New-York tribune., 1876-10-26
THE LIFE INSURANCE SUSPENSION

II has not often happened that one of tho
large life insurance companies OF this city has
passed INTO the hands Of a receiver. In the
case of the Continental Company there Is
general hope that the suspension VIII be
temporary. The concern had attained high
reputation for prOmptness and good laith IN
settling claims. 1t was supposed To he well
managed. UnqucstiOnably it had proSpered IN
its earlier years, and IN the amount ot lis
annual business it had been until re-
Gently the most successful of the numerous
lifo insurance companies founded about the
time Of the close of the war. Those companies
have nearly all dropped out OF the ranks, most
of them ending their existence 10y consolidation,
and within "A few weeks it has been rumored
that the Continental Of this city was about TO
take n similar course. It's managers 10y Offering
no opposition to the appointment of a receiver
and by the unofficial statements they make,
evince "A hope that the company can bc rcsus-
citated. OF course thorough examination
while in the hands of a receiver will determine
whether what is left is a sufficient basis for a
renewed attempt
There is certainly occasion for surprise that
a company with so heavy list of assets and
capable of making 80 good "A showing of sur
plus in annual reports, should succumb at the
first shocl, Of n lawsuit to appoint receiver.
lf the case is IA alleged, the weakness may
have been almost as much III nerves
as in finances. No gross extravagances
and certainly no dcfacations have been
charged against tho management, and
within year or two marked economies
L.; Shttpl. "A "A
Gin real estate and other losses are alleged
as the leading causes of trouble. The com
pany while yet young burdencd itself with
too costly building; if that could now be es-
timated at its value four years ago, there would
he no pretext for the receivers appointment
Considerable amounts were lost by dcpoalting
current funds in banks which have failed
Other companies which went out OF business
were bought out by this one. and the pur-
chases proved in greater part very uh-
profitable. A very large expenditure was
made in buying up policies not yet due and
agents commissions not yet earned. That Is
usually IA wise performance where the concern
has abundant funds; in the present instance it
seems TO have been ovcrdOne, and to have
added to the embarrassment. A strong hand
was needed at the helm, but during the past
year the president has been in poor health.
No one of these causes alone might have
brought disaster; their effects were cumula-
tive.
Many of the younger companies have come
TO grief from the selection of an inferior class
of canvassers, and from taking insurance on
people in failing health. These were not
among the errors of the Continental Company.
All its mistakes so far as known might be
classed under one head-unwise investment
Against the results of this no subsequent
skill in management has prevailed We
do not regard the event as cause for alarm
respecting any other life insurance companies
The principles of the business remain un-
shaken, however questionable may be its prac-
tices in few cases.