Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1869-12-17
OUR INSURANCE COMPANIES.
HOW LIFE INSURANCE Is MANAGED
In THIS COUNTRY.
THE EQUITABLE ASSURANCE SOCIETY
OF THE
UNITED STATES.
EXHIBIT AT THE CLOSE OF IT'S FIRST
DECADE.

The system Of Life Assurance illustrates
how closely human ingenuity has realiz-
ed in these latter days the extravagant
dreams of the old philosophers. A large
number of men combine, to pay yearly. or
at shorter periods, q small sum each to
form a fund out of which the representa-
tives of each deceased member shall re-
ceive stated larger sum. The immuta-
BILE law of averages determines the number
who will die within given time, and af-
fords fixed and safe basis of calculation.
The individual is thus able, practically, to
extend his life to the average duration of
mankind, in securing to his family and
dependents, with mathematical certainty,
the full pecuniary benefit and support
which would result to them were his active
life thus really prolonged, and to receive
the actual benefit of a just equalization of
property. The sudden and unprecedent-
ed extension of the system is remarkable
fact in the history of modern civilization !;
in the difficulties encountered and the
victories achieved in its origin and de-
velopment, it rivals in interest the great
material triumphs which are so constantly
the subject of our admiration. This is re-
markably exemplified i n the history of
the Equitable Life Assurance Society of
the United States, which has just closed
its first decade, as ''It marks and distin-
guishes," says the Superintendent of the
New York Insurance Department, "the
commencement of the recent astounding
progress in the business of life insur-
ance."
Ten years ago there was then but five
life insurance companies existing in the
State of New York, and but two of these
were issuing policies exceeding one thous-
and in number per annum. The new In
surance Department Of the State had just
been created by act of legislature. Six
years had elapsed since the passage of the
act for the incorporation of life and health
insurance companies, and not one as yet
haG been organized under its liberal pro-
visions. But little enterprise, compare
lively, was exhibited in the business, and
it was just the time for the advent of a
company which, by its liberal policy and
vigorous action, should inaugurate new
period in life insurance; and such q com
pany the orignators OF the Equitable de.
termined to found. Ten years ago, how
ever, new companies could not, as now,
start suddenly into full-fedged existence,
with magnificent apartments and full
corps of high-salaried officials. Indeed,
there was great difficulty in getting even
the one hundred thousand dollars sub.
scribed, which the laws of the State re-
quire to be deposited with the Insurance
Department, as security for the payment
of claims-a difficulty not arising from any
objection to insurance stocks, which in
some companies were known to be q prof.
| liable kind of investment, but because il
was determined that in the organization Of
q new company. its stockholders should
receive but legal interest, and that ALI
PROFITS of the enterprise should revert e
the policy holders. The orignstors OF tht
ECU liable had also wisely resolved to con
nect with the organization only men of thu
highest character in business and benevo
lent circles. as if the stability of the com
pany, like that of mechanical structure
which Is no stronger than its weakest part
were to be dependent upon the reputation