New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-02-06
FTFTY-EIGHTH ANIMAL REPORT
OF THE
CONNECTICUT MUTUAL LIFE IN
SURAACE COMPANY.

To the Members
+ From the point of view Of life insurance COM
panies investors the most striking incidents OF
the year 1903 the great shrinkages in the nom
inal values prices Of the stocks Of the railway
systems. with corresponding though much slight
CT shrinkase in the prices OF their mortgage Sc
curitios.
In only point was the Connecticut Mutual
affected by these events in common with all in
vestors in securities Of the highest class. The pres
ent market value Of its corporate and municipal
securities shrunk during the year about $4,000 on
par OF SZ55s6.570 costing s25sos.46l. with pres
ent market value OF s26 339. 694 OF this Sss4602o
is in bank stocks s72961s railroad stocks G2oeoo
of which is held coIlateraD which have changed
little: the s25 s of bonds OF the best class of
security and having as a rule many years to run
more favorable market conditions are likely to re-
store more less OF former higher prices; but
meantime the apparent gross assets and surplus are
just much less than If prices had been main
tanned throughout the year.
General Results.
The Company's experience for the year 1893 in
the several other features incident to its business
may be briefly stated follows: An increase IN
Its premium income; an increase In interest income
increase IN assets; the usual persistence In
its policies; increase in the business IN force
the low rate Of expense in 1902; mortality
loss very considerably than that expected with
a saving thereby Of s4s251O decrease in the hold
ing OF forecosed real estate Of s77S.s2Osl The de-
tails OF the years operations will be found In our
financial statement.
That have been able maintain our tradition
al low rate OF expense and yet keep good the
amount Of business in force due the faithful
zeal Of our agents for the true ideal Of a mutual
life Insurance company; the best service for their
clients least expense to them: and this in face
Of the high commissions and bonuses paid to agents
and rebates given to insurers by other companies.
very difficult withstand by the over
in the other.
The death rate inevitably varies somewhat from
year year. and that 1903 while very favorable.
somewhat less s than 1902 The with
which risks selected and the healthfuI char
acter Of the limited territory IN which operate
have given very favorable experience through
out our history and the reasonable assurance OF
its continuance.
The additions and improvements upon the Home
Office properties have been substantially com
pIeted We have a building which for durability.
convenience. and attractiveness a business
structure Is nowhere surpassed and Is proving
good investment its cost.
Ever since panic Of 1881 and due IN some part
also food Of stocks and bonds Of corporate en-
terprises OF all Of quality since offered to the
public on more representations the
market for real estate has remained in thequiet state
into which It then fell During the last year. how
ever sold properties that cost $3.50; 81 Of
these sold profit: Is sold at loss: the net
these ".
that incurred three pieces which came to US
from some loans made many years ago upon prop
critics the conditions Of which changed unfavorably
afterward In this connection II will be OF interest
10 state that during the year the Insurance Com
missioner Of Connecticut has made the examination
Of this company required of him by law every
four years, in the course OF which he valued the
forecosed real remaining after deductng the
sales of that which the loss was made as ABOVE
noted s3ieTl23s less than Its cost AS his VaIua
ton IS but an estimate. and we have sold several
pieces since considerably than his estimate
and as our whole experience IN thsse matters has
shown that such valuations have been no guide 20
the outcome. have made no change on our DOCKS
further than to take up a possible future loss
the item Of ss4s 7i2 . liability under the head
Of Contingent real estate depreciation account,
thus giving practical present effect to loss which
may or may not be incurred
We shall pursue the same course with our pres
ent real estate which has given good results IN
the past: hold until local conditions favor sales at
fair prices.
The only bonds on which interest Is in default
those Of the City Of Galveston. payment having
been suspended in consequence Of the flood OF ls"-
The city's liability Is unqusstioned
Reduction Of Dividends
One Of the principal events for US In the past
YEAR has been the decision OF your Directors that
IN consequences Of the conditions which have been
mora II was no longer expedient TO draw 50 heavily
., mast Accommodations Of surplus IN order
20 maintain the high scale OF DIVIDENDS winch
has obtained since 1881. and that II was
ox,adient 10 reduce dividends 10 conform moro
nearly Mt least to present ability TO earn sur
,,rs Since 1898 used current accumuia-
tions and have also drawn upon tho then surplus
10 very large amount in order to postpone as long
"a might be any reduction IN dividends The prin-
iraI cause of our inability 10 earn as much surplus
"a during the years from 1881 to 1S9s has been the
sIo,- bnt steady decrease I'm the rate Of interest
rao1izAt on investments. which would have caused
,,.h "a rlier reduction Of dividends. as was the
Gee with other companies. but for the economies
nracticed in the management
7-b circumstances OF this reduction. which has
~ foresbadoved in reports for several years
90 cat forth in fun detail In a communication ad-
ra.sed TO our policy-holders which Is being placed
g., choir hands for their full Information IL Is. |
therefore not repeated hsre except TO say:
.eyyhile we have always striven. and always shall
strive by every legitimate means. to make the cur
ro,t cost as small as possible We must never lose
eight Of the fact that Insurance. which Is not secure
a. not worth paying for; and that, while we strive
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