The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1870-05-12
Life Association of America.
From the Baltimore Sun, May 81
LIFE INsURANCE.
An Important Home Enterprise

On Monday afternoon large and In
fiuential meeting of bankers and busi-
ness men was held at No. ID South
street, (over the Franklin Bank, } for the
purpose of organizing the Maryland
Department of the Life Association OF
America. This corporation was organ
lied two years ago by one hundred OF
the leading business men of st. Louis,
and already occupies leading position
among the financial institutions Of the
country. 1t is based on the same scien-
tific principles as the other prominent
life companies, but has for its distinc-
tive object the breaking down Of the
insurance monopoly so long enjoyed by
older States. 1t is shown that this
monopoly is becoming exceedingly inju-
rious 10 the industry of the country.
BY its insidiOus operation an immense
amount of active capital is drawn from
lis natural channel every year, and
locked up in q few cities. 1t appears
that our own State suffers to the ex-
tent Of about three million dollars an
nually The plan of the Life Associa-
ton is to organize a local company in
each State, and to associate all these
organizations under the general man
agemcnt for the sake of strength and
economy.
The business of each local Company
or Department, as it is termed, is prose
cuted under the supervision of resident
directors and trustees, 10y whom its ac-
cumulations are invested within the
State This secures to each section
Use Of its own capital, and at the same
time affords superior protection against
the fraud and corruption which is too
often found in the management Of great
financial monopolies
1t appears that several weeks ago
some fifty or sixty of our prominent cit
izens had agreed to qualify as trustees of
the Association by each taking out
policy of ten thousand dollars, as requir-
ed by its charter, but owing to some
charges Of mismanagement which have
been made against it, they decided to
send a committee to st. Louis, where
the principal office is located, to investi-
gate matters before completing the or
ganization or recommending it to our
people.
At the meeting on Monday this com
mittee submitted the following
REPORT.
BALTIMORE, May %, 1870
Robert T. Bald'0u, Esq, President-
Sir: In accordance with a resolution
appointing q committee to investigate
the condition and standing of the Life
Association of America, adopted at a
meeting of certain citizens of Baltimore,
who propose organizing Department
for Maryland of said Association, held
on the 9th day Of April, 1870, the I'M
dersi gned committee visited s.. Louis,
at which city the principal Office OF the
ASSOCIATION is located, and having spent
four days there in performing the duties
with which they were charged, respect
fully submit the following
REPORT
As the result Of their labors:
First-The testimony, received
through disinterested and altogether re-
liable sources, convinced us that the
character OF the gentlemen connected
with the Association in St Louis, and
to whom It's management is directly en-
trusted, is far above the average char .
acter of the managers of other financial !
institutions in that city, both as regards !
integrity and ability, and also success in
financial and commercial pursuits. The
mode OF acquiring this information is |
more fully described in the general |
memoranda hereto attached.
Second-A personal examination of
the account books of the Association, I.
including its policy registers, ledgers, /
journals and cash book, fully satisfies /.
us that the statements Of its financial |
condition and of the large business it is |
transacting, which have been published .
and submitted to our citizens from time
to time are entirely correct Every /.
facility which we could desire for prose
cutting our investigation was afforded Us
by the officers and employees Of the As
sociation, and many matters Of interest /
TO which our attention had not been |
directed were voluntarily pointed ont. ,
We were agreeably impressed with the |
frank manner in which our inquiries
were responded to, and the total alb
sence of reserve in all matters touching |
the condition and status of the Associa-
ton. The matters Of detail connected /.
with this part of our investigation are .
set forth in the annexed memoranda of /
particulars.
Third-GOur committee gave special ,
attention TO an examination of the sew
eral charges of mismanagement, etc,
which have been made against the as
two insurance periodicals, especially the
Spectator, of New York and Chicago. \
detailed list of these charges with the
result of our investigation into them,
will be found i'll the accompanying |
memoranda. From this it will be seen
that every one of these charges are ut
terly false and groundless. and their
existence can only he accounted for
upon the supposition that they were
made by unscrupulous persons acting
in the interest of other like corporations
made jealous by the signal success of
the association.
Fourth-The information relative to
the actual working of the plan of the
association, derived from our investiga-
ton, affords abundant evidence that it |
is entirely practicable, and that its de-
partmental system is safe, healthy and
conservative in its operation. This sys-
TEN is substantially the establishment
of local life insurance company in
each State, under the supervision and
direction of prominent citizens, and the
combination of all these companies for
security and economy under one general
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