The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-03-01

effective means. and such a shrinkage IS
they cannot contemplate with eauanirn-
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 IL 20 force its osisi-
neSs beyond the conditions Ct the time.
It's position Is ideal. and that to which
every company ought 20 strive TO attain.
q business 80 large as 70 give absolute
stability In its average experience. vet not
so large but that IN good times and IN
DER fair conditions ~ can be maintained
sionsl and considerable shrinkages in
bad times. a standard Of solvency beyond
question, investments worthy such trust,
and an expense account so small as 20
give the largest possible saving TO pol
icy-ho2Gers and so adjusted that. whether
It's business increases or sarinkS. Il VIII
rot have 10 cut its dividends on that ac-
count.
That Is the position we occupy. so far
as the absolute safety az every present
palicy-ho1der Is concerned. or so far as
his future dividends would De affected.
II Is not necessary that we should ever
write another new policy The company
would pay ont 20 the very last man and
maintain the same relative high dividends
without Il. The only reason for taking
new business Is that we may give 10 new
families the same secure and cheap pro-
lection that those OF our present mem
need whatever for any new business.
And, therefore. IL Is that. among ali she
struggles for first place as 20 new bust
ness and amount at risk among the large
companies. and those of the smaller ones
10 keep somewhere in the race. the Con-
necticut Mutual has steadily refused 70
compete for new business az the cost OF
present poiicy-holders. What we can get
without reducing their dividends We take:
what we can't goes to those whose in
ducements TO agents. and whose specula-
tive proposals and momenSary tempfa-
tons 20 new men are great. but whose
dividends TO old members are smaller.
In good times we more or less enlarge our
business In hard times we husband our
strength, Indifferent 70 all considerations
except maintaining our standard OF ex-
cei'ence.
We are thus explicit. not only because
the matter Is apt 20 these times. but also
because IN the competition of business. It
is commonly represented 10y those whose
only point OF comparison with US is in re-
spect Of new business and amount at risk.
that 1t is undesirable to insure in a COM
pany which Is not rapidly increasing its
business: that expenses would be less.
dividends larger and security greater IL
We were pushing harder for new business
and getting more OF ii: statement which
as false in every aspect and particular.
There must come a point with every COM
pany, no matter how rapid its present
growth, beyond which 1t cannot force an
increase OF size. And several OF the
largest companies are rapidly approach
ing that point. What viii be their status
then1 Should the public. therefore. turn
from them? III they will be then un-
desirable companies, why should they be
built up at all?
II company be truly desirable. pros
porous and safe only while and only as 1t
is increasing its risks. then the more
rapidly a company is growing today the
faster 1t is approaching the time when
1t will be no longer desirable. prosperous
or safe. II that be so, life insurance
should be summarily suppressed as an
inevitable swindle.
But, as our expense rate Is less than
that Of any other company, and only
about half that Of the great pushers.
while our results 10 poncy-holders are
very much larger than theirs. and our
stability greater and more conservatiyely
based. the advantage 10 be derived from
than doubtful especially In view OF the
heavy and continuous reductions they
have made and are still making in their
dividends, while We have maintained our
scale. The reproaeh OF such a conserva-
tism we are very content TO bear. The
vigor of the oak Is OF an enduring sort.
Review of the Year.
Notwithstanding the dullness OF the
year 1896. the affairs OF the company in
every essential particular. were as pros
porous as could De reasonably expected
under the conditions. A gain In income.
assets and surplus, while earning an in
creased dGvidend-an increase of strength
more than corresponding with the in
crease in liabilities. while decreasing the
cost OF insurance-may. In such times,
well DE regarded as fairly satisfactory.
The operations of the year. as covered
by our report 70 the Insurance Depart
ment are as follows:
Net assets, January /, 1896. 500 164. 90 "a
Received
For premiums $500. 81. ~, 256.lS
For int and rents. 5, l3a 405. q
Bal. profit and loss. 50140.15
r1.al s,roms es9 $50 -