New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-02-25

the belief that this property. properly helu an
treated. will probably sell for at least us Oo''
at which 1t Is carried on our books
Home Office Building.
Twerty-six years ago the then managers VI '"7
company erected very handsome ana S"''''"-
tial structure with all the convenienoes anu -
planes necessary to the business d II Car,
stood The property cost 81, - zoe,
AGO S3O4 1884 was charged of from thiS 80,
leaving the book value at 100000 Inc POI 'io'''
of the building arranged for the COMPANY . ~
have become entirely inadequate LOT anu ~
suited to the safe and proper transac'lo,' ~, W
enormous amount Of detail to which the Dusiiie'S
has expanded; and can no longer pos,po,,o
the proper changes and additions necessdi ~
remedy the situation This VIII lhSU,r 'b, "t Your
lay Of about 100000 IN anticipation of when yHur
Directors have deemed it wise to make Iui ,rpo
reduction OF 100000 in the book Nalu e "a re,,-
structure as 1t stands. leaving 1t az preseit 10
rasenting in our assets only S6oOOto NS .iIc
propertv Is the permanent home OF the cohPa"s;
the figure at which it stands on our DOORS - ~
little consequence, SO II De hot e5i.n CON
There can be- no question az 10 the ent"1 wa
servatism OF the treatment OF this item.
bonds.
We have purchased during the year bonds Cost
ing 81 1855 950Ss; there have been paid OH po'''.
costing 1926 1890; our present hodlns ca
bonds Of the par value OF s3.z6l ooo cos.ins
sS7 So and Of the market value or slf,-'e'fo,
~ varv conservative estimate. Our bonds nav nav,
mostly \ long time to run. Their quality VIII
readily appear from a reading OF the schedule
INSURANCE OPERATIONS.
Mortality.
Tho death ,osces in 1895 were s3.9l6.Ss9. This
amount is 20 far under that expected by the NOR
,o,,v tables used in our calculations as to give
saving from the premiums and reserves prov lur'
therefor Of S543 155.00-a very satisfactory iuSIt
It's a common thing for those compani.s M'"l or
are younger than the Connecticut Mu'uii' hod
whose business has lapsed more treeiy anu ".'
N no replaced by costly new blood 10 lcpi
sent our mortality unfavorable IN coiil" ~, f
with their own by taking Its ratio 10 soiI,e ,C
figures which makes our no a,,y, ~ a con-
ranvs losses and their ratio 10 assets ahl"unt H.. -.
risk or any other group OF hgureS nav ,,, ~
to do with the question OF p1VPsI Ho me- com
of loss or gain by reason Of II. The olier Ine 60.
Many the longer It's business has been d" Us
hooks the more persistently IL mas oeeh NJ , "p
that is the more valuable the buslfirs' .t,i,.
IN the companv-the heavier In amount r''' 49, ~
,ril ia mortality be And the sole teSt oi w
favorable or unfavorable character oi 'hr a. ' ,h
death rate incurred is in comparing II WIZ w.
Geath rate expected by the table or mortall'y az.
',,ad In the calculations and provided for 10y
the premiums and reserves baseu ul''' ,,'or,.
the suggestions Of such critics uur. ,o,'nr
yvoul1 ia safe only SO long as II We" N"H,ie'
A counany's business may he large ana '''"-
naratlyeiv new. and It's losses. Therefore ,".'
narativelv small in amount; ana yet 'h'Sr inc,
Ices may be far above what were ,NP'V'.'
IA nrovided for and may he "A cause or serious
dnncIoncv ANY exhibit Of the amount 'l ~"
losses however apparently iaForlp'' "' 49,,
signify unless II di'' "il''''
that the expected losses were. ana what wa
tho loss or the gain by the difference between
the actual and the expected death rate.
Both in It's financial result ana ms 4" ~ -,
coro IN the selection Of risks our moI;alty Is
highly favorable.
Tho ratio OF expenses TO income In 1879 was
exactly 10 per cent. trinipg Increase over S.E-
eral previous years. II il an increase III Ih1'';
however and not in actual volume, and Is caused
~, Of change in our il'lN'l "a
rorting the years business. ms stated Garner ''
This report There has been no rr.dNAH'" '' VIZ
strictness Of our economies. ana 'r 'NI'''''
are far inside those Of any other company "S
the savings show.
New business
without extra expense We made good gain
In new business written IN 1895. and some
what larger gain in the amount in force.
Measuring az We do. the true value 81 ne
insurance company to its constituency ana -
the community by its success in realizing the
ideal results OF the system-perf"c'y secure pro-
lection steadily maintained al its lowest posi-
bic annual cost-it is a PROFOUND satisfaction
that the Connecticut Mutual has long since
attained the magnitude financial strength. s'A.
bility In membership. and all those elements "i
steadiness In operation which remove the emp
,a,ion IN secure the show of "A large new husi-
ness at the cost OF smaller dividends 10 present
members or At the sacrlilr" either ~ sound
PRINCIPLES in underwriting or or combinations
Of public policy Pursuing one undertaking
course OF management We are able. as no oth'r
company is. to give the highest results t. our
old business and t. take on new with equal ad-
vantage TO both. Looking "a the constant and
growing need OF family protection so long nc the
American home shall endure" IN" achievement
Of this position Is not the least 81 tho benz nr'nt
results Of nifty years OF corporate He ana nc-
tivity.
We regard II very material element ~
safety. as well as Of profitable economy. that
our business Is restricted to our own country.
We select our own risks under familiar cond!-
tons. and have our entire organization mn
mediatcly IN hand: we do not have 70 delegate"
the control Of most vital matters To the discrc-
ton OF n foreign directorate. nor distribute
the custody Of our assets among foreign Govern
mcnts subject to all the contingencies OF their
political and commercial future. to be l"ft be-
hind when withdrawal IL compelled until all la
bilty On account Of foreign contracts disap-
pears: a long walt.
Dividends.
The dividend paid In 1895 was larger In tho
case OF each policy than that paid in 1894. giving
a decreasing cost Of insurance. There Will be n
similar increase OF dividends and decrease Of
cost on policies renewing in 1895.
The persistence Of our business continues to be
a gratifying feature OF our experience.
Surplus.
Notwithstanding the dividend paid IN 1895 ana
the deduction from the cost Of the home office
building already noted. we made satisfactory
gain Of surplus. corresponding safely with the
increase In liabilities
From a legal and governmental point or view
our strength Is much greater than our own cal
culatiOns show. We are required 10 compute our
liabilities on the assumption that we Will earn
per cent. annual interest. On all business writ
ten since April |, 1882. we have assumed only
per cent. the basis OF calculation. making our
liabilities probably over 81 0OO0 900 more (and our
surplus considerably less than the department
reports Will show.
Some Facts About Surplus.
The public ought 10 understand much better
than 1t does Just how surplus arises In life in
surance company. and how 1t Is affected by the
yearly variations In Its experience Policy
holders would be the better able TO judge Of the
treatment accorded them by their several com
panies In the matter OF dividends. paid-up In
surances, &c. The knowledge would remove
prejudice az to those companies which are doing
right, and would make perfectly clear the pre-
else character OF the speculative or investment
unllcles Rreu tlY In XOgue. and would show what