The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-02-19

Gross assets Jan. /, 1892. $50. 73S. 479 80
Total Liabilities ......., ....- 53,679,32+ a
Surplus, Jan. j, 1892. 49,. S6.o59, $50 81
FINANCIAL OPERATIONS.
INTEREST.
Tie interest received in 1891 was So. 8S3.-
74O Il. Interest collections have been very
close and are 10 a very satisfactory condition
on mortgage loans Rggre2auug S36.4I7,372 81,
there was past due ana unpaid Interest on Jan
usry /, 1892, only S41,972 50, or one-ninth OF
I per cent.
RENTS
In 1891 were Se94Gl9 56, decrease from tie
former yearof S246I IS 90 a decrease holding
Of real estate OF nearly $500 600. Our rent &C.
count does not include any constructive receipts
OF payments for he compaDy's use Of its home
Office building.
THE PROFIT AND loss
Balance for 1891 was the result OF thu following
Transactions; A gain from rea-estate sales Of
Si35.749 46 and from suDdry Items S5573 e.
lotsl Of SI41. 323 I3; on the other hand, a loss
on certain real-estare sales OF S4o35 70. and
sbriukage Oh pr emiums on bonds sold or maiuIed
ana paid 10 less than COST, sos. 977 Il. total u
S6O,0l2 95i balance in compauy's favor, $751;
3IO1S.
The balance IN 1890 was very much larger.
owing 10 The more active Teai-estate market Of
ibat year
REAL ESTATE.
During 1891 tie company has closed out for
e597.7O6 IS parcels OF real estate which cost II
S4G5,ss2 81.
Since 1879 It has sold property taken under
foreclosure at cost of SS.331. IS 9 80, for So
,9I2 Ca a gain Of Sl.40g.O25. Il, and gain
over tie Commissioners valuation III that year
Of 81. 73G,775 g.
our present holding Of real estate taken under
foreclosure is $685. 84 20. We believe that
as a whole 10 vii al least realize It's cost 10 tie
company.
BONDS.
The company has paid or has sold during the
year bonds costing il S749,566 25i Il has bought
bonds costing Il Sl,OI5,OOO.
II holds bonds costing il S1l, 420.896 SO, and
worth January l, 1892, by a conservative Yslua-
ton, s11.79l,O2O 81
Special attention is asked to the items Of these
bonds In HE detailed statement.
LOANS ON REAL ESTATE.
During the year loans have been paid Of TO
The amount OF S5.65O.9 25 SO, and new loans
have been made 10 the amount Of SC, 393,7l5 y; ;
the amount outstanding being S36,417,372 81.
We believe them to be thoroughly secured, and
have already noted the close payment Of interest
Oh them.
INSURANCE OPERATIONS IN 1891.
MORTALITY
The death losses IN 1891 cost the company
less than so per cent Of the tabular or ex pected
cost making saving. as already stated, Of some
$4,000; a very favorable experience showing
the far-resching edec. Of careful selection Of
business both as to Individual risks aud as to
localities and climates as well.
J he death losses Of the Connecticut Mutual
have been adversely criticized By the tonrne
companies, aud some OF the younger non.tOnt0e
companies, as larger than their own 10 proper
To- ria .F,s- 4
measure These criticisms proceed upon so
false basis and 60 ignore fundamental facts
well known 10 the companies, but not known to
the public. that word Of explanation Lay be
useful.
The chance OF death Increases with age. AS a
given body Of men grow Oder the faster they
viii die, aud The greater VIII be the amount Of
their death l0sses. That Is what every life 10.
surance company experiences. what It eXpects,
what Its premiums and reserves provide Tor. II
expects that the men who 90 IN at twenty, and
Thirty and forty, etc, VIII, some Of them, live 10
be sixty, eighty and ninety; and that al those
ages lbe death rate viii be mucB greater than
when the men were younger; aud not only that
but they also expect that as tie company gains
age, IL keeps It's business on It's books 1t Will
have an Increasing body Of men growing
always oder, and having, therefore. a higher
average death rate and a larger amount Of
death losses. This is precisely what they have
provided against, and they have forecast The
actual 1guTes OF The loss they may expect. The
question with any company is, therefore, not
what Its losses are, but how they compare In
amount and n ratio with the losses which ii ex.
peeled on the business when Il was written. A
young company may have a small apparent
amount OF losses and yet their proportion 10
the eKpec' ed losses may make them excessive
thing they Will DOT speak Of. A great TOntlne
company, which is rushing IN great numbers Of
new men TO order that they may drop out later
and leave their money behind them for the pool,
and so is shifting lis membership rapidly and
keeping down the average age OF lie insured
may have less aggregate loss than a company
which builds up stable business and yet its
losses may be far greater In proportion TO It's
expectation, and cost Il far more, and leave less
surplus, tnan the greater apparent losses OF the
more stable company.
Tie business OF the Connecticut Mutual IS
peculiarly stable. We do business upon plans
and by methods which promote persistence We
write comparatively little endowment business,
which does not keep men In long enough to grow
old, and no policies for Tontlne periods at the
end OF which most men go out, If they have been
lucky enough to stay through.
The stability OF our business is strlkingly evi.
deneed by these facts: Only one.qusrter OF 1t Is
on men under age foriy-fOur; another quarter Is
on men from forty-four 10 ffiy-three; another
e,
and one-quaTter Of 1t on men over sixty-one.
And the mortality on our older ages is farther
below the expectation than that on the younger
ones We are saving more money on them fol
dividends than on The younger ages
II the safety or prosperity OF life insurance de-
pended IN the least degree on keeping the bust.
meas young, IL ought 10 be egislated out Of ex
i6tence as wholly insecure.
NEW BUSINESS.
Our members are well aware that we are less
anxious 10 gain new members rapidly, or 10
great Numbers, than 10 give our present large
membership the best possible results on their
business. We have, therefore, not increased
our proportion OF expenditure for new business
which would have been al tie expense Of pres
0nt membeTs-but we have. Notwithstanding
made fair gain over the business of the preced
ing year. and made a considerable addition 4
the amount of business ID force, which nov
amounts 10 Sl55, 043 055 None Of this was GU
for collection IN The hands Of agents when oul
books we're closed. II was all paid for
EXPENSE ACCOUNT.
We have practiced the wonted and traditional
economy Of The company IN every directiOni anC
yet have allowed no true interest 10 suffer from
false economy. Tie ratio Of expense Of manage