INSURANCE
SECTION
The Omaha Sunday Bee. o
Li
PAGES 21 TO 28. g
KSTAnUSIIED JUNE 19, 1871.
Growing importance of Insurance as a Factor in Our Modern Business Life
OMAHA. SUNDAY MOKXIN'O. MAlffll fi moi biyoi r imv iMirr -.t-x-t-ci
L ' - tmm-mmmmmmmmmm-mmypmlm - - aw
THEORY OF ALL INSURANCE
Principle on Which Tire, L'f, Acoident,
Fidelity and Others Are Based.
SHARING OF RISKS OF LOSS BY MANY
Flan Old as Commerce and De
veloped with the Growth of
( Trade to Immense
'"( Importance.
Insurance, like banking, has it begin.
Bine bo fir back In the affairs of the world
that Its origin Is lost In the antiquity of
trade; but It certainly grew out of the un
certainty of commerce. Its earliest form
was that of the assmuptlon of a sliare In
the responsibility of a mercantile venture,
generally by sea, by each of a number of
Individuals. One man could not afford to
take the risk of having his all swept
.way by the mlscarrlnge of a single cargo,
whereas, several might Join, and If loss
hould ensue It would fall with lightened
force because of Its distribution. As com
merce developed, the Idea of sharing the
responsibility grew also, until Its evolution
brought about the individual who was will
ing to assume for a stated sum a portion
of the risk Involved without assuming any
direct Interest In the cargo. The transi
tion was easy and natural, and the change
which brought Into the purview of the
plan other forma fit risk than those of
mere merchandising by land or sea was
also accomplished with facility. It has
been practically within the last century,
however, that Insurance a It la now gen
erally understood has been developed.
In Its earlier forms Insurance was of the
class now known as marine; confined al
most exclusively to curgocs in passage, be
ginning when the vessel cast off Its fasten,
lnga at the port where its voyage com
menced" and terminating when the vessel
was moored at the dock at the end of Its
trip. The second great division Is that
of fire Insurance, and deals with all forms
of property liable to Injury or destruction
by fire; this division Is subdivided Into' a
number of branches or special lines, such
as hall, tornado, plate glass, and the like,
but all on the same general principle, and
subject to the same control and regula
tion. So general Is the practice of Insur
ance that no prudent owner of property la
without the protection afforded by a
policy. The topic Is too broad for any
thing like detailed consideration In a short
newspaper article, and can only , here be
touched upoA in a most general way.
Risk In rnderwrltlnar.
Underwriter of fire and marine insur
ance, in any of their branches, begin busi
ness with the handicap of Inability to esti
mate at all what their liability is; they
can only figure on total loss, and. must
make their calculations accordingly. In
the absence of accurate figures, such aa
the experience tables afford the life as
surance men, the,,jlre. nderwrlters are
compelled to rely on the Judgment of ex
perts as to the nature of the risks as
sumed. Men who have devoted their lives
to the study of the subject determine the
points Involved !n the general subject of
rate and on thotr decision Is based the
premium collected for assuming the risk.
The original Idea of distributing the pos
sible loss among a number of Individuals
Is still in vogue, and the "line" of Insur
ance carried by any one large Arm or In
stitution Is generally distributed among
a number of companies, so that the Indi
vidual concern of any one company In a
particular risk Is generally small. In this
way the losses are kept down to a min
imum. In determining the conditions on which
a policy shall , be written, or a risk as
sumed, the underwriter gives due consid
eration to all the elements- that can poa
lbly enter Into or affect the safety of
the property to be covered. A building Is
Inspected from Its foundation to Its roof;
Its construction is thoroughly
and Its location as regard to other build
ings Is given due weight. The matter of
publlo and private equipment for fighting
3ra Is Also nnnlilrri a rA all tUm .-i t v.i -
physical features that can in any way
affect the conditions of the property are
provided for. Such safeguards as experi
ence or prudence dictate are necessary are
tlpulated, and everything Is done to make
the interest of the insured equal with that
of the Insurer fn the preservation of" the
property. This brings the question down
to the most delicate and perplexing prob
lem the underwriter has to meet, that of
"moral hasajrd." By this la meant the
probability of the Insured destroying or
conniving at the deatructlon of the prop
arty In order that he may receive the
aum guaranteed him by the Insurer.
