KEY TO AMERICAN LIFE INSURANCE COMPANIES. LIFE INSURANCE CHART FOR 1868.
Entered according to Act of Congress in the year 1868, by J. B. Ecclesine, in the Clerk's Office of the District Court of the United States for the Southern Distrct of New York.
ABSTRACTS OF CHARTER AND BY-LAW PROVISIONS AS TO "PROFITS," INTEREST ON CAPITAL, ETC.
MUTUAL, MIXED, AND STOCK COMPANIES.
The subject of the proper share of Life Insurance Surplus which should be apportioned to Stockholders is exciting public attention, and might as well now as ever be thoroughly sifted and criticised, thereby eliminating from the friction of conflicting interests such just rules of equity (juste milieu) as will be approved by the general public and by the maas of Stock and Policy-holders.—Hon. William Barnes's (Superintendent of the Insurance Department of the State of New York) Ninth Annual Report, 1868, p. lxxix.
THE PRINCIPAL PURELY MUTUAL COMPANIES OF THE UNITED STATES (All Profits Paid to Policy-holders).
The object of these Societies is to retain among the members themselves the whole benefits arising from their premiums. It is plain that, by this method alone, the public can derive the entire advantages which the present knowledge of the science of Life Assurance can confer. That knowledge enables men of integrity and intelligence to give the community every profit which can possibly arise from Life Assurance. If any cavil can be made about the rate of premiums, none can be possibly made about the just appropriation of the accumulations, until it can be proved that it is more beneficial for the assured to take a part rather than the whole of the bonuses and surpluses.—The Insurance GUIDE And Hand-book, London, 1868.
BERKSHIRE, Pittsfleld, Mass.—All profits paid to Policy-holders.
CHARTER OAK, Hartford, Conn.—All profits paid to Policy-holders.
CONNECTICUT MUTUAL, Hartford, Conn.—All profits paid to Policy-holders.
CRAFTSMEN'S. 214 Broadway, New York.—All profits payable to Policy-holders, annually, on contribution plan.
EQUITABLE. 92 Broadway, New York.—All profits paid to Policy-holders, annually, on contribution plan.
GUARDIAN. 102 Broadway, New York—All profits paid to Policy-holders.
HOMEOPATHIC MUTUAL. 231 Broadway. New York. —All profits credited Policy-holders annually.
JOHN HANCOCK, Boston. Mass.—All profits paid to Policy-holders; dividends applied second year, on contri
MASSACHUSETTS MUTUAL. Springfield. Mass.—All profits paid to Policy-holders. _ ,_
MUTUAL LIFE. 146 Broadway. New York.—All profits paid to Policy-holders, annually, on contribution plan.
MUTUAL BENEFIT, Newark, N. J.—All profits paid to Policy-holders. _ , _ ...
NATIONAL LIFE. Montpcller. Vt.—All profits paid to Policy-holders; dividends declared quinqucnnially.
NEW YORK LIFE. 112 Broadway. New York.—All profits paid to Policy-holders, annually, on contribution
NEW ENGLAND MUTUAL, Boston. Mass.—All profits paid to Policy-holders, annually, on congibution plan.
STANDARD. 202 Broadway, New York.—All profits paid to Policy-holders. „ . _ . „
UNION MUTUAL. Augusta. Me., and Boston. Mass.— All profitspaid to Policy-holders.
WIDOWS' AND ORPHANS'. 182Broadway, New York. —All profits paid to Policy-holders.
WASHINGTON. 155 Broadway. New York.—All profits paid to Policy-holders, annually, on contribution plan.
MIXED COMPANIES (A Part of whose Profits are Paid to Stockholders). "Stock Life Insurance, as an independent system, does not exist any longer. It only adheres in the barnacle way to the Mutual system."—Massachusetts Commissioners Report. 1868.
After the experimental stage of a Company is passed, and it will probably be in two or three years, If ever, the guarantee capital becomes perfectly unnecessary; and every cent which it costs more than the earnings of its investment is a bootless extravagance and waste of the Policy-holders' Money. — Massachusetts Insurance Commissioners' Report, page 63.
There can hardly be a Happier Set OF Capitalists on earth than one which has obtained a right, by Perpetual Charter, to Ensure Lives, receiving from the proceeds, first, Legal Interest, semi-annually, on Stock, As A Sure Thing, and secondly, 20 per cent, of what are called Profits, that is, Premiums proving to be surplus, for ever. — Massachusetts Insurance Commissioners' Report, page 158.
