New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-01-13
TIE CONNECTICUT MUTUAL LIE
ASSURANCE COMPANY.

! Company
A letter addressed by Mr.. C. C.. IIine to Mr.
Henry & RobDson and the other directors OF the Con
necticut Mutual who are not officers of the company.
aud WHICH with row omissions, has been given - the
public through the newspapers OF the country Is at
| hand.
It states that he writes policy holder OF twenty
two years standlns ana bess to cal your attention
to what TO me to DO your very plain and imminent
| duty"
the columns OF his Journal. The Insurance Non
tor copies OF which have been sent with articles
90 the several mem this IN the Last
eight years, We had supposed that he was not only
uhIlshly 10 some o he e'eGtllle onco's o. tno
bis widely read journal prevent the company from
obtaining new business aud TO weaken the confidence OF
its members in its soyency His letter assumes and
claims that no IL true AMI consistent friend OF tue COM
pany and he addresses u.s. who represent all the policy
holders OF constituency. We hasten to reply
and desire in giving this litter
sha to tue pubic 10 c0pslor its CRITICS rs anl to
state facts in egard 20 statements which examn
alton confirms in believing only continuation OF
the same criticisms whch at great ensth anu Win great
eIplcitness and aud over and over again he has
given to the public in the columns OF The Insurance
Ills letter first states. I am advised by those who
think they kno that mscacula.e your power in tine
promises that Mr. Greene holds froxies and instead OF
being your servant Is really the opposite; but Will take
thr chances OF In that statement and say what
| think ought at venture"
His letter in this respect, and, believe, in all
others, travels upon complete misappreension OF the
character OF Colonel Greene. 1t Is probably impossible
position Of personal and bitter attack upon colonel
quoted from the letter Is grossly unjust to him. rhe
board OF Directors VINO have hal tor many years
slant Official and personal intimacy with him. know tat
holds high office In any company In tue country
WITH deeper sense Uf responsibility 10 his eDn'uehs'
aud with modss5 AMI sensitive unwillingness to
force himself. In any manneI. upon any association
which not heartily DESTROYS OF his services Colonel
Greene is neap 10 OF using any power to retain
Official position excepting tue power which he has over
the respect ami confidence Of his associates.
The communication goes to say: Il Will conhne
myself to points in this communication. First, OF
my own personal knowledge state that you are carry
Ing your real estate schedule rropere. to which you
have no title not one or twO but multiplied examples
defective titles AT tie outset, mSdescrlptOn or
other cloud has utmated Ia king that schedule false
In numerous and important particulars
The company has had as large an amount ut one time
as about 900 OF real estate 1t is needless to say
that nearly all this real estate the result OF mortgage
loans which foreoosed Tho loans and investments
n the company not made by Its executive officers
They made by its Board OF Directors. who meet regl
larry n week, who have had no subcommittee, eX
cepng tia, in the last three years Ehen city loans at
OF interest have been difficult to obtain. com
milteo to examine applications for farm MORTGAGES
being In OF the case for small amounts has
appointed only two OF these farm mortgages ont
OF S9OOOOOO placed have been iOrec0sed ana thry not
for OF deficiency In value Each application ior
loan mas hAd tue rXpres hnd Spccla approIa ol tno
Boari OF Directors lhlKo some Oh tno vlnel Eict'
companies. inyestmeuta have been chiefly In mort
gage securities In 1873, when the real estate values OF
the country were NJ their highest point ihe company
had mortgage l'nns 20 the amor mt ~ S2GOOOOOO or
1t N not escape attention that this point oil time
was for years before tue resumption OF spe'o pay ir,
and that values OF the country, IA compaIe Win
all the real OF the npauy l. the rc-n!' Of mort
made before that time. Tue executive and imam
GOODWIN devoted his time exclusively to It's invest
mrnt- aud whose pru fence and wisdom were held IN the
highest not only by h associate directors but by
n his acquaintance, who were confined 10 the limits OF
one stta In making these loans the Boar Oh ~
fectors possible interest IN them excepting the
welfAre OF the company. has regularly aud uniformly
ompnyed such cnns-ryl ve agent. aud appraisers OF
value upon the Immediate field occupied Tor the