Ethical Phase of Problem.
Moral hazard Involves a purely ethical
phase of the general problem of Insurance,
and yet It Is the one to which the greatest
consideration is given. Apparently it may
be settled by the general character and
standing of the Insured In the business
community; but even with this condition
satisfactory on the surface, the insurer
must be on his guard In order that the In
terest of the insured does not lie In the
direction of the destruction of the prop
erty. No certain method of overcoming
thla element of darger la known to the
Insurers, other than that of refusing to
assume risks which offer any but the most
approved conditions. Some years ago a
considerable debate was engendered along
thla line by the proposal to enforce what
was then known as the "80 per cent clause."
Vnder thla plan the Insured became a co
Insurer to the extent of per cent of the
amount written In the policy; thus. If cer
tain property were Insured for $1,000. and
were totally destroyed, the policy would
pay UMJ, while If the loss were but 1300. the
Insurer would be responsible for but 8240.
the difference being the risk assumed by
the insured as colnsurer to the extent of
to per xent of the face of the policy. For
very obvious reaions this form of policy
was not popular among those seeking pro
tection In Are Insurance.
Opposed to the coinsurance plan is the
valued policy, a form under which the In
surer la required to pay the whole rum
named In the policy. In rase of total loss,
or the full amount of the loss incurred In
event of partial lose. This form of policy
Is In vogue In Nebrsska under the statute.
Against the valued policy the underwriters
advanced the argument that It enormously
Increased the moral haiard: to which the
advocates of the law replied that thla
should be met by Increased vigilance on
part of the Insurers.
1. 1 a air Mitul r-.n.
Another form of nre h.nr.n.. t. tk.
mutual, or "Lloyds." In which the Insured
are slao Insurers, the organisation being
made up usually of Individuals engaged In
a single Uue of Industry, or In Hues closely
allied, who agroe o ahare any losa that
nay be sustained by any one of their nuin
ber, the proportion of the loss to be met
by any one .member being based on the
amount of Indemnity lie Is guaranteed by
the association. Lloyd's, In London, which
Is the headquarters for marine insurance.
Is simply a plnie where a number of capi
talists meet and discuss the 'Various rlrks
offered, each assuming such proportion as
he cares to Underwrite. Among some of
the larger mercantile Institutions of the
United States a modified form of Lloyds
exists, but the danger of this form of In
surance Is shown by the experience of a
number of the big dry goods houses of Bal
timore, who had formed a pool of the sort.
They were wiped out In the great confla
gration, and as each firm sustained a total
loss, neither of them secured any in
demnity. Work of the (Adjuster.
The great advance in Are Insurance
methods is also made manifest by the ex
perience of the Baltimore fire. While a
number of Baltimore companies were wiped
out as a result of the overwhelming
catastrophe, the amount of Insurance they
represented In comparison with the total
loss Is very small, and the fact that each
of them will be able to pay almost all
of the losses incurred will reduce tho
amount lost by failure of Insurance com
panies to an Insignificant figure. In this
connection some reference should be made
to the function of one of the most Im
portant of all Insurance experts, the ad
juster. On him devolves the duty, fre
quently delicate, of settling the amount of
loss and the Indemnity the Insurer Is to
be held liable for. Ho must be familiar
not only wtlh the Infinitude of detail In
volved In the Insurance business, but must
also have some knowledge of the details
of nearly every other line of Indtasirlal psK
tivlty, In order that he may approach lift'
task of settlement with such intelligence
as will result In an equitable adjustment
of the loss and a satisfactory settlement.
The adjuster as a rule earns his pay.
Lessons of the Baltimore Fire
Just now the Insurance press of the coun
try Is full of comment on the great Balti
more flro and its lessons to Insurance men.
