Omaha daily bee., 1902-02-15

FEBRUARY Is, 1902.
HFTY.SHTH ANNUAL REPORT
OF THE
CONNECTICUT
MUTUAL LIFE INSURANCE
COMPANY.
To the Members:
One more has been added to the many
years In which by the dnigent exercise of
carefulness, prudence and economy your
company has. in the fullness OF strength
and and In a degree e9gsled by none other,
the perfect Intention and the ideal re-
suits Of life insurance; Absolutely reliable
protection to the beneficiaries needing II, at
Its actual and lowest annual cost to the
person paying for IL, with complete equity
equal moment. Il has steSdfSstiy main.
tanned those principles of administration
which are essential 70 enduring success;
termine4 by the selection Of sound lives
In healthy localities, low cost Of business,
the conservative extent and character Of
contract undertakings, with their proper
financial basis and protection. which VIII
stu enable 1t as the years go by to fulfill
highest hope and trust of the dependent
family the one specific service which life
insurance alone among human institutions
can render.
THE sECRET OF ITS SUCCESS.
1t is by resolute adherence to these prin-
ciples and the maintenance OF these neces-
sary conditions. against . competition in
spired by very different views. that tho
Connections Mutual has come to that estate
OF solid strength In it's membership, health
and soundness in its business, It's condi-
best results year after year which have
been and continue to be among the most
marked characteristics OF It's prosperous
While others strive for great and rapid
growth, regardless of the great cost and
enormous waste of business that goes with
their fierce competition, and would per-
suade the public that all who do not ADOPT
dencient in ambition and energy, your COM
pany holds steady to the purpose OF fur
nishing the best that life insurance can do
What better can it dol What other or
different thing ought II to strive fort What
company undertake With real success?
THE TRUE AIM.
For consider: Life insurance contem-
plates and is adjusted to Just one end; the
immediate and suficient protection of those
dependent ones who are either not at all or
insuficiently provided for In case their
make no other provision at once, and can
make no other at all except by the long
process OF yearly savings slowly accumu-
lated in savings banks or by Investment in
SAFE securities bearing interest at a mod
crate rate, all subject to Interruption and
delay. by unfortunate contingencies, and to
his death.
Life insurance changes all this: 1t, and
IL alone among human schemes, can pro-
vide at Dnce, In case of death, the fund
which could have been accumulated only in
been otherwise accumulated at all. which al
best could have grown but slowly, ant
This is the one thing life. insurance car
doi this Is the one thing which no otheI
device Of man can do. Every other thing
I with their money, can be done, and bes
done, by other financial schemes and tn,
, specific purpo osssT but this this one aSe0t thing fT f non,
other can do. Therefore must he on who's
5 Iife Others her GseRsin6; use It for their imme
THE LIMITATIONS OF LIFE INsUR
ANCE.
, / In dealing with life insurance as one o
: the most useful and influential factors IL
Q the development of our socio-economic life
1t is of the highest importance not only 4
recognize at its fullest use and value IT
true aim and single function. but also L
recognize the limitations of that ~functioI
e by reason both OF the singleness of the ain
a itself, and by certain Incidents inseparabl
: from the conduct OF the business as a bust
u ness; which incidents sum up their efec
o IN an expense OF management necessary
n higher than that of any other class OF In
4 situations used for the care and investmen
9 Unfortunately the business Is and ap
q parently can be, done only by solicitation
which Is costly, and 1t demands the EN-
. ployment OF large office and medical stan
n While, then, the service life i~nsuranc
: renders Is unique. its cost, even when KEEP
q rigidly down to a minimum. is unique q
d compared with that OF savings banks or tn
Investment OF money In ordinary safe way!
But because a mans duty to protect hi
family is imperative, and because he car
s not otherwise rightly and. fully discharg
: II, he is justified In mourning that expens
e in mourning that expense by using the com
pany to do some other and different thin
= which can be lone by some other instru
Moreover, a life insurance company car
not undertake the obligations and opers
i, using methods and subjecting its bushes
TO contingencies which contravene and in
peril the very structure imposed upon Iii
! Insurance by its own particular purpose.
When a life insurance company, in ords
TO attract business, undertakes to treat Il
reserves, created and held for the ultimal
payment of all its insurance contraci
as II they were deposits in a savings banl
subject to withdre wal at the will of the d.
n positor, and so to be looked upon by hi
m as an investment; or makes its polici'
" seem to be a bond" comparable In COZ
y and outcome with a real bond investmen
d II not only exposes its whole insuranC
business TO the sudden paying out OF II
reserves necessary to its integrity, but,
il regards Its premiums as deposits" or
Ie 'installment payments" for the purchase
"bonds," Il has to charge these deposits
ipstallments with not only their annu
contribution to death losses, but with con
missions to agents and other expens,
which take out OF them every year a larl
10 percentage on each 800 deposited or pa
"a In. varying according to the company
IN economy or wan of II. And this stant
In. contrast with deposits in savings banl
le without any commissions at ali and b
.e slight comparative cost OF management
n and with real investments IN mortgage
bonds or good stocks, with no expense
* all.
- PRESENT COMPETITION.
Obviously one eannot AFFORD to employ
life insurance company with Its necessary
high expense rate, to act as his SAVING
= bank, nor to regard Its policies, howev,
&c phrased, as real investment bonds. nor