New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-02-16


Poughkeepsie, Jan 6, 1869.
what we understand OF the Bulletin referred to,
printed in THE TRIBUNE every Tuesday morning. s that
the North America Life Insurance Co make certain de-
posts OF securities in the Insurance Department at Al
bany under law of the State authorizing such deposits
and for which the Company receives from the Depart
ment Registered Policies Of Life Insurance to be issued
TO persons nsuTng their lives with that Company In
such amounts they may require. These policies ike
the National Bank notes. state their face that they
secured 10y pledge OF public stocks and bonds and
mortgages" By reference to tho Bulletin for this week
we find that the Company have deposited s525OOO and
that the amount OF the Registered Policies issued
this deposit IS $780, and that tho required to
be deposited s45,7S9 showing surplus Of si92ll
At the first blush We confess it seemed to us
paradox how $757So could secure $l3,2l3,3SO, but
on reflection and little application OF
what knowledge we possess Of the principles
governing life Insurance. 1t might under certain crcum-
stances be ample for that purpose. This deposit OF
Si75sg is what is termed in life insurance the "reSere
that sum OF money, aud the accommodating interest
thereon, which, with the premiums TO be paid and their
interest accumulation, Will pay all the policies they
may from time TO time mature the death OF the
Insured We're all to die within the space OF year.
within any other short space of tmesay two three
years. or even ten years-t is evident the reserve
would not be sufficient But such an occurrence would
be entirely out OF the common course OF events affecting
alike any system of life yet devised. Perhaps
no science has reached higher degree Of exactness
tnan that which applies the laws relating to the
vitality Of the human family in civilized COM
munities to the purposes OF life insurance. The
uniformity in the operation OF these natural laws Is
less certain than curious. Ont OF given number OF liy
ing personsa number large enough course to secure
the working Of the laws OF ayeIage-t be determined
with absolute certainty how many will die within given
period. IL follows therefore, that any given SUN OF
f.ae ha co. of I'm
aed persons they may under the operations OF these
natural laws frourtime time die. This understand
TO be Life Insurance Now asked to say what We
know OF the Registry Of Policies at Albany. For has In
formation simply have to say that what is termed the
" reserve "a deposited at Albany instead Of being
IN tho vaults Of tho Company IN Eew-YOrk. 1t
seems to us mere question Of safety. Are the in
vested funds of a Life Insurance Company safer in
the custody OF State officials, properly guarded by
statutory provisions, than in the custody Of the
managers Of the companiesi We Will not express
opinion, lest hurt the feelings OF many very good
men connected with such institutions IN this City and
elsewhere but wo will say that easily conceive
how the funds Life Insurance Companies may be In
jeopardy Funds invested IN such securities al
lowed by law to deposited at Albany are put beyond
tho handling of anybody There they are ana
there they must remain or so much as may be
necessary until every obligation bearing the State sgnet
IA fully satisfied. We understand that these securities
DO Cfchnrged Ol IIhO
but not otherwise. one point IN this question
has been suggested 10 lie "a bearing upon the
matter Of extravaganza conducting the business,
aud the danger to be npprehended from
unwarrantable dividends Of supposed surplus
Competition IN this business IS extremely sharp, and
10 promote business Is To be feared that too much may
be raid for tho whstietlat with high commission and
brokerage and other expenses nothing will be left for
the reserve" As we look upon the registry deposit
system IA company required TO mako the legal deposit
would have enough for both deposit and eXtravagant
expenses In ths view Of tho case 1t seems to MS that
law requiring deposit OF securities measured by somo
legal scientific standard, would be very proper one
Life Insurance Companies ask from the public measure
OF confidence beyond any other corporation for the Keep
Ing VI money policy OF Life Insurance Is con
tract FOR lifetime. demanding the part OF the Insured
All annual payment deposit during his entire life.
without the right to withdraw Il dollar should his needs
demand or confidence DO shaken as TO tho sovency
OF s Company except sacrifice OF very large por'
ton OF his deposits not all. 1t does seem to Us that
the public have n claim Tor some security beyond that
now ordinarily given by our Life Insurance Companies
Editor Tribune