The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1870-01-20
dbt adtekIp GIariau,
Our INSURANCE COMPANIES.
Ho,o Lys Insurance Is Managed in this
Country.
The Equitable Assurance society
of 1he United States.
EXHIBIT AT THE CLOSE OF TILE
DECADE.

The system of Life Assurance illustrates
how closely human ingenuity has realized in
these latter days the extrayagant dreams OF
the old philosophers. A large number of
men combine, to pay yearly, or at shorter
periods, a small sum each TO form fund out
Of which the representatives OF each de-
ceased member shall receive stated larger
sum. The immutable law of average deter
mines the number who viii die within a
given time. and afford a 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 fam
lily and dependents, with mathematical GER
tainty the full pecuniary benefit and sup
port which would result to them were his
active life thus really prolonged, and to re-
eeive the actual benefit of just equaliZa-
ton of property. The sudden and unpre-
cedented extension of the system is a re-
markable fact in the history of modern civ
ilization; in the difficulties encountered,
and the victories achieved in its origin and
development 1t rivals in interests the great
material triumphs which are SO constantly
the subject of our admiration. This Is re-
markably exemplified in the history of the
Equitable Life Assurance Society of the
United States, which has just closed its first
decade, rs cit marks and distinguishes,
says the Superintendent of the New York
Insurance Department, 1.-The commencement
of the recent astounding progress In the
business Of Life Insurance"
Ten years ago there were then but i've
life insurance companies existing in the
State of New York, and but two of these
were issuing policies exceeding one thou
sand In number per annum. Inc new In
surance Department of the State had just
been created by act of Legislature. Six
act for the incorporation of life and health
insurance companies, and not one, as yet,
had been organized under its liberal provi-
sions. But little enterprise, comparatively,
III fa1 T., h .
just the time for the advent Of a company,
which, by its liberal policy and vigorous
action, should inaugurate a new period in
life insurance, and such a company the orig
inators of the Equitable determined 10
found. Ten years ago, however, new COM
panies could not, as now, start suddenly
into full-fiedged existence, with magnificent
apartments and full corps of high salarled
officials. Indeed there was found great
difficulty In getting even 100000 subscri-
bed which the laws of the State required to
be deposited with the Insurance Department
as security, for the payment of claims,
difficulty not arising from any objection to
insurance stocks, which, in some companies
were known to be profitable kind of in
Vestment, but because it was determined
that in the organization of new company
its stockholders should receive but legal in
terest and that all profits of the enterprise
should revert to the policy holders. The
originators of the Equitable had also wisely
resolved to connect with the organization
only men of the highest character in bust
ness and benevolent circles, as is the stabil-
ity of the company, like that of a mechan-
zeal structure which is no stronger than its
weakest part, were to be dependent upon
the reputation of each Individual Director.
The difficulty of onlisting a sufficient
number of men of such character in a pro-
iect whose success was predetermined may
meetings were held by those who joined the
enterprise in its incipiency, and here strong
efforts were made to divide at least ten per
cent. of the profit among the stockholders;
against this proposition all further proceed
ings were promptly and successfully stated
the new company should exist as benevo-
lent institution for the benefit of the assu-
red, and not as a speculative corporation for
the beneIt of stockholders-or 1t should
have no existence at all. Parties favoring
such disposition of the profits thereupon
withdrew their names, and the subscription
which had reached the sum of $75, 900, rece-
ded to 100000. With great exertions this
sum was increased to about $4,000, and at
this point Mr.. Henry G. Marquand came to
the help of the struggling enterprise, adj
vancing one sum, the required balance. The
organization of the company was completed
by the election of Hon. w. q. Alexander as
President, Mr.. Henry z. Hyde, as Vice
President and George W. Philips, as Actu-
ary. All connected with the enterprise, and
none more promptly than the founder of the
societyihimself recognized the value of the
company OF MI AleAanQ0T name anu III
fiuence. He was descended from one of the
oldest families of Virginia, was the son of
the late Rev. DIR. Archibald Alexander,
Princeton, had presided over the Senate of
the State of New Jersey, and was widely
known and appreciated in the first social
circles and benevolent enterprises of the
country. He brought to the new society an
influence which would inspire confidence in
its stability, and in the Integrity of its aims.
Mr.. James w. Alexander, of New York
ct1hSannaptlU alQQtqd To the nOci- !
ton of Secretary, and was identified with
his associates in all those plans which |
have carried the Equitable to its unexam- |
pied height of prosperity.
There was a strong effort made when the |
company was in process of formation, to or |
ganiZe it upon the note basis; this project |
was defeated the officers Of the company |
being strenuOusly opposed to what they con-
sidered the inherent defects OF this system. |
1t was also determined that the society
should start solely upon its merits and not
upon a fictitious basis, such as magnificent
building alone would be. Rooms were,
therefore taken at No. 81, Broadway, at
low rent, and on ten years lease, another |
fortunate operation for the new company, |
as at the expiration of the lease the rate had |
advanced four fold; and here, with two
more bids for clerks, each upon salary or
one hundred dollars-bOth of whom now
perform important and valuable duties in
the company's service-with an expense for
rent and for salaries, of President Vice
President, and Actuary not altogether eX- /
ceedinC five thousand dollars, but without
dollar in its treasury, and WIN the lndlVlu-
nal credit of its Vice President pledged to
meet the premium on bonds deposited with |
the insurance Department. the new society
started on its career OF usefulness and hOnor'
Such beginning, in popular view,
might be considered by no means brilliant
one, and these details would possess an in
terest but for the contrast afforded in the
unparalleled success ofthe society at the close
of its first decade. 1t will be observed, |
however, that its foundations were laid in
broad and liberal principles, its primary
idea. the confidence of the public in men |
Sc whoestablished reputation, position. and
skill offer the highest guarantee that sacred
trusts win be safe in their hands; its plan
of insurance, the unusual one OF equitable
dividing all of the profits among the assu-
red. Upon such basis the Society prom
ised to be nothing less than grand mutual
benevolent institution, in which the interest
of all concerned, officers, stockholders, ana
policy holders. were indeBtical, and the ten
years career of the Equitable has abundant
ly justified such theory OF its organlza-
ton,
on the 23d day of July, 1859, the society
issued its first policy; it was for ten thou
sand dollars, the party insured u sun lNihg
and the policy is still in force. During the
remaining five months of the year, 211 poll
icies were issued, insuring $1,17S,OOO, and
atfording premium receipts to the amount OF
$ZofUO,Uto. Inc progress OF the Two Years
Immediately succeeding was not reularka~
bic, but with the business of 1862 began the
grand advance in which the figures of insu-
rance rolled up during each succeeding year |
in an almost geometrical ratio. The sum |
insured in 1862 was - S53, 450; in 1863, 81
sol, 9O0s in 1854 $S75S55Q; in 1865, Sl3,- |
71S'65O: in 1885, $30,O72450: in 1861, $45,- |
45a7OO In 1865, 81 SCI, S25! These astound- |
ing figures are still more striking as show
ing the relative rank which they gave the
ooS.,v,owvy uarh successive year. IN 1850 in |
amo11nt Of new, business, It was the ninth
among American companies in 1861 it was
the EIGHTH: in 1861 aud 1853 the seventh; !
i'm ls61 ana 1855. the sixth, In 1855, the |