praisement as filed in this office fixes the value of said property at $701,311. The leasehold equity is arrived at as follows:
"Book value (real estate), $600,000; preferred stock issue, $335,000; bills payable (evidenced by notes), $116,-907.46, and equity in leasehold and improvements, $14S,-002.54.
"It will be noted that for the basis of making our report this property is carried at $101,311 less than the official appraisement by the Insurance Department of the State of Indiana.
" The income from rentals of the building is approximately $100,000 per year, and the American Mutual Insurane - Company, by virtue of said purchase, is credited with the acquisition of a most desirable Home Office building."
In the above statement, the equity in the leasehold is carried at an advance of about $14,000 over the 1918 figure. Concerning the guaranty fund. it says:
"By reason of the acquisition of the property above re-tensed to, the Anu'riesn Mutual Insurance Company in-creased its guaranty fund from $14,000 to $166,401). which action we are permitted to take under the laws governing the operation of mutual companies in the State of Indiana We might add in this connection that the .guaranty fund so established is not a liability against the company, but is evidenced by guaranty fund certificates, which are payable out of the surplus earnings of the company with interest not exceeding 7 e:c annually. The total annual interest on the guaranty fund issue amounts to $2,998, which is an average of 1.8% covering the interest charge thereon."
The investment of the major part of the company's re->ourees in a single item, particularly of this character, is open to criticism.
Territory.— It operates in El.. Ind.. O. and Pa.
Officers.— President, Dr. So1lis Runnels, physician and surgeon: vice-president, F. II. Irwin, insurance: second vice-president. J. P. Cook, vice-president National Concrete Co.; secretary, J. W. McGinety, insurance: treasurer. Geo. W. Snyder, secretary Security Trust Co.
Directors.— The above officers and B. D. Brooks, president United Ice Co., and J. J. Peters. insurance
Iiremne, 1919.— Gross premiums written, $178,247.41; less reinsurance. $16,091 49: less return premiums, $30,-S67.18: total net premiums written. $131,288.74; interest and rents. $1,673.64; other income, $814.69; total income, $133,777.07.
Disbursements, 1919.—Net losses paid, $44,352.05; underwriting expenses. $41.733: dividends to policyholders,