The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-02-27

year by foreclosure properties costing
1861, 740S2. and have sold real estate cost
ing 1894 $3.50, some of which was on ac-
unsoid: but ss2o.O7o.ss of this amount was
the cost of parcels entirely closed out at
s234. $500. profit Of $14.6o5.24.
FIFTY YEARS FORECLOSURES.
During the fifty years of its experience
the Connecticut Mutual has taken by fore
closure properties costing it 1857. s9S.O5
it has sold on account Of properties not yet
tire parcels costing ss,is2, 1890 for slO,Ss2.-
Zl.41; the properties which were sold at
more than their cost yielded a profit OF
A.SlS,714ss; those which sold at less than
net profit of sl.e99, 1851 The amount now
on hand from foreclosures stands at 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 OFFICE BUILDING.
Twenty-six years ago the then managers
Of the company erected very handsome
and substantial structure, with all the con-
veniences and appliances necessary to the
business as it then stood. The property
cost s1,104, S79.4. Six years ago 800, SIS: 81
was charged off from this cost, leaving the
book value of $4,000. The portions of the
have become entirely inadequate for and
unsuited to the safe and proper transac-
ton of the enormous amount Of detail to
can no longer postpone the proper changes
and additions necessary to remedy the sit
uation .,oo This will Involve an an outlay Of
directors have deemed It wise to make a
further reduction Of $780, 900 in the book
IT as OF ne I'll in our assets
only $500, 0O0 AS the property is the perma-
nent home Of the company. the figure at
consequence, so it be not exaggerated.
There can be no question as to the entire
conservatism in the treatment Of this item.
BONDS.
We have purchased during the year bonds
costing A,75S. 950.SS; there have been paid
off bonds costing s326. 1880; our present
holding is of bonds Of Of, the par value of
market value of AIS. at very con-
sentative estimate. Our bonds have mostly
a long time to run. Their quality will read
lily appear from reading of the schedule.
Insurance Operations.
MORTALITY.
The death losses in 1895 were 50, 916SS9. This
amount is SO far under that expected by the
mortality tables used in our calculations as
to give saving from the premiums and re-
serves provided therefor OF s543, l55-a very
satisfactory result.
| 1t is common thing for those companies
| which are younger than the Connecticut Mu-
tual, or whose business has lapsed more free
| ly and had to be replaced by costly new
blood" TO represent our mortality as unfav-
oraole in comparison with their own, by tax
| ing its ratio TO some set of figures which
| makes our mortality look large and theirs
| look small. The amount of a company s
| losses and their ratio to assets, amount at
| risk, any other group of figures, have
| nothing to do with the question of proper
mortality or of loss or gain by reason of it.
| The older the company, the longer its bust
| ness has been on it's books. the more persist
| emily ii has been kept up-that is, the more
| valuable the business has been to the COM
| pany-the heavier in amount relatively will
| its mortality be. And the sole test of the
| favorable or unfavorabe character of the
| actual death rate incurred is in comparing
mortality in R
| provided for BY the premiums and reserves
| based thereon. Were the suggestions OF such
| critics true, company would be safe only so
| long as IL were young.
company's business may be large and
comparatively new, and its losses, therefore.
| comparatively small in amount; and yet
these small losses may be far above what
! were expected and provided for, and may be
a cause of serious deficiency. Any exhibit of
the amount of death losses. however appar-
| emily favorable or unfavorablog does not sig
nifty unless it also appears what the eX-
| pected 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 test of
| care in the selection of risks, our mortality
is highly favorable.
EXPENSES.
The ratio of expenses to income in 1896
was exactly 10 per cent, a trifing increase
over several previous years. 1t is an in
volume, and is fcaused by reason of the
| change in our method of reporting the
/ years business. as stated earlier in this re-
| port. There has been no relaxation in the
| Qy-
penses are far inside those of any other
company, as the savings show.
NEW BUSINESS
| Without extra expenses, We made a good
gain in new business written in 1885, and a
somewhat larger gain in the amount in
| 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
| perfectly secure protection steadily main
| tanned at its lowest possible annual cost-it
| is a profound satisfaction that the Con-
!. necticut Mutual has long since attained the
magnitude, financial strength stability in
| membership. and all those elements OF
steadness in operation watch remove the
| temptation to secure the show of a large
| new business at the cost of smaller divi-
dends to present members, or at the sac
| rifce 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 oul
old business. and to take new with
| equal advantage to beth. Looking to the
| constant and growing iced of family pro.
| lection so long as the American home shall
| endure, the achievement of this poSition Is
| not the least of the benefcent results OF
| fifty years of corporate life and activity.
| NO FOREIGN BUSINESS
We regard it a very material element Of
safety, as we'll as of profitable economy
| country. We select our own risks under
| familiar conditions, and have our entire
| organization Immediately in hand; we d.
| not have TO delegate the control of most
| vital matters to the discretion of a for
| eign directorate. nor distribute the custody
| of our assets among foreign governments
| subject to all the contingencies of their
| political and commercial future, to be lef
| behind when withdrawal is compelled un-
| 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 decreasing cost of insurance
There will be similar increase of divi
dends and decrease of cost Of foreign re-
| newing in 1895.
| The persistence OF our business contin.
ues to be gratifying feature of cur ex-
| perience.
| Notwithstanding the dividend paid in 1se:
| and the deduction from the cost of the
home office building already noted, we made
a satisfactory gain of surplus. correspond
/ inc cafalv with fha increase IF liabilities