Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-02-06
FINANCIAL.
Fifty-eighth Annual Report
OF THE
CONNECTICUT MUTUAL LIFE
INSURANCE COMPANY.
To the Members:


nominal values prices of the stocks of the rail
way systems. with a corresponding though much
slighter shrinkage in the prices of their mortgage
securities
In only one point was the Connecticut Mutual
affected by these events in with all in
vestors in securities of the highest class. The
present market value of Its corporate and NUM-
cpal securities shrunk during the year about s'Io
OOo on a par of s25,5s6.57O costing s25,so6, 46i.
with a present market value of $40. ,69i. OF
this 500 % is in bank stocks; s729,G16 in rail
road stocks $3.50 600 of which is held colatera
which have changed little: the S25 OF 1884 of bonds
are of the best class for security, and having
rule many years TO run. favorable market
conditions are likely to restore less of
former higher prices; but meantime the apparent
gross assets and surplus 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 its business
may be briefly stated as follows: An increase in
Its premium income: increase in interest In
come; an increase in net assets; the usual persist
in its policies; an increase in the business In
force; the same low rate Of expense as in 1902;
mortality loss very considerably less than that ex-
pected. with saving thereby of s4s2,51O; a de-
crease In the holding of foreelosed real estate of
$T13,92O.91. The details of the years operations
will be found in our financial statement.
That We have been able TO maintain tradi-
tional 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 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 COM
panies, very difficult to withstand by the or
overcome in the other.
The death rate inevitably varies somewhat from
year to year and that for 1908, while very favor
able, somewhat less than in 1902. The
with which risks selected and the
healthful character of the limited territory in
which operate have given a very favorable
experience throughout our history and the
sonable assurance of its continuance.
INVESTMENTS
The additions and improvements upon the Home
Office properties have been substantially completed.
We have a building which for durability. conven-
fence. ard attractiveness as a business structure is
nowhere surpassed and is proving good invest
ment at its cost.
Ever since the panic of 1893, and due in
part also to the food of stocks and bonds of
pOrate enterprises of all sorts Of quality since
offered to the public on more less attractive
representations. the market for real has
manned in the quiet state into which it then fell
During the last year. however. sold properties
that cost ssSS.3S0: 81 of these sold at some
profit: 10 sold loss the net loss on these sales
s1s6 OS9 49, due principally TO that incurred on
three pieces which came TO us from some loans
made many years upon properties the condi
lions Of which changed unfavorably afterward. In
this connection 1t Will be of interest to state that
during the year the Insurance Commissioner Of
Connecticut has made the examinatio Of this COIN
pany required of him by law every four years, in
the of which he valued the torecloscd real
estate remaining after deducting the sales ~ that
on which the loss was made as shove noted at
S349 742 80 less than its cost As his valuation IS
but an estimate and have sold several pieces
since at considerably than his estimate, and
as whole experience in these matters has shown
that such valuations have been guide to the
outcome. have made change books
further than to take up as possible future loss
the item of $780, 2-39 liability undo. the
head of Contingent real estate depreciation ac-
count thus giving practical present effect to
loss which may 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 local conditions favor sales
fair prices.
The only bonds which interest Is in default
those of the City of Galveston. payment hav-
ing been suspended in consequence of the food of
1900. The city's liability 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 conditions which have been
progressively developing for the past ten years and
more It was no longer expedient to draw heavily
past aceumulations of surplus in order to main
tain the high scale of dividends which has OBJ
tanned since 1881 and that 1t expedient TO re-
duce dividends to conform more nearly at least to
the present ability to surplus. Since 1898
have used current Accommodations and have also
drawn upon the then surplus to very large
amount in order to postpone long might be
any reduction in dividends. The principal cause
of inability much surplus as during
the years from 1881 to 1898 has been the slow but
steady decrease in the rate of interest realized
Investments. which would have caused a much
earlier reduction Of dividends. the with
other companies. for the economies praeticed
in the management
The circumstances of this reduction which has
been foreshadowed in reports for several years.
set forth In full detail iu a communication ad-
dressed to policy holders which being placed
in their hands fn- their full information. 1t is,
therefore, not repeated here except 10 say:
while We have always striven, and always shall
strive, by every legitimate MEANS to make the
current cost small possible. must never
lose sight of the fact that insurance which is not
secure is not worth paying for; and that while we
strive TO make 1t cost little as may be- we
must b. certain TO make It cost enough to keep 1t
Individually secure against all foreseen eontngen-
cies incident to business and to the investment
OF funds during long periods of time
1T is proper under the circumstances to repeat:
the Company's business continues TO be conducted
,tuon the same legitimate IInac and h, H. ....u