poses ~ the cOmpauys loans were al their hc~t com
maud. The beat local professional -nt has be n en-
gagged and certify To the completeness 81 tile
aud to secure proper forms OF conv ance IN an m
such commercial revulslnn. there should be no deeds
title not contested In snm~ legal proceeding
II would Indeed DO miracle" nut we gre haPpy l" say
thai final decisiou Oi court far - our rNJml-
Of the subject enables to state has set held the
c"nranys title to single piece nl re- tstto 20 J gu
imperfect and OF the nearly So,OOOpOO OF real os-
tate which wa have sold since 1879 tho company has Ia
no single inEtance been Obliged to suTTOr IT. tile by
other imminent thhn thht derived from the orilhA
been as.Acl by nobody on account OF the title to these
pieces o. property It shoni however be said IN luaLL
clon OF this last statement, that sal" OF one piece OF
property has been made In when the ORIGINAL moriGagor
claims that lie entitled TO tho procrods az the ~ac IN
excess Of the amount founn duo In the foreclosure
hut the company Is advised by counsel that the
The Communication further says that he believes that
real schedule - lie to the extent OF ~ least
S5oo?ooo ana tnI1 - 'S'e IN the "O'uF over
We well aware Of the dlitcnties In getting M any
valuation OF real estate at time when the
market Is not tn OF urchSer" sesEns that Investment
IL well said by his Honor judge Hr"nger ~ me SUI
premo Court OF this state. In the recent proccedng- he
fore him against ~ our life cop'nies IN Nh'h us
SOly
where the cstimatos "f value made 10y apparently res
pOn-hlr and intel gent witnesses varied often a. widely
30 per cent and which proceedings his Honor advised
should bc abandoned that this matter OF The ranatlon
of real estate ono about which parties DO dlor ana
well may differ"
one has but to look ut tho valuation which the public
puts NJ tho great dividend paying railroad properties
Of the try day. and compare 1t with prices OF
year ago. how estimates OF the game property
may be changed and In this case advanced, by the
estimate which the public puts the probable
che lon ~
actual cost to reproduce actual cost of investment
present earning capacity, probable failure earning
capacity. development OF new aud neghborl-g public
imr rovement. increase local industries and thou
sand matters which will readily occur To you. ana which
certainly ascerainable only toy the eye OF omnis
ciencr. enter into honest estimate Of real estate
values In almost portion OF onr country To day TINS
company Ia not In tho real estate business IL has upon
hands large though greatly reduced amount OF real
estate. In its general estimate OF that branch ot us
assets ~ makes reasonable examination or s several
properties upon the whole treats the matter az one
branch OF It's RsSeis in gross IL would he undoubtedly
held BY the company which would realize at the
prcseut time and possibly not IN tho Immediate future.
the cost at which II stands npOn the conpinys books,
,h,., 80 ,mIer sccm Observation-Disclosures woud reveal 10
he less than the companys cost, there can be
Pancss ~ ale win realize sufficient amount I'm excess
o. tho tho company to offset all deficiencies. and
leave balance TO the credit OF tue coupanys real
estate aorount on course IL ia not to forrotten either
A. M few Instances where the nomT any cannot now
renzs the full cost OF their real estate.
they not Obliged to part with II at sacrifice anu
whene yer investigation leads rs to believe, IN few
ca4es has that there Ia reasonable prospect OF an
advance In property oquB 10 the interest on It's cost the
managers desire In all cases. aud hago acted To part
with the prOI ery at and To submit to the loss.
Fortunately these have far. been OU nd To bo
very few There Il another class OF In which
estimate OF probabilities leads IA tn believe
that the property, which II fOrcet the market,
would not fully compensate the conn any Tor its AL
yances will, II treated with common by party
abundnniIy able retain II, yield than the com
PAWS Investment In It
farming now from matters Of theory to actual facts
aud history. the company has sold, for Sl,So2Oll ~.
lts anf hn
dcoreus (which Is he uniform treatment by the company
OF the term cost real esate) - 597 70 yielding
net profit $685. 9I o. This properly was valuoi by
the Insurance commissioners in 1879 at $500 ia 23.
or 202 597 - less than 1t realized ana F1O0l53 10
less than II the company t N also mn important
fnrt thA tie nrgl ncrn VI This gam Il dtrNeh from