The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1869-10-22
OUR
Life Insurance Companies.
How Life Insurance is Managed
in this Country.
The Equitable assurance Society
of the United STATES.


The Equitable Life Assurance Society of
the United States, which has recently COM
pleted its first decade, is now erecting a fine
granite building at the corner of Broadway and
Cedar ST.. New York, in which it will hereafter
conduct Its rapidly growing business. Within
this brief period it has accumulated assets to
the amount of ten millions of dollars, and &C
CURED an annual business greater by many
millions than that of all the leading life insur-
ance companies of Great Britain combined
The system of life insurance, when properly
conducted, is only another of our modern re-
alizations of what were once considered the
extravagant dreams of old philosophy. Its
theory is the extension of the power OF hui
man life, and a just equalization of property
among those who partake of its benefits. A
number of men combine to pay yearly, or at
shorter periods, small sum each, to consti-
tute fund out of which the representatives
of each deceased member shall receive 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 lille re-
ally thus prolonged, does effectually extend
| his life to the average duration of mankind, and
] acquires for them the actual benefit of just
equalization of property. Ten years ago but
little enterprise was displayed in the business
| OF life insurance, but the originatorS of the
! Equitable, fOreseeing the popularity which
must invest the system when conducted upon
| more liberal principles, and when better I'M
derstood, determined to establish a company
| upon the broad ideas which they conceived
should be the foundation of such an institu-
tion-the confidence OF the public in men
whose established reputation and 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 equita-
bly, divided among the assured. An institu-
tion thus established would be in fact only
mutual benevo lent society, in which the in
terests of all were identical, and such it was
determined should be the character of the
Equitable
The first obstacle 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 of
losses. This having with difficulty been part
ly effected, an attempt was made at some of
the numerous preliminary meetings which
were held, to divide portion of the profits of
the business among the Stockholders prop
osition which was promptly defeated, though
at the sacrifice of a large amount of the orig
inal subscription by the withdrawal of parties
to whom legal interest ON their money was
not q sufficient consideration. Mr. Henry
G. Marquand, the well-known banker, had
the honor Of completing the subscription
which had finally been increased to $4,000,
by advancing at his own risk the required bal
ance. Strong efforts were also made to es-
tablish the company upon note basis, which
were also successfully opposed, as the origina-
tors of the society strenuously objected to
what they believed the inherent defects of
this system. In effecting the formal organiz-
alton Of the company the Hon. William c.
Alexander,son ofDr. Archibald Alexander, of
Princeton, New Jersey, was elected President.
Mr.. Alexander was chosen for the great in
fiuence 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,
- -. o:xx
Actuary and Mathematician of the company,
Mr.. Geo. W. Phillips, gentleman now widely
known as one of the first insurance experts in
the country, was selected for his peculiar tai
ents, he having years before carried off the
honOrs of his class in mathematics at Har-
ward. Mr.. James W. Alexander, became the
Secretary of the society, and these four gentle
men are its present officers.
The new company commenced operations
at 81 Broadway, in rooms of exceedingly mod
crate dimensions, with two small lads as its
force of clerks, and at an annual expense OF
less than five thousand dollars for salaries of
officers, clerks, and rent of rooms Its first pol
icy was issued on the 23d day of July, 1863. 1t
was for ten thousand dollars; the person insur-
ed is still living, and the policy is still in force.
The business of the two years Immediately sue
ceeding was not extraordinary; but with that
of 1852 began that remarkable progress in
which the figures of insurance rolled up in al
most geometrical ratio from $2,S53, $50 insur-
ed in that year to S51 ,S91 1926 insured in 1868,
and which advanced the society in the brief
space Of six years from seventh in rank among
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 to
the official history of insurance, and may
well be termed astounding. The single for
Torn polcy-holder of 1859 is now but one of an
immense army, fifty thousand strong, whose
ranks are constantly swelling by the addi-
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
company.
A large room, closely crowded with desks,
is the department of the city soliciting agents.
of whom there are some fifty regularly au-
thorized and appointed. Their entire time
is spent among the business men of the me-
tropolis, and their mission is to induce hus-
bands and fathers to insure their lives. In
addition to these, there are in the principal
cities of the United States and Canadas thir-
ty-five branch offices, each of which is COM
plete in itself, with its corps of travelling
agents and clerks, and employing sub-agents
in every village and hamlet in the country, to
the aggregate number of several thousan nd.
These are to the Equitable what both hands
and tongue are to the body. They are man
aged by committee of the company's direc-
tors, through whom all appointments are
made, the standing of applicants is investigat-
ed, changes recommended agents accounts
scrutnized, and action taken in all cases
where agents have not proved satisfactory.
This committee now consists of the following
gentlemen: James NJ. Halsted, President of
American Fire Insurance Co.; Thomas S.
Young, of T. S. Young & Co.; Moses A. Hop
pock of M. A. Hoppock & Co.; Henry S.
Terbe of Fl. S. Terbell & Co.; Charles J..
Martin, President of Home Fire Insurance
Co.; Thomas A. Cummins, Everett House,
N. Y.
The medical denartment is under the d.