The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1877-02-10
THE PACIFIC
GomntertialAobertise
SATURDAY,. FEBRUARY 10.
Where the Profits Go.

An obscure telegram from Hartford (Ct-) states
that the Charter Oak Insurance Company, OF that
city, has recently invested $4,000, 900 in real estate
in Broadway, Wall and Broad streets, New York
II Is altogether probable the fact Of the purchase
crept out surreptitiously, and without the knowledge
Of the officers Of the Company, such matters being
guarded as among the legitimate affairs Of 3 company,
Of which the public has no right TO know. 1t Is
only an illustrative instance of the gigantic
monopolies which the people of this country sup
port. Life insurance-many fold more so than
6re-is one Of the most profitable investments ID
which capital can be placed at the present time
A company once formed has a mine of wealth
rolling up as does a SNOWFALL. 1t does not require
more than two or three members TO enter into a
partnership for the purpose OF carrying on the
business. The a. board of directors" are easily
obtained. The |" company" is attended with all
the display of an incorporation, with a paid up
capital' all the way from City cents to $500 900
The amount Is immaterial, so long as the pro-
~jectors of the movements are individually respon-
sible for the liabilities incurred. With advertising
and moderate shrewdness, two or three years Is
sufficient time TO realize upon all investments
made. When the company is self-sustaining. the
capital paid in can be Withdrawn or converted
into shares of stock for the continuance of the
business, and everything goes along swimmingiy'
with a bonanza of an investment tor a few OF the
partners in the public-institution private business
enterprise. When. as in the case of the Charter
Oak Company of Hartford, its affairs are managed
with unusual brilliancy, it is soon able to own a
few business blocks in the city where it Is located
UutIu n UataLC ~ Ac S04AASA N-Aof
and every now and then invest a few million or so
in soutside real estate, in addition to what Is re-
quired as q " contingent fund" for emergencies.
such as an increase in the death rate over the
measles, business embarrassments and the like.
The company goes on making money, and the
generous public continues its confidence and
patronage to that & inestimable boon to humanity"
the life insurance company.
But let us not be misunderstood as under
estimating or denying the vast good which insur-
ance has done and is doing in relieving the dis
tresses for which it is especially adapted. So does
the savings bank, with far greater certainly and
profit. But it is with reference to the extortionate
rates which insurance companies demand. and
which compliance with enables them to build up
these sacri6ciai pyres and invest their surplus
property for which the public reaps no benefits,
that it occasionally deigns to protest against what
is recognized as a grinding monopoly TO all else
save the insurance partnership. The custom OF
insuring against Indulgence in case of death has
reached that point in this country as to be in many
walks of life the rule and not the exception. 1t is
a custom the object of which has become almost a
necessity. 1t is of this necessity that the insurance
companies, as railroads and other corporations,
take advantage of, and compel by uniting together
the payment of whatsoever rates may be upheld.
What is wanted is a generous competition IN ln-
surance, the same as in other legitimate business.
The profits arising from shrewd management Of
any kind of business is of no public corcern. 1t
is only when banded together as monopoiies, with
out regard for the public, whose interests they are
supposed to protect, and with the sole object of
giving it the least possible protection with a max
imum of risk and outlay, that the public has just
cause of complaint, not only with the insurance
company, but with the authorities OF the State who
will permit such manifest injustice as is often be-
held.-SdR Jose Mercury.