THE RELIGIOUS PRESS ON THE SOUNDNESS & RELIABILITY OF THE Equitable Life Assurance Society.
One of the editors of that leading and most influential religious newspaper, the New York Evangelist, in the month of October, 1869, incited by certain remarks with reference to the soundness of Life Insurance Companies in the City of New York, made a through personal examination of the mode of doing business of the EQUITABLE LIFE ASSURANCE SOCIETY OF THE U.S., No. 92 BROADWAY, (After May, 1870, No.120 Broadway,) and a few extracts from his report, made in the Evangelist, issue of October 21st, 1869, furnish an instructive comment on the standing of that Society in the minds of observant and reliable business men:
"Among the largest companies in the United States is the EQUITABLE LIFE ASSURANCE SOCIETY, whose immense new building of solid granite towers up so grandly on the corner of Cedar Street and Broadway, Being ourselves insured in this Company, as well as elsewhere, we had the best reason for inquiring whether it was equally safe. We did not take any official report, but determined to investigate for ourselves. To this end we have spent some days in the offices of the Company, examining its way of doing business, and looking over its books and its securities. Having done this for our own satisfaction, we give the result for the satisfaction of our readers. * * The first point to be ascertained, In order to determine whether a company rests on a solid basis, is THE AMOUNT OF ITS FUNDS. * * Our first inquiry, therefore, in regard to the EQUITABLE, was for the Assets of the Company. In reply, we were invited to examine them for ourselves and we found on personal inspection Bonds and Mortgages upon real estate amounting to $5,111,918—the latter being always loaned upon property of twice its value—and Bonds authorized by law, amounting to $1,177,418.47. These items, together with the value of real estate, moneys deposited with the Insurance Department at Albany, call loans, &c., made the gross assets of the Society, on the books of the Society on July 1, 1869, $9,599,069. To these large additions have constantly been made, so that we should judge the assets were rather over than under ten millions of dollars at the time we examined the same—so much solid property, every dollar of which is pledged for the payment of the amount issued to every policy-holder. With such large assets as we have described, the Company has ample means to pay all its losses. But the inquirer asks again 'what security have policy-holders that this vast sum will remain intact?' Of course this must depend partly upon the business capacity, fidelity and integrity of its officers. But, while in a Company like the EQUITABLE, where the Directors are men of the highest character, this fact alone would give assurance to its policy-holders, yet there are other checks and safeguards. Every department is under the most careful and vigilant control. First, there is a Finance Committee, consisting of six of the Directors, and the President and Vice-President, who hold meetings every two weeks, and all transactions relating to the finances of the Company must first secure their approval. Second, a Fiscal Committee is appointed at the close of each year, whose duty it is to examine every security, of whatever nature, held by the Company. Third, a Committee on Accounts, who meet at least once a month, and examine every charge, every receipt, or other voucher, and go through every account in detail. Fourth, a Committee on Insurance, who examine into all losses before they are paid. Fifth, an Agency Committee, who appoint all Agents, and scrutinize their accounts. We were snown the books in which these several Committees preserve the record of their meetings, and they bore evidence, in the regularity of their attendance, that these men were steadily at their posts, attending personally to their duties, an discharging them with conscientious fidelity. No one could examine this record as we did, without being convinced that the Directors of this Company, at least, are not content to leave its management in the hands of its salaried officers. Over and above all these checks and safeguards, there is a constant Government supervision. The result of this personal examination, although it has been somewhat laborious, has been worth all that it cost, since it has more than satisfied us as to the security of our own little investments, in the form of policies, which we have set aside as a sacred deposit for our families when we are gone."
page: (TitlePage) [View Page (TitlePage) ]TURNED FROM THE DOOR. A Christmas Story for 1869-70.
BYHENRY MORFORD,
Author of "SHOULDER STRAPS," "UTTERLY WRECKED," "OVER-SEA," &c.
NEW YORK:
THE AMERICAN NEWS COMPANY,
Nos. 119 & 121 NASSAU STREET.
1869.Entered according to Act of Congress, in the year 1869, by HENRY MORFORD, in the Clerk's Office of the District Court of the United States for the Southern District of New York. "THE ALDINE PRESS."—Sutton, Bowne & Co., 23 Liberty Street, N. Y.