The capital stock of Companies of this class, when firmly established, are valued at from 400 to 500 per cent, over par value.
STOCKHOLDERS' PROFITS OVER LEGAL INTEREST ON CAPITAL.
AETNA. Hartford. Conn.—One and one-half per cent, on participating premiums; $78,654 paid Stockholders in 1867. being 134 44/100 per cent, on cash capital. No portion of profits secured to Policy-holders by charter or by-laws.
AMERICAN TONTINE. 149 Broadway, New York. Incorporated 1868.—Stockholders entitled to ten per cent, annual interest, payable semi-annually, and profits on any business done on stock plan.
ASBURY, 291 Broadway. New York. Incorporated 1867.—Interest on capital and 20 per cent, of profits payable semi-annually to Stockholders.
ATLANTIC MUTUAL. Albany, N. Y.—20 per cent, of profits credited to the Stockholders until guarantee capital redeemed.
BROOKLYN. 141 Broadway, N. Y.—20per cent, of profits payable to Stockholders. Only 12 per cent. Interest paid.
CONTINENTAL, 26 Nassau Street. New York —12 1-2 per cent, of profits over legal interest payable to Stockholders. $28,000 paid to Stockholders in 1868, being 28 per cent, on paid up capital.
ECONOMICAL, Providence, R, I.—By amendment of charter in June. 1868, Interest is limited to seven per cent, per annum on "each share of capital stock." Residue of profits, after providing for a reserve fund of $200,000, to go to policy-holders.
EXCELSIOR. 63 William Street, New York—10 per cent, of net profits payable to Stockholders.
FIRST NATIONAL ECLECTIC. 35 Union Square, New York. Incorporated 1868.—20 per cent, of profits to bo credited to Stockholders.
GERMANIA. 90 Broadway. New York.—Stockholders, after 1869, are limited to 5 per cent, on capital over legal interest.
GLOBE. 160 Fulton Street. New York.—Interest on capital of $100,000, at 7 per cent., payable semi-annually. '■ Twenty per cent, of the net profits to be set aside, to belong to the Policy-holders, and to be held by the Company as a permanent guarantee fund, not to exceed $500,000; but
the interest thereon to be paid annually to the Stockholders."
HOME, 258 Broadway. New York.—Stockholders are now limited to 12 per cent, on capital, payable half-yearly. A reserve fund of $200,000 is to be made up out of profits at discretion of Directors.
GREAT WESTERN. 20 Nassau Street. New York.—20 per cent, of profits payable to Stockholders.
HAHNEMANN. Cleveland, Ohio.—10per cent, set apart for retirement of paid up capital of $200,000. Interest paid annually at 7 8-10 per cent on $400,000 as the reeponsible capital, under Ohio general law.
KNICKEBBOCKER, 161 Broadway. N. Y.—Stockholders are entitled to twenty per cent, of the profits, besides an interest dividend on the capital. Dividends declared to Policy-holders annually, since 1861, after three payments made and applicable on tho fourth year. Interest and profit dividends paid to Stockholders on $100,009 capital, from 1858 to 1867, $139,810 75. Total premiums received since organization, up to Dec. 81. 1867. $4,074,521 74. and total dividends declared to Policy-holders, $116,571 29; paid or allowed, $42 087 29.
MANHATTAN. 156 Broadway. N. Y.—7 per cent, interest on $100,000 capital, and one-eighth of the profits payable to the Stockholders annually, in cash. Residue of profits paid Policy-holders annually after three payments made. Total interest and profit dividends paid Stockholders from 1853 to 1867, $286,000. Total dividends declared to Policy-holders. $906,868 77, up to Dec. 81, 1867.
METROPOLITAN, 243 Broadway, N. Y.—10 per cent, of profits payable to Stockholders.
MUTUAL PROTECTION. 162 Broadway, N. Y.—(Organized 1868.) Cash capital $100,000; 7 per cent, interest, payable semi-annually; twenty per cent, of net profits to be set apart and held by the Company as a permanent guarantee fund, subject to losses of the Company, interest upon which fund shall be paid annually, pro rata, to the Stockholders,
NATIONAL. 212 Broadway, N. Y.—10 per cent, of profits payable to Stockholders.
