Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1868-07-19

dends, as 3 set-Oft againt the body OF the
! contract itself 1t msy be assumed, how
ever, that with the youngest companies,
at least, the premium cannot be collected
IS promptly SIS with the older and
wealthier Offices. II has grown TO be
custom to accommodate the customers
| by taking payment of the cash portion
OF the premium in notes at short dates,
| payable with interest and it is urged
| that this course facilitates business, and
induces a large amount of insurance that
would not otherwise be effected. But
Mr.. Barnes inclines to the actual cash
basis of the business, and desires to see as
far as practicable the assets represented
capable of conversion Into money or
the legal tender currency OF the United
States"
The table exhibiting this Illustration
shows for our New York State cOmpa-
MES q percentage OF unrealiZed total
assets " varying from So 65 per cent. at
the highest, down to $50 per cent. as
the lowest. OF the established cOmpa-
MES the Mutual Life of New York and
the Equitable show by far the largest
proportions of assets realized.
The all cash premium companies
have necessarily the advantage in this
comparison.
Tracing the several companies OF this
State in the order of their incorporation,
and specifying the features Of their "char-
tered privileges" and bylaw" provi-
sions, Mr.. Barnes remarks OF the fore
most and largest company of the cOuu-
try, the Mutual Life of New York, that
this company, whose organic alton, like
that OF the Equitable in England, marks
the substantial establishment of modern
life insurance in this country, was incOr-
poTsted in 1912, by special act of the
Legislature, before the adoption of the
constitution of 1916, which prescribed
general acts of Incorporation. Only two
amendments Of its charter appear upon
the statute books for period OF twenty
six years." and referring to the bylaws,
the SUPERINTENDENT states that thirty
two bylaws, Us revised on the 18th day
Of May, 1865, constitute the corporate
statutes winch govern and regulate the
affairs of $1,000 pOlicy-hOlders, and over
s25. coo, 900 cash assets. These internal
laws have been worked out by the eXpe-
Renee Of a quarter Of a century, and by
the receipt, custody and payment OF
many millions of dollars, aud by BUSH
ness intercourse aud contact with over
8 quarter Of \ million Of different persons
in this and other States.n
The large increase in the business Of
life Insurance. during the past year is per.
haps better indicated by the new busi-
ness of two of the leading companies
than by a reference to long columns OF
figures.
Tue new business Of the Mutual Life
and Equitsble combined. for 1867, was
nearly 80, 600 policies, and the cash re-
ceipis of the two companies being nearly
SI4 OOO 000
Having compared the Initiative action |
OF the " Mutual Life" in this country to |
that Of the Equitable" in England, Mr. |
Barnes. referring in regular order to tue |
" Equitable Life Assurance Society Of the |
UUiJed States" says that
This corporation can be said to mark /
and distinguish the commencement OF /
the recent astounding progress in the !
business Of Life Insurance. At the time /
of its organization in 1859, only six life |
insurance companies existed in this |
State, or, calling the New York Life aud |
Trust a nominal life insurance company, /
the number wss FIVE, VIZ: The u Mu- /
tual, C2) New York, 49, United States, a. |
Manhattan, t5) KniCk cocker. Odiy |
the Mutual and Manhattan were issuing /
new policies exceeding in number one /
thousand per annDm. The act organic,
ing the Insurance Department had been
passed at the preceding session Of the /
but did not go into effect IN
til the succeeding January. Six years
had elapsed since the passage Of the act |
entitled AN act to provide for TIE incOr-
pOratiOn OF life aud health Insurance
and in relation 10 agencies Of
such companies passed June "A, 1853,
aud not one life or health insurance COM
pany had been incorporated under its /
very liberal and accommodating pro-
yisiong.
1.-THE Equitable was The first company
under this act, and already |
over score Of others have followed lie
example.
"The capital stock Of this company
was fixed at one hundred thousand dol |
lars, upon which The stockholders re-
ceive only legal interest Of seven Der
cent, paysbie semi-snnuslly."
II is within our knowledge to state that
not alone does the " Equitable" mark |
aud distinguish a. an epoch the modern
advance of life insurance in the United
States, but that the vigorous action of
the Office impelled that advance, pro-
polling forward the companies that pre-
coded it and drawing up sfterit the COM
Danies that followed its organic alton.
Witness that, whereas at its orgauiza-
lion tine two most advanced offices only
were issuing over one thousand policies
a year, the Equitable alone in 1857 issued
10, 527-iusurlng the full sum OF S45 453.-
40. The accumulated assets OF the
now amounting 10 81, 900. 600
g Individually equal 10 the setusI assets
)f the five companies which preceded il
1t the time of its organization 1850,
and the actual income Of the Eoultsble
1OW exceeds that of the whole five at
hat period.
Referring to the scheme 50 earnestly
urged recently by Eiizur Wright, Of
and few other Kindred
'pirits, for the creation of a National
Bureau OF Insurance st Washington, Mr..
Barnes very apply says:
Z" An abOrtive attempt in the pretend
d interest of polieyhOlcers has been It
,ently made at Washington by 3 small
OF the life insurance companies
II the Union, 20 Wrest from the several
states their legitimate and coustitu-
ional functions OF supervision and con-
rol over the subject OF life insurance, !
md under the mantle Of the Federal .
government and the machinery of an ,
association OF companies, TO aggregate 1
o themselves all supervisory powers I
md jurisdiction, with the right 10 issue
Of authority for every State q
q the Union except that in which !
ompany is incorporated. Undoubtedly 5
III companies by their boards Of diree- I
ors, aetuaries, suditors, stock holders I
nd pOlicyhOlders, should annually, at :
esst, examine audit and regulate their q
and affairs ia the hest possible O
manner; and if ell or a portion Of the b
ompanies choose to associate them C
elves together for this purpose the pub
c will not object TO any such vouehing {
y all for each individual company but L
uy system OF seii-supervisi0n by the Z
themselves, or by their q
wn officers, setusries or appointses,
oWeyer srtfully disguised, viii not be