Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-10-25
OUR INSURANCE COMPANIES
How Life Insurance Is Managed in
w this Country.
The Equitable Assurance Society Of
the United States.
Exhibit at the End of its First De-
From the New York Post.


Exhibit at the End Of its First De
- cade.
from the New York Post.
The Equitable Life Assurance So
ciety ofthe United States, which Ia
recently- completed its first decade,
nOwereeting fine granite building a
the eorner of Broadway and Ceda
street, iu which it viii hereafter con
ductits rapidly-growing business
Within this brief period il has accu
mulatedt assets TO the amount Of tel
millions of dollars, and acquired al
annual business greater by many mil
lions than that of all the leading lif
INSURANCE companies of Great Britain
combined. The system of life insur
anee, when properly conducted, /
only another Of our modern realiZa
tiOns Gf what were once considered tn
extraVae9nt dreams of old philosophy
Its Theory is the extension of the pow
er OF human life, and just egualiza
tion ofprOperty among those who par
take of its benefits. A number Of mel
combine to pay yearly, or at shorte
periods, small sum each, TO cOns1
tute fOnd out of which the repre-
santatiVes OF each deceased member
shall receive a stated larger sum. The
imulutable lax nf averages determines
the number who viii die within q
given period, and the amount that
each should pay 10 render the opera
ton absolutely safe. The Individual,
by securing 70 his family and depend
euts viii mathematical certainty the
full pecHniary support which would
result to them were his seiive life re-
aliy thus prolonged, does efiectuaily
extend his life 10 the average duration
of mankind, and acquires for them
the actual benefit of a lust equalization
"a property. Ten years ago but little
euterprise was displayed in the busi-
ness OF life insurance, but the orlgina-
tn,s OF the Equitable, fOTeseeing the
popularity which must invest the sys-
feTn uf.elI conducted upon more libe-
raj principles, and when better under
stood, determined to establish COM
pany upon the broad ideas which they
conceived should be the foundation OF
such an institutiOn-the e0nEdenee OF
The pullic in men whose establiEbed
reputation and skill offer the highest
cy1iaraatee tor the safety of sacred
trusts, and a plan OF insurance on
which ali of the profits of the business
should be equitably divided among
the assured. Am institution thus es-
tablished would be in fsct only nlu-
fual benevolent society, in which the
Interests of all were identical, and
such il Was determined should be the
character Of the Equitable.
The first Difficulty 10 be overcome
was The serious one Of raising a stock
of one hundred thousand dollars,
which the then recently enacted in
surance laws of the State required to
be deposited as sJcIrity for the pay
ment Of losses. This having with diff
,9culty been partly effected, an attempt
va, fnade at some Of the numerous
Drelirf iyisrs meetings which were
held. 10 divide a portion Of the pro-
fits of the business among the stock
holders-a pzGpOsitiOn which was
promptly dsfeated, though at the
sacrihceofa a large amount OF the Origi-
nsI subscription by the withdrawal OF
parties TO whom legal interest on tiifiE
money WAS not a sufficient cOnsidera-
tion. Mr.. Henry @. Marquand the
zyelI known banker, had the honor OF
completng The subscription, WHICH
bv advancing at his own risk the re-
ouired balance. Strong efforts were
also made 10 establish the company
up2n a note basis, which were also sue
ressfQlly opposed, a. the OriginatOfs
of the society strenuOuSly objected to
Uhat thes, believed the inherent de-
se.cts OF this system. In efiecting the
formal organization OF the company,
the Hon. William c. Alexander, son
OF Dr. Archibald Alexander, Of Prince
ton. New jersey, was elected presi-
dent. Mr.. Alexander was chosen for
the great influence of his name and
personal reputation, and his high
lnOral and business characteT. 1t was
a fortunate selection; no man could
have been found who cOmbined these
qualities to greater degree. sir.
Henry b. Hyde, OF this city, was
elected vice-president. Mr.. George w.
