The daily morning journal and courier., 1904-02-10
Fifty-eighth Annual Report
 OF THE
 CONNECTICUT Mutual Life Insurance
 Company.

railway systems, with corresponding though much lighter shrinkage in the prices of their mortgage securities.
 In only one point was The Connecti- cut Mutual affected by these events, in common with all investors in securities of the highest class The present mar ket value of it's corporate and munich pal securities shrunk during the year about s770,0O0 on a par of $25,5S6,570, costing $25, ,9O6, ,461, with a present mar ket value of s26, ,S39, ,694. Of this $99, ,4sO. 25 is in bank stocks; $729,616 in railroad stocks (S250,OOO of which is held as col lateraD which have changed little; the s25, ,077. 1884 of bonds are of the best class for security, and having as a rule many years to run, more favorable market conditions are likely to restore more or less of former higher prices; but mean time the apparent gross assets and sur- plus are just so much less than if prices had been maintained throughout the year.
 General Results.
 The Company's experience for the year 1903 in the several other features incident to it's business may be briefly stated as follows: An increase in it's premium Income; an increase in inter- est income; an increase in net assets; the usual persistence in it's policies; an increase in the business in force; the same low rate of expense as in 1902; a mortality loss very considerably less than that expected, with a saving thereby of s4s2.510; a decrease in the holding of foreclosed real estate of $77S,- 92091. The details of the years opera tions 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 true ideal of mutu- al life insurance company; 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 with stand by the one or overcome in the other.
 The death rate inevitably varies some what from year to year and that for 1903, while very. favorable, was some what less So than in 1902 The care with which our risks are selected and the healthful character Of the limited territory in which we operate have giv- en us very favorable experience throughout our history and are the req .sonable assurance of it's continuance.
 Investments.
 The additions and improvements upon the Home Office properties have been substantially completed. We have a building which for durability conven- fence and attractiveness as a business structure, is nowhere surpassed and is proving good investment at it's 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 pub lie on more or less attractive represen- tations, the market for real estate has remained in the quiet state into which it then fell. During the last year, how ever, we sold properties that cost us s8sS,3S9; 54 of these sold at some profit; 15 sold at loss; the net loss on these sales was $186.039.49. due principally to that incurred on three pieces which came to us from some loans made many years ago upon properties the conditions of which changed unfavorably after- ward. Tn this connection it will be of interest to state that during the year the Insurance Commissioner of Con- necticut 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 re- maining after deducting the sales of that on which the loss was made as above noted, at s349, ,742.39 less than it's cost. As his valuation is but an esti- mate and we have sold several pieces since at considerably more than his es- innate, and as our whole exeprience in these matters has shown that such val nations have been no guide to the out come. we have made no change on our books further than to take up as a pos sible future loss the items of $349 742 .39 as a liability under the head of ''Con- tingent real estate depreciation ac- count" thus giving practical present effect to loss which may or may not be incurred.
 We shall pursue the same course with our present real estate which has given us good results in the past; hold until local conditions favor sales at fair prices.
 The only bonds on which interest is in default are those of the City of Gal weston, payment having been sus- pended in consequence of the flood oi 1900. The eity's liability is unques. toned.
 Reduction in Dividends. One of the principal events for us ir the past year has been the decision oi your Directors that ill consequence oi the conditions which have been pro. lgressively developing for the past ter years and more, it was no longer expe dient to draw so heavily on past accu. mulatiens of surplus in order to main, tain the high scale Of dividends whicf has obtained since 1881, and that i was expedient to reduce dividends t conform more nearly at least to tn, present ability to earn surplus Sine.
 1898 We have used current accumula tions and have also drawn upon th,