One point on which alt are agreed Is that
the "conflagration" risk has not yet been
eliminated from the list of hazards. Other
points under consideration have to do wttn
tho question of construction and tend to
ward a general demand for safer build
ings, structures that are actually as well
as theoretically fireproof. As to the actual
loss resulting from that great fire, the In
surance Field of February 18 says:
After a week's review, chairman Turner
of the general adjustment committee esti
mates the loss in the Baltimore conflagra
tion to have been 112O.00o.0ii0. with tnauruno
of 176,000,000. Sulvage and over insurance
win reduce the company loss to about
160.000,000. This estimate Is considered a
conservative one by the experts.
The burned district covers seventy-three
squares In what was the heart of the finan
cial and mercantile district of the city,
and about 2.600 buildings were destroyed.
The committee on fireproof construction
of the National Fire Protection associa
tion has not aa yet had an opportunity to
carefully Inspect the skyscrapers, but In
surance men are generally Impressed with
the fact that the fireproof construction
buildings did resist the flames and In some
cases run be safely repaired.
Insurartce experts all agree that the prin
cipal lesson of the Baltimore fire is the
Importance of tho exposure hazard and the
necessity of proper window shutters. Iron
shutters, wire glass and water curtains
each ttnd strong advocates.
The Spectator editorially discusses the
rltuation as follows:
The blow has proved even more serious
than , was at first anticipated, for a re
ceiver has been appointed for one Tinltl.
more insurance company and receivers have
ieen arnxieu ror ror three other oompanles.
It Is also feared the actual loss payments
of many other companies will materially
exceed the published estimates. The losses
Incurred by some of the smaller companies
Iocs ted outside of Baltimore have been
sumcienuy neavy to impair their capitals
but it is Drohahle that comnanlea mn nltii.
atedi and which have reputations of Inm
standing to sustain, will make up their
Impairments and continue business. On
the whole, however, the relatively ll-ht
murium? nmung me nre insurance com
panies tins been a source of wonder to the
average business man, and Is -a pleasing
r-velatlon of the conservative principles
which have governed the administration of
fire underwriting affulrs during recent
years. It has demonstrated that. In all
probability, not even a repetition of the
great Chicago fire would force the com
panies which have provided "special re
serve" and "guaranty surplus" funds to
fall back upon these funds in order to con
tinue business.
One good effect of the Baltimore catas
trophe has been to lend professional fire
fighters to give more thought to the possi
bilities of similar occurrences elsewhere,
and to the best means for preventing the
same.
Life Iniaiase Problems.
Differing greatly from the problems of
fire Insurance are those that confront the
underwriter of life assurance. In this tat
ter branch of insurance activity the ele
ment of hazard has been almost totally
eliminated. "Experience" tables enable the
actuary to tell with absolute deflnltentss
what are the chances of a normally healthy
man dying during any year between the
year he applies for Insurance and the cen
tury mark, together with the reasonable
expectancy of life due him. With this In
formation the matter of determining just
how much It will cost to insure a return
of a specified sum to the heirs of an Indi
vidual la one of easy calculation. It is es
sential, of course, that this cost be dis
tributed among a number, just as the ex
pense ot carrying fire risks is shared by
all the policyholders. But, while the fire
underwriter has no means of knowing when
a losa will be Incurred, the life underwriter
knows that sooner or later death will over,
take all his risks and he must make pro
vision for the Inevitable end. To this end
each of a group of Insured persons carries
not only the expense of Insuring himself,
but of insuring all the others In the same
group, to the end that the heirs of each
may be Indemnified. In this respect all life
Insurance Is mutual, although the older
companies were organized on a basis of
profit for the shareholders. Competition
has so changed the practice that nowadays
the policy-holder is also a sharer In the
profits, not alone of the strictly mutual
companies, but of the "old line" as well.
Modern Front Sharing.
In the various forms of endowment, ton
tine or other limited paymsnt funds, the
Insured Is not only secured as to life pro
tection or Indemnity In case of death, but
In return for specltled sums, paid at stated
intervals, is guaranteed a return of all be
pays in at the end of the period covered
by the contract, but a profit that shall not
be less than a given amount This added
profit is earned by the management of the
Immense sums held as surplusage by the
companies. At the beginning of the year
the total assets of twenty-nine leading life
insurance companies of the United States
amounted to more than t2.0u0.000.000, nearly
three times the capital of all the national
banks In the country, and more than 8100.
