New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-08

II
sdnis. consan; an. ro'.ess control in ali Is detail
BY tho Home once In proportion business IA remot
and scattered In foreign countries requiring the interveno
numerous and dlstan. representatives acting afee'
a. discretion with great powers and only genei'
instructions and without the possibility o. close eonro'
the MANAGEMENT selection becomes uncertain from ever
| point OF view.
Much OF our success due TO the TACT hac we nave
in Observance Of these conditions. restricted our CUISINES
10 our cvn country and such portions OF It as in'o
no extraordinary climatic hazards, and where sanltar
| measures ore reasonably regarded.
NEW BUSINESS.
We have made q fair gain In business over tina
written in 1891 and at no loss to present members
gratifying feature Of our business Its persistence II
which respect IL is probably unrivaled Our member
haye taken their plccs for protection ana not io
speculation that protection Is made secure as human
care and Industry can make IT. 1t Is treated IN aosou
eoutv It IS given at less cost than In any
other company. Our loss Of business by lapse anu sur
render is therefore extremely small
The amount at risk /, 1893 was s1o7''31SG2.
gain from the Sicvious ycor OF s. G9t,"i'.
EXPENSE ACCOUNT.
Tho usual careful regard fgr has been
had during the past year the ratio Of expense OF man.
acement to income was Only 1912 per cent, fa''o ma
terialiy less than that Of any other company
This is the most comfortable item In the cost OF insur
ence 1t is the one which is generally the most ignored
In every other known branch OF business competition
has always tended cost OF production by more ana
more economical processes and methods In c insurance
the reverse has true. For The lat twenty years
competition has been directed to giving cheaper ana
.,.r insurance and securing equity among mem
he,. bu. solely 70 writing largest possible amour: OF
now busncs al the highest OF premium possible and
N the most rapd accumulation Of assets and the display
Of the greatest financial exhibits This has required an
enormous increase in expenie account In this race
many have doubled their ratio Of eNp'res to Income all
Of the racers have increased It largely that Of many
,omn,nic. Is from two to three times the ratio Of this
company And they try 20 conceal It's encct on the co'
of insurance by schemes OF business which postpone all
dividends for long period OF years in the hope at 30
many will incur fofeltures during that period that men
losses Will mako attractive dividends OF the end Tor those
who live and pay through.
Dut the competition grows always heieer aud the eN
pcnse ratio grows always larger and swallows more ana
more Of the income and leaves less and less U oe 'or
fecd and dividends of fcifuIes are steadily SHRINK
Ing and plans constantly devised to FURNISH s'"
new veil for the facts and TO attract still more nc" ous
ness to furnish foIfcitures
AgaInst such competition 1t IA impossible for US to
those greater economies which would o. pos
sibo under q normal and legitimate composition Ahd
We AYE glad that BY resistance and the greatest
diligence and care hold steadily to our usdN
standard and not only prevent Increase In the cost
~ our members Insurance but somewhat further
reduce IT, Their interests have not been sacrlhcc1 for
the sake Of greater display.
And we desire again to say TO our members oat we
,r. abe To accomplish what we have for them. ani 81
The same time make fair growth. because we are able
10 secure. ~ comparatively small at least faithful
body Of agcnts men who what TIE insurance at
Us best Is and ought to be- and who prefer to help
work out that idcal a. remuneration than ,hv
oud easily obtain for presenting the speculative scheme
hat now secure the great bulk OF the Business. rey
ire making daily pecuniary sacrifice 10 conviction
LIMITING BUSINESS.
The rapld growth OF certain oonpanes enormog. |
,ropor,ons with the attendant great growing In
rcasc Of cost and difficulties and possible danger
Il public nature necessarily Incident To such
umulatIons Of money, have attracted attention tho
art Of state onicias everywhere and committee OF
state Insurance Superntendcnts Is now considering tho
accabty OF dcvising some legislation TO put check
" a limit course Of business which managers Ind |
unable unwilling 10 apply because they
ven approximately accomplish their expected result,
My by an always increasing amount Of business
urnsh new foricltures. The speculative results they
eek bind them only methods by which they can
e even Partially gained.
CONDITION or THE COMPANY
The assets Jan. l. 1904 SEQ 5000. gain over
he previous year Of 81 oo5 ooooi. They are undoubtedly
than they stand for.
The surplus Is &C. 40 90 49, gain OF 1851 707 over
he previous year.
But ~ no means Is all Of the comrany's superior
tsensth revealed by ese figures satisfactory as thoy
re- In asccrtsining its liabilities for the future, It has
borged Itself with 100000 than Is cartel
n the zane business by any other company On the
aue basis Of reserve used by other conpanies its
irplus is over 81 100000.
Our premiums and must be calculated on the
sumption that they will definite Of interest
urng the whole term Of contracts. Originally, |
ssuincd that be per cent. These ar,
able run, many Of thcm from fty seventy ycors
1882 OF the progressive decline rate OF
perfectly safe Investments and OF wonderfully
rogrcssve increase in capital seeking investment. did
regard 1t prudent longer to to surely
CT for long period end changed the assumed
,te per for all business written since tine
hus as Old 4 per cent business passes OF ond the
ew per business takes its place. gaining
,ch year strength with which future that
he figures financial statements disclose and
hieh company possesses OF has yet out
acquire -"
Were lt necessary (os It Ia not FOR change our
hole per cent business 10 pei cent. basis. We
,ud do ana sl have surplus VI about 81 800 900,
nd without interfering with d, dend paying ability
Should the Postponed DIVIDEND Tonlnc Companies
, the like II has been intnated they might do. IL
ould wipe the Postponed Dividends altogether, and
cry Of them have surplus enough make the
rem on thoec terms.
SUMMARY.
In the years Of its existence Connecticut