Phillips. a gentleman now widely
known as one of the first insurance
experts in the country, was chosen as
the Mathematician and Actuary of
the Company. Mr.. James W. Alex
auder became the secretary Of the So
ciety, and these four gentlemen are
ats present officers.
The new company commenced Ope-
rations at g. Broadway, in rooms of
exceedingly mOdeEate dimensions,
syjth two small lads as its force of
clerks, and at an annual expense 81
Tess than Eve thousand dollars for sal
aries Of officers. clerks, and rent OF
rooms. It's first policy Was issued on
the I'D day Of July, 1883. it 8as for
ten thousand dollars; the person iG-
sured is still living, and the policy Is
still in force. The business OF the two
years Immediately succeeding was
moi extraordinary; bat with that of
1862 began that remarkable progress
in which the figures of insurance
rolled up in a9 almost geOmetrical ra-
ito from 3, Sj3, 40 insured in that
wear 10 81. .S9I ,s25 INSURED in 1868, and
(which advanced the Society in the
brief space Of siK years from seventh
En rank among American companies
Tor amount of new business done, to
be the second, and at present writing
possibly the first Insurance company
iu The world. These figures belong to !
the o4ficial history Of insurance, and
may Neli be termed astounding. The
single fsrlofu pOlicy-hOlder OF 1853 Is
nowFbuts 0nefOf an immense army, 1
dHg f5sODSpsd strong, whose ranks are I
constantly swelling by the addition OF
new recruits to the number OF thOH- 4
sands annually. and the two youthful I.
clerks are represented by corps of
over fifty carefully-tEained assistants, !
who are now required 20 transact the /
daily routine business OF the company. 4
A large room, closely crowded with !
desks, is the department Of the city
soliciting-agents, OF whom there are
some fifty regularly authorized and
appointed. Their entire time is spent
among the business men Of the metro
nDlis. and their mission Is to induce
HUSBANDS and fathers to insure their
lives. IN addition 20 these, there are
in the principal cities Of the United |
States and Canadas thirty-fve branch |
offices. each Gi which is complete In |
itself, with it, corps OF travelling 4
agents and clerks, and employing sub 4
agents In every village and hamlet in /
the eOuRtry, 10 the aggregate number 1
Of several thousand. These are to the I
Equitable what both hands and tongue |
arg 10 the body. They ar e managed 7
nv aC0mmittee Of the eOmpany's diFee- /
tor. Though whom all appointments |
are made. Ibe standing OF applicants js /
iuvestigaud, changes recommended, I
agents. ACCOUNTS scTutinized, and ac- /
zion taken in all cases where agents /
have not proved satisfactory. The \
1.ommittee now consists Of the fOiloW- !
inc geDtIemen: James NJ. Halsted, /
President Of American Fire Insurance 4
Co: Thomas :, Young, Of II. ;. Young /.
& Co: Moses A. ItoppOck, OF M. a. /
Itoppock d Co.; Henry ;, Terbell, OF
II. s. Terbell 4 Co.; Charles J, Mar
fin. President of Home Fire Insurance
Co: Thomas A. Cummins, Everett
House, y. !,
The medical department is under
the direction Of Edward Lambert, M.
D.. and Alfred Lambert, M. D., as
sisted BY the distinguished surgeon,
DIR. Willard Parker, as consulting
physician. This is evidently one Of
the most important departments OF
the society's business. The best in /
surance compsnies do not issue policies !
on impained lives, yJt how can they
protect themselves rom loss by fraud |
or bad Judgment, when applicants i0r |
insurance are scattered all over the /
country and are numbered by tens OF
thousands? This is effected by the |
admirable system of the medical de-
partment, and its careful arrangements |
IOr economy and safety. In the hfsf /
place, no application for insurance
from any quarter is pass ed, no mat
-. L,,.rr "a lalxv raFanrfaa until tho Il