The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-25

Gross assets. Jan. 1, 1897. 1852. ,8is So
lotal liabilities ................ 55,799.05l S4
Surplus, Jan. 1, 1S97..........$ z15S, 297 o.
Interest.
We received for interest and dividends,
y SSl, So83l; for rents, $2J4 1851. The dull
ness of the times made collections unus-
ualIy SLOW. Yet the overdue interest on
Dec. 81, 1895. on nearly 1856 100000 of mort
gage loans was only $3.50, 4G6.7l, about $30, 900
OF which has since been received
NO new defaults have occurred on our
| bonds, the only case now in default being
that of the 100000 of bonds of the Detroit,
Lansing and Northern railroad now in
| process of reorganization.
Real Estate Loans.
The amount of old loans paid off and of
! new loans made was much smaller than
| usual; natural result of the conditions
which made it hard to get money TO pay
! with, and also made less use for borrowed
! money. Old loans were paid amounting to
$3.50, 1000, and new loans were made for
! $5,202, 279.S7.
Foreclosures and Sales.
Other results of the hard times were the
prolonged inability of many to pay interest
| compelling US to take under foreclosures
| properties costing 81, 1888 02808 and also a
| great deafness in the real estate market
| by reason Of which comparatively few
| sales were made, amounting to $l24, 325.3 80.
! There were a good many inquiries after
property, but most of them were made in
| the hope that the pressure of the times
| might dispose us to offer at low prices We
| are fortunately able to hold our property
| until usual conditions restore usual prices
The advantage of being able to do this
| Is we'll illustrated in our own history.
|
| ties which it had then acquired under
! foreclosure at cost of 1851 $3.50. In
| an examination made that year, the in
surance commissioner valued these prop
critics at only $6,445,T3 an apparent loss
| of 81, 085 8i5. so. But we did not sell at
| those figures. We waited and sold as the
market wanted it, for IS, CSC. 81, or ST.
| S91,03S. OF more than the property cost, and
| g, 476, SS3. 81 more than the commissioners
valuation.
While some of our properties will not
| probably sell for as much as they cost,
! others will sell for more, and, judging
from past experience, we see no reason to
apprehend any loss on this item as
whole.
Bond Transactions and Holdings.
There were paid off or sold during the
year municipal and railroad bonds which
| cost us 1854, $3.50, and other bonds pur-
| chased at cost of $7S3, $40. A. The market
value of such securities in general was
| considerably less on Dec. 81, 1896, than on
Dec. 81, 1885, The shrinkage on our hold
| ings was, however, only two-thirds Of
1 per cent, These holdings are for $1$,-
2S5,OOO par value, costing $19,6O6 o34.9 and
worth at the above date, $14O5S.97 by an
| entirely conservative valuation.
Profit and Loss.
A small net loss Of $13, 1O5. 81 on some of
I a.
was offset by net gain of $6S 246.62, main
| ly on transactions in bonds, leaving $780,
! 140.75 to the good.
Mortality.
We paid to the families and estates of
| deceased members during the year 81, 1O6,-
| 36625. The value and Thickness of this
great sum to it's many recipients in their
| hour of need are the measure of our year
| ly service to the households of our coun-
| try Its helpfulness can be somewhat re-
! allied if one will but imagine that amount
| being constantly distributed among cases
! like some that will occur to any of us,
and will think what it has meant to them,
or would have meant to those who did not
| have it. 1t is an unmiXed good, coming
when the necessity for such help is great
| est.
Our death losses were so far inside those
expected and provided for that the savings
! therefrom were $i36, $50
| 1t should be always borne In mind that
| 1t is not the amount of a company's death
| losses, nor their proportion to its amount
/ at risk, nor to its income or its assets,
! which are significant of their effect upon
! its prosperity, present or future. The old
! er it's business. the longer il has been in
! force, the greater the average age of its
members, the greater will be the proportion
| of deaths and the volume of losses. The
! question Is not only what losses have &C.
CURED, but what were expected? What
! losses were anticipated when the prem
| iums and reserves to meet them were COM
| puted? Are the actual losses inside or out
side that expectation? That is the only
pertinent question in the matter.
Expenses.
The ratio of expenses to income in 1896
was 1855 per cent; an increase over the
usual average of about one-half Of l per
cent. This was due 20 no increase in the
/ cost OF getting business or In any general
| expense, but solely to the Increased cost
of repairs to real estate taken under fore
closure. and necessary to put It in proper
| order. and to rightly protect our property.
| The same careful and systematic econo-
! my which always distinguishes this COM
pany has been rigidly maintained.
New business.
In consequence of the unbroken business
! depression of 1896. and especially during
| the months OF the political campaign, and
| because we spent no money trying to
! overcome these obstacles, we wrote about
| 10 per cent. less new business In 1886 than
| in 1895. The renewals Of old business were
| 80 well kept up, however. that we lost
| during the year on the whole amount in
| force only S6i9, $50.
We believe the perslstency Of the old bus
mess OF the Connecticut Mutual is quite
| UNIQUE IL Is an element of great strength
| and If cheapness as well. 1t costs far less
/ 10 take such care OF old business as to
keep Il, than to get new to replace It, And
| we are fortunately not In the position of
! those companies whose heavy expenses
! can be met and whose extravaganza repre-
! sensations OF postponed or accumulated
! dividends" 10 be paid fifteen or twenty
wears hence, can be fulfilled only by the
proceeds of heavy forfeitures OF old bust
| ness every year
Dividends.
The dividend paid on each policy IN 1896
Il Ifssaa