Litchfield enquirer., 1872-05-09

l are very peculiuf aila HO6fai. aas4 z
 They are the legalized repository of trust funds of estates, courts, minors, 1 guardians, etc.s,-the most sacred char acteristic which can possibly be given to any moneysd instisation, and all they are required to do is to show their affairs to the Bank Commissioners when called up- l on.
 1 They are not required to advertise and swear to their condition as State Banks proper are, nor are they required to keep any reserve for the protection of these minors, guardians and trustees, for whom they are the legal custodians, as the old State Banks were for the protection of bill holders, but according to their charters l they can start with q very small capital paid up, invest 1t, all and more, in real estate, and then borrow all the money they can, at rate of interest agreed upon, and loan the last cents of 1t out, when. where, and to whom they choose. These companies are undoubtedly all safe and sound now, but there can be but one end to this loose sort of banking, if it | should be carried to any considerable ex- tent, and that would be disastrous There is another class of banks doing business under the joint stock law, which was intended for manufacturing eompa- nies, and not for banking at all. Behind the counters of these so-called Banks the Bank Commissioners cannot penetrate. All this appears to be the fault of our laws, and should be remedied.
 l recommend that all institutions of this state that deal in money, be placed under the supervision of the Bank Con- missioners, with proper safeguards for the protection of the community 
 INSURANCE DEPARTMENT.
 One of our most important interests is that of Insurance. Its soundness and trustworthiness affect every branch of in- dustry, every department of life. To the end that the community and companies both should be protected in their rights, a new and very comprehen- sive law was enacted by the last General Assembly, which went into operation Sept 1st, 1871. This law is found to be defective in some unimportant features, Abut on tine whole has worked admirably. A Commissioner was appointed, who had the business to learn, and an entire new department to organize. Its receipts have been SIS, ,016.87, and it's expenses $14,- 14O. 73, leaving balance of $e,876 IA, as the profits of the first seven months, after paying the expenses of starting.
 The nunber of Fire Companies doing business in this State is 94, of which Is are Connecticut Companies, with assets in the aggregate, of $69, ,925, ,213, and risks of B, 514 ,O3S, ,333. These companies have 891 agencies in the State, with risks, also in the State, of $199, ,467, ,344, on which the premium was $1 ,S2O, ,364
 There are 40 Life Companies doing bus mess in the State, of which ten are Con- necticut Companies, having aggregate as- sets of $241 ,645, ,692, and $1, ,576. .497, at risk, with 96 agencies in this State By the terms of the act creating the Department, all life policies of all com panies doing business in the State, must be valued, except those of states with which it is practicable to exchange cer- tifcates of valuation. In the eight months there have been valued $50, 708 policies, covering $945, 900, 900 of Insurance, and there are yet to be done $177, ,O00, cover ing $477, 900, 900 of insurance.
 The estimated annual receipts of the Department are about $28, 900, and it's ex- penses about $2O,OOO
 Estimating the annual receipts of the Department at $2S,OOO it would appear that the annual tax on the capital super vised of $311, ,57O, ,9O5 is about mills on each thousand dollars, or $9 on each mil lion.
 commend the report of the Commis- sioner to your careful attention. Much has been said during the past year in regard to still further taxing mutual insurance companies. They paid last year $265, 1000, while the ordinary machinery of the State, that is, the Fix ecutive, legislative, and judicial depart ments costs only about $45O, ,OOO.
 Looking at 1t in that light, the life companies now pay about 39 per cent. of the regular expenses of the State. These companies are undoubtedly taxed more very much more-in this State than in any other. To compensate for this, as as 1t IS claimed, they are allowed to loan their money outside the State,. where much higher rates obtain than in this State, which privilege is denied to com panies in many States.
 A small tax on the assets of & mutual life company may eventually, and certain ly will, unless very carefully calculated, render it bankrupt. If the tax were laid upon the surplus, instead of the assets, there would be less danger. Inagmuch as we are nearly prepared to reduce tax ation in some directions, and as these companies already pay very large and constantly increasing tax, and as the money comes almost entirely from citizens of other States, put into our companies for safe keeping, and finally as mutual life companies are taxed in no other State or in Europe, so far as I can learn, am not prepared to recommend any increase of taxation in this direction.
 GENERAL HOSPITAL FOR THE INSANE.
 The General Hospital for the Insane at Middletown is, according to the report of the Trustees, in most satisfactory condi- tion, except that it has debt, partly con tracted at the commencement before the receipts came in, of $39, ,5O0,i which they will ask you to pay of. Part of it was contracted last year for land which seemed to be desirable, and on which were two houses, which have been fitted up for the reception of patients, thus giving the l cottage system, as 1t is called, a trial, and so far with great success. There were in the institution, on the first of April, two hundred and sixty-two patients, and there have been, during the year, seventy-three l applications for admission more than l could be accommodated, which number | would have been much greater had it not been generally known that there were no l vacancies.
 The new wing is making satisfactory progress, and will be built, am informed by the Commissioners appointed for that purpose, for less amount than the ap- propriation. There are also twenty-two State benefciaries at the retreat at Hart ford, eight at Providence, eight at North hampton, nine at Concord, New Hamp- shire, and five at Brattleboro. have | ko1 %ha okc .1g LS in the State yet uncared for, and find more than three hundred, most of whom are in almshouses It would certainly appear that even another wing should be con tracted for at Middletown, thus complet- ing the Institution according to the origi- nal plan.
 1 I have also called for statistics of the blind, according to a law on the statute book, and find, besides the twelve at the Perkins Institute, at Boston, two hundred and four, some of whom are not totally