The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1869-10-22

49,
directors at New York, three are the officers
and directors of the society, and the rest are
tried and experienced clerks, held strictly ac-
countable for every error, omission, or defect
of any kind. One huge volume is shown con-
tanning record of applications for policies
by persons apparently in good health, which
have been approved by physicians, but rejec-
ted by the rigid rules of the society. The
number of these cases is very great; only those
beirg placed in this book which have been APP
proved by agents and others, and coming be-
fore the officers and directors for final action,
are rejected. OF the many thousands reject
ed by medical examiners, no record is kept.
We are not unprepared, after this, to learn
shat the mortality among those assured in the
Equitable is very small-much less in reality
than is called for by actuarial tables Another
important fact in this connection is the large
average amount of its policies, which is great
er than in any other company in the world,
and which has an important and not very re-
mote bearing upon the low rate of mortality.
But what becomes of the millions of money
which this great financial agent accumulates?
How is it managed, and how invested? The
care of such resources is sacred trust, which
demands the exercise of the greatest financial
ability and integrity. Science has determined
how much money is required for company
safely to carry its risks. To render insurance
absolutely secure, this money must be secure
y invested, and some competent authority
must exist to ascertain and give publicity to
this fact. Such authority is provided by the
laws of the States of New York and Massachu-
sets, in the 'Superintendents of Insurance."
who annually examine into the affairs of
every company transacting business in these
States, make a mathematical calculation of
the value of their policies and the condi-
ton of their finances, and wind up the
affairs of any company wanting in any par
ticular, and transfer its business to some
sound institution before real damage u
The directors of the Equitable
were not satisfied with the external safe
guards of official control, and its internal
has been invested with an ad-
mirable system of checks. Its funds are first
under the direct care and supervision of the
finance committee. consisting OF six of the d.
rectors, besides the President and Vice Presi-
dent This committee now consists of the fol-
lowing well-known business men: Robert
Lenox Kennedy, President National Bank of
Commerce, New York. chairman; John
Auchincloss, of John and Hugh Auchincloss;
VIM. G. Lambert, of George c. Richardson &
Co.; Hon. Dudley S. Gregory, Jersey City,
N. j.; William T. Blodgett, New York George
D. Morgan, SO Exchange place, New York.
Their duties are by no means merely NOM
nal. Regular meetings of the committee are
leld every two weeks, or oftener and no in
7estments, loans, changes in investments, or
,ther transactions relating to the finances of
he company, are made without first passing
lnder their scrutiny and approval, and de
.ailed report oftheir action is read four times
each year to the full board CT directors for its
ratification. All applications for loans upon
zeal estate are required to be made in writing,
and are placed upon record. The value of
The property is appraised by experts, and the
result is submitted to the Finance Committee,
who also satisfy themselves of the value yet
he largest part of such applications are re-
ected.
Every security held by the company is
registered, and its abstraction or destruction
would involve no loss whatever, yet in add
ton to these precautions, the bylaws of the
society require, at the end of every year, the
appointment of the board of directors of a
fiscal committee, to which no member of the
nance committee may belong, and whose
luty it is to examine the assets of the society
md report to the board of directors. They
Examine every security, open every bond and
mortage, investigate every loan, and ascer-
ain by absolute personal scrutiny that there
S on hand every dollar of money which the
books of the company call for. The follow
ng gentlemen served last on this committee:
Samuel w. Torrey, New Jersey; John ].
Donaldson, President National Bank of North
America; Hon. Bennington F. Randolph, New
Jersey; Thomas A. Culnmins, late of Cum
nins, Seaman & Co.
But might there not be error or fraud in
he keeping of the books and accounts them
selves, which finance and fiscal committees
would be powerless to prevent? To provide
lgainst this the bylaws require that there
hall be committee on accounts, which shall
meet at least once month and examine ev-
ry charge, every receipt, or other voucher,
md every credit, and 60 through all accounts
in detail. This committee consists of Hon.
B. F. Randolph, of Jersey City, chairman;
Manson Trask, of A. & A. G. Trask; John
T. Moore 291 Broadway, N. u; Samuel W.
rorrey, New Jersey; John Sloane, of W. 6
J. Sloane.
The possibility of loss by fraud or by the
payment of claims neither legally nor equita-
by binding upon the company has been pre-
vented by the establishment of another i'm
)ortant committee on insurance, whose duty
s to examine all losses before they are paid.
There are many cases where losses have been
lain, but which honor and good faith requir-
ID to be met. Such cases were disposed of
lpon the principle of equity, and with full
of the claims and interests of
living policy-holders. The Insurance Com
nittee consists of the following named gen.
lemen: Peter McMartin, 1853 Fifth avenue,
Thomas U. Smith, of Smith, Hen
y & Sheffield; Daniel D. Lord, of Lord, Day
& Lord; John Slade, of John Slade & Co.;
Edward W. Lambert, NJ. D., $50 Sixth ave-
lue.
A society conducted upon such system as
he Equitable, jusLiies the assertion CT De
Morgan, 'that there is nothing 10 the COM
nercial world which approaches even remote
y the security of well-established and pru-
lently managed life assurance society,""
The Branch Office of the Equitable in this
,ity IS located at No. 3 Cahoon Block, up
tairs, and is under the direction of DIR.
BENJAMIN COLBY, the Society's General
Agent FIR Maine. DR.. Colby is we'll known
throughout the State as thoroughly ener-
,etic and reliable business man. Under lis
lble management the affairs of the Company
lere have been eminently prosper Gus and its
arge business steadily increasing.
The Aged Broiherhood.
This association of venerable men perfected
permanent organization last Tuesday, by the
choice of the following officers:
President-Oliver Gerrish
Weeks, William Duran, N. G. Rice, Osgood
Bradbury, Eli Webb and John Neal.
Secre.di y-Charles Baker.
Treasurer Elisha Trowbridge