Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-02-04
FINANCIAL.
on a pecuifsr interest to all whose families need
the protection that pure life insurance alone car

the protection that pure life insurance alone car
give.
For The Connecticut Mutual is not offering
Bends nor investments which can be made
an actual investment to one man emily by taking
what two other men have lost their gamble. -
1t seeks out the men whose families need life in
surance 1t offers them real life .ns-rance, in its
own name. its proper motive and basis;
1t does not expose itself and its business aud the
protection Of its benefciares to complete destruc-
ton by policy contracts which permit all the re-
serves be drawn out In cash, in any year, ct
the win Of the policy holders, like deposits in
bank it holds and treats its funds in the only
manner in winch they be held and treated for
the proper protection Of real life insurance cen
tracts and with eye single to- the cure care q
Its benefciaries whose certain protection is the
only reason for the existence Of life insurance
company.
Therefore, The Connecticut Mutual remains actu-
ally mutual life insurance company. 1t selects
its risks with great care in a limited area where
the conditions of life and health are well known;
it seeks safety and fair returns its invest lents
1t keeps down its expense rate ds low as possibie'
all in order to save much as possible Of the
premiums received by it, to be returned each year
to those from whom they were received so that
each mans insurance shall cost him little as
possible, and only what it has cost the company;
and 1t seeks to deal in entire equity and the good
faith Of true mutually with those who lapse or
die, SO that no one is plucked for tie advantage
Of some one else.
In word, it is doing and seeks to do business
as real mutual life insurance company. for life
Insurance purposes, knowing that never before was
pure life insurance much needed as now, and
all the more because SO much has its place been
usurped by that which is not pure life insurance
al all, and the funds for which can no longer be
held with any certainty for any purpose Of life
insurance.
1t is in this light-as real mutual life insu;-
ance company-that its operations are to be viewed
and their results weighed.
THE EXPERIENCE OF 1902.
In general, the experience Of the Company dur
ing the past year has been Of that steady, even
9oing character which should characterize an old,
thoroughly grounded company. conservative in hold
ig to the real purpose of life insurance and to Gil
that best effectuates it, and yet progressive In
nat which will the better commend it to those
VINO want IL only TOT tndt purpose.
The New Business taken on in 1902 some
wnat more than that Of the previous year.
The Old Business has persisted in the usual re-
markable degree that the amount of business
in force at the end Of the year shows the same
steady. gain for several years past.
The Mortality cost for the year 1902 was p Z
per cent less than that expected and provided for,
efecting a saving Of $545, 256.
The Expenses Of management for the year were
less than for the year 1901.
INTEREST
For several years the abundance Of money seek
ing conservative Investments has caused pro-
gressive decline in the OF interest on good
securities, and this Company has been somewhat
affected thereby in common with all other financial
institutions which derive their interest income
from Investments Of permanent character. Our
interest income has, however, been satisfactory,
considering existing conditions. and considera BILE
margin above reserve requirements has been saved.
Owing to the very low rate Of interest obtaining
early In tine year and during 1901, the market
value of our bond holdings was very high even on
a conservative view Of the market. During the
year the money market SO radically changed, car
rying the rates Of interest high, as to cause
something Of a decrease in market values, though
very slight as a percentage large holdings,
indicating their strong character. Such changes
do not affect at al the income from them, and
with a return Of former conditions return Of
former values is to be expected.
With the exception Of two items of Texas munich
pal bonds, interest has been very closely collected
Oh all securities
The Real Estate Market In 1902 was not a very
favorable one for selling, but the Company dis
posed of so pieces Of forecosed property, costing
1921 ,s93.46
As our members are already aware. the Company
has, during the last three years, been erecting a
new office building which is practically completed
1t has also been making such changes in its old
building increase its capacity add greatly to Its
convenience and attractiveness for tenants, and
connect 1t with and adapt it to the edifice.
This work is completion, and the whole
seems likely to prove judcious undertaking to a
satisfactory result
The Surplus at the end Of the year stands at
$8,379, 9924 3; by the legal standard it Is over
$4,000, 0O0 1t reduced during the year by
the temporary shrinkage in market values of bonds
already referred to- by balance Of profit and loss
of SCI, 79s on sales Of real estate and various
other minor items, and also by the fact that we
returned surplus to policy holders the same
scale of dividend that We have maintained for
twenty-five years.
From 1881, when our surplus was So, 351 1855, we
not only returned this high rate Of dividend, IN
creasing 1t somewhat in 1892, but added to the
surplus each year until 1893, when it stood at
1881 800 Since, then 1t has been more or less
drawn upon each year in order that the cash pay
ments by our policyholder need not be increased,
and in order to tide over, far may prove
practicable, the conditions which still unfavor-
able to so large saving of surplus was posi-
BILE for many years.
The maintenance Of the low cost to our members
during nnfavorab;e years one Of the purposes
of that great accumulation and our present scale
will be maintained until 1t shall seem expedient
to draw further the surplus fund
Attention is called to the list Of assets and liza
bilities published elsewhere.
We also ask careful consideration of the follow
ing summary OF our financial history Of fifty seven
years:
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