The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1869-12-20

Our Insurance Conpnnics-TIow Life
Insurance Is Managed IL, ihis Coun-
try-Thc Equitable Assurance So.
ciefS ccihe Emitted dStntes--Exht5itn ni
f'e Ena Of las First Decade.
The Equitable Life Assurance Society O,
the United States. which has recently com
p!cted its first decade, is now erecting fine
granite building at the corner of Broadway
and Cedar streets, New York, in which it
viii. hereafter conduct IS rapidly growing
business. Within this brief period it has
accumulated assets to the amount of ten
millions of dollars, and acquired an annual
business greater by many millions than that
of all the leading insurance companies Of
Great Britain combined. =
The system Of life insurance, when pro-
perry conducted, is only another OF our mo-
dcrn rcaliZations Of what were once consi-
dered the cVfravagant dreams Of old phi
loSophy. lis '1"Ory is the extension Of the
power Of h.:1sn life, oud : just equalization
"i propeTtv among hose who Dartake of its
Dement'S. - ma: = OF men combine to pay
yearly, or at shorter periods. small sum
cach, TO cor >titute q fund oct Of which the
representatives Of each deceased member
shall receive stated larger sum. The i'm
mutablc law Of averages determines the
number who will die within a given period,
and the amount that each should pa~ TO relI-
der the operation absolutelysa safe. The indi-
vidual, by securing to his family and de.
pcndcnts with mathematical certainty the
full pecuniary support which would re-
suit to them were his active life really
thus prolonged, does efTectualiv extend his
life to the average duration of mankind.
and acquires for them the actual benefit OF
n Just equalization Of property. Ten
years ago but little enterprise was displayed
i'll the business Of life insurance. but the
originators Of the Equitable, orc>oeing the
popularity which must invest the system
when conducted upon m"re liberal piinci-
pies, and when letter Understood, deter
mined TO establish Ii company upon H.
broad ideas which they conceived Slsoulu
be the foundation Of such an institution
! the confidence Of the public in men whose
established reputation and skill offer the
| highest guarantee for the safety of sacred
trusts, and q plan OF insurance on which
al Of the profits of the business should be
cquitably divided among the assured. An
institution thus established would be in
fact only Il mutual benevolent society, in
which the interests 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 hun
dred thousand dollars, which the then re-
ccntly-enacted insurance laws of the State
required to be deposited as SECURITY for the
payment OF losses. This having with diff
Guilty been partly effected, an attempt was
made ut some of the numerous preliminary
meetings which were held TO divide p0l-
| ton OF the profits Of the business among the
Stockholders--a proposition which was
promptly defeated. Though 1T the sacrifice
of q large amount Of the original SubScrip-
tion by the withdrawal Of parties to whom
. legal interest on their money was not 4 SUI.
! tiricGt consideration. Mr.. Henry G. Nar-
uuand, the well-knoWn banker. had the
! honor of completing the subscription, which
! lad finally been increased TO So $50, by adj
yanCinc at his own risk the required ialaucc.
:>tron" efforts were also made TO establish
the company upon Il 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 etlecting the formal organ.
| iZatiOn Of the company the Hon. William G.
| Alexander, son OF Dr.. Archibald AlcXan.
der, Of Princeton. \. j., was elected prcsi.
dent. Mr. Alexander was chosen for tho
great influence of his name and personal
reputation. and his high morala and business
! character. 1t was q fortunate selection
no man could have been found who com,
bincQ these qualities TO greater degree
Dir. Henry J.. Hyde. Of this city, was elect
ed vice-president. Nh George w. Phillips
was chosen as the mathematician and actu
aly of the company. Mr. James W. Alex
ander became the secretary of the society
and these four gentlemen are its present
officers.
The new company commenced operation!
at 81 Broadway, in rooms Of exceedingly
m GIlnnnSinnG
as its force of clerks, and at an annual cX
lonSc Of less than iiFe thousand dollars fol
salaries Of officers, clerks, and rent ofrO0ms
lis first policy was issued on the 23d day q
.luly. 1859. II WAS for ten thousand dollars
the person insured is still living, and the
policy is still in force. The business Of The
two years Immediately succeeding was NO
extraordinary: but with that of 1862 bcgal
| that remarkable progress in which the
figures Of insurance rolled up Ill al
almost geom9trical ratio from - ,S53,
So insured in 1868, and which advanced
the society in the brief space of siS
years from seventh in rank among Amcri
can companies for amount of new business
done 10 he the second, and at present writing
possibly the first insurance company in the
world. These figures belong to the ottcia
history Of insurance, and may well he
termed astounding. The single lorlOrI
policy-holdrr OF 1859 is now but one Of IN
immense army fifty thousand strong, whose
ranks are constantly swelling by the aGdi,
ton Of new recruits to the number of thou.
sands annually, and the two youthful clerks
are represented by & corps of over fifty
| carcfully-traned assistants, who are now
required to transact the daily routine busi
ness Of the company.
\ large room, closely crowded with
desks, Is the department of the city solicit
ing agents, Of whom there are some fifty
regularly authorized and appointed. Their
entire time is spent among the business
men of the metropolis, and their mission is
to induce husbands and fathers to insure
their lives. In addition to these, there are
in the principal cities Of the United State>
and Cunadas thirty-1iye branch offices, each
Of which is complete in itself. with it,
corps of travelling agents and clerks, and
employing sub-agents in every village and
hamlet in the country, to the ug%re-
gate number Of several thousand. These
are to the Equitable what both hands
and tongue are to the body. They
are managed by committee of the com
pany's directors, through whom al ap-
pontments are made, the standing OF ap-
plicantS is investigated, changes recon-.
lncnded, agents accounts Scrutinized, and
action taken in all cases where agents have
not proved satisfactory. The committee
now consists of the following gentlemen
James NJ. Halsted, President of American