OO.OOO .aore than the aggregate valuo of all
the coin and bullion in the country, and
double the value of all the metals and
minerals mined In the country last year.
These figures are cited simply to show the
enormous extent of the life Insurance busi
ness. Accurate figure are not at hand to
base an estimate of the business of the
minor companies, but they would swell the
total Immensely, and when the great fra-
Fire Insurance in the United States in 1903
The following tabulation shows the ageropntes of the fire hiKurauee huslnes. tnunwcjed In tho United States in 1903, and the financial condition of
the comimnles ns of January 1, 1904. The figure nre compiled from the sworn reports of the various companies by The Spectator of New York, and are
Issued In ndvauce of the State Insurance department report. The list comprises all American and foreign stock companies reporting to the New York In
surance department:
COMPANIES.
Aetna, Hartford
Agricultural, Watertown..
Albany, Albany v
Allemitnla, Pittsburg
American, Boston
American, Newark
American Fire, Philadelphia
American Central, St. Louis
Assurance Co. of America, New York a.
Boston, Boston
British-American, New York
Buffalo Commercial, Buffalo
Buffalo German, Buffalo
Caledonian-American. New York
Camden Fire, Camden
Capital, Concord
Citizens, Bt. Louis
Colonial, New York ,
Colonial, Washington
Commerce, Albany ,
Commercial Union, New York
Commonwealth, New York
Conoordiu, Milwaukee
Connecticut Fire, Hartford
Continental, New York
Delaware, Philadelphia
Detroit F. and M., Detroit
Dufchees, Poughkeepsle
Empire City, New York
Equitable F. and M., Providence
Federal, Jersey City ".
Fire Association, Philadelphia
Fire Ins. Co. of Co. of Phil.. Philadelphia..
Flremans Fund. San Francisco
Fire mens, Baltimore
Flrcmens, Newark
Franklin, Philadelphia
Oeorgla Home, Columbus
German, Freeport
German Fire, Peoria
German, Pittsburg
German Alliance, New York
German-American, Baltimore
German-American, New York
Oormanlu Fire, New York
Olrard F. and M., Philadelphia .7..
Glens Falls, Glens Falls
Ulobo and Rutgers, New York
Granite State Fire. Portsmouth
Greenwich, New York
Hamilton Fire, New YorU
Hanover Fire, New Yor'i
Hartford Fire, Hartford
Home, Baltimore
Home, New York ,
Home F. and M., San Francisco
Indemnity Fire, New York
Indianapolis. Indianapolis
Ins. Co. of North America, Philadelphia...
jns. to. or state ot i -, roiiaaeipma I..
Kings County, New York:.
Lafayette, New York
Lumber mens. Philadelphia,. ....... ..........
Mechanics,. Philadelphia a
Mechanics and Traders, New Orleans
Mercantile F. A M.. Boston
Michigan F and M., Detroit
Milwaukee Fire, Milwaukee
Milwaukee Mechanics, Milwaukee
Nassau, Brooklyn... .'
National Allegheny
National, Hartford
National Union, ' Pittsburg
Naw Hampshire, Manchester
New York Fire. New York
Newark Fire, Newark
NlBRar Fire, New York
North British and Mercantile, New York.
North German Fire, New York
North River, New York
Northern, New York
Northwestern National, Milwaukee
Orient, Hartford.. ,
Pacific Fire, New York o
Pelican Fire, I Jew York
Pennsylvania Fire, Philadelphia
Peter Cooper Fire, New York
Phenlx, Brooklyn
Phoenix, Hartford
Potomac, Washington
Prov. Washington, Providence
Queen, New York
Reliance, Philadelphia
Rochester German, Rochester....!
Security, Baltimore
Security, New Haven
Spring Garden, Philadelphia
Springfield F. and M . Springfield
Bt Paul F. and M.. St. Paul
Star, Louisville!
