees’ Pension Plan As of December 31, 1962 assets of the Pension Plan amounted to $353,- 341.36. This plan is on a contributory basis. The interest rate on employees' funds on deposit was increased to 3% January 1, 1962. Future Service Pension Credits, beginning January 1, 1963, were increased, due chiefly to larger pension contributions of employees earning $500.00 or more per month. The Contingency account amounted to $39,246.36. All liabilities have been com­pletely funded. THE TREASURER’S DEPARTMENT The Association has continued to show a steady growth in its assets for the period of January 1, 1959 to December 31, 1962. We had at the end of 1962 a total of 248 mortgage loans with outstanding balances totaling $1,461,- 953.81. Investments in mortgage loans has been limited due to the attractive interest rates offered by security investments in stocks and bonds. The following report contains the financial reports of the Association for the period of January 1, 1959 to December 31, 1962: Exhibit A — Financial Statements as of December 31, 1959, December 31, 1960, December 31, 1961 and December 31, 1962. Exhibit B — Gross Investment Income for the years of 1959, 1960, 1961 and 1962. Exhibit C — Ledger Assets with balances as of December 31, 1959, De­cember 31, 1960, December 31, 1961, and December 31, 1962. Exhibit D — Real Estate properties showing values as of December 31, 1962 and Net Income for the years of 1959, 1960, 1961 and 1962. Exhibit E — District Office expenses for the years of 1960, 1961 and 1962. (As authorized to be paid by the Convention held in 1959). Exhibit F — Payroll taxes paid for by the Association for all its em­ployees for the years of 1959, 1960, 1961 and 1962. EXHIBIT. A COMPARATIVE ANALYSIS OF FINANCIAL STATEMENTS 1959 1960 1961 1962 Ledger Assets — Jan. 1st ................ $26,692,901.48 $27,368,997.05 $28,126,705.28 $28,759,142.50 INCOME Monthly Dues ......... 2,616,770.56 2,665,177.32 2,651,346.68 2,631,017.71 Miscellaneous ......... 105,962.92 91,440.56 121,842.29 142,416.58 Investment Income .. 1,015,127.78 1,035,786.62 1,113,252.01 1,154,777.30 Capital Gains .........' 97,676.37 83,563.14 107,012.80 537,423.36 Pension Plan Income .............. 31,598.00 31,046.00 29,651.00 28,109.50 TOTAL INCOME ... $ 3,867,135.63 $ 3,907,013.64 $ 4,023,104.78 $ 4,493,744.45 DISBURSEMENTS Claims ......................... $1,755,379.77 $1,877,515.87 $2,168,316.10 $2,222,645.35 Dividends .................... 93,674.39 98,855.85 115,357.79 135,250.32 Miscellaneous ........... 134,217.72 27,379.05 51,240.53 54,706.69 Commissions .............. General Operating 404,096.63 318,333.54 311,846.32 308,737.90 Expenses ............. 758,094.47 709,159.66 652,630.88 666,951.44 Capitol Losses ......... Pension Plan 8,784.92 64,471.37 27,986.09 322,311.92 Payments ............ 24,640.52 22,734.30 26,990.16 27,782.09 Depreciation — Real Estate ....... 12,151.64 7,189.70 12,377.00 9,718.84 Taxes, Licenses and Fees ........... 23,666.07 23,922.69 26,729.93 TOTAL DISBURSEMENTS . $3,191,040.06 $3,149,305.41 $3,390,667.56 $3,774,834.48 NET LEDGER ASSETS — DEC. 31st .............. $27,368,997.05 $28,126,705.28 $28,759,142.50 $29,478,052.47 E X H IBIT B GROSS INVESTMENT INCOME BEFORE EXPENSES 1959 1960 1961 1962 Interest on Bonds .. $746,199.92 $760,748.72 $797,493.80 $828,131.53 Dividends on Stocks . Interest on Mortgage 31,333.84 64,442.45 82,287.52 94,218.17 Loans ................ 78,820.60 71,484.64 63,019.10 63,501.47 Real Estate Income . 115,881.50 108,430.00 131,768.00 124,146.81 Interest on Certificate Loans & Liens .. 35,834.08 38,837.70 42,483.06 43,532.41 Interest on Bank Deposits ............ 