New-York tribune., 1905-02-09
FJFTY-NINTH ANNUAL REPORT
OF THE
CONNECTICUT MUTUAL LIFE
INSURANCE COMPANY.

outlined: Some increase In the new business writ
ten. in the of business in force. In premium
income in interest and rents in assets and in sur
plus; somewhat heavier mortality than in the
preceding year. though still considerably less than
that expected. giving saving OF s2S2S23. with no
outstanding contested claims; a considerabl de-
crease in the amount and cost Of fo-eclossd real
estate; a recovery in the market value OF other
securities of over s576OoO against the shrinkase
OF about $4,000 in 1905: reduction in the ratio OF
expense to income; sound condition throughout
The company continues in that steady. fuH tide or
benefcent operation which has for so many years
distinguished it among all others. by administra-
tive methods which hold always one grand object
in view: maximum of result to It's benehciarles
at minimum OF cost to its poiicy-holders' each
and all
All details will be found in the financial state
ment which accompanies this report
An Interesting Summary.
4 summary of the operations Of hfty-nine years
may be stated thus: Received from pohcy-nolders'
1882 159 26iS 80; returned to polcy-holders and ther
beneciaries. 1924 1853 4SSeS. or s5s22iSS more tha
the amount received from them: with assets IN
hand of S65 224 s1.5S and a surplus OF S4sZSoSoo4
with which to meet liability, actual and contlh-
gent. of $50 14S9 sS7675l500 at risk on 'o4o4
policies Except the possible case Of some society
or concern with only local and slight membership
no comparable results have been accomplished OS
any other American life insurance company
Persistence Of Business
As for many years past most gratifying feat
ure Of experience has been the persistence OF
our business. 1t has been no small factor IN tne
company's prosperity. Business which goes on
rapidly can be replaced rapidly only at an unoue
cost Business which stays costs little, and per-
mits the taking of business sufnclent 1or
uniform good experience at such moderate cost as
does disturb the favorable average 1haI Is
one of the simple secrets of The Connecucut Mu-
tuaTs unequaled success.
New Business: Its Character and Cost
The ,avv brsinass os the vesr somewhat. exceeded
that 1903, and also exceeded the amount OF ousi
ness ceasing; that there was some increase III
the amount in force. The new business was Sc
Iected with our usual constant care to take only
such risks likely to give the same ravoraole
mortality experience which has been so large a
factor in reducing the actual yearly cost OF our IN
hitherto and il has been taken on the same
low basis of cost which has been directly rehecteo
in large dividends to policy-holders throughout
the conpany's lifetime.
To the faithful agents who in the midst of a
thoroughly demoralized competition. and despite
the always pressing temptation OF mucn msner
commissions and allowances from others. choose TO
abide steadfast in service because OF its greater
value to those whose need they sincerely seek TO
serve. there is due alike from the management and
from the policy-holders benefited thereby, the dis
tinct and constant recognition of the high. un-
selfish quality Of their labor for the greater good
of the whole membership
Relation Mortality New Business
The public Is often given 10 understand tnal- as b
large and rapid influx of new business tends for a
time to keep down the average age of the business
as a whole, and so make the death losses appear
a smaller percentage of the whole amount at risk.
it really gives comparatively better mortality ex-
perience and therefore justihes its abnormal cost
This is not true. 1t bellies the whole basis and
structure of life insurance 1t is worth moments
examination
Take 10000 sound men. aged 80 insured for $4,000
each. $lO0 OOOOO0 altogether We know within safe
until all are gone; charge each the premium
adequate to meet that rate OF loss. and from the
only s. will die, the company VIII pay out Ss4oUo
or or & 9ny AT s tweT y later az there w
be $50 Of these men living. with ss18O0oO0 risk
pay out 24eoOo 19s per cent Of the amount at
s44 $50 900 at risk 265 win die. the company will pay
out ST. $50 900. or about per cent OF the amount at
with S77o0 600 at risk go will die the company viii
pay out $4,000 13 per cent Of the amount at
s5I55ooo at risk s. win die. the company win pay
risk But the mortality which in the sixteth year
of the the business calls for 80 per cent OF the
lnrabIs to the COMPANY as that which in the first
year called for only elghty-four one-hundredths OF
proper premiums and kept the proper reserves. It
is just as well Preparef 70 pay Ine 81 per fent as
per cent and if the business was well selected and
vorabe Than that calculated for with a consequent
saving on losses have been equally good all the
way through
No amount Of forcing at whatever cost al
ways 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
it's amount at risk must 70 practical stand
still and the age OF its business. and the consequent
ratio of its death losses TO the amount 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 standstiu.
Securities.
The corporate securities held by US are OF the
highest class Their par value is Us s61 Ou; they
cost SIS SIS, ,116 and worth in the market
se6 694 AIS or s.O09 SO2 more than their cost and
81 SS3 34S more than their par value. The year 1903
saw an almost unprecedented shrinkags in the
market value of such securities that upon our
own holdings aggregating $4,000. The past year
has seen a large recovery toward what may gen
@ ry % 0 o securities It an aected by the sSrnfs
have sold; the recovery those still held is
over S076.0OO
Real Estate and Loans.
One Of the most remarkable as IL was the most
unforeseen incident OF the financial history OF the
last two decades. 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
lev living at distance from business centres was
difficult and expensive. Population tended to
gather compactly in their near proximity. II
spread only 1t was forced outward by the spread
of business This tended to both increase and
steadiness in values and 10 certainty in their
realization To-day the electric street with its
speed its comfort and It's accessibility, the free
mail delivery and the telephone have largely re-
versed the conditions and leading the popula-
ton TO spread out freely in search Of space, light
air more privacy and cheaper land The older set
tied parts of most OF our larger cities thus find
themselves in active competition which can be
met only by a reduction in prices which but few
years ago were justified by every measurable con-