Stuyvesant, New York
Teutonia, New Orleans
Trader, Chicago
Union, Buffalo
Union Philadelphia
United Firemen. Philadelphia
United 8tates Fire. New York
Victoria Fire. New York
Virginia F. and M.. Richmond
Virginia State. Richmond
Western, Pittsburg
Westchester Fire, New York..
Western Underwritern' Assn.. Chicago.
Wllllamsburgh City Fire, Brooklyn...
Foreign Companles.t
Aachen and Munich, Aix-la-Chap
Alliance Assurance, Loudon
Atlas, London '.
British America. Toronto
Caledonian, Edinburgh
Cologne Reinsurance, Cologne..
Commercial Union, London
Hamburg-Bremen. Hamburg
Uv, Union and Crown. London
London and Lancashire. Liverpool
London Assurance. London
Manchester, Manchester
Moscow Fire. Moscow
Munich Reinsurance, Munich
Netherlands. The Hague
North British and Mercantile, London....
Northern, London
Norwich Union, Norwich
Palatine, London
Phoenix, London
Prussian National. Stettin
Rossia. St. Petersburg p ,
Royal, Liverpool ,
Royal Exchange. London
Ralamandra. St. Petersburg
Scottish Union and National, Edinburgh
Skandla. Stockholm
Sun. London
Svea, Gothenburg
Thurlngla. Erfurt
Transatlantic. Hamburg
Union Assurance, London
Western, Toronto
Total for 1808
Increase in 1903
Totals. ISO? ' '
Totals. 'Tl '. "
Totals. 1900
Totals. 1
Totals. 18-
Totals. 1897
Totals, 198 .......
Totals, lh.1.
Totals, 194
; r
NET SURPLUS. NET PREMIUMS LOSSES PAID. tr?
. WRITTEN. g
Ch Total ' tal
Capital. Assets, , . mJt
i , , 1. J" i. S
Jan 1, 1901 1904. 1903. 1903. 1902. 1903. 1903. 12.
1 :S
: w
' 4'600 000 $ 1I??,!2 1 e,2f?JS '023 6.442,369 T 6.356,606 I 6,020.007 8 2.8X6.K8 f 2,710.617 I 670.000
250000 KA-jm S17'II 1.236.617 1.121.705 1 344 813 6".0M 619.257 60,000
io'2 5'2 "4,663 16S.296 1&9.647 171.769 224 497 8 79.1H6 20.0H0
SOoH ar'SS W6 WW 448 668 4R51M S.K K.VK
S0O.0O0 837.9J6 124.897 126,369 627,618 477;i04 6U1.6K 3!tf 192,183 21.000
600000 SsrinS IfrfiS 1.0B9 1.816.316 1.60H.3W 1.992.413 TS.m 828.211 87.042
1 nffi'onn i-'SS . S1-S3 1'9'g;il 1.648.567 1.W7 217 1 761 380 W2.791 SO.tniO
SSnSn ? Sr'JS 1.24S.ES8 1.337.1M 1.8H1.220 1 617 846 X0104 "- 62.77 130,0.
1 000 22 W-6!8 m33 429 .m 722 686 81,606 267.499 ...
1,000,000 1,814,034 1.819.746 1,780.781 1,467.172 1.259,416 1.W,1M W,l 861.013 120,000
2W.000 1 mm X7' 331.788 lM- 2.
