The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-02-25
Dlshursed-

| Total expenditures ............. 1884, S65. IS
Balance net assets.
Jan J. 1893 .....................$6l, 40S so. 80
Add interest, due and
accrued, market vail
| ne of stocks and
bonds over cost, and
| netdeferred and IN
collected premiums
as per itemized state
meht herewith .................. ESQ, 1850
Gross assets, Jan. l, 1898 $50, 5SS 500 SO
Iotal liabilities .................. 56,227 724.97
Surplus, Jan. l. 1898 ............$ 1850, 1886 OF
The General Results in 1897
have been satisfactory Notwithstanding
| conditions not wholly favorable. The re-
covery from the previous business depres-
| sion has not been as rapid nor as complete
as many had hoped the uncertainties of
| confused currency system still remain to
| Keep prudent men wary; great caution
! has prevailed as to extended and new I'M
] derlakings; the demand for loanble funds
on our usual standard of security has been
SMALL the price of desirable bonds has in
creased, which means lower interest rate
4 on such securities; the li1uidations grow
ing out Of the depression of the last five
years, which have made it necessary to
| foreclose some of our mortgages, have not
entirely ceased; and the market for real
| estate has, in consequence, seen no general
revival such as may be anticipated when
all these disturbing conditions shall have
! disappeared. Although there has been
growing amendment in some of the cOndi-
| tons affecting the many-sided operations
! of a life insurance company, something of
the special difficulties of recent years has
remained.
What Has Been Accomplished.
It is therefore gratifying that at substan-
| TALLY the same unequaled low rate of ex-
/ heretofore
kept our volume of business good, have
main tanned to the full the company's great
strength, and, from the savings 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
a dividend on the same increasing scale as
! that paid during the year 1897; a dividend
/ eqlaled by no other company.
/ The Full Measure of Our Success.
/ In judging the success of a company one
1 should have clearly in mind what is the
precise best standard of accomplishment
which the business iutrinsically permits; 10
/ completely realize which is the only true
! success, and, failing which, no achieve
1 ment in the way of magnitude in opera
! ton can DE other than comparative fall
ure. The Connecticut Mutual takes for
i its single aim the one peculiar service
/ which life insurance alone can render aud
| which no other institution can rival: The
| perfect protection of dependent families. at
/ the lowest possible cost-the cheapest. sim
plest, most thorough family protection. By
| dint OF lncessant care and economy at ev-
cry point it has succeeded and does sue
| coed in this purpose as none other has
done or is doing 1t secures the best and
! highest obtainable results from the pru-
| dent and unselfsh policy holders point of
| view; and TO make sure of and to maintain
| these it steadily foregoes those things for
| which others strive at such fearful cost,
to wit, rapid growth ami enormous size
! things In
| 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 refus-
eS to seek to attract any other coustitu-
ency than those who desire to give their
! families and estates the highest protec-
ton al its lowest possible cost. in furnish
| ing which ii stands alone. And we deem
| il our duty to our present great member
| ship to consider their interest first to do
| the best we can for them to make their
| Insurance as secure and as cheap as pos
| sihle, rather than seek TO greatly increa Sc
! 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 our old members and who can
| appreciate that benefit ut its fun value
| rather than attract men by specuations in
dividends postponed ten or twenty years
| of great apparent promise in the far flu
iure, the promised or estimator hene-
fits of which cou'd at least. be realized for
but a few by the sacrifice of the many
\ and which, by reason or the enormous
expenses OF the companies floating them,
! have so far been and must continue to be
egregiously 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 a number of
| companies in the rate of interest assumed
| In calculating their premiums and re-
! serves, 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 in
crease OF wealth in this country and the
increasing confidence of foreign investors
! In our resources were certain to so in
! crease the supply of capital as to cause a
| serious and prolonged decline in the rate
of interest on conservative investments
We were then, as all othet companies
1 were calculating our premiums and re-
serves on the assumption of earning al
| least per cent. annual interest for all the
time any of our policies might remain in
| force, that is, for at least seventy OF
! eighty years. We became satisfied that
| this assumption was not entirely safe, and
| that 3 per cent. was as high a rate as
could be safely assumed for so long a time
! ahead. That rate was accordingly then
| adopted by us to our continually incrcas-
| ing satisfaction ever since. At the time
our action was much criticised as unnec-
essarily timid instead of really conserva-
| tive, ana our rivals aftecteQ TO treat IL as
a mark of weakness rather than pru-
dent provision for future strength and
safety, But that which we then foresaw
and guarded against as the inevitable re-
| suit of causes then operating has been SO
| fully demonstrated by time that the way
! of prudence has become clear to ALL even
TO our then harshest critics
Sundry Matters.
II IL our usual habit TO take up the vari-
Gus items OF the years operations and
J ant In PIT I,
effect Of these items is fully set forth in
/ our detailed financial statement herewith
and as the experience of the year has de-
veloped nothing of unusual interest or sig
! nihcance respecting them, we venture 10
use the space usually devoted to them 10
| 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 of
! our political life to-day is the disposition
: OF those concerned in various enterprises