Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-02-13


m"nt..........-.-... .....----........S .iS,h19 "A
Taxes ........................... 29l, 767 40
Total disbursements .... Sc sS5, 77S l6
balance carried to increase net
or ledger assets. ................ s9Is, 700 81
Add net assets. Jan. !, 1891. .. 81. .2S9, 094 o.
Net assets. Jan. !. 1885,. SIS, ,eO7, ,794 IS
Add interest due and accrued.
market value of stocks and
bonds over cost and net de-
fcrrcd quarterly and semi-an-
nual premiums. per itemiZed
statement herewith -..-..--.-... 1.530,6S5 01
Gross assets. Jan. l. 1892. .... .s59, 49, 40 95
Total liabilities. 53,6as,3e4 IA
Surplus, Jan. !, 1899. 9........ s6.o59,l55 81
FINANCIAL OPERATIONS
INTEREST.
The interest received in 1891 was s., SS3,
740 IL Interest collections have been very
close and are in very satisfactory condi-
tion. On mortgage loans aggregating $780,,
zl1.372 81. there was past-dUe and unpaid
interest or Jan. l. 1892, only Sal, 972 o. OF
one-nirth OF one per cent
RENTS
in 1891 we're SS24, ,613 56 a decrease from
the tormer wear OF 81. 461 As on decreased
holding Of real estate of nearly 100000.
Our rent account does not include any con-
st-ucrive receipts or payments for the Com
pany's use Of its home office building.
THE PROFIT AND LOSS
balance for 1891 was the result of the fol-
lowing transactions: 4 gain from real es-
tate sales of Sl35, $40 SO, and from sundry
items s.. j73 Ga, a total of S141, 1913 13; on
the other hand, 2 loss on certain real estate
sales Of =. .O35 IS and shrinkage of pre-
mium on bonds sold or matured and paid at
-l-v, foto nf
Oh %; balance in Company's favor, $751;
so Is
The balance in 1890 was very much larger,
owing 10 the more active real estate market
Of that year
REAL ESTATE.
During 1891 the company has closed out
for SIg7 7O6 30 parcels of real estate which
cost it S465. .992. 81.
Since 1879 it has sold property taken
under foreclosure at d cost of SS, ,331, $50. go,
Tor -. 740, ,912 o.; gain of 81, ,409. OPS a. and
Il gain over the Commissioners valuation in
that wear of 81, 736, 1868.
our present holding of real estate taken
under foreclosure is Sc, ,3S5, ,2S4 30. We be-
le1e that as a whole it will at least realize
its cost to the company
BONDS.
The company has had paid or has sold
566 p: it has bought bonds costing it
HOB. O00
Il holds bonds costing S11, ,42O, S9S. 80, and
worth JAN l, 1882, by a conservative valua-
tion, Sl1, ,791. 02O "a.
Special attention is asked to the items of
these bonds in the detailed statement.
LOANS on REAL ESTATE
During the year loans have been paid off
10 the amount of $3.50, ,92S 3S, and new
loans have been made to the amount of
81, 393. 715 -; the amount outstanding being
S36.417,372 81. We believe them to be
thoroughly secured, and have already note
the close payment Of interest on them.
INSURANCE OPERATIONS IN 1891.
MORTALITY.
The death losses in 1891 cost the company
less ahan 50 per cent OF the tabular or ex-
pected cost making a saving, as already
stated. OF some S450,0 600; a very favorable |
experience. showing the far-reaching effect |
af careful selection of business, both as to
individual risks and as to Localities and |
climates as well. |
The death lcsses of the Connecticut Mutual |
have been adversely criticised bv the tontine |
companies, and some of the younger non-
tontine companies, as larger than their owu |
Ia proportion 10 amount at risk or to some |
other assumed measure. These criticisms |
proceed upon so false basis, and so ignore
fundamental facts well known to the COM
panies, but not known to the public, that a
word Of explanation may be useful.
The chance of death increases with age.
As given body of men grow older, the
faster they will die, and the greater will be
The amount of their death losses. That is
what every life insurance company expert
ences, what it expects, what its premiums
and reserves provide for. 1t expects that
2 hn F04faT1 la 1.ls- |
and forty, &c. will some of them, live to
be sixty. eighty. and ninety; and that at
those ages the death rate will be much
greater than when the men were Younger:
and not only that, but they also expect that
as the company gains age if it keeps its
business on its books, it will have an in
creasing body Of men growing always
older, and having, therefore, higher
average death rate and larger amourt of
death losses. This IS precisely what they
have provided against, and they have fore
cast the actual figures OF the loss they NAV
expect The question with any company
IS therefore, not what its losses are. but how
rhev compare IL amount aad in ratio with
I he losses which ii expected on the busi-
ness whea it was written. A Young COM
panv may have small apparent amount of
] iosses. and vet their proportion to the eS-
pected losses nsy make them excessiye-a
thing t1eT Will UOs S.scSh OF. a great Ton |
tine. company which is rushing in great
numbers Of new men in order that they NAV
5rop out later and leave thei. money be-
hind them for the pool, aud so is shifting its
membership rapidly and keeping down the
average age of its insured, may have less
avrrcrate loss thSn company which builds |
an a stable business; and yet its losses NAV
be far greater in proportion to It's expecta
ion. aai cost it far more, and leave less
,url.irs. than the greater apparent losses of
Re r,ore stable company.
Tie business OF the ConGecticut Mutual
s peculisrlv stable We do business upon
Jlars and by methods which rsomote per-
iistence We write oE,;.srativelr little
endowment hUeiness which does not keep
nen in long c,.oLgh to grow old, and no
policies fer Tontine periocs, at the end of
yhicn most mea 90 ont, il ;hey have been
uci.v enough to stay through.
The stability of yuY business ;t strikingly
vldenced by these facts: oaly one-quarter {