Arizona republican., 1904-05-20
Striking Features of Life Insurance
 Reports.

 les of the United Stactes are known as New York state companies" that is, the three or four great concerns which overshadow all others in doing the in surance business of the country are or ganized under the laws of New York, and are compelled to make reports to the insurance department of that state. From the annual report of the New York superintendent of insurance the Financier has culled and presents some interesting figures.
 The aggregate income of the New York companies for last year, of which concerns three-fourths are in New York city, was 319 millions, or more than 1 million for each secular day, and the net excess of increase over disburse- ments was 1S4 3-4 millions against 176 millions in 1902. The total premium income, or the amount directly paid by the insured on their policies, was 432 millions while in 1902 it was 394 mil lions. This shows that the increase in the actual business of insurance was 3s millions. The disbursements for the year by the New York state com panies were 349 1-2 millions, or 36 1-2 millions more than in 1902.
 Of this sum 15S millions were paid for claims upon policies; 31 1-2 millions for lapsed and surrendered policies, such lapse and surrender probably be- ing due to the inability of the insured to maintain their insurance; 30 2-3 mill lions for dividends to policy holders, these holders from the investments of such dividends reflecting the profits to the companies; s766.O57 for dividends to stockholders, or nearly 25 per cent upon the capital; 63 millions for com missions, or about 15 per cent of the premium income of the year: B 2-3 millions for salaries and medical ex- atniners' fees, or a little less than 10 per cent of the premium income, indi- eating very liberal compensation to the managers and also vast number of employees, and 31 IA millions were paid for miscellaneous purposes, which were not specifically stated, though 1t would be interesting to know how this large sum was distributed The above classification shows that 220 S-4 millions were paid to policy holders, while the cost of management was 12S 2-3 millions, or 5S per cent of the above sum. The New York com panies last year issued more than 60s,000 policies insuring 1 1-10 billions of dollars and including the underwrit- ing by all companies doing business in the state, the number of policies issued was nearly l million and the amount of new insurance was 3-4 billions, an increase of 113 2-S millions.
 The notable features of the above statement are the enormous aggregate and the constant and large accumula- tions of assets of the life insurance companies, and the liberal disburse- ments of the net revenues, especially for salaries, commissions fees and for miscellaneous purposes. The vast as- sets of the companies are represented by great variety of high grade secur- ities, the absorption of which, for the purposes of investment. at the average rate of half a million per day, this rep resenting the annual increase of 164 millions in assets, must cause the in- vestment operations of these concerns to have an important influence upon the security markets, and it will largely account for the efforts which are al- most constantly being made to broaden the field of investment through real es- tate holdings in New York and else where.
 The extremely liberal expenditures of the companies for salaries and other purposes would seem to indicate an enormous unnecessary cost to the in- sured, these outlays tending to reduce the net revenues applicable to divi- dends to policyholders to less than per cent of the annual income.
 Notwithstanding the disclosure in successive exhibits of the life com panies of apparently extravagant dis bursements. the business, as represent ed by new policies, is rapidly increas- ing; probably because these concerns have practical monopoly of life insur- ance, having driven from the field and into bankruptcy almost every opposi- tion concern in the country, if we ex- cept the purely fraternal societies. Moreover, though the organization of the companies is such that policy holders have no voice in the manage ment, this fact has no deterrent infu- ence upon the business. So eager are the thrifty to make provision through in-