The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1900-02-17

ance as protection 10 tue family, ant
consequently, they regard it as mat
ter of absolute personal duty. In this
sober view of it's true use and impera
tive importance, they realize how neces
sary it is to them that its cost should
be made as small as possible, in order
that for every dollar they can expend
for it, their families may get as large G
to which The Connecticut Mutual
shapes every plan and method. And in
order that it's members may carry on
their policies with the greatest ease and
certainty, it seeks to give them not only
the lowest practicable cost each year
but steady low scale Of cost. In re-
turning its surplus to its members, 1t
long ago adopted a scale OF distribution
which takes due and full account OF its
! average mortality, expenses, interest
and other sources of saving. When its
experience has been little more favor
able than that average, instead of
slightly increasing the scale of division
for that year, and SO using up the small
excess Of earnings over the average, and
having to drop the next year perhaps to
a lower scale, it has deemed it far more
useful to its members and of far great
er assistance to them in the long run in
keeping their policies in force, TO lay
aside any such little excess against the
day, certain to come, when the pendu-
| lum will swing the other way and there
will be less surplus saved; the accumu-
lated gains Of the past can then be used
for time at least, to still maintain the
same scale of dividend and the same
low rate Of cost, until perhaps, q return
Of more favorable conditions restores
the former earning capacity, or until
the less favorable conditions have be-
come so evidently permanent that a
new and lower scale of distribution be-
comes a measure of prudence or Of ne
cessity
1t is for both these purposes for
tifying the company's financial condi-
ton against any foreseen possible adj
versity, and for continuing as long as
possible steady scale of increasing
dividends and consequent decreasing
cost--that The Connecticut Mutual has
carefully husbanded the resources from
it's savings over and above an average
SCALE The wisdom of this course APP
pears under the conditions Npf the last
two years, when, from an unusual, and
we hope, only a temporary, fall in in
terest earnings, no EXCESS of surplus
above the average has been made, and
when, but for such former accumula-
tons, a lower scale of division might
have become already necessary.
1t is unsafe to prophesy.s 1t is impos
sible to make promises 1t is wrong to
encourage hopes that may easily be de-
feated by causes beyond our control
But we are very glad that, for the pres
ent at least, while many others have
found it necessary to reduce dividends,
our course in the past enables us to
maintain the same Acale; and we are
not without hope that a favorable
change in conditions may come in time
to render any reduction BY this compa-
ny unnecessary for some time to come. |
We shall do all in our power to that |
end. But whatever conditions may !
arise, they will be frankly met and you |
will be fully advised of their effect.
Commissioners Examination.
Every four years the Insurance Com
missioner of Connecticut is required by |
law to examine every company char
tered by the state, verifying it's ac-
counts and assets and scrutinizing the
conduct of its business This company
was so examined during the past year.
The only point of doubt was as to the
1,,a nP !
ate. From his appraisals the commits
'loner estimated the present value at
'495, 156 less than this real estate has cost
m our books. The difficulty of getting
reliable appraisal in a dull market
nay be illustrated by the fact that one'
,arcel was appraised at $4,000; half of
has since been sold for s45, 900 cash.
or uses which increase the value of the
emainder. We havd several pieces,
ONE very valuable, which now cost us
othing. They are what remain after
cling enough to more than return the
ost of the parcels of which they were a
art. None of these We're appraised. |
1any pieces on which we may reasona-
ly expect some gain were not APP
raised; some on which we may lose
Tere not appraised. The question !
therefore, presents itself: What ac-
cunt, if any, should be taken of the i
hrlnkage so estimated by the commits s
oner? +,
A leaf from our own experience in s
lese mataers may be instructve: In {
80 the commissioner made an exami- !
alton and appraisal of every piece of q
roperty foreclosed or likely to be fore t
osed. These properties cost us $12,- i
" 1898. The commissioner valued them t
only $10,63S,S70 a shrinkage of ST., i
8, 12S. Out of this we have since sold | i
II $9,21S, 216.74, what cost lis S7,7SS, 759- 4 c
/, but which the commissioner valued f
1ly S6,s79, 499.42; that is, we got s1,429.- v
more than the property cost, and q
,53S,717.32 more than the commission h
IS valuation. That the remainder of a
lose properties will sell at equal ad- o
lntage we do not expect. While some v
i'll make a gain, some are certain to d
axe more or less of a loss from causes a
depreciation that occurred long ago. II
4 the other hand, the properties fore a
osed since 1893 ought not to suffer any
ny heavy shrlnkage. q We do not know
by, as whole, they are not worth Fl
eli cost. n
We carry our foreclosed real estate on t,
Il books at it's original cost. We can Ct
It tell what it is worth until We sell it. a.