The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-02-09
Fifty.Eighth Annual Report
OF THE
C0NNECTIcUTM UTUALLIFE
INSURANCE COMPANY.

|
of the stocks OF railway systems. with
corresponding though much slishter shrink
age in the prices of their mortgage securi-
ties. In only one point was the Connecticut
Mutual affected by these events in common
with ali investors in securities of the high
est class. The present market value of rs
corporate and municipal securities shrunk
during the year about $4,000 on par of
SIS 5SS.57O. costing So. .4e1, with present
market value of SIG $50 e94. OF this 500 400 5
| is in bank stocks: $729,6l6 in railroad stocks
! $4,000 OF which is held "a colatera(
which have changed little; the $25,O'',SS4
J OF bonds are of the best. class for security,
| and having as rule many years to rum
more favorable market conditions are like
! ly to restore more or less Of former higher
| prices; but meantime the apparent gross as
! sets and surplus are just much less than
If prices had been maintained throughout
| the year.
GENERAL RESULTS.
| The companys experience for the year
| 1903 in the several other features incident
to its business may be briefly stated as fol-
| lows: An increase in it's premium income;
an increase in interest income; an increase
| in net assets; the usual persistence in its
policies: an increase in the business in
force; the same low rate of expense as in
1902; mortality loss very considerably less
1
of $4S2, $40; decrease in the holding OF fore
closed real estate of s77S.92O91. The details
of the years operations will be found in our
| financial statement
That we have been able to maintain our
| traditional low rate Of expense and yet keep
| good the amount of business in force is due
| TO the faithful zeal of our agents for the
1 true ideal of a mutual life insurance COM
\ pany the best service for their clients at
! 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 TO Withstand
| by the one or overcome in the other.
| The death rate inevitably varies some
| what from year to year, and that of 1903,
| while very favorable, was somewhat less
| so than in 1902 The care with which our
| risks are selected and the healthful char
acter of the limited territory in which we
| operate have given us very favorable eX-
perence throughout our history and are the
reasonable assurance of it's continuance.
INVESTMENTS.
The additions and improvements upon the
| Home Office properties have been substan-
TALLY completed. We have building which
for durability, convenience and attractive
ness as a business structure is nowhere sur
passed and is proving a good investment
| at its cost.
Ever since the panic of 1893, and due in
| some part also to the flood of stocks and
bonds of corporate enterprises of all sorts
| Of quality since offered to the public on
| more or less attractive representations, the
| market for real estate has remained in the
quiet state into which it then fell Dur
ing the last year, however, we sold prop
critics that cost us 1889; "a of these sold
| at some profit; 10 sold at a loss; the net
loss on these sales was S1S6, O39. 40, due prln-
| cipaly to that incurred on three pieces
| which came to us from some loans made
| many years ago upon properties the condl-
| tions of which changed unfavorably after
| ward. In this connection it will be of inter-
est to state that during the year the Insur-
| ance Commissioner 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 foreclosed
real estate remaining after deducting the
sales of that on which the loss was made
as above noted at $349, 1929 less than its
cost AS his valuation is but an estimate
| and we have sold several pieces since at
considerably more than his estimate, and as
our whole experience in these matters has
shown that such valuations have been no
| guide to the outcome, we have made no
| change on our books further than to take up
as possible future loss the item of $349,-
| 1929 as liability under the head of Con.
| tingent real estate depreciation account, y
thus giving practical present effect TO loss
which may or may not be incurred.
We shall pursue the same course in our
present real estate which has given us good
results in the past: hold until local condi-
tions favor sales at fair prices.
The only bonds on which interest is in de-
fault are those of the City Of Galveston,
payment having been suspended in conse-
quence of the flood of 1900. The city's liza
| bility is unquestioned.
REDUCTION OF DIVIDENDS.
One Of the principal events for us in
the past year has been the decision of your
| Directors that in consequence of the condi-
tions which have been progressively devel-
| oping for the past ten years and more it
was no longer expedient to draw so heavily
| on post Accommodations of surplus in order 10
| maintain the high scale of dividends to con-
| form more nearly at least to the present
| ability to earn surplus. Since 1858 we have
used current accommodations and have also
| drawn upon the then surplus to very large
amount in order TO postpone as long as
| might be any reduction in dividends. The
| principal cause of our inability TO earn as
| much surplus as during the years from 1881
TO 1898 has been the slow but steady de-
crease in the rate of interest realized on
investments, which would have caused a
much earlier reduction of dividends, as
was the case with other companies. but for
| the economies practiced in the management.
The circumstances of this reduction, which
has been foreshadowed in our reports for
several years, are set forth in full detail in
a communication addressed to our policy
holders which is being placed in in their
hands for their full informatio 1t is, there
FORE not repeated here except to say:
while we have always striven, and al
ways shall strive, by every legitimate
means, to make the current cost as small
as possible, we must never lose sight or
the fact that insurance which is not Sc
cure is not worth paying for; and that.
while we strive to make il cost as little as
| may be. we must be certain to make
it cost enough to keep ii Individually Sc
| cure against all foreseen contingencies in
| cident TO business and to the investment
of funds during long periods of time
cit is proper. under the circumstances, to
| repeat: the Company's business continues
to be conducted upon the same legitimate
lines and by the same standards which have
| made its long history a mutual life-insur-
ance company a record unequaled in bene-
| fetal results TO it's members and benefici-
| aries The same conservatism, prudence
| and uneQdaled economy are maintained; and
its condition warrants the assertion that it
| will be able to utilize to the full all future
| conditions favorable TO the earning of sur
| plus: while in the contribution of il your
| directors will always have In view the two
fold purpose: to make the annual payments
of policy holders as small as possible. and,
| in any event. to carefully and certainly
maintain that strength which has always
been one of its distinctive features"
EFFECT OF INTEREST.
In this connection IL may be well to call