The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1871-04-18

IA W. dlut, Ebq', VI
of Insurance in conformity to the law creating
tho donort,nent will soon issue his first annual
-. .hov;no the condition and extent OF
ar ;nsuro .,ce business in Maine, and the
..ona,no and responsibility of the companies
occupying the field. The new system has
been received with general favor and has thus
far proved successful, as it provides greater Sc
curity against fraudulent and irresponsible
companies. No company from abroad is per-
mitted to solicit the patronage of our people
which shall not first prove its ability to meet
its engagements. In case of loss, the insured
has not to seek his remedy abroad, but the
courts of his own county provide the requisite
remedy and security. Companies Of doubt
site authority from the commissioner and have
Withdrawn from the State. The companies
doing insurance business or admitted into TINS
State prior to Jan. 1, 1871, are as follows:
Domestic or Slate Conspdnies-One mutual
life compapy: 8 stock marine companies;
stock ire marine companies; mutual marine
companies; "a mutual IRE, OF which ~ are
town companies
FOREIGN Companies Forty five life compa-
nes; accident company; GO fire and fire and
No exclusive marine company of another
State has asked to be admitted. The Mer-
chants Mutual Marine Company OF Bangor
has closed its business and retired, its risks
having been assumed by the Merchants Marine
Company OF the same place-a new Joint stock
company. The Maine Mutual Marine Compa-
ny Of Bangor has been organized during the
year, ashas also the National Insurance Com
pany of the same place., 4trra .gr-+
Since the first day Of January last six addi-
tional companies have been admitted, and nine
have withdrawn. The Home Co., of New
Haven, admitted to do business here on what
was thought to be good evidence of its sound
ness, has met most disastrous failure, BY
which many of our citizens are losers. Its
sudden failure brought to light the fact that it
had but $4,000 capital actually paid in. while
| in few years it paid out 81 .000, 900 in divI-
| bends, and that the company was deficient Of
i means even to reinsu.e the risks for which
they had received pay; The Great Western
| Mutual Life Co., had been found deficient in q
| reserved fund, but no loss has occurred on its
| account in this State other than partial one
Of premiums paid. s-.
Since July, when the law came in force, 1875
companies, foreign and domestic, have been
brokers' and 1857 agents' licenses have been
granted to 619 different persons, the former
paying So, and the latter 81 each, making an
aggregate Of S3,7H. Dedpcting the fees allow
etc., $2500 postage, stationary, etc., $115 80, q
net revenue to the State remains OF $11S1 A.
So that the department has proved source of
revenue. independent of all other benefits re.
sulting from its establishment
The statistics of insurance have been care
fully collected and are presented in numerous
and comprehensive tables, soo that the public
may see at glance, and at their own fresides,
the condition of each and every company.
The commissioner has had occasion, during
the year to pass upon the merits OF several
cooperative life Insurance. companies, with q
result unfavorable to their admission to do
business in the State. The plan of these COM
panies consist in the formation of the insured
into classes of 5000 or $500 memcers EACH form
ed according to age, upon the death of each of
whom, every surviving member shall pay the
company one dollar and ten cents; the dollar to
60 to the family of the deceased and the ten
cents to defray the expenses These are the
only payments required to support the policy
except an initiatory fee of 8 to Ii dollars and
an annual assessment of Of 81 or 50 more.
Another part of the plan 10 to fill all vacan.
cies caused by death or otherwise, by new
members # corresponding age; The great OBJ
lection TO the system is the almost total lack
of any legal obligation and security for the
payment OF the policy. The great maxim Of
the business is that those who live shall nav
the losses of those that de- decidedly bad
rule. The correct rule applied to life insur-
ance leads to a gradual accumulation of n find
during the life of the insured to meet the con-
tiDgency of his death. The commissioner aims
to show by figures and reasoning that the sys.
tenn is unsafe, detective and Elusive He is
also aware of the many defects of the life in
surance system as now existing, Among the
most prominent of these are the great exnansa
attendant upon its operation, and the unpro-
ductive termination, by other causes than
death, OF SO large proportion of all policies
issued by all the companies. The first Of these
eblectl0ns very plainly results in great de-
gree from the large number of companies COM
peting for the limited business to be done.
Unlike most other kinds of business comDe-
tition 10 this has the effect to increase insles
OF diminishing prices. The extra number and
pay OF agents the greater amount of salaries
and the thousand other concomitaut exnenses
arising out of the severe competition and can
wasting for risks, all 60 to swell the costs of in.
surance to such degree that it has come to be
almost true that losses paid are among the in
ferior items of expenditure. Could TIE whole
business be cOnfded to q few leading coDpa-
nies, q much more healthy, secure and I'M
queetionably cheaper system would ensue.
VI the other evil spoken of, the waste of life
insurance, as it has been called. few are fully
aware TO what an alarming extent it has gone.
1t is quite generally supposed that ali Life poli.
cles must ultimately be paid, or mainly 40 =
No superstition could be farther from the trnth
but on the contrary. the smallest fraction onIv
OIL aii me policies Issued ever mature by DEATH
Thls results not only from the large expense
attending the business, but from the fickiepess
OF hnman nature which draws man from the
continued pursuit of q particular object. Lii.
Insurance. snouId De looked upon as q tQx and
not as an isvestment @ fi ~ = :
The commissioner calls attention to the nm
wise policy of continuing small mutual Ere in
surance companies. Our State is the oply one
that has such system. The argument Of
cheapness is fallacious. The policy costs little
and it is worth but little In several Of the
companies loss Of $1,000 would imnose an
assessment of $40 to $50 on every $1,000 risk. =
sum the interest OF which would almost kee.
awe like policy in the best Of companies fol-
ever. The over Whelmlng disaster which oc.
CURED to the Portland Mutual in 1S66-tbe
circumstances which led to the closing nm of
the affairs of the Maine Mutual at GorSam and
tne General Mutual of Hallowell in 1862 and
sne severe losses which the report shows as
having happened to other Mutuals during the
struction.
The business Of insurance, having grown tn
such extensive proportions the commissioner
suggests an association of commissioners, to be
composed of the several State officers. HAVING
charge of the State departments Of Insurauce.
Tor mutual consultation. Much good NAV thus
result to the public and the safety and efacien-
CIV of the bnsinosa haucad