The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-02-26
Fifty Years Foreclosures.

net profit Of 5, 69e, 95S.5i. The amount now
on hand from foreclosures stands at a cost
warrant the belief that this property prop
erly held and treated will probably sell
for at least its cost, at which it is carried
on our books.
Home ONCE Building.
Twenty-six years ago the then managers
Of the company erected a very handsome
and substantial structure. with all the con-
veniences and appliances necessary to the
business as it then stood. The property
cost 81, lO4,SIy4. Six years ago 1904, 9.94
was charged OF from this cost, leaving the
book value at $500, 900. The portions of the
building arranged for the companys use
have become entirely inadequate for and
unsuited to the safe and proper transae-
ton of the enormous amount of detail to
which the business has expanded; and we
can no longer postpone the proper changes
and additions necessary to remedy the sit
uation. This Will involve an outlay of
about 100000, in anticipation Of which
your directors have deemed II wise to make
a further reduction of $4,000 in the book
value of the structure as it stands, leaving
IL at present representing in our assets
only $4,000. AS the property is the, per-
manent home of the company, the figure
at which it stands on our books is of little
consequence, so 1t be not exaggerated.
There can be no question as to the entire
conservatism of the treatment of this item.
Bonds.
We have purchased during the year
bonds costing 81, 756, $50. IS: there have been
paid off bonds costing 1926, 1888 80; our pres
ent holding is of bonds of the par value of
SlS,26l, 600, costing $40. $50 57s3. and of the
market value of $14, 236.47S at a very con-
servative estimate. Our bonds have most
ly long time to run. Their quality will
readily appear from reading of the
INSURANCE OPERATIONS.
Mortality.
The death losses in 1895 were 1896, $50.
a fe 70 hat TOD
by the mortality tables used in our calcu-
lations as to give saving from the pre-
miums and reserves provided therefor of
$5i5, l55.OO-a very satisfactory result.
1t is common thing for those compa-
MES which are younger than the Connect
cut Mutual, or whose business has lapsed
more freely and had to be replaced by
costly new blood" to represent our NOR
tality as unfaVorable in comparison with
their own, by taking its ratio to some set
or ngures which makes our mortality look
large and theirs look small The amount
of company's losses and their ratio to
assets, amount at risk, or any other group
OF figures, have nothing to do with the
question or proper mortality or of loss
or gain by reason of it, The older the
company the longer its business has been
on its books, the more Dersistently IL has
been kept up-that is, the more valuable
the business has been to the company
the heavier in amount relatively will its
favorable or unfavorable character of the
actual death rate incurred is in comparing
1t with the death rate expected by the
table of mortality assumed in the calcu-
lar1onS and provided for by the premiums
and reserves based thereon. Were the
suggestions of such critics true a com
pany would be safe only so long as it were
A companys business may be large and
comparatively new, and dts losses, there
dore' comparatively small in amount;
and yet these small losses may be far
above what were expected and provided
lot, ana may be a cause of serious de-
nclency. Amy exhibit of the amount Of
death losses, however apparently favor
able or unfavorable, does not signify un-
less 1t also appears what the expected
losses were and what was the loss or the
gain by the difference between the actual
and the expected death rate
Both IN its financial result and as a test
| OF care in the selection of risks our NOR
| tally is highly favorable.
Expenses.
The ratio of expenses to income in 1895
| was exactly 10 per cent, a trihing increase
/ over several previous years. 1t is an in
crease in ratio, however, and not in ac-
| tual volume, and is caused by reason of
| the change in our method of reporting
| the years business, as stated earlier in
this report: There has been no relaxation
n the strictness of our economies, and
| the expenses are far inside those of any
other company, as the savings show.
New Business.
Without extra expense, we made a good
! gain in new business written in 1895, and
| force.
Measuring. as we do, the true value of a
| life insurance company to it's constituency
| and to the community by it's success in
| realizing the ideal results of the system
| perfectly secure protection steadily main
tained at its lowest possible annual cost
| II is a profound satisfaction that the Con-
necticut Mutual has long since attained the
magnitude, financial strength, stability in
! meIn bership. and all those elements OF
| steadineSs in operation which remove the
! Temptation n Ia
| new business at the cost of smaller diyi-
! dends to present members, or at the sac
| rifice either of sound principles in under
! writing or of considerations of public pol
| icy. Pursuing one undertaking course OF
| management, we are able, as no other COM
| pany is to give the highest results to our
| old business, and to take on new with
equal advantage to both. Looking to the
| constant and growing need of family pro-
| lection so long as the American home shall
| endure, the achievement of this position
! is not the least of the benehcent results
of fifty years of corporate life and activity
No Foreign Business.
We regard it a very material element OF
! safety, as well as of profitable economy
| that our business is restricted to our own
country. We select our own risks under
| familiar conditions, and have our entire
organization Immediately in hand; we dc
| not have to delegate the control of most
| vital matters to the discretion of q for
| eign directorate, nor distribute the custody
| of our assets among foreign governments
| political and commercial future, to be left
| behind when withdrawal is compelled UNI
| til all liability on account of foreign con-
| tracts disappears: a long wait.
Dividends.
The dividend paid in 1895 was larger in
| the case of each policy than that paid in
| 1894, giving a decreasing cost of insurance.
| There will be a similar increase of divi-
dends and decrease of cost on policies re-
newing in 1896.
The persistence of our business contin-
ues to be a gratifying feature of our ex-
! perience.
Surplus,
| Notwithstanding the dividend. paid in
1895 and the deduction from the cost of the
| home Office building already noted, we
| made satisfactory gain of surplus, cor
responding safely with the increase in liza
bilities. a.,
From legal and governmental point of
view out strength is much greater than
our own calculations show. We are re-
quired to compute our liabilities on the
assumption that we will earn per cent.
annual interest. On all business written
since April l, 1882, we have assumed only
3 per cent as the basis of calculation
making our liabilities probably over 81, 600 :
600 more (and our surplus considerably
| less) than the department reports will