Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-03-31
OMAHA An INSURANCE CITY
Extensive Operations sftho Conpslis, Now
Conferred Here
BENEFITS THAT nov FROM RESERVES
HnDoFtanoe OF me Home Insurance
Companies - Faotors IN the Tn
dustriaI and Commercia1
Growth OF the city.

ance commissioner OF Missourh Bldi
More money Is handled by the insurance
companies than by all the transportation
companies in the country. and It is the
Capitalization of these immense accumu-
lations in one locality that makes that To-
cality the seat OF the financial empire of
America Wall street could not control
The banks Of the United States IL its hand
did not reach up the full length Of Broad
way and keep its finger in the vaults which
hold the premium reserves of nearly
twenty millions Of insurance policies.
feel, therefore, that the most important
matter which can be brought to the con-
sideration of this body is the development
Of tho insurance business In this great
field which the Transmissippi congress rep
resents, comprising more than one-half the
territory of the United States, and destined
TO contain more than one-half the popula-
ton, as well as It's full share OF the wealth,
the brains, the enterprise and resources Of
the country, there is no reason why it
should not develop It's own great insurance
institutions, and thus keep pace with the
rest Of the world in this, as in other great
movements Of the modern world.''
stupendOus Aggregate of business.
According to the report Of the insurance
department Of the state Of New York for
1906 on January 1, 1907, 100 life Insurance
companies were doing business in the
United States, which reported assets OF
nearly Ss,OO0OOO.OOO. and a total insurance
IN force of more than 81, OO00 100000, or an
increase Of nearly 5000 per cent since 1852
when the insurance department Of New
York was first organized.
These figures are shown simply to empha-
size the Importance Of the establishment Of
4
ticularly in this growing metropolis Of
Omaha, in order to show that II railroads
are to be built and equipped from this
great storehouse Of policy premiums, let
It be the railroads Of the Transmississippi
country and without first having western
funds filtered through the stock market
of New York.
Omaha is awakening to the importance
Of the establishment of insurance institu-
tions and round dozen Of these, which
have been organized within the last fifteen
years and which maintain their headquar-
tiers in Omaha, show the possibilities Of home
institutions These institutions are: The Co
lumbia Fire Insurance company, Woodmen
OF the World Bankers Reserve Life COM
pany Equitable Endowment, Nebraska
Underwriters Fire. German Mutual Fire
Security Mutual Hail. National Mutual
Fire, German American Life Retail Mer-
chants Fire. Metropolitan Bond and
Surety and State Insurance company Of
Nebraska, all OF which are full Of life and
enterprise and are doing a world Of good
for Omaha.
Millions Brought to Omaha.
The total amount Of money brought to
Omaha annually in the way Of premiums
by these dozen companies Is approximately
100000, or to be more exact s6,90tOOO dur
inR, the year 1907 Associated with them
are about coo employees and officers, whose
aggregate salaries amount to S29l,5OO per
snnum, every dollar of which is spent In
Omaha among Omaha merchants or In
vested In Omaha property. The average
deposits of these establishments in Omaha
banks and financial institutions is $5,SOOO0O
and the amount of direct investments In
Omaha property or enterprises reaches the
handsome sum of $4,000
This Is a pretty fair showing for little
over fifteen years in the establishment Of
Omaha insurance institutions. With the
growth of past years there Is every assur-
ance TO believe that during 1907 the amount
Of premium money brought to Omaha by
these institutions will reach H250O0o.
what Iowa Pays,
In Iowa the home FIRE companies collect
about 5000 900 annually IN premiums, while
the foreign companies collect but trife
over 100000 Des Moines is the insurance
center OF Iowa, and has been often referred
TO as the Hartford OF the west. There is
no good reason why Omaha should not
be the Insurance center Of Nebraska
In Nebraska the foreign fire companies
collect about 100000 annually in premiums,
and the home companies but little over
S1O00O00. The average loss ratio in Me-
braslsa is 40 per cent and is about the
same In Iowa. This leaves about 60 per
cent, at least 40 per cent of which goes
back east or nearly 100000 taken out
Of the state annually, which should just
as well be left here in the state. With a
premium reserve fund OF this amount re-
tained in Nebraska for reinvestment, the
borrowers would be benefited Just that
much It is the rule among the Nebraska
home companies to supply the demand for
local loans almost Immediately, and Ne
braska securities are regarded the best in
the west
Experience of a Home Company.
A manager Of one OF the largest Omaha
hre companies said; with all our Ne
ibraska investments in the seven years we
have been In business there has never been
a defaulting OF interest or neglect to take
up the loan when due which conclusively
shows TO me that western securities are the
best on earth. The east has long reeog-
mixed this fact, and only the other day a
representative from an eastern loan COM
pany was here to place money, but failed
70 do so because the borrower preferred
to borrow. OF home concerns. The Omaha
companies as a rule prefer to scatter their
risks. rather than concentrate them, and
by observing this conservative process the
liabilities are not concentrated, as was
demonstrated In the San Francisco ire
and a big, destructive connagratlon In q
city Is not such alarming thing to the
local companies as might be supposed
Home Insurance a. Heavy.
Nebraska Is fourth In the extent OF in
suranee carried by home companies. The
states ranking In this order are New York,
Wisconsin. New Jersey and Nebraska
About 20 per cent OF Nebraska insurance Is
carried in its home companies. This applies
more particularly to the life companies.
The first OF these was established al Lin
coin IN 1857. There are now seven Of these
companies In the state. Two are capital
stock companies, two mutual legal reserve
and three stipulated premium companies