The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1897-02-26

$6S,696,So3.36

Iotai expenditures ) $40, l3l.Io
Bal. net assets, Jan. /, 1897. $50 1881, 81 81
Add interest due and accrued,
market values of stocks and
bonds over cost and net de-
ferred and uncollected premi-
ums. as per itemized state
ment herewith .......... 1,970,67727
Gross assets, Jan. 1, 1897 -. 1872 o., 34S So
Total liabilities. ............. So, 100. O51 81
Surplus, January /, 1897. So. $ 1853, 297. GA
INTEREST.
We received for interest and dividends,
$2,SS4, 95S31: for rents, $254, 1861. The
usually slow. Yet the overdue interest on
December 81, 1896, on nearly S36,O00,0O0 of
mortgage loans was only $50, 1851, about
$4,000 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 & Northern Railroad now in pro
cess 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
$500, 110.40, and new loans were made for
So, 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 ,233, 02S.0S, and also a
great deafness in the real estate market by
reason of which comparatively few sales
We're made. amounting TO 1921 3d. 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 fortunate
~ able to hold our property until usual con
ditOns restore usual prices.
The advantage of being able to do this is
well illustrated in our own history. Since
1879 the company has sold properties which
it had then acquired under foreclosure at a
made that year. the insurance commissioner
valued these properties at only &c. 45, T73
an apparent loss of S1,0S5,S45.30 But we
did not sell at those fl lures. We waited and
G56.31 or 81 391 ,03S.01 more than the prop
erty cost, and $2476, SS331 more than the
commissioners valuation.
While some of our properties will not
probably sell for as much as they cost, 9TH
ers will sell for more and judging from past
experience, we see no reason TO apprehend
any loss on this item as a whole.
BOND TRANSACTIONS AND HOLDINGS
There were paid off or sold during the year
municipal and railroad bonds which cost us
1854, 633 &c, and other bonds purchased at Il
cost of S7S3, 610.4 a. The market value Of
such securities in general was considerably
Der 81 1895. The shrinkage on our holdings
was however, only twothirds Of per cent
These holdings are for $13, 81, 900 par value,
costing $13,606 03497. and worth at the
above date S14,05S907 by an entirely con-
sentative valuation.
PROFIT AND LOSS.
A small net loss of S13, 1851 on some of
the real estate sales and sundry items was
offset by net gain of $50, 80 mainly on
transactions i'll bonds, leaving $50, rs to
the good
We paid to the families and estates of de-
ceased members during the year S4,106.-
366 %. The value and timeiness of this
great sum to its many recipients in their
hour of need are the measure of our yearly
service to the households of our country.
It's helpfulness can be somewhat realized 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 ne
cessity for such help is greatest.
Our death losses were so far inside those
expected and provided for that the savings
therefrom were $436, $50
1t should be always borne in mind that IL
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 prosper
ity, present or future. The older its bust
ness. the longer it has been iii force, the
greater the average age of its members, the
greater will he the proportion of deaths and
the volume of losses. The question is not
only what losses have occurred, but what
were expected? What losses were antici-
pated when the premiums and reserves to
meet them were computed? Are the actual
losses inside or outside that expectat ton
That is the only pertinent question in the
matter. -
EXPENSES.
The ratio of expenses to income in 1896
was 1055 per cent, an increase over the
usual average of about one-half of 1 per
cent This was due to 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 foreclos-
ure and necessary to put it in proper order
! and TO rightly protect our property. The
same careful and systematic economy which
always distinguishes this company has been
rigidiy maintained.
NEW BUSINESS.
| In consequence of the unbrOken business
| dpnression of 1896. and especially during The
| months of the political campaign, and be-
! cause we spent no money trying to over
/ come these obstacles, we wrote about 10
per cent. less new business in 1896 than in
| 1895 The renewals of old business We're so
| we'll kept up. however, that we lost during
| the year on the whole amount In force only
| S619, 430.
We believe the persistency of the old bust.
ness of the Connecticut Mutual is quite
unique 1t is an element Of great strength
J and Of cheapness as well. 1t costs far less
| it, than to get new to replace 1t. And we