Son mi ' M.1S8 67.632 212.972 W.640 b 227 663 W.784 16.000
200000 12S'm 1-4S,,?2 47fi'7M 478 " W4.8M 226.9S8 226.927 60.000
r tm i7v!i.4 86 0,8 88.737 12.710 16.670 22 410 18.180
C 300,000 1,042.800 c 302,710 163,407 503.363 SStiU d eiolwe 2J."S 167.920 27,013
Ino'SU iSMS .B7'S4fi W'9"3 219-01() K.K3 23S 279 J3A987 9A814 g.OW
fno'SS "'V28 tl'33 5u8SM ' mm 2S6,f'.. 290167 8.000
200000 &'979 12-ti U&',a9 L.'M . .68l 10.IWO
t VX.000 446.376 98,042 81,2i'6 201,001 196,063 97'8!i6 ".000
vm'nI2 , o'fX a iK m 873 lVl.SSl 176.950 208 118 93 fi12 74.2S3 10.000
So'EE HS'5 43ft'W4 349 1W 822.509 3u8 318 S88 784 1M.4M J06.11S 35.000
i-yi?'4 134.476 1 29.496 637.772 634 670 676 603 364249 .0M
l'ooo'SX i5-!S'??2 J.414.494 1.183.267 2.8S0.418 t93 204 3 OKI 087 1.414.630 1.411,631 1(10.000
1,000.000 14.192,1,8 6,563,428 6.718.W3 6,862,666 6,482,279 2.680.112 2,68(1,324 f 300,315
VH-JS 158.930 133.142 869.630 728,236 937 2R5 889,579 392.467 28.11S
mX ''S?'89? .25 412.600 404 269 484 771 213.110 17S.0! 60 000
son w'JS 1P3'756 108-!S2 07.61S 570 982 277 038 24.OT3 12.000
i , !2S'? J6'492 '273 5 03 827 1M171 H6 086 ".264 99.609
00.000 1.250,434 166.616 151.634 861.709 763;07 448,560 849.CS1 28,000
I'?!'?!4, 661,465 68g.01 807.812 633.677 864 447 19.376 807,800 50.000
' ''S?'S1 920SA3 7'W2 .23.3S3 1.442 353 t,KW 692 1.7H7.247 1,1(6,820 200,000
l5"Si 22!-I 126'n8 M'SS 22S 96J 24 92 269781 13MI 212,556 24.000
'2S-2S f-SS'S? 2.1S6118 I. 8,269,167 S.126 684 S.470 788 1.606.063 1,590.143 120.000
400,000 1,269,951 264,340 412. 671,260 629,759 752.6M S53-'u4 426.263 64.361
a'2S'o?S !'??? J2 J62S.WT7 1.377.373 816.108 768.264 969 260 365.SS4 100.000
o -Ul-52i 1.W6 08 1,021.064 768.072 706 368 8M 098 861.762 80.000
,5?i'JJ? . 275.468 276.426 391,651 813,628 600367 !." W.000
J00'000 ZL2'8"7 1.306.596 1.0O8.S10 2.955.506 2,703 432 8 120 767 . 1.286.020 1,367,369 40.000
200.000 701.294 2C2.517 196.416 371,886 lSlU mfiX f 126.373 M
!!U5 . f5'412 S7.(ian T2.84 439.387 SSC.586 478 672 203.437 179.978 20.000
'2 fl-Sf e'K .43 40029 484 939 & 6.141 199,022 40.000
Ifc'ZS ,,K?-?Ji . 222,066 2M.06J 127.132 119.626 .7B "."l 16.174
l'EX'5 ''SlJ'iS! 8.633.250 4.696.881 4.932,477 4.607 766 a 6 380 643 2.2M.122 2,079.179 600.000
1,000.000 6.849,834 2,618,464 2.642, 8M 2,101,601 lOT 297,060 865.60J l0.00"
J'S?'2S? .898 034 697 049 407.921 ' 488.S36 602114 3 "1.612 203,544 66.000
fSS'SS ,'47SK77 1 862.894 1 261,668 1.157.698 1.442 327 653.010 498.462 120,000
1'?J2'6?1 38'?93 -I05, 1.661.468 1,091 288 1 709 653 0,! 8M.884 44.000
'SS 100'2S "S'S88 i. 890 674 409 018 . 223.686 1 99.524 12.000
200,000 2,110,004 158.164 188.720 1,939.656 1,926,246 I.004J129 U04.000 1,078,543 20,000
