The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-09-25
W. II. HART'S ADDRESS
INDIANA STATE AUDITOR ON LIFE
AND FIRE INSURANCE.
Statistics and Interesting Comments
Presented mt Meeting of Insur-t
ance Commissioners.

missioners' convention was called in the SUI
preme Court room at the Statehouse at
1880 O'Clock. President w II. Hart called
for the report Of the common laws and leg
islation and IL was presented by Hon. II
ID. Appleton, of New York. The report, as
adopted. embodied the resolution recon-
mending legislation to the effect that all
general deposits of insurance corporations
held by fiscal officers of any State should
be for the protection OF ali policy holders.
excepting those held on account OF foreign
corporations of other countries. when they
should be held for the protection OF policy
holders in the United States only.
President Hart, in his address 10 the con-
vention. said: 1.-The last census shows that
In the period from 1850 to 1900 the value OF
real and personal property in the United
States increased from 5000 100000 TO sS4,-
600 900. or a little more than double: the
population increased 80 per cent; deposits
in national banks trebled; the wealth per
capita from $3.50 to s1.2Ss; manufacturing TO
s13 900, 100000 or IL times more. These are
giant strides. reflex OF the substantial and
wonderful growth of the Republic. perhaps
never approached by any other country in
all history; but in life insurance alone the
increase has been even five-fold greater. It
having increased in twenty years from ST.
5oOOOO,OOo to $9.4O1. l90. OOO,, while the assets
have increased from s425.Oo0.OOO to $780,
99S $50; the per capita of legal reserve in
surance from see7i to 500. The amount OF
money paid to policy-holders last year was
1892, S9S, 4S9, whereas the entire production OF
gold and silver in 1900 was sl5S50o.0c0. or
nearly ss9.OooOOo less than the life insurance
%
the companies has gone up from 600
in 1880. to s45s0oO.0oO. In 1901. a six-fold in
crease. while at the same time the total cir
culation of money in the United States has
only slightly more than doubled. There is
a maze of wonder and a partial bewilder-
ment in the abstract contemplation Of this
record but when We consider the character,
the substantial assets. the genius of Ameri-
can life underwriters, the undermining or
indemnity and conservative investment as
twin combinations. is il a fight of fancy to
predict that we are only on the threshold
Of achievement, and instead OF the three
superb billion-dollar companies that greet
us to-day, another twenty years of progress
will witness many others upon this altitude
of beneficent proposition?"
STATE SUPERVISION.
Mr.. Hart then discussed state super
vision. ITO commission any corporation
and not safeguard the public would be an
standard of solvency. investments and
those integrities OF approved actuarial SCI
ence that are essential to secure charter
rights and exercise specific functions. The
State has substantially fulfilled its mission
when 1t requires an insurance company to
do an insurance business on the lines OF its
legal powers. without duplicity or chicane
in policies, with jealous care for the con-
tract rights OF insurers and a comprehen-
sive detail of statement under oath reserv-
ing the right to follow the termination OF
condition into expert examination.
THE State has equally as conscientious
obligation TO protect companies that meet
the laws requirements. that can and do
honorably and faithfully preserve their
calling, as against guerrilla competition.
whose methods are piratical, whose man
ayers are adventures. whose colors are
the black flag, preying upon the credulity
Of the public and impairing confidence I'm
corporations OF character bearing the
States approval. II ought to be penal
offense to issue bogus insurance.. there
should be an open door leading 10 the peni-
tertiary for any agent that misrepresents
the character and conditions OF a policy.
| If it is a crime TO adulterate food; IL IL Is
criminal for a cashier to receive deposits
after he has knowledge of the banks in
solvency. how much more unlawful Is it
for fraud Of far more reaching disaster TO
be practiced on a person who in good faith
purchases a contract of indemnity that pos
sibly the future of loved ones may not be
Swallowed by want? The supervision Of
any State is lame and halt and blind that
does not relentlessly pursue unauthorized
and wildcat insurance and nail to the
cross the practitioners of homeopathic
larceny. Mr.. Smooth and Mr.. Ananias is
an insurance copartnershp that has had a
career of years and odium. Vigilant super
vision and appropriate legislation should
garb them in stripes, pounding rock"
Regarding benevolent societies, Mr. Hart
said: THE mask Of hypocrisy should be
torn from promoters that launch so-called
purpose or ritual and solely for personal
profit. The multiplication of organizations
has led to vigorous and often vicious COM
petition; the representative form Of gov
eminent is often subordinated TO an auto
matte, self-constituted machine that per-
petuates the favored few In position. There
Is a necessity for fraternal beneficiary or
ganizations. conducted along right lines,
divorced from the management OF profess
SIGNALS. Its clientage must largely come
| from among those who can carry but COM
paratively small certificates. The indem-
nifty of the greater majority OF our citizen
| ship Is wanted as temporary precaution
during years when the family Is growing
into manhood and womanhood, and the age
of dependency has its obligations 10 guard
with provident care. Distributing last year
s25.0 100000 TO the country carries a suDstan-
| tial record Of widespread benefit. but IL Is
now up TO the State and to the departments
as to how the inherent weakness OF aged
and inefhciently financed societies can be
corrected, and the hazards Of the system in
| general be minimzed. A supervision and a
| code of laws that will enforce an actuarial
reckoning with mortality. that will bride
selfish management, that will elevate the
standard of solvency. that will prevent or
| CARNATIONS OF experiment and imposition,
| will compel such readjustment as 10 pre-
serve those companies that have any sane
| reason for existence and close up those
that are now on crutches, limping within
| the portals OF the boneyard. You may
cross stream by the makeshift OF a pom
| toon. but only a solid structure of steel and
| substantial strength will fulfill the mission
OF a bridge. The smooth citizenhip that
uses a profession OF brotherhood as DIR.
Jekyll used Mr.. Hyde. and which Is the all
| mall OF a minimum of so-called 'fraterni-
/ ties Is to the legitimate orders of this
genus what the counterfeiter and his scrip
/ Is compared to the government and the
currency bearing its promise OF redemp-
/ ton.
ACTUARIAL SCIENCE.
Actuarial science has given TO legal
reserve or 'old-line insurance the chart.
the basis. for bona fde life indemnity. 1t
is as positive and certain as is a mathe-
NAUTICAL demonstration. Failure comes TO
the system through mismanagement i'm ex-
cessive expenses. the extravagant cost OF
new business. the homeopathy OF selected
lives, a reckless abandon, flying in the face
| of mortality tables and conservative bust
ness methods. The insuring public are
| rallying around the legal reserve standard
| for life indemnity; around the fraternals
| for temporary indemnity. The gall
vanizng of assessment companies into the
| old line column. by placing liens against
| policies for the reserve, Is a modern de-
| parture based on a Colonel Sellerss mag
Ina Ton. A. E..s4f. a