The Sumter watchman. [volume] (Sumterville, S.C.) 1855-1881, 1871-03-15
of the article in the Baltimore Sum-

W IuC VOElIoty uOtWilNoIouOioSs
We think the article from the 'Balti-
more Sun tends to an unfair discrimi-
nation in favor of old as against new
companies. AS far as unhealthy in
crease of business is in question, the
sin is not cou6ncd to the doings of the
young companies.
Old companies have some advantages,
it is true, but they do not monopolize
them. They have large amounts of
assets, but they have corresponding La
6il;t;ies. They have large incomes from
interest, but the larger portion of it
belongs, and is returned to, the older
members 10 dividends, and is not paid
in settlement of claims by death as the
statements ofsome agents would imply.
They have experience, but officers OF
young companies have abundant data
within reach to guide them in safe
discharge Of tteir duties.
Young companies have great ad
vantage ir the rate of mortality Of
members, as compared with old COM
panies.
The losses of the old business as
compared with new was, therefore,
nearly eight times as great. 1t must be
borne in mind, too, that much of the
cold business" referred to above was
secured within the last teU gears.
The College Of Actuaries, of England,
after careful Investigation on this point
state that the advantage Of careful
selection of lives lasts perecptibly for
ten years
10 1869 one Of the largest and most
successful Companies in New York lost
by death Is per cent. more of income
than young Company that cannot
claim to be more prudent. This increase
of mortality in OLD Companies does not
argue weakness. They have made cor
responding accumulatious to meet these
losses. The smaller ratio of mortality
in young companies, gives time for ac-
emulation and counter balances their
larger ratio Of expenses.
The only just test ofcost Of insurance,
other things being equal, is the per
centage Of premium income paid out for
losses aud expenses. Prudent and we'll
managed young companies do not sx-
pend on these accounts larger per
ceutage of said income, if as large, as old
companies, and, therefore, furnish as
cheap insurance as the old, if not
cheaper.
We do not agree with the Baltimore
Sun" in saying that "disastrous irregu'
larities" may be avoided in New York
through the Insurance Department.
We may differ as to the meaning of
terms, but We think the failure of a
Company claiming to have more than
half million of assets: not one-fourth
of which can be realized, thus disap-
pointing aud causing loss to three
thousand policy-holders, is quite "dis
astrous irregularity." This it failed to
prevent. We do not doubt that these
failures are very unpleasant things to
those who have proclaimed the "irfalli
bility" of this department. Some New
York Companies, and their agents, have
claimed that this State supervision gave
'absoluse protection" to persons insuring
in New York Companies. This all pre-
supposes that the Superintendent will
always be honest and sufficiently ON
uicieut to detect any untruthful or in
correct statements made BY a company
located one hundred miles or more from
Albany. Nay, more, even these good
qualities could only detect not precent
irregularities. A trust must, therefore
be reposed, aud We suggest to those
desirous of making investments in life
policies to seek companies whose officers
and managers they knor to be men of
ability aud integrity. This is the best
security against irregularities"