The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1869-10-21
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Our Insurance Companies.
How Life Insurance is Managed
in this country.
The Equitable assurance Societies
of the United Sfa'es.

Exhibit az abe End of iis i,si D,cad-.
The Equitable Life Assurance Society OF
the United States, which has recently COM
peted its first decade, is now erecting a fine
granite building at the corner of Broadway
and Cedar streets. in which it will hereafter
conduct Its rapidly growing business. Within
this brief period it has accumulated assets W
the amount of ten millions of dollars, ana ac-
quired an annual business greater, 6y many
millions than that of the leading lie hisui
ance companies of Great Britain cohioiie ,
The system of life insurance, Wneh ProPefN
conducted is only another OF our mooetn re-
alizations of what were once considered tue
extravaganza dreams of Old phllosophy. Its
theory IS the extension OF the power OF hui
man life, and just equalization of property
among those who partake OF its benefits. A
number of men combine TO pay yearly, or at
shorter periods, a small sum each, to consii-
tute fund out OF which the representatives
of each deceased member shall receive a stat
ed larger sum. The immutable law of aver
ages determines the number who will die
within given period, and the amount that
each should pay to render the operation abso-
lutely safe. The individual, by securing to
his family and dependents with mathematical
certainty the full pecuniary support which
would result TO them were his active lie re-
ally thus prolonged, does efectualy extend
his life to average duration of mankind and
acquires for them the actual benefit of a lust
equalization OF property. Ten years ago but
little enterprise was displayed in the business
OF lie Insurance, but the originators of the
Equitable, toleseeing the popularity which
must invest the system when conducted upon
more liberal principles, and when better un-
derstood, determined to establish company
upon the broad ideas which they conceived
should he the foundation of such an institu-
tion-the confidence OF the public in men
whose established reputation an skill Offer
the highest guarantee for the safety of sacred
trusts, and plan of insurance on which all
OF the profits of the business should be eqnita
bly, divided among the assured. An institu-
ton thus established would be in fact only a
mutual benevolent society, in which the in
1erests Of all were identical, and such it were
determined should be the character of the
Equitable.
The first difficulty to be overcome was the
serious one OF raising stock Of one hundred
thousand dollars, which the then recently en-
acted insurance laws of the State required to
be deposited as security for the payment O
losses. This having with difficulty been part
ly effected, an attempt was made at some o
the numerous preliminary meetings which
were held, to divide portion of the profits O
the business among the Stockholders prop
osition which was promptly defeated, though
at the sacrifice OF large amount of the orig
inal subscription by the withdrawal of parties
to whom legal interest on their money was
not sufficient consideration. Mr.. Henri,
g. Marquand, the well-known banker, hac
the honor OF completing the subscription
which had finally been increased to $S5, 600
by advancing at his own risk the required bal
ance. Strong efforts were also made to es
tablish the company upon note basis, whicl
were also successfully opposed, as the orieina
tors OF the society slrenuOusly objected Il
what they believed the inherent defects O
this system. In effecting the formal organic
alton OF tue company the Hon. William G
Alexander, son oil DR.. Archibald Alexander
~ "rinceton, New Jersey. was elected Presl
dent,
Mr. Alexander was chosen for the great in
fuence of his name and personal reputation
and his high moral and business character
1t was fortunate selection; no man could
have been found who combined these Quail
ties to greater degree. Mr. Henry B, HYDE
Of this city, was elected Vice President. MIR
George w. Phillips, gentleman now widel,
known as one of the first insurance experts in
the country, was chosen as the Mathema
tician and Actuary of the Company, Mr.
james W. Alexander, became the Secretar,
of the society, and these four gentlemen are
present officers.
The new company commenced operations
at 92 Broadway, in rooms of exceedingly mod
crate dimensions, with two small lads as il
force OF clerks, and at an annual expense O
less than five thousand dollars for salaries q
officers, clerks, and rent of rooms. Its first pol
icy was issued on the 23d day of July, 1885, /
was ten thousand dollars; the person insured
is still living, and the policy is still in force
The business of the two years Immediately sue
ceeding was not extraordinary; but with tina
of 1862 began that remarkable progress il
which the figures of insurance rolled up in al
most geometrical ratio from S2,S5345O ipsrr
ed in that year to $51 ,S91 1926 insured in 1865
and which advanced the society in the bre
space of six years fIom seventh in rank amone
American companies for amount of new bust
ness done, to be the second, and at present
writing possibly the first insurance COMPANY
in the world. These figures belong ia
the official history of insurance, and NAV
well be termed astounding The single for
lorn policy-holder of 1859 is now but one
immense army, fifth thousand strong, whose
ranks ale constantly swelling by the add
ton of new recruits to the number of thou
sands annually, and the two youthful clerks
are represented by corps Of over fifty care
fully trained assistants, who are now REQUIRED
to transact the daily routine business of the