The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1896-03-03

The financial and business conditions of |
the year made the collection of Interest |
somewhat less satisfactory than usual, !
The total of overdue interest on real !
estate loans, amounting to $50, sol, |
January l, 1896 as by our department !
reports, was S122, 1l6,l1; of this amount |
there had been paid to February /, |
l6,llS93,
The interest overdue last year on the
bonds of the city of Austin, Texas, was
met early in 1895, and the succeeding
coupons have been paid,
OF bonds costing $13,6S7. 057,S3 only one
item Is now in default, viz: the first
mortgage bonds of the Detroit, Lansing
& Northern, the reorganization plans
for which have not been completed.
LOANS ON REAL ESTATE.
In times of business doubt and de-
preston conservative borrowers with
satisfactory security seek loans less
freely than under conditions which
promise well for new ventures, a fact
reflected in the demand for our funds
in 1895 We loaned on real estate
81, 160, 66S93, and had loans paid off,
So, 565, 1883.
During the company's fifty years OF
business it has loaned upon real estate
$143, 1895, 950,19, of which amount $36, 069,-
SCI are now outstanding. These loans
have been largely made in the cities
and on the farms of the corn belt of
the west, and have been profitable to
our members.
FORECLOSURES AND SALES OF
REAL ESTATE.
The conditions which have affected
general business during the last year
have operated to somewhat check sales,
depress real estate, and in consequence
increase foreclosures. We have taken
in during the year by foreclosure prop
critics costing 1857, 74oS2,, and have sold
real estate costing 1894, 1854, some of
which was on account of properties a
| part of which remain unsoh; but
$22o,07096 of this amount was the cost of
| parcels entirely closed out at 1924, $500,
profit of ST., 605.24.
FIFTY YEARS FORECLOSURES.
| During the fifty years of it's expert
ence the Connecticut Mutual has taken
by foreclosure properties costing it
SIS, ST., 39S05; it has sold on account of
properties not yet closed out $685.
1 967. II; ithas sold out entire parcels cost
ing 1912, $780, for $10,S92,2741 the
properties which were sold at more
| than their cost yielded a profit Of
! s., S18,714.3S; those which sold at less
than cost made a loss of Sis, 1857, leav-
| ing net profit of $1,699958.51. The
4 amount now on hand from foreclosures
stands at a cost of $7,079,4S16S Our ex-
perience seems to warrant the belief
that this property, properly held and
| treated, will probably sell for at least
it's cost, at which it is carried on our
books.
HOME OFFICE BUILDING.
| Twenty-six years ago the then man
ayers of the company erected very
handsome and substantial structure,
with all the conveniences and apph-
ances necessary to the business as 1t
1 then stood. The property cost 81 ,1o4, :
1894. Six, years ago $500, S7994 was
1 charged off from this cost, leaving the
book value at 100000. The portions of
the building arranged for the company s
use have become entirely inadequate
for and unsuited to the safe and proper
1 transaction of the enormous amount of
j detail to which the business has ex-
panded; and we can no longer postpone
the proper changes and additions neces-
sary to remedy the situation. This will
4 involve an outlay Of about 100000, in
anticipation of which your directors
have deemed it wise to make further
reduction of 100000 in the book value
of the structure as it sands, leaving
1T at present representing in our as
sets only 100000. AS. the property is
the permanent home of the company,
the figure at which 1T stands on our
books IS Of little consequence, so it be
not exaggerated. There can be no ques-
ton as to the entire conservatism OF
the treatment of this item.
BONDS.
We have purchased during the year
bonds costing s1,756, 950sS; there have
been paid off bonds costing 1926, 1888. 80;
our present holding is of bonds of the
par value Of $13,261 900, costing $13,6S7,-
057.83, and of the market value OF
$14,236,47S at a very conservative esti-
mate Our bonds have mostly long
time to run. Their quality will readily
appear from a reading of the schedule.
INSURANCE OPERATIONS.
MORTALITY.
The death losses in 1896 were So, 916,
SS9. This amount is SO far under that
expected by the mortality tables used
in our calculations as to give saving
from the premiums and reserves pro-
vided therefor of $543, 1856; very salts
factory result.
1t is a common thing for those com
, panies which are younger than the Con
!, necticut Mutual, or whose business has
; lapsed more freely and had to be re-
: placed by costly NEW Blood to repre-.
sent our mortality as unfavorable IL
comparison with their own by taking
J it's ratio to some set of figures which
makes our mortality look large ant
, theirs look small. The amount of {
companys losses and their ratio to as
sets, amount at risk, or any othel
group of figures, have nothing to d.
with the question of a proper mortality
or of loss or gain by reason of it. The
older the company, the longer it's bust
ness has been ON it's books, the more
persistently it has been kept up-tha
is more valuable the business has beer
to the company-the heavier in amour
, relatively will it's mortality be. An(
the sole test of the favorable or unfa
vorable character of the actual dealt
rate incurred is in comparing it will
the death rate expected by the table o
mortality assumed in the calculations
, and provided for by the premiums ant
reserves based thereon Were the Sug