The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-02-22

Lapsed and surrendered
policies. ............. 527.sH %
Total paid policy holders..... 5,s15,s7l o.
Commissions to agents, salaries,
medical examiners fees, printing,
advertising legal, real estate aud
all other expenses OF manage
Taxes .................. 29l.767 40
Total disbursements ....S 6,8s5,77S 16
ledger assets. .................. e1s,7oo "a
Add net assets January /, 1891. 57,2S9,094 OF
Net assets January /, 1892. SIS, ,794 IS
Add interest due and accrued. mar
ket value of stocks and bonds
over cost and net deferred quar-
terly and semi-annual premiums,
as per itemized statement here
with. ......................... 1.5so,6s5 OF
Gross assets January /. 1892 .S59, 73s, 479 95
Total liabilities ACKNOWLEDGEMENTS. 53,679,324 IA
Surplus January /, 1892 .........$ 6,o59,155 81
Financial Operations.
INTEREST.
The interest received in 1891 was S2,SS3, 740.7L
Interest collections have been very close, and
are in very satisfactory condition. On mort
gage loans, aggregating $685. Al, S72S7, there was
past due and unpaid interest on January l, 1892,
only Sal ,972.95, or one-ninth of per cent
RENTS
in 1891 were $33i61356, a decrease from the
former year of s., 46l4 s, on decreased holding
OF real estate of nearly $4,000. Our rent ac-
count does not include any constructive re-
ceipts or payments for the companys use of its
home Office building.
THE PROFIT AND LOSS
balance for 1891 was the result. OF the following
transactions: gain from real estate sales of
$135, 1896, and from sundry items S5,57367, a
total of Sill 1928. 49, on the other hand, loss on
certain real estate sales of $4,0357S, and a
shrinkage of premium on bonds sold or
matured and paid at less than cost, s5597z17; a
total of S60,0l295; balance in company's favor,
$S1,3l0lS.
The balance in 1890 was very much larger,
owing to the more active real estate market OF
that year.
REAL ESTATE.
During 1891 the company has closed out for
s597, SIS parcels of real estate which cost it
s465. 99267.
Since 1879 it has sold property taken under
foreclosure at cost of IS S3l, $780, for $780,
9l204; gain of 81, 400 IA, and gain over tho
commissioners vaiution in that year of $27S6,-
1853
Our present holding of real estate taken under
foreclosure is s6,3s ,2sI70. We believe that as
whole it will at least realize its cost to the COM
pany.
The company has had paid or has sold during
the year bonds costing it $7i9,566.25; it has
bought bonds costing it s1,0l5,0OO
1t holds bonds costing sl1, 420 S9S SO, and worth
January l, 1892, by q conservative valuation,
$11,79l,02o.34.
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 to the
amount OF $3.50, 92S.3S, and new loans have
been made to the amount of s6,39S,715.72; the
amount outstanding being $36,4l7,S72.s7. We be-
lieve them to be thoroughly secured, and have
already noted the close payment OF interest on
them.
Insurance Operations in 1891.
MORTALITY.
The death losses in 1891 cost the company less
than so per cent. of the tabular or expected cost,
making a saving, as already stated, of some
$4,000; very favorable experience, showing
the far-reaching effect of careful selection of
business, both as to individual risks and as to
localities and climates as well.
The death losses OF the Connecticut Mutual
have been adversely criticised by the tontine
companies, and some of the younger non-ton-
tine companies, as larger than their own in pro-
portion to amount at risk, or to some other as
sumed measure. These criticisms proceed upon
so false basis, and so ignore fundamental facts
well known to the ompanies, but not known to
the public, that word of explanation may be
useful.
The chance of death increases with age. As a
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 in
surance company experiences, what it expects,
what its premiums and reserves provide for.
1t expects that the men who go in at twenty,
aud thirty, and forty, ETC.. will, some of them
l. 49,,
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 COM
pany gains age, if 1t keeps its bust
ness on its books, it will have an
increasing body OF men growing always
older, and having, therefore, a higher
average death rate and q larger amount Of
death losses. This is precisely what they have
provided against, and they have forecast the
actual figures 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 in ratio with the losses which il ex-
pected on the business when 1t was written.
young company may have a small spparen,
amount of losses, and yet their proportion to
the expected losses may make them excessive
q thing they will not speak of. A great Tontine
company, which is rushing in great numbers of
new men in order that they may drop out later
and leave their money behind them for the pool.
aud so is shifting its membership rapidly and
keeping down the average age of its insured.
may have less aggregate loss than conpany
which builds up stable business; and vet its
losses may be far greater in proportion to its
expectations, and cost il fer more and leave less
surplus, than the greater apparent losses of the
more stable company.
The business of the Connecticut Nutual ia
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 Tontine periods. at the
end OF which most men go out, if they have been
lucky enough to stay through.
The stability of our business ia strikinclv evil
denced BY these facts: Only one-quarter of il ia
on men under sge Al; another quarter is on men
from II TO 50: another quarter on men from hs TO
81, and one-q quarter of it on men over 81 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 for diyi-
bends than on the younger ages.
If the safety or prosperity OF life insurance
depended in the least degree in keeping the BUSH
ness young 1t ought to be iegis.ated out of ex-
isience as wholly insecure.
NEW BUSINESS
Our members are well aware that we are less
anxious TO gain new members -ap,dlv or in
great numbers, than 10 give cur 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 at the exueuse of
present nlenbers-but We have notwithstaud-