The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-02-28


entirely ceased, and the market for real
estate has, in consequence, seen no gem
eral revival such may be anticipated
when al these disturbing conditions shall nal
been growing amendment in some Of
the conditions affecting the many-sided
operations of a hfe-insurance company,
something of the special difficulties of re-
cent years has remained.
What Has Been Accomplished.
1t is therefore gratifying that at sub
stantially the same uneQualed low rate
of expense as heretofore, we have more
than kept our volume of business good,
have maintained to the full the COM
pany's great strength, and, from the saw
ings through economy, from the savings
on a mortality more favorable than our
calculation, and from the interest earned
over and above the rate calculated upon,
we have earned dividend on the same
increasing scale as that paid during the
year 1897; dividend equaled by no other
company.
The Full Measure of Our Success.
In judging the success of a company
one should have clearly in mind what is
the precise best standard of accomplish
ment which it can set for itself; the high
est which the business intrinsically per-
mits; to completely realize which is the
only true success, and, falling which, no
achievement in the way of magnitude in
operation can be other than comparative
failure. The Connecticut Mutual takes
for its single aim the one peculiar SER
vice which life insurance alone can rem
der and which no other institution can
rival: The perfect protection of depend
ent families, at the lowest possible cost
the cheapest, simplest, most thorough
family protection. By dint of incessant
care and economy at every point II has
succeeded and does succeed In this pur-
pose as none other has done or is doing
1t secures the best and highest obtainable
policy holders point of view; and to
make sure of and to maintain these il
steadily foregoes those things for which
others strive at such fearful cost, to wit,
rapid growth and enormous size: things
very impressive, even startling, to the
general eye. but which do not benefit the
policy holder in the slightest. and which
can be had only at an enormous cost
which he must pay.
Therefore the Connecticut Mutual re-
fuses to seek to attract any other con-
their families and estates the highest 6ro-
lection at Its lowest possible cost. in fur
nishing which it stands alone. And we
deem 1t our duty to our present great
membership to consider their interest
hrst, TO do the best we can for them to
make their insurance as secure and as
cheap las possible, rather than seek to
greatly increase their number by schemes
which would greatly increase the cost of
their insurance and benefit them in no
wise. We prefer to draw to US as new
members those who desire to share In
the present low cost OF insurance to orr
old members and who can appreciate that
benefit at it's full value, rather than at
tract men by speculations in dividends
postponed ten or twenty years, of great
apparent promises In the far future, the
promised or estimated benefits of which
could, at least. be realized for but few
by the sacrifice of the many, and which,
the companies floating them, have so far
been and must continue to be egregiousiy
disappointing. Thousands of their old
policy holders know just what we mean
The Interest Standard.
One of the most interesting events of
the year has been the change by num-
Der of companies in the rate of interest
assumed in calculating their premiums
and reserves, in which respect they have
more or less closely followed the action
Of the Connecticut Mutual sixteen years
ago. In 1882 we became satisfied that the
rapid increase of wealth in this country
and the increasing confidence of foreign
investors In our resources were certain
to SO increase the supply Of capital as to
cause serious and prolonged decline in
the rate of interest on conservative in
vestments. We were then, as all other
companies were. calculating our prem
lums anu reserves OH the assumption OF
earning at least per cent annual in
terest for all the time any of our policies
might remain in force, that is, for at least
seventy or eighty years. We became
satisfied that this assumption was not
entirely safe, and that per cent was as
high rate as could be safely assumed
for 80 long time ahead. That rate was
accordingly then adopted by us to our
continually increasing satisfaction ever
since. At the time our action was much
criticised as unnecessarily timid instead
of really conservative, and our rivals af-
rather than prudent provision for future
strength and safety. But that which we
then foresaw and guarded against as the
inevitable result Of causes then operating
has been so fully demonstrated by time
that the way Of prudence has become
critics.
Sundry Matters.
1t is our usual habit to take up the
various items Of the years operations and
comment upon them in detail. But as the
effect of these items is fully set forth in
our detailed financial statement herewith.
and as the experience of the year has de-
veIoped nothing of unusual interest or
significance respecting, them. we venture
to use the space usually devoted to them
to call your especial attention to matter
Of profound personal interest to every
policy holder In every mutual company,
namely:
The Taxation Of Life Insurance.
Among the most threatening features
ton of those concerned IN various enter
also the disposition of legislators to grant
such aid either to win poni1la rifv or To