New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-23
FIfTY.FlRST ANNUAL REPORT
OF THE
CONNECTICUT MUTUAL LIFE
INSURANCE COMPANY,

est and by serious disturbances i'm the nubljc
finances producing apprehensions more or less
approaching panic for nearly the entire period
both conditions having their origin largely in
those questions which became the issues in a
political campaign which. for the critical gravity
Of the results involved and the intensity OF feel
Ing engendered. has had parallel In our his
tory.
In such year enterprise loses much of It's
usual reward, and the best results in nearly any
business are those accomplished at least cost
while maintaining the efficiency OF the working
machinery and awaiting such favorable change
as Will allow satisfactory amount of business
TO be done al usual cost and without strain.
Effect on Business.
Especially is this true in the business OF life in
surance. Its cost Is usually reckoned part
of ones expenses and when money is hard to
come at and profits are little and perhaps moth
ing. new expenses not readily undertaken,
the usual ones are often curtailed and business
shrinks. Under such conditions large volume
of new business can be maintained in only one
way: by such concessions on the first premium
as tempt new insurer to take policy which
costs him little or nothing the first year, and
which he gets at the expense Of the older policy
holders whose money has TO make up the de-
fciency caused by what the new blood costs
but fails to pay.
Were any given quantity Of new business in
any one year necessary to the stability Of a COM
pany-as 1t might be the company new and
its amount at risk as yet too small for a safe av-
erage experence-there might be reason for
keeping up pace even at increased cost If the
business so gotten were likely TO stay by. But
there is no company Of our class doing business
to-day in any such situation; nor any which can
not afford to let its business vary with the
conditions affecting the volume OF every other
business, except those which have attached to
the simple methods Of legitimate life insurance
certain wholly extraneous features which create
necessities of their own and dominate the situa-
ton. The accumulated dividend" companies.
some of which losing S12o.OOO.0OO and up
ward of old business every year. and must keep
a very great amount of business going In order
to keep up the apses and forfeitures necessary
to provide their Accumulated surplus or tontine
fund. have tried to educate the public TO believe
that great new business and a great amount
al risk were the true measures OF success. and
may feel that their choice lies between keeping
up the inflow at any cost, b. any effective means,
and such a shrinkage az they cannot contemplate
with equanimity. However that may be, the
vicious and costly methods Of competition are
continued.
An Ideal Position.
The Connecticut Mutual is happily under the
stress of no circumstances natural or artificial
requiring it to force It's business beyond the con-
ditions Of the time. It's position is ideal, and that
to which every company ought to strive TO at
tain a business so large as to give absolute sta
bity In It's average experience, yet not so large
but that in good times and under fair conditions
IL can be maintained without difficulty, even al
/ lowing for occasional ana cOnSlucrdDle
ages In bad times. standard OF Sovency beyond
question investments worthy such a trust, and
an expense account small as to give the
| largest possible saving to policy-holders and so
adjusted that. whether its business increases or
shrinks, II will not have to cut its dividends on
that account
That Is the position occupy So far as the
| absolute safety Of eve-y present policy-holder
is concerned. or so far as his future dividends
would be affected, 1t is not necessary that we
| r.,a tharp
pany would pay out TO the very last man and
maintain the same relative high dividends with
out IT, The only reason for taking new business
is that we may give to families the same
secure and cheap protection that those or our
present members getting. The latter have
no need whatever for any new business Ana
therefore it is that. among all the struggles LOT
first place as TO new business and amount az
risk among the large companies. and those or the
smaller ones 10 keep somewhere In the race the
Connecticut Mutual has steadily refused TO COM
pete for new business al the cost OF present pol
cv-holders What we can get without reducing
their dividends we take; what we cam goes 10
those whose inducements to agents. ana
whose speculative proposals and momentary
temptations to men are great, but whose
dividends to old members are smaller IN go2a
times we more less enlarge our business. In
hard times husband our strength, INDIFFERENT
TO all considerations except maintaining our
standard of excellence.
We are thus explicit. not only because the mat
ter is apt to these times. but also because in the
]
scented by those whose only point Of comparison
with us is in respec. of new business and
arnount at risk that it is undesirable to insure
| in company which Is not rapidly increasing us
business: that expenses would be less diNldenus
larger and security greater II we were pushihs
harder for new business and getting more of IT;
a statement which is false in every aspect ana
particular. There must come point win ever,
company no matter how rapid It's present
growth beyond which 1t cannot force an IN
crease of size. And several OF the largest com
panies are rapidly approaching that point MIa'
viii he their status then? Should the puDhc
therefore turn from them? If they Will be then
undesirable companies why should they De
built up at all!
Is q company be truly desirable. prosperous.
and safe only while and only as 1t is Increasing
tic risks. then the more rapidly company Is
,ro,vinp to-day the iaste 1t is approaching the
,tuoa whom Il will be no longer desirable, pros
| nerous or safe If that be so, life insurance
sbould he sunlmarily suppressed as an inevitable
| swindle.
Rut as our expense rate is less than that OF
any other company, and only about half that OF
the great pushers while our results to policy.
| holders are very much larger than theirs. ana
| our stability greater and more corservatlVely
| based the advantage TO be derived from follow
| ing their example would seem more than doubt
| full. especially In view OF the heavy ana cohtin
| nous reductions they have made ana are sun
nakinp in their dividends, while we have main
tained our scale The reproach Of such con-
servatism we are very content to bear. Inc
vicor of the oak is Of an enduring sort.
Review of the Year.
Notwithstanding the dullness OF the year lS9o'
the affairs Of the company in every essenual
particular were as prosperous as coud De
| reasonably expected under the cohditlohs'
goi, IN income. assets and surplus while earn
Goa, an increased dividend-an increase of
s,rsrgfb more than corresponding with the IN
crease in liabilities while decreasing the cost OF
jnsurance-nay. in such times well be regarded
as fairly satisfactory.
The operations of the year, as covered by our
ro,nrt - the Insurance Department, are as FOL
lows: ..-,.,oo. .,
Net assets January l. 1896
Received s,-,o oos -
For premiums 100 90 90 20 20