.iiS'JIS 55'43 83.839 89.00 189.68! 178 664 1 98 934 W.446 118,014 9.000
J'SS'ZS ,1'S5'W7 630,227 646.653 2.8R9.234 1299:829 8 Wfl269 1.2M.815 1.109.665 100.000
U-VJ-l .n.2" 8,167.181 10.073,791 1621 46. 10610 377 6.068,124 6,466.684 437,500
2S'Z5 ..l 871 86-W3 267.841 231.897 27394 124.603 116.342 16,088
8.000,000 18.040,793 6.574,761 6.43039 8,076,120 7.303,276 lr I.TMissa 8,781.220 8,487.624 420,000
Jrt90J - 1.469.696 886.690 . 866.205 . S99.41S -' 934.607 , 1061 172 - 604.737 . 406.667 86.000
W.1J "7B7 to"""" 166.840 170.864 178 388 ' M. 71.674 1C 000
-00 (WOO .- ggSirf .2U 886.433 i 156 40fl?01 ' 25.BO0 . J37.814 ' .12,000
2.2 . 8.77i . mm , 199.966 171 648 " 21424 ". im -9.825
E SS ' 'C?84 12 6a Fl-4 216.1U 21 J 203 ' Isi'mS ,0!i M8 1I2 2 26.000
W.000 to7.2l -fi9,0S4 iu8.897 ' 83S.U1 JS8.987 M.M 1M2 161,668 20.000
J fJS 5?rT", 108.828 60 "08 286.176 jftl.14 807 240 118.15J 149.078
.fS'25 ' '238.W8 U5.9I 0.' 166.676 ' ?13 164 196 Ml 8.048 ' 82.000
J52S SI'P 179R09 ' Itt'80 12-7 892;S07 466'243 2M.8;B l77-77! ' 24,000
J00-000 563.865 102.827 88 4 274.673 266 787 297' US.m 118.164
. . 200,000 ! J,926,pi 1,386,80 1.J67.182 133.937 1.241.290 lAVM t9.m 601,814 80,000
' 2-S. 850 313 212.569 43.W3 840.738 239.476 ' 885 047 109.027 20.000
, tSS ZS .sl s9 263.966 185 8fl 156 848 1 28?' 80s 2,890 48.115 17,710"
a,5S'2S f-!'FS tm.m i.Sm.i8 1,979.101 4.27s 21 lmv 2.020.275 2.143.647 120,000
,J?J2 i'?i7B7 8TSX8 2.'3 713.214 , m 198 782754 268.887 171.031
1.000,000 8,877,847 1,193,646 1,164.810 1,706,596 1,682,073 1,865;797 843,666 890.534 100,000
OOO 811,800 80.108 M 4 830 663 277 006 846 884 148.623 136.973 1 2.010
. 288.707 189.161 167.17 178 601 m 86.937 94.903 24.862
600,000 t8o9.72 1,206.562 LlOt."7 2,488.628 4.15.378 2.63 0T7 L13.710 1.177.833 99.980
r'iS .W2 S1 866.678 854.6l 142.V61 108 495 164 TO 80 ".OH 20.600
200.000 417.078 2846 20.874 404.574 228!820 1 333;387 .170,766 126,439 6,000
860.000 1,176.723 261.196 210 4 741.775 C01 3T6 T75 976 284.299 260.808 27.7R9
2W- .577018 170.331 167.739 .326.964 293.118 351 784 m,9f9 140.169 12.336
S' 8.S9'9' 1.09l0 1,070.213 1.382,672 1.813.968 1 Mf jJo m- 490 4if4 90.000
tno.000 t210.3S5 708.111 644.096 1,066.661 1 046 776 1 132 881 rrs-m 6972 60,000
200,000 410.8CT 109,708 90.668 203,839 12,m m.m K-a4 1-866
2TH).0OO 4R3.330 78.687 78-648 269.586 246 661 iff 1 140.627 136.3(9
400.000 6.261.613 2,619,442 fcl97.8 2,618,680 2,492 666 2 871 'H 1.292.738 1,889.629 100.000
. 152-552 840,826 102,172 93 4 176.102 4 403 181 838 48.R96 16.167 16.ft
IS22'SJ2 7.407.091 1,670,200 1.758 '65 8.161.418 6.626.137 I io' 866 1 632.208 8.238.708 100,000
