Weekly Trinity journal., 1877-10-20
SAVINGS BANKS AND INSUR-
ANCE COMPANIES.

ANCE COMPANIES.
1t is reasonable supposition that both
Saving Banks and Insurance Companies
are institutions OF philanthroplc nature.
Especially is this the case of a Company
which makes Life Insurance us basis
A man devotes a certain portion of his
earnings each year toward n fund to
which bis family can turn in the event Of
his death and feel themselves above tho
pressure of immediate want. 1t is then,
OF the highest importance that the affairs
OF Life Insurance Company should be
conducted upon an economical and safe
basis, that its funds should be always
held available to meet any sudden de-
mands upon its resources. The 'same
holds good in reference TO Savings Banks
and other institutions Of tha. character.
They are trusted because they are believ-
ed to be trustworthy, and if they are not
the community suffers.
Legislative enactments have been pass
ed in this State TO regulate the Fire In
surance business, and place it on a safe
footing. We are not posted as to wheth-
er the law creating an Insurance Com
missioner contempates that that officer
shall inquire rigidly into the conduct Of
Life Insurance Companies as well, but
one thing is quite certain, there cannot be
too many safeguards thrown around the
institutions we have named. When the
bill creating an Insurance Commissioner
was before the Legislature, great hue
and cry was raised against it. IT was
claimed that il was only a move on the
part of the big companies TO crush out the
little ones that the law was aimed espe-
cially at one company, the "BUilders," i"
which had aroused the hostility Of the
others by putting Fire and Marine Insur-
ancc at n very low rate. Such was un-
doubtedIy the case, yet if this one com
pany had conducted its affairs on right
business principles, it could have stood
the test as well as the others. Bat the
Builders" while Offering cheap did mol
offer safe insurance. 1t did not conduct
its business upon safe principles, and
while it took risks at such low rates that
it crippled the business Of other compan-
! les it was itself in situation to be 10.
tally ruined by one extensive fire. The
result of the appointment Of an lnsur.
ance Commissioner was that irresponsible
companies were compelled to close out
and the people got reliable insurance
Some kind Of siminr legislation is rcquir
ed upon the business Of banking, If We
are to judge by the late transaction il
San Francisco, where million Of dollar
are lost to the depositors by The illega
speeulatiOns of the bank officers. Tn,
same may be said of some Of the Liij
Insurance companies doing business here
In pursuit of business low rates ofcompeti
tion are gone into, rates which rcquir
management Of the most prudent char
actcr to justify. And how prudent thi
management is people eau judge whel
they know that the Presidents OF some oi
these companies receive n salary o
twenty to thirty thousand dollars year
and the other officers proportionatc sums
1t stands toireason that man who de
sircs to make some provision for his fam
lily in the event of his death, will do wei
TO inquire carefully into the conduct of /
company before he parts with any of hi
earnings.
We know that public feelngis AYERS,
TO the creation OF new oflicers-it has th'
look Of creating Il place for some pOlitica
pet. But we submit that careful,
drawn law, which shall invest respon
sible man with full power to look into tn
affairs Of any public Institution whicl
claims to offer safety for the investment
of the working classes is II necessity
Life insurance companies doing busines
; in this State offer certain terms through
their agents which seem TO promise am
pie security that ii man be called ava,
the provision he aimed to make for tn
maintenance Of his family shall be pre-
served to them, yet IN many cases, afte
the payment Of premiums for number {
/ years, the companies are unable to NEE
their obligations and the sums advance
are either lost or partly returned on
compromise. We are soon to have
Constitutional Convention and it wuul
| be well to have all matters of public i'm
port well considered before that bod
is called together. And among the man
| other subjects to be considered, that {
t banking IN all its various branches wi
? claim high place. Our Nationi
f Bank Law gives ample security for I'll
, solvency of the National Banks ard
= would be well that the same degree
3 safety should attach to those institution
2 which work under the general law Of tn
State.
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