Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1870-02-12

ness of insurance. The Examiner would lead
you to believe that over 81 900 policies had
terminated during the year, on 81 900 of
which nothing had been returned. Now let us
look at the facts found in the last Massa
chusetts report, of all the policies which had
ever been in force about 5000. terminated
during the year of 1868, on which there was
at risk Sl55. 100000. The payments on these
terminated policies was as follows;
Death Claims. sll,475,8
Cash paid on Lapsed and Sur
rendered Policies, 1,240, 900
Premium Notes held assets,
cancelled on Lapsed and Sur
rendered Policies, 2,572974
Total Amounts paid on termi-
mated Policies, 1925, Sll
or nearly % per cent. of the amount at risk on
same. The total amount at risk in all the
companies doing business in Massachusetts,,
was 81 sec, sol 500. The total amount of re-
serve which these companies are required by
law to keep on hand to meet their accruing
liabilities was Sli0 900, 2S9, or 8 per cent. of
the amount at risk. This amount as have
shown. was actually paid on all the policies
terminated, and thus one of the strongest
points by which the Examiner proposes to for
tify his position, is found untenable, for no
such profit or reduction of liability, without
corresponding reduction of assets, has been
made as he would have you believe.
Mr.. Chase explained to some length the
reasons of the small percentage of death
claims, which was owing TO the fact that
four fifths of all the policies in force had been
taken within the last six years, and that it
would take between thirty-three and forty
years for the losses by death to equal the in
come; after that period the losses would
largely exceed the income. Mr.. Chase sup
ported his position from such eminent author
tiles as Wright, Sanford. and others.
In regard to taxation, Mr. Chase contrasted
tie unfavorable view taken by the Examiner
as to the prosperity of the Insurance business
for the past year, with the congratulations of
Mr.. Barnes of New York, on the same sub
ject, in recent report, in which he states
that these institutions should be fostered and
encouraged by appropriate legislation.
The Examiner places great reliance upon
the authority of Mr. Barnes, Superintendent
of the New York Insurance Department, and
shall be guided by the conclusion to his able
consideration of this subject, which was given
/ as follows:
'.The question on this whole subject must
sooner or later be narrowed down to single
inquiry,-that of interstate Justice and Com
ity as between the different States of the
State cupidity, or jealousy, can ever be per-
manently forced upon the American people.
We are to constitute one vast consolidated
and homogeneous Republic, not a confeder-
acy or cougeries of States, always fighting
each other and the general Government. 1t
will not long be tolerated by the people of any
State that for the purpose of protecting, at
their expense, local and personal interests of
rival and competing corporations, the free and
| honorable competition of the citizens and
companies of other States should be interdict-
ed. By giving all Insurance companies fair
field for business and competition through all
the States of the Union, subject, however, to
the most rigid system of personal inspection
and examination, and Annual Statements of
their condition and affairs, the rates of pre-
MUM will be kept down to the lowest standard
| of safety, and those companies which best
subserve and protect the public interests,
wherever located, will obtain, as they always
should, the largest and most extensive pat
ronage. State Insurance monopolies will al
WAYS enhance premiums and lessen security
| in any great conflagration. Whatever may be
thought of Free Trade, as between foreign
nations. there cannot surely be any doubt that
Free Trade from the Atlantic to the Pacific
should be the established rule of Legislative
policy throughout the Republic. The miner
4
and should not leave his mines of silver and
gold, to organize an Insurance company
where the margin of profit is small and where
a score of years is needed to build up an es-
tablished and steady business. The regener-
ated cotton planter of the Mississippi, the Sea
Islands and the Gulf States, when his broad
acres are blessed with the wilderness of bios
soming beauty, will not leave the wealth and
riches spread out before him with each re-
turning Spring, for the dark office of the
Underwater where only the sacrifice and de-
votion of a lifetime, even under favorable
auspices. can obtain a marked success and
prosperity. 1t is natural, and not to be
| deprecated, that the older States,-where the
avenues to immediate and sudden wealth are
less numerous, and where capital has been
accommodating for many years, and old COM
panies are reaping the fruits of long expert
ence ,-should assume leading position in all
departments of Underwriting. This natural
and necessary sequence affords no just ground
for jealousy or envy iii the younger States, or
for the erection of Chinese walls of seclusion
and non-intercourse. In the fullness of time
if other financial schemes do not afford supe-
rior inducements, domestic and home Insur-
ance Companies will be organized to the full
satisfaction of the people in all the States"
If this was sound advice to the Legislature
of New York, it ought to have some weight al
the present time. Mr.. Chase claimed thai
the rand increase of Life Insurance, and the
vast accumulation CT the life companies hat
began to excite the averice of men unac.
quainted with principles upon which THU
great structure of beneficience were based
and urged the most careful consideration O.
the members of the Legislature, before in
creasing the burdens of those who seek pro
lection in these institutions, which have
proved their benefcient character by the dis
iribution up to the present time, of nearly
S55 600, 90 to widows and orphan children.
He closed his remarks by giving the follow
ing quotation from Mr.. Sanfords report tt
the Massachusetts Legislature in 1867, show
ing at the same time the strong contrast wit
recommendation of men acquainted wit
this business, and the Insurance Examiner Q
Maine: