The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-11-18

alton of the influence, present and pros
pective. which these enormous funds
exert upon the interest problem and
upon the stock market. One inevitable
effect, he estimates, will be the still
further depression of rates of interest.
During the twenty-six years under re-
view the interest owned by the funds
Of companies has fallen from Az to 3.9
per cent.
IF heightened period of peace and
prosperity is still before the country"
Mr.. Mackenzie argues. 1.-The fall in the
general rate of interest all over the
field of investment is likely to be more
rapid, and financial prophets are al
ready anticipating at not distant date
a time when gilt-edged securities will,
with difficulty, be brought to yield 2
per cent
Many English insurance companies
having this end in view, are now en-
larging their powers of investment.
! Mortgages upon English real estate, for
instance are no longer profitable, and
the latest movement has been in favor
of mortgages in British colonies, which
yield, in many cases, per cent. Dur
1 y
life insurance funds invested in Eng
lish mortgages has decreased $50, 000,
and colonial mortgages have increased
! by corresponding amount. The great
volumne of growth in insurance fund
4 investments has, however, been in
stock exchange securities, comprising
British. Indian, colonial and foreign
government bonds and general stocks
and shares.
Reviewing this matter, William e.
Curtis, in the Chicago Record, says:
The ten largest life insurance COM
panies in this country represent Habili-
ties Of nearly $1,000. OOO, 900. Three com
panies in New York alone represent
liabilities of 49, 65, OOO, OOO while their as
sets are about $500 600, 600. 1t is impos-
sible for them to fail unless we have an
epidemic that carries off half the pop
ulation of the country, in which event
the other half would have little inter
est in anything. But the rapidity with
which their assets and their incomes
are increasing is matter for serious
contemplation.
One of these was started in 1860 with
a capital of 100000. The liabilities of
this company increased in thirty eight
years from 81, IA 900 to $951, 165, S37. Dur
ing the same period the assets increased
from SLY, 102 to $236, 90S. For twenty
years they have increased $500 900, 900,
and during the last ten years S135, 000
600, and are now increasing at the rate
of $1,50000O a month. The income of
the company has jumped from So, 600
to $4S,000,00 a year, and SO per cent of
this income remains with the company
for investment every year after paying
all losses and expenses.
The total amount of money now in
vested in behalf of policy-holders by
the three great companies of New York
is nearly $3.50, 900, 0OO The bulk of this
enormous sum is represented in gov
eminent, state and municipal bonds.
Considerable has been invested in
mortgages on real estate, and in val
liable city properties. One New York
company owns two business blocks in
the metropolis, valued at $4,000, 600 and
81, &c., 600 respectively. Besides, it owns
100000 worth of property in Kansas
City, 81 600, 00C in St. Paul, $1,25O, 600 in
Minneapolis, $1,000 in Montreal, 81,
900, 600 in Paris, 81, 100000 in London and
$4,000 each in Berlin, Vienna, Am
sterdam and Budapest. There is scarce
ly a city in the United States in which
these companies do not carry mort
cages.
During the last ten years the ten
largest life insurance companies in the
country have invested $557, ZOOS, S07 re-
ceived by them in premiums; during
the next ten years, assuming that the
increase of insurance will continue il
the same ratio as in the past, they viii
have double that amount, or $1,000, 0O0,-
600, for investment, and their incomes
will pile up with the rapidity of COM
pound interest.
This is a subject that concerns every
one practically. Life insurance has be-
come one of the regular duties of life
And still, Notwithstanding this wonder.
full increase, there are many who car
afford to carry life Insurance. who pay
but little attention to the matter The
! remarkable growth of the institution
proves its legitimacy and practicable
ity. It has stood the test of time 4
| perusal of life insurance statistics i:
: full of interest, whether studied as
commercial question, or from curiosity
? ~. T1,.,,d ap+i-al motives