NEW JERSEY MUTUAL. Newark, N. J.—10 per cent, of profits payable to Stockholders.
NORTH AMERICA, 229 Broadway, N. Y.—Interest dividend of 7 per cent, per annum on $100,000 capital, payable semi-annually. Stockholders to bo also credited annually $2,000, as a reserve fund, payable to them upon retirement of the capital stock. One-eighth of remaining surplus payable to Stockholders annually, with interest dividend. Residue of profits credited to participating Policy-holders, and to be represented by scrip, redeemable, on reaching $500,000, to extent deemed advisable by board. Interest and profit dividend paid to Stockholders, 1864 to 1867, $15,000, exclusive of $8,000 reserve fund, credited to them. Amount of dividends declared to Policy-holders, outstanding and unapplied. $175,012 47.
PHCENIX MUTUAL, Hartford. Conn.-Stockholders received 6 per cent, on chartered capital of $100,000. only $16,000 being paid up. All residue of profits paid to the ensured.
SECURITY, 31 Pine street, N. Y.—20 per cent, of profits payable to Stockholders under original charter, but the Stockholders have signed agreements under amended charter limiting interest on capital to 12 per cent, per annum currency.
UNITED STATES, 40 Wall Street. N. Y.—20 per cent. of net profits paid to Stockholders, beside annual interest on capital. Capital lately increased to $200,000; charter authorizes increase to one million. Interest and dividends paid on stock, 1851 to 1868, $242,757.65. Amount of profit dividends declared to Policy-holders, now outstanding, reported to Mass.. at present value, $155,000. Policy-holders share in profits on Stock plan.
WORLD MUTUAL, 117 Broadway. N. Y.-121-2 per cent, of profits payable to Stockholders. None yet apportioned.
STOCK COMPANIES (The following is a list of the Stock Companies which pay all the profits of the business to the Stockholders):
To us, it docs not seem wise for any legislature to farm out to capitalists the business of collecting and managing the funds provided by the people for their widows and orphans.—Massachusetts Insurance Commissioners' Reports, page 157.
Human life is too sacred an interest, it has too many relations besides the pecuniary, too much of the value that transcends arithmetic, and we hear of too many exhuminations to test the validity of life policies, to trust it to the Stock Market like coal, copper, or petroleum."—MassachusettsCommissioners' Report, 1865.
The value of the stocks of all well-managed "Proprietary" companies in England during past years has run up to six or eight times their par value, while tho policies never increase in value. There can be but one explanation for this, namely, that there wore large profits in the business, which might have been, But Were Not, divided among the policy-holders, who contributed to produce such profits.
But the great objection, after all, to the Stock Plan, lies at the foundation of the system. After a man becomes a policy-holder in a Stock Company, he has no favors to expect from the Stockholders—their interests are diametrically opposed to his. The Public demand that their money shall produce something for themselves."—Anon.
NATIONAL LIFE INSURANCE CO., Washington, D. C. —(Jay Cooke * Co.)—chartered July 25, 1868. Capital one million, with power to increase on vote of Stockholders at annual or special meeting. None of the profits
to be paid to Policy-holders.
AMERICAN POPULAR, 417 Broadway. N. Y.—No dividends to the ensured are made by this company until the lapse of the period of expectation on the premium age of entry, and the amount of proportion of such dividends
then to be made is not specified in the charter or by law.--Barnes's Report, 1868, p. lxxxvi,
NEW YORK STATE, Syracuse, N. Y.—All profits payable to Stockholders.
UNIVERSAL. 69 Liberty Street, New York.—All surplus to be credited to the Stockholders, pro rata, but to remain in the hands of the company as a "guarantee surplus fund," for the security of Policy-holders, until such fund shall amount to $1,800,000. which, with the capital, will make the sum of two million dollars; thereafter all the profits may be divided among the Stockholders.
TRAVELLERS, Hartford. Conn.—All profits on proprietary tables paid to Stockholders, but the company have prepared tables to ensure also at mutual profit rates.
For all further particulars of Capital, Assets, Income, Expenditure, Premium, and Dividend System, see Underwriters' Life Insurance Chart, 1867 to 1868, Price 50 cents per copy. Published by J. B. ECCLESINE, Editor and Proprietor Wall Street Underwriter, OFFICE 100 BROADWAY NEW YORK, ROOM NO. 6.
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