New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-20


shrinkags estimated by the Commissioner making
a in round numbers OF s750OO0 and. FOR the
the title Of Contingent ResI Estate Depreciation
our property Providing against a POSSIBLE loss
which cannot be measured TIL Il comes does not
loss. This leaves our accounts undsturbed
while IL relieves our surplus OF what might other
wise in view OF the Commissioners estimate be re-
So long as it is deemed sxpedisnt TO carry mis- item
OF provisional liability the balance OF IT, deduCtfng
any losses made sales will he shown each wear.
The Amount of Surplus
The surplus. December 81 1889. s. 2ns 341 81 by
our own standard OF solvency. which is much
higher than the legal standard the latter being
based on the assumption Of earning per cent
nual interest. on all business written since April
~ 5Sz q We calculate our liability on The assumption
: IeT we ma 6ity higher and our surplus lower By
based on the legal per cent STANDARD in which
case the surplus would stand 50 sl3,O4i. 50 For
carries reserve S2.iO4. 7C3 greater than that re-
CURED on business based the legal standard.
Real Estate sales.
During 1899 sold for 800 g. foreclosed prop
critics that had cost S551 94s 40 On some OF the
pieces there loss Of SIS 30 So the there
gain OF sIOI $50 s. leaving a net gain OF SIS
osos5 It was throughout duh year for real
estate.
sales 6G sar to 2sar 'as ne: Ssni % real estate
Property Purchased
The present home Office OF the company built
thirty years ago with little anticipation IN plan and
accommodation for the great increase in the work
OF coming years, in which we have long been put
TO great Inconvenience and disadvantage. An op,
well suited 20 connect with the present building.
plain but substantial and thoroughly modern office
building. giving US needed space and convenience,
and to tenants attractive business quarters
The Signs of the Times.
II is with little satisfaction that note in
some OF our competitors the dawn OF a long-de-
ferred recognition Of the vital Importance Of some
Of those things which The Connecticut Mutual has
all along insisted essential safety essential
10 the Just Interpretation and administration Of
IT 1i PgIIRGlpIe ana essenJl 20 Lne pest ana
should have single eve.
Others Adopting the Connecticut Mutuars
Interest Assumption.
The Judgment which led Us eighteen years ago to
anticipate the fall in interest rates and 10
provide against Its effect by then assuming per
cent rate. decred as counsel of timidity and
weakness That assumption has given US incom-
parable strength with great advantage 10 the bust
TO the older per cent business and the relations
eeI"een me Two nave been selt-adjusting- The day
s oIese. ndaE!Is come most OF the companies are
forced 70 change their assumption and OF the
ness on the per cent basis about which there is
an aPpeardhce or anxiety Tor the per cent re-
LTiations thereto from SURPRISES accumulated from.
the various Tontine Investment schemes
Growing Alarm the Expense Account.
one OF the strangest developments in life insur-
ance in the last twenty-five years has been the in
crease in its expense While that Of every
other enterprise and industry has been studiously
watched and pruned al every possible point and
its reduction has been prime and permanent aim
or management. not only : a means of greater
pront 10 the business but necessity in meet
ing competition by greater cheapness the expense
49, IN NE insurance has gone the other
me competition has not been by way OF lessening
cost secured by prudence and economy. Those com
business which have made their insurance
their po4cy-holders most, and making II cost
nomicaI management Wbicb nro51n q H. sq 5 eco
AZ a ne
MUM payer-the most real protection for the least
at risk to secure this increase the attraction
Iney oieT 20 the Individual is not the simplest and
the sma lest himself which can De achieved
which If he leaves all the margins on premiums
ed1Dan f3 1na reserves IN me control OF the
togte5nre II ne dies or apses within the period he
! felt meantime should he I've and paw through
How Volume : Secured
II IS the estimates and Illustrations OF these spec
uiations on which their business has been secured
II is by hiring tens OF thousands OF agents at enor
nous commissions and bonuses and allowances 10
press upon men these specuatons in the protection
! OF their own families that they have won magnf-
tude. But their policy holders are In consequence
paying more on the average for their insurance by
$50 20 $50 on every 500 OF premium paid than are
/ nose Of The Connecticut Mutual But the cost
/ charged and the surplus returned and the schemes
for lisa m paes Postp0he an returns OF surplus
cost OF their policies is concealed from their policy
they fall our by the way, when the settling day
or the speculation comes and IL is has al
mate or illustration the result is that IL IS realized
| how dear has been the bargain.
| one great company has in the last fifteen years
about doubled It's expense ratio and halved its re-
/ turns OF surplus to its members the older and
non-speculatiye plans But it Is keeping up IN the
/ race for magnitude so far
The Chances of Reform.
But now one OF the greatest Of the racers an
| nouuces that It's Directors have decided that It's
officers have been paying 100 much; that the bust
ness has been forced that however much they
| may write in this way they lose nearly as much
that it is increasingly difficult buy business
/ faster than the old drops out and that after all
/ ing, although that Is OF the companies that
/ depends on the ieavings Of those who go out Tor
those leavings have been largely eaten up by the
| expense necessary 10 get new business enough TO
the outcome OF this more prudent view OF the stua
| ton Whatever has been OF may be done about
! concusively that the comDa " has present. no
/ mind to be ecpsed In size What method OF com
| seen II is much to have the truth acknowiedged
1 may rise 20 all the practical courage OF It's new
Meantime It is significant that the faith so stead
ily coGtended for by The Connecticut Mutual Is thus
at last confessed by OF its severest and long
| time critics
| Another Possible Reform.
| That company is also rendering tribute
TO the principle Of life for the OF the
| family rather than a scheme for the personal
profit or convenience OF the policy-holder. II mas
announced IT'S recognition Of the fact that the
| pohcy-holder can't use up his policy without his
family losing IL
| To the attraction OF a policy which lets the
into a personal speculation in the losses OF others
land Of others in his Iosses), the racers add
] Ing the agreement 70 loan MIN all or even more
| than the reserve his policy; a feature which
| consistently completes the purely personal and
specUla tive view by which they draw men by self
interest rather than by leading them 70 plain but