The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1877-04-24
The Comparative Security Of Life
Insurance.

Every business Is laDle TO lOSSeB, ana
Just at present while certain LIE insur-
ance failures are fresh In the public
mind, it will be instructive to compare
life insurance with other great business
interests Of the country. The savings
banks OF New York City had on deposit
January l, 1876, $l84, 1888 2l6 63, and dur
ing the single year oil 1876 the gross as
sets Of the banks which suspended and
went into Liquidation were $27, T65, 042, or
over fifteen per cent. OF the gross amount
on deposit at the commencement OF the
year.
According to the leading railway jour-
nal, there were, during the year 1876,
eignty.six railroads which were sold out
under foreclosure, or had receivers ap-
pointed, or deiaulted, and the capital
Invested in these railways amounted to
$912, 500 900. Since The panic OF 1873 it is
estimated that the railroad property
which has come to griet amounts TO over
81, ,500, ,000, 900, an amount nearly equal to
the public debt of the government
The mercantile failures for the four
years ending December 81, 1876, number
twenty-seven thousand eight hundred
and Iorty-hve; amount ofliabiities, $775,-
GIG, ,l39; which We're compromised at AN
average OF 80 cents on the dollar.
The depreciation in the total face
Vaiue VI pIbIe, Sounbg duu Olty uOQuS OI
the entire country during the past three
years is estimated at over rs per cent,
and the depreciation in the value oil the
stocks OF the solvent railroads is over 90,
per cent, and similar shrinkages have
affected nearly all the various invest
ments of the, country. Inc oldest
State insurance department., that
of Massachusetts, was estab-
lished in, the year 1851, and accord,
ing to its reports Tor the year 1875,
amount estimated, report not yet pub
llished) we find that The lite insurance
companies doing business in that State
received in premiums and interest since
January l, 1883 81, 10l, ,63l, 749. The gross
assets of all those companies doing busi-
ness in that State which have failed
since 1857, according to their last report,
was $13, l5l, ATT, or about one and quar-
ter per cent. Of the total income OF the
lcompaniee.
| The gross deficiency, or the excess OF
| liabilities over assets, as near as can be
Iascertained, is Sd 595, ,966, or less than
half oil one per cent. oil tue gross income
of the companies. The present assets OF
all the companies exceed $4O0, ,000, 900.
When we find thaD all Of the COM
panies DOING business in that State
which have failed were. located in New
1 OK ClCy except tue New Jersey MuGu-
| al, which was managed by New. York
men, and those failures attributed to the
wild speculative and cOrrupting in
fuence Of that city, We are surprised at
the very favorable results.
| We can not Look for entire perfection
n.any Institution, church or individual,
but certainly these results fully prove
| that there are no other institutions 80
safe and secure as life insurance COM
lpanies. During the same period above
Preferred to there nave been no failures
among the regular life insurance com.
lpanies OF Ohio, but some have not been
lsuccesstul, and, therefore, have retired
from business and paid otf all their liza
bilities.
The Union Central Life Insurance
COmpany, of this city, is our only home
company, and is doing large and pros.
lperous business. 1t is Que Of the best
managed companies in the country.
AfLer thorough personal examina-
tion made in February, 1877, by the Hon.
w. ID. Hill, Superinte ndent OF State In
surance Department, he stated: 81 be-
lieve the affairs of This company to be
economically and jaaicioasIy manaqed.
ALI the salaries PAID w officers are sul-
prisingly low. l could only account for
their getting men Oh such terms by sun
posing that all were stockh0ld ers in tile
| company"