The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1905-02-04

of them will die that year, the COM
pany will pay out s1,2490OO. or IL per
cent. of the amount at risk in the.
fOrtieth year 4,41S will be living, with
$44, 10000 at risk, 265 will die, the COM
pany will pay out $2.65O.OOO, or about
6 per cent. of the amount at risk; in
the fiftieth year there will be Ito
living, with s17,7OO,OOO at risk, 2SO will
die, the company will pay out $780,
900, or IL per cent. of the amount at
risk; in the sixtieth year only PIG will
be living. with $2,160,OOO at risk, So
will die, the company will pay out
1900, or about 80 per cent. of the
amount atrisk. But the mortality which
in the sixtieth year of the business
calls for 80 per cent. of the amount at
risk is just as normal and just as
favorable to the company as that which
in the first year called for only eighty
four one-hundredths of 1 per cent;
and if the company has charged the
proper premiums and kept the proper
reserves it is just as well prepared to
pay the 80 per cent. as it was to pay
the eighty-four one-hundredths of 1
per cent; and if the business was well
selected and well located, the chances
for amortality more favorable than that
calculated for, with consequent saw
ing on losses, have been equally good
all the way through.
No amount Of forcing at whatever
cost can always keep the inflow of
new business greater than the outgo
of the old. In the nature of things the
day will inevitably come with any
company, when its amount at risk
must come to practical standstill and
the age of its business. and the con-
sequent ratio of it's death losses to the
amount at risk, reach the maximum
average. In that day the greater the
amount at risk and the higher the cost
at which it was obtained, the greater
will be the struggle and the higher the
cost Of keeping it at even a stand
still.
Securities. ~.
The corporate securities held by us
are of the highest class. Their par
Nth4ut 10 qAoyouliVtVy lllSyS 1Ools 1AOtOopy-
116 and are worth in the market $685.
694,41S, or $1,009,S02r more. than their
cost and 81, 333,34S more than their par
value. The year 1908 saw an almost
unprecedented shrinkage in the market
value Of such securities, that upon our
own holdings aggregating $4,000
The past year has seen a large re-
covery toward what may generally be
regarded as an average normal valua-
ton. Some Of our securities affected
by the shrinkage have been sold; the,
recovery on those still held is over
$4,000. '"e" 49,
Real Estate and Loans.
One of the most remarkable, as 1t
was the most unforeseen incident of
the financial history Of the last two de-
cades, has, been the changes wrought
in the conditions affecting the values
of city real estate, caused mainly by
the development of street car service
Before the advent, Of the electric troll
ley living at a distance from business
centers was difficult and expensive.
Population tended to gather compactly
iii their near proximity. It spread on
" as it was forced outward by the
spread Of business. This tended to
both increase and steadfness in values
and to certainty in their realization.
Today the electric street car with it's
speed its comfort and its accessibility,
the free mail delivery and the tele-
phone, have largely reversed the con-
ditions and are leading the population
to spread out freely in search Of space,
light, air, more privacy and cheaper
land. The older settled parts Of most
of our larger cities thus find them
selves in an active competition which
can be met only by reduction in
prices which but a few years ago were
| justified by every measurable condition
then In sight. For obvious reasons
this great change has caused indivi-
dual losses which have led to many
foreclosures Of loans justifably made
under former conditions of higher and
, supposedly stable values, and the dull-
ness of the real estate market, due In
some part to the continued operation
of the changes noted, has in many
cases compelled the lender to become
the owner of the security.
| In all this experience this company
has had its share along with others.
1t now has foreelosed real estate
which cost it $S,67S,5ss. This is being
gradually absorbed; some at a profit,
some at loss. Among our liabilities
we carry an item for contingent de-
probation of about sS50,000. We in
| tend to make no unnecessary sacri-
| fees. So far our profit and loss ae-
count on foreclosed real estate as a
whole is $1,S6S,943 to the good.
In our present more limited loans
upon this class of property we are TAX
ing such account Of the conditions re-
ferred to as we believe will guard
against future repetition of past ex-
| periences.
| Notwithstanding the conditions
which have changed and unsettled real
estate values in many localities, and
which are still in progress, it may well
be that when they. shall have become
| more completely developed and their
Operations more fully defined and their
| inherent limitations better understood,
| real estate, on the, resultant basis Of
values, may recover much of it's for
| mer favor, especially in view of the
growing difficulties in obtaining out of
the great flood Of corporate securities
those of a thoroughly conservative
character and for which the future de-