The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-02-25

| ing, advertising,
| legal real estate and
| all other expenses of
management S5O,479.66
| IaXeS -. .........,..... 540,56S.45
Total expenditures ............. 1874 ,S65. Sc
Add interest due and
value of stocks and
bonds over cost, and
| net deferred and
| collected premiums,
| as per itemized state
/ ment herewith .............,.... 2lSO,llO6O
Gross assets. Jan. l, 1895 .. 1863, 5sS. $50 9s
Total liabilities .................... 56,22L1249t
Surplus, Jan. /, 1898. .......... S., 1860, ss6 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 COM
| plete 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 un-
| dertakings; the demand for loanabe funds
on our usual standard of security has been
| small: the price of desirable bonds has in
creased, which means lower interest
| rate such securities the liQuidations
| growing out of the depression of the last
| five years, which have made 1t necessary
| TO TOrectOSe some OF our mortgages, nave
| 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 dis
| appeared. Although there has been grow
| ing amendment i'll some of the conditions
| affecting the many-sided operations of a
| life insurance company, something of the
| special difficulties of recent years has re-
manned.
What Has been Accomplished.
1t is therefore gratifying that at substan-
TALLY the same unequaled low rate of ex-
| pense heretofore, we have more than
| kept our volume of business good, have
| maintained to the full the company's great
| strength, and, from the savings through
| economy, from the savings 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
| 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 accomplishment
which it set for itself; the highest
which the business intrinsically permits; to
| completely realize which is the only true
success, and failing which, no achievement
! i'll the way of magnitude in operation can
be other than comparative failure. The
! Connecticut Mutual takes for its single aim
! the one peculiar service which life insur-
| institution can rival: The perfect protection
! of dependent families at the lowest possible
cost-the cheapest, simplest most thorough
| family protection. BY dint of incessant care
| and economy at every point 1T has succeed
| ed ard does succeed in this purpose as none
| ether has done or is doing 1t secures the
| best and highest obtanable results from
| the prudent and unselfish poltcyholder's
| point of view; and to make sure of and to
maintain these it steadily fOregoeS those
| things for which others strive at such fear
! full cost. to wit, rapid growth and enormous
| size; things very impressive even startling,
| To the general eye, but which do not benefit
| the pOlicyhOlder in the slightest, and
which can be had only at an enormous cost,
which he must pay
| Therefore, the Connecticut Mutual refuses
| to seek to attract any other constituency
| than those who desire to give their families
! and estates the highest protection at its
| lowest possible cost in furnishing which it
stands alone. And deem it our duty to
our present great membership to consider
! their interest first, to do the best
| for them to make their insurance as secure
! and cheap as 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 our old
| members and who can appreciate that
] benefit at it's full value, rather than attract
| men by speculations in dividends postponed
| ten or twenty years. of great apparent
| promise in the far future, the promised or
| estimated benefits of which could, at
! rfice Of the many, and which, by reason of
| the enormous expenses of the companies
floating them; have SO far been and must
| Thousands of their old poicyholders know
! just what we mean.
The Interest Standard.
| One of the most interesting events Of the
year has been the change by number 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 Connecti-
| cut Mutual sixteen years ago. In 1SS2 we
became satisfied that the rapid increase OF
wealth in this country and the increasing
| confidence of foreign investors in our re-
sources Were certain to so increase the sup
| ply of capital as to cause serious and pro-
| longed decline in the rate of interest on con-
| serVative investments. we We're tnen, us
| all other companies We're, calculating our
| premiums and reserves on the aSSump-
| ton of earning at least per cent. annual
| interest for all the time any of our policies
might remain in force, that is, for at least
seventy or eighty years. We became salts
| fed that this assumption was not entirely
| safe and that per cent was as high rate
| as could be safely assumed for so long
time ahead. That rate was accordingly then
adopted by to our continually increasing
| satisfaction ever since. AT the time our ac-
| ton was much criticised as unnecessarily
| tmid instead of really conservative, and
| our rivals affected to treat it mark of
weakness rather than a prudent provision
| for future strength and safety, But that
/
against as the inevitable result of causes
I then operating has been so fully demon
| strated by time that the way of prudence
/ has become clear TO ALL even to our then
/ harshest critics.
Sundry Matters.
! 1t is our usual habit to take up the vari-
Gus items of the years operations and COM
ment upon them in detail. But as the effect
/ of these items is fully set forth in our de-
| tailed financial statement herewith and as
| the experience of the year has developed
| nothing of unusual interest or significance
| respecting them, we venture to use the
/ suace usually devoted To them TO call your
| especial attention to Il matter of profound
personal interest to every poiicyholder i'll
/ 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
10 turn to the State for aid, and also the
| disposition of legislators to grant such aid
either TO win popularity or to avoid unpopL-
| larity States have no income except from
/ taxes. What they give to one has to be
! first taken from others by taxation. They
! have nothing OF their own 10 give. In or
| der TO indulge this free-handed response to
| growing demands taxation must be in
I creased. But increased taxation of the
| voter endangers the political aspirations of
| those responsible for the increase So to
| aid for some project, and ut the same time
off, befp xxsho