Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1870-07-12
Staunto1t Spettatur.
Tuesday, july f2, 1870.
Virginia Insurance Companies

The leading feature of the "Virginia Lift
Insurance Company is, its being a thorough
Southern Institution-both in organization ant
management-and its principal object is to re
tain and invest at home a portion of that vas
amount of money which annually flows from
the South to the North for insurance premiums
It is fact patent to all, that since the war
nearly two million dollars per annum are SEM
from Virginia to the North to pay such premi
ums, to be used there during a life time, fol
investment in mortgages upon real estate, and
for the general development of their CONNER
cial and manufacturing interests. Strange it is
that we should allow this yearly drain upon oul
State when we are so m UGH in need Of money
at home! When, because of our scarcity OF
money, farmers, mechanics and merchants have
to pay exhorbitant interest to carry On their OPP
erations; and when we have it in our power to
prevent this large abstraction of capital by the
simple means of encouraging our home institu-
tons, by insuring in Virginia Companies AL
ready crippled in our financial condition, disas-
trous will be the ultimate influence upon our
prosperity should we permit this drain to con-
tinue from year to year.
Northern companies will point You to their
millions of dollars of assets; they will talk to
YOU of their greater security because of these
large assets but they are careful MOTTO tell you
how enormous their liabilities are 1t may not
have occurred to you that with Life Insurance
Companies assets consist Of the accumulation
of premiums; and that each dollar Of premi-
paid into the treasury represents corr ','
ing amount of floating policies, t. -0spono-
tons which exhibit the lare~ 'os0 'oi poi"
sets, have necessarily tn, s' a'nouD'
o.o,5;n ,,ol;o;o. Largest number of out
.nrom;oos - which are equivalent to
An iud;-. pay or liabilities. 10 illustrate
sor .,dual worth $500 is equally solvent tor
10. as the millionaire for half million
even so is that Life Insurance Company with
assets of $500, 900, and policies amounting to
SlOO. 600, as responsible as the gigantic instltu
tion with twenty millions of assets and ten mil
lions worth of policies However, neither as
sets or even capital are the only nor the mos
imnortant consideration in judging of the safe
tl and soupdness of the company. Ability ano
integrity in its management are first to be con-
sidered In taking out llte-pollcy you are
simply selecting trustees to hold and accumu
mulate the fund you are providing for your
family. Therefore, the Board OF Directors ane
other officers must first be closely scrutlnlzed
Bv selecting home company you Will be ike
" to know them: or if you do not, you can ca
sily ascertain all about them. If they are trust
ed and honored at home, where they are bes
known. you may safely confde your trust Int
their hands Looking at the question iron
this noiut. it is rather remarkable that W
should have more confidence in the ability, hon
or. and integrity of Northern men whom We d
not know, than of Southern men whom we q
know.
Much more can and will hereafter be said c
the vital importance to Virginians to encourag
their home institutions; yet for the present
we will only touch upon one argumentatlv
point, daily made by Northern Companies, t
prove the security of Virginia policy holder
by insuring with them, and this is the fact thai
in accordance with our State laws, they hav
deposited with cur authorities $4,000 in Win
GINA State bonds, worth about SIS, 600. Sue
deposit is 10 guarantee either for the safety
the policy HOLDER nor of the solVency of tn
Company; and as an argument it is simply r
diculous. il Is no security, because the risk;
taken by Northern Companies in Va, amour
to millions of dollars while, should Compa
ny choose to act dishonorably, this paltry $l5
900 would scarcely protect a single large policy
1t is no test of solvency because there is not
Life Insurance Company, no matter what il
conditions may be, that cannot make such dc
post out of its accumulation of premiums
money that does not belong to them but to the
policy holders.