Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-09
GUARDING SECURITIES
TAKEN BY BIG IN
sURANCE COMPANIES.
From the New York Tribune,

From the New York Tribune.
Since the Equitable Life Assurance Soci-
ETY. began to investigate itself, life insur-
ance has held the center of the stage in
New York, and the public has come to
something like a realization of the enor-
nous wealth held by the several big COM
pantes which make this city their headouar-
tiers. The figures of their surplus. of the
value of their securities, of the amount OF
insurance in force are so enormous as to be
almost beyond the comprehension of the
average workaday mortal
An Interesting side light Is the way In
"mch these securities, on which the SOL
vency of the companies depend. are guarded
from loss by fire or burglars. and checked
and counted against what the police know
as INSIDE jobs. The duty of guarding
the securities of a big concern of this kind
Tails upon the finance committee which
usually consists of one or more officers and
number Of directors, varying from seven
10 twelve. The finance committee of one of
the largest companies in the city has an
active insurance official at it's head a bank
er, wholesale dry goods merchant a man.
ufacturer, railroad magnate In importer
and Wall street operator as the other
members The diversity of membership en-
abIeS the committee to cover the range of
possible investments without going beyond
itself
This particular finance committee meets
twice week. So great. however, is the
volume of investment offerings that a sub
committee of three members meets daily
and looks over the offerings throwing out
those which do not seem to be desira BILE
and holding others for the action Of the full
committee.
Extra ordinary are the precautions taken
10 protect the securities In which the A.
nance committee invests. In one great steel
.snd oo on o broadway certain company has
S00oo0,WO In securities They must be
verified each month oftener on account
OF sales, purchases and the removal of in
terest coupons.
When sale is made the securities are
taken from a vault and the seal on the
package Is broken. When securities are
purchased they are either added to existing e
parcels or new parcels must be prepared
The seals are also broken when securities
are taken out for the clipping Of interest
coupons. The security holdings must all
be counted, recounted and resealed One
cage of the great vault alone is kept open
for current business, but even It's contents
are thoroughly gone over before the finance
committee makes it monthly report.
Every parcel of securities, the seal Of
which has been broken in the current
month, Is brought to the finance committee
room under the supervision of the cashier
and assistant treasurer. The committee
members inspect these securities item by
item and then count them carefully. The
amount of securities in the package. the
date and the signatures of the committee
members responsible for their counting are
entered on a memorandum with the pack
age The package Is then strongly wrap
ped tied with tape and sealed with wax.
On a blank provided for the purpose the
secretary certifes that he personally wit
messed the counting and sealing. Under
supervision of the treasurer the securities
are returned to the vault and placed in the
compartment from which they came in the
presence of another member of the finance
committee. who again checks them with the
company s records.
inner steel then
and they can only be opened by the use
of two separate and distinct keys, which
are always in the possession of different
persons After the cages are locked a
piece of tape is run through two steel
eyeIets, one on the door and the other on
the side of the vault. The ends of this
tape are tied, and sealed with the COM
mittee's seal, showing the date of the
counting.
When everything has been returned the
contents of the vault are shut In, first by
Il heavy inside door of chilled steel weigh
ing many tons, and then by similar out
side door of steel. Both the inner and
outer doors are equipped with time locks.
The time lock on the outer door Is set a
little earlier than the lock on the inner
door The officers having the com animation
OF the outer door do not know the COM
bination of the inner door. nor do those
having the combination of the inner door
know that of the outer. Then comes the
added electrical protection. over these
impregnable steel doors are drawn thin
wooden shutters lined with thousands of
electric wires, which connect with CEN
trail detective station outside the home
office When once the doors of the vault
are closed and the shutters drawn IT Is
impossible to open or even disturb them
without giving instant alarm.
"A lot of red tape, the layman may eA-
claim.
Yes. and three hundred millions Is q
mighty sum and no protection is too
great" says the insurance people