The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1898-12-23
LIE INSURANCE IN AZ
Continued from First Page.

markable condition of affairs would
scarcely meet the approval of the astute
gentlemen who as Commissioners of In
suTance for the several States now de-
vote so much of their valuable time to
the supervision of the companies. By
referring to the annual report of the
trustees for that year, however we lind
that the whole amount insured upon
lives, including a large proportion of
short term assurances, was added to the
debts due on all other accounts, and the
gross sum acknowledged as liability.
There appears to have been no provision
for reserve and no conception of its
functions. The only improvement intro
duced in the following years by other
companies which sent in their reports
was to itemize the debit side of the ac-
count, 30 that we find the sums due upon
policies matured and unpaid, overdue
dividends and gross amounts insured, set
forth and added together as liabilities, in
form which represented each company
as possessed of from seven to ten per
cent. of the assets necessary to pay its
debts
The year 1S48, however, was memoir
able in the early history of American
lite insurance, since an event which oc-
Cured early in the year gave a sudden
stimulus to the business. In February
the first mutual company completed its
fifth year OF activity. 1t had been
founded by men wise enough to know
that the nature of their enterprise made
it impossible TO test its merits by the re-
suits of single year, and therefore, in
accordance with the general practice of
the British companies, its charter pro-
Rided Tor an accounting to it's mem
bers, and distribution of its surplus at
the end of each five years. The first
dividend period was naturally awaited
by its policy holders with great interest.
The books then showed that the losses
by mortality had been far less, and the
gains by interest on funds more, than
had been expected, and that ifthe same
conditions should prove permanent the
premiums contracted for would nearly
meet all future losses, without any con-
siderable reserve fund. In the enthas
Aasm of the discovery the company made
haste to declare dividend of the greater
part of the premiums paid, appropriate
ing to the purchase of reversionary in
surance 1855, 642. 60 of the entire accum-
ulatlons amounting at the end of the
previous fiscal year to $3.50, 678.56 No
allowance seems to have been made for
future expenses, nor any actuarial inves-
figatlon ot the probable future losses.
The effect on the mind of the business
community was noteworthy; life insur-
ance became financial attraction; new
companies were projected in considerable
numueTs; and at least five were far
enough advanced in organization to re-
port themselves to the Comptroller as
possessed OF ample capital and ready to
issue policies, before the year ended.
But four OF the five disappeared within
the next two years. Meanwhile the
companies already in the field reaped the
chief benefit of the popular movement,
and their business increased with I'M
precedented rapldity. At the end of
1S4S there appear to have been about
$40, 100000 at risk upon policies issued
by native as well as foreign companies
for the whole period of life, besides con-
siderable amount, perhaps from $3,000,-
900 70 10, 000, 900, insured for short terms
of from one TO five years.
These assurances were almost wholly
in the following companies, named in
the order of their assests at the time:
The Mutual Life Insurance Company of
New York, the Mutual Benefit OF New
Jersey the New England Mutual of
Boston, the New York Life Insurance
Company, the State Mutual of Worces-
ter and the Connecticut Mutual of Hart
ford. A few small policies were in
force IN the Presbyterian Ministers
Fund of Philadelphia. the Massachu-
sets Hospital Life Insurance Company,
and the New York Life Insurance and
Trust; while the Eagle, the Hope, the
Trenton, the Hartford Mutual, and the
Union Mutual of Maine, were Just
organizing. OF the last five only the
Union Mutual survives. But every
American company which was issuing
policies at the time of the first great lite
insurance dividend of 1848 has been nm
interrupted in its growth and prosperity
throughout the intervening half century,
ana has the public confidence to-day. The
whole amount at risk in the six pioneer
companies named above at the beginning
of 1S4o was $50, AGO, 1862, including short
term pollcles; their entire gross assets
were 81 ,404, 754. On January 1, 1898,
the same companies had in force policies
for 3d. .492 584, and actual funds in
hand of 1922, 1877, 784. In fifty years they
have multiplied their risks by rs, their
Accommodations by 443. It is perhaps
coincidence worth noting that these six
companies are ali purely mutual, while
the large number which were founded.or
undertaken in 1848 and succeeding years,
and quickly failed, were all provided
with stock capital when launched. It is
also noteworthy that, while more than
six score companies have been organized
to insure lives in this country during the
last half century, fifty of which are
doing business at the present time, the
six institutions in question still have 10
per cent of the entire amount of regular
life insurance risks in America, hold 40
per cent. of the gross assets Of all the
companies and paid in the last year 81
per cent. of all the payments made by
such companies to their policy holders.
The growth of the business has in
VOWED complete revolution in its
methods and management. Fifty years
ago the published records of the largest
company then at work show narrow