The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-12-15
AS Shown by Some of the
Larger Companies.
A FALLING INTEREST RATE
SURE TO BE ONE RESULT OF THE
GIGANTIC ACCUMULATIONS.
THE INCOME OF ENGLISH COMPANIES
viii in Half Century be Greater than that Of
the English Government. Millions
Hanging on a Single Life.

Hanging on Single Life.
Especial Dispatch to The Chicago Record
New York, Nov 1.-THE current num-
Der of one of the English magazines
contains a notable article upon the 81
santic financial power which is being ac'
quired by the life insurance companies
of Great Britain; but none of them com
pares in wealth with either of the three
great institutions which have thelr
Headquarters in New York.
During the last twcnty-six years the
invested assets of English life insurance
companies have grown from 530,O0O,Uuo
to the enormous sum of $1,l70,00O,UOU.
This is an average annual increase OF
nearly S25, 100000 but the increase IN
1896 alone was S60,000,00O. similar
progression during the next twenty-five
years would show invested assets OF
more than S2,5O0,000. 900, whne at the
end of half century the insurance COM
panies would be enjoying an income CON
siderahly greater than that of the British
government.
4. G. Mackenzie. the writer of the
Bankers' Magazine article, devotes him
self TO the consideration, III no hostile
shirt. of the Influence, present and pros
nective. which these enormous funds ex-
ert upon the interest problem and upon
the stock market. One inevitable effect,
he estimates, will be the still further de-
pression of rates Of interest. during
the twenty six years under review the
interest earned by the funds of com
panies has fallen from Az to 81 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 investments is like to be more rapid.
and financial prophets are already anti
chatting at a not distant date time
when gilt-edged securities will with diff
Guilty be brought to yield , per cent.
Many English insurance companies
having this end in view. are now enlarg-
ing their powers of investment. Mort
On ges upon English real estate, for in
stance. are NO longer profitable, and the
latest movement has been in favor of
mortgages in British colonies, which yield
in many cases per cent. During the
last eight years the amount of life in
surance funds invested in English mort
cages has decreased S35.000,000. and
colonial mortgages have increased by a
corresponding amount. The great vol
ume of growth in insurance fund invest
ments has, however, been in stock ex-
change securities. comprising British.
Indian. colonial and foreign government
bonds and general stocks and shares.
The ten largest life insurance COM
panies in this country represent liabili-
ties of nearly S5.0n0.000.000 Three
comnanies in New York--the Mutual,
Equitable and New York Life--alone
REPRESENT liabilities of S2.765.O00,0 900,
while their assets are about S700.000.000.
IT is impossible for them to fail unless
we have an epidemic that carries off
half the population of the country, in
which event the other half would have
little interest in anything. But the
rapidity with which their assets and
their incomes are increasing is matter
for serious contemplation. The Enuita-
BILE, for example. was started in 1860 by
Henry r. Hyde with capital of $780,
900. which was contributed by ten men.
each taking 100 shares of $500 each.
The capital has never been increased,
Dut since that time Mr.. Hyde has pur-
chased the interests of several of his
associates, until now he owns S5f 900, OF
$1,000 more than half. and is therefore in
absolute control of the company.
Mr.. Hyde is now lying very sick at
his residence in New York, and it is
feared that he will not recover, as stated
in these dispa tches few days ago. Ii
is understood among his friends that he
has placed his life insurance
stock in the hands of trustees. with in
structions to keep it intact forever, and
has provided for the distribution of the
income in an appropriate manner among
his heirs. His principal heir is his SON
a vnung man of excellent character and
intelligence, who graduated from col
lege few years ago and has since
been in the office of the company, be-
ing trained to fill his fathers place The
enormous interests and responsibilities
which he represents are greater. pro
badly than have ever been imposed upon
single man in private life. and are
increasing with amazing rapidity.
Within the last thirty-eight years the
liabilities which Mr.. Hyde has carried
have increased from $144.000 to 1851, :
1e5.S37. During the last twenty years
they have increased nearly S6O,000,O 600.
During forty years the assets of the
comDany-money belonging to hun
dredS or thousands of people who
have entrusted it to Mr.. HYDE to keer
for their widows and their chiIdren-the
most sacred trust that can be imposed
have increased from S117.102 to 1896.
S76.30S. During the last twenty years
they have increased $200,0nOOO0, and
during the last ten years 35.000.000,
and are now increasing at the rate of ST ;.
100000 month. The income of the
companv has jumped from $4,000 to
s49000,000 a year. and 80 per cent of
this income remains with the company
Tor investment every year after paying al
losses and expenses.
Inc receipts Of the Mutual Life com
panv last year were over S1.000,000 a
week. and this year they have increased
nearly - per cent The receints of the
New York Life during last year were
SA2tHiHo. and they are increasing with
coral ranidity. The Northwestern Nh
tual. the Connecticut Mutual. the Nh.
tual Renefit. the Home. the Manhattan
end other insurance companies show
similar growth. and the money intrustef
TO them as premiums is piline m untj
verv soon the investment of the funds
will become a problem of the creates,