The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1870-05-31
rCommunicatec
Communicated.
An IMPORTANT LIFE INSURANCE nm.
TERPRIEE.
The Life Association OF America.

our remarks IN preceding article
were suggested by a consideration of
one of the most important enterprises
with which we are acquainted; namely
the Life Association of America; and
as a sequel to these remarks, it may
not be out of place to furnish a few of
the facts connected with this remark.
able institution:
1. In June. 1868. one hundred of
the prominent business men of st.
Louis, having become fully impressed
with the injury to Missouri industry
which was being wrought by the an
nual withdrawal to the East of three
or four million dollars of working
capital. for life insurance purnoses
united IN an effort to check what they
regarded as'an evil. They organized
the Life Association. On purely mu-
tual basis; creating the necessary cap.
ital By each insuring in the sam of
ten thousand dollars, thereby provid-
ing business of one million dollars
insurance, and an annual revenue of
between seventy and eighty thousand
dollars at the very outset.
2. The officers of the Association
| at st. Louis invited the prominent
business men of the other cities of
the West and South, to Join in the
movement. The response to this in
vitation has been glorious. In every
| leading Western and Southern State
the leading men have identified them.
selves with the enterprise. Chicago
throwing Oh her prejudice against ST.
| LouIs-torms a branch with no less
than one hundred and ten of her
most wealthy and influential citizens.
each of whom has taken a $4,000
policy, as required by the charter of
| the Company. Louisville falls into
line with some seventy or more of
/ the leading mercantile men of that
city; Memphis starts with fifty: New
| Orleans with one hundred and fifty;
aud so on all through the West and
South. Nor is this all. The most i'm
portsnt Eastern cities are seeking rep
resentation In the movement' We
understand that between one and two
hundred Of the heavy bankers and
merchants of New York have already
signihed their intention of becoming
trustees for the Association, and q
branch is being rapidly organized
there, while the good old city of Bal
timore is already numbered among
the most successful departments OF
the Institution. The Life Associa-
ton IS only twenty-five months in
| existence. nevertheless its business is
greater than that of many of the
companies ten years old. 1t has
issued policies to the number of seven
thousand, covering more than fifty
millions of Insurance. It's annual
revenue exceeds two million dollars.
This seems almost impossible, but it
is vouched for by the highest author
ity in this country.
3. The plan of the Association
which has produced for it such a re-
| markable measure of success, is, sub
stantially, as follows: Each State is
formed into Department, which is
virtually a local Company, and the
management of its business placed in
the hands of number of we'll known
citizens, who are elected annually,
| by the local policy holders. These
gentlemen are called the Department
Board of Directors, aud among their
duties is the very important one
| OF increasing In each district,
that portion of the assets which
belongs to the people of the district,
or, in other words. all of the premium
receipts not required to pay current
expenses and losses. All these De-
partments or local companies are
combined together for mutual protec
ton and proper strength, and man
aged by general Board of Directors
at st. Louis. This board embraces
the President of each Department or
State company. thus giving each an
equitable share in the administration
| of the general business.
1t will be readily seen that this plan
secures to each State the advantages
of a home company, and thereby
/ keeps the capital among the people,
to whom it belongs, and in addition.
it secures to each individual policy
holder the security of large capital,
and the economy consequent upon a
large and prosperous business.
1t affords US much pleasure to
chronicle the success of this enter
prise, because it appears to us a death
blow to the present system of con
| Quoting life insurance business, which
is not only luxurious to the industry
of the company, but is absolutely
dangerous and against public policy