2,193.05 2,450.78 2,548.49 2,673.52 Interest on Real Estate Loans ................ 2,943.15 2,808.57 1,983.97 2,119.99 Interest on Claims Paid in Advance............ 16.67 250.00 TOTAL GROSS INVESTMENT INCOME ........... $ 1,013,222.81 $ 1,049,452.86 $ 1,121,583.94 $ 1,158,323.90 E X H IBIT C COMPARATIVE ANALYSIS OF LEDGER ASSETS 1959 1960 1961 1962 Bonds ....................... $22,550,224.96 $22,867,334.16 $23,158,281.98 $23,189,008.37 Stocks ...................... 921,289.43 1,671,201.17 1,392,428.69 1,488,897.99 1,725,062.90 1,321,353.92 2,124,821.73 1,461,953.81 Mortgages ................ Real Estate ............ Branch Real Estate 1,147,597.08 1,127,506.84 1,176,969.24 1,364,418.19 Loans ................ 48,671.37 49,195.70 45,963.61 43,222.71 Policy Loans & Liens ............. 950,848.56 1,006,958.09 1,090,164.79 1,120,915.76 Savings Accounts .. Commercial Checking 70,291.72 72,654.89 75,179.35 77,953.72 Acoounts ........... 13,596.35 3,776.77 84,271.51 45,169.58 118,864.18 55,788.44 60,646.80 46,592.86 Other Assets ........... $27,377,497.41 $28,134,417.45 $28,767,628.41 $29,489,533.95 LESS: Liabilities ......... 8,500.36 7,712.17 8,485.91 11,481.48 NET LEDGER ASSETS ........... $27,368,997.05 $28,126,705.28 $28,759,142.50 $29,478,052.47 EXHIBIT D REAL ESTATE PROPERTIES HOME OFFICE BUILDING, PITTSBURGH, PA. Book Value of Building & Property — December 31, 1958 .... $182,642.72 LESS: Reserve for Depreciation ........................................................ 89,867.67 Value of Building & Property (Less: Reserve for Depreciation) ..................................................................................... $222,860.00 EASTERN DISTRICT OFFICE BUILDING (Rákóczi Building) BRIDGEPORT, CONN. Book Value of Building & Property — December 31, 1958 ............. $248,080.89 LESS: Reserve for Depreciation ........................................................ 19,831.80 $228,249.09 SALE OF PROPERTY — June 13, 1960 Sale Price ................ $265,219.46 Value of Property & Expenses re sale .................... 248,334.69 Net Profit on sale .... $ 16,884.77 ST. NICHOLAS PROPERTY PITTSBURGH, PA. Book Value of Property — December 31, 1962 ............................. $620,500.00 CHERRY WAY PROPERTY PITTSBURGH, PA. Book Value of Property — December 31, 1962 ............................... $255,700.00 TRENTON, N. J. PROPERTY TRENTON, NEW JERSEY Value of Building & Property — December 31, 1962 ....................... $16,739.91 EASTERN DISTRICT OFFICE BUILDING (Washington Avenue Property) BRIDGEPORT, CONNECTICUT Purchased — February 12, 1960 — Book Value December 31, 1960 .......................................................................... $198,262.08 PLUS: Capital Renovations — 1961 ................................................. 59,256.96 LESS: Reserve for Depreciation ...................................................... $ 8,900.76 Value of Building & Property — December 31, 1962 .................... $248,618.28 THE FIELD MANAGER’S DEPARTMENT The Board of Directors, according to the By-Laws of the Association, on November 20, 1959, again elected Mr. Elmer Charles as the.. Field Manager for a four-year term. The Association continued its sales efforts on the con­cept of District Office management directed from the Home Office. The sales activities continued until July 1, 1960 with the services of four Field Super­visors, namely: Joseph Toma, Field I, covering the states of New York, Con­necticut, and New Jersey; Gus Nagy, Field II, covering the states of Penn­sylvania, West Virginia, Virginia, and Kentucky; Gabriel Nameth, Field III, (Continued On The Next Page)

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