2,000,000 6.858,661 1.672.972 1.337.923 8.651,867 8,414,389 ' lisofSTI 1.632,282 1.826.896 240,000
200-0(5 606.646 188,866 183.414 271,621 237.827 304 284 120.98 94,471 24,000
K5 2.3P2.458 383.972 399 ' 78 t907.49 1.848.712 2 001128 1.H0.P61 1.097.062 M 000
600.600 6,164.73 8,003.708 1,635 663 .on.7 1,870 877 1 210 823 1.660.20 1.629.561 100 DoO
800.000 1.190.180 220.5"4 198 -Mi 679.039 44;048 66 126 247.8ta 239.845 21000
200.000 1.606,689 672,456 491.091 998,874 886.481 LOSS 434,851 30,000
200.000 818.06 68.126 25 627 80.777 28.036 96 167 It.lM 147
4W.OO0 1.432.671 193.444 189 981 879.366 896.10 a 930-20 406.281 426.483 24.0OO
400.001 1.543.321 153.761 100 71 710 61 M9.019 766 476 274.326 316,701 24.000
XOOO.OOO .282.402 1.614.296 1.612 071 1.206 60 8. 002 119 1 422 66 1,661.443 1,706.111 200.000
600,000 8.700.778 1.01S.81 895 802 8,978,381 2.616,656 3.1;866 1.687,482 1,473,960 50,000
200.001) 2K4.045 49 trj 60017
200.000 438.847 83.582 18 76 816 748 ' 170 97 32'748 1 48.S1 81 .677
250.OM 790.1(0 106.056 86.91 643. 670 367 678 47 856.738 - 399.746 25.046
600.000 1,753.673 1,071.162 1,OS8-6'0 1.404.S98 1,290.61 1 662 0" 681,717 702.483 60.000
lfrO.OCO 230.836 109,629 107.8O6 24,489 23,620 ' JSisoO .30 10,630 6.000
200.001 646.907 80.231 40 848.669 368.774 4 80 306.361 201.419 10.000
S'IOOO 1,767.96 199.041 166-'4 411.905 410.089 488 166 Wt.R?7 2S9.028 30,000
260.0M0 776.449 110.671 86 512.776 489.683 616 860 229,479 264,496 10,000
200,000 346.636 60.685 . 86 61 16.1 3'S 140.199 159 442 .161 72.W.
250.000 932.0i2 198,156 151.663 633,683 642,864 669.888 830.263 367.278 20,000
200.000 698.0R3 118.S08 63 98 897.20 889.637 416 07 183.877 176.111 12.000
300.000 683.798 43.727 29 '" 339.624 822 94 872 482 171.243 22.062 1 8.000
300.000 8,447,004 1,248.623 1.215 ' 2.012.041 J,014.? . 1)8 7? 969.606 1.150.841 48.000
200.000 674,12 S8.124 4 669 426.099 8OT.403 ' 450 76 1 93,803 220,747
250.000 2,478,913 1.229,617 1,261.137 1,080,392 951.613 L218.164 601,81 467,906 75.198
200.000 1.092.748 401.387 S2 .318 897.194 817.870 0J 467,563 189.597
200.000 898.S91 622.783 687 "64 882.704 291 37 418 664 171.697 83.961
206 . 1,279..'.94 673.694 532 7R 8W 84 916 6 Wts'lS 527,036 489.798
200,000 1.427,306 476.747 462.378 1.610,34 1.S71 870 1 647' 737 871.046 868.834
200.000 L 734.363 741.631 67.382 1,064.13 1.068.939 1,145,641 660,460 696,609
JSSII?? .Z37'88 279.91 277-1't RW.!4 602.06 663.249 ' 242.818 218.971 ..........
200.000 4.2P4.564 1,392.2" 1,185 677 1.073. 94 ' 2.ft?.(i76 1 16711 l,3.fil 1.719.747
200,000 1,834.178 46.693 873 761 1,697.431 1.671.184 1 766 002 sr.5.319 889.731
SOO.flfiO 8S4.201 682.687 446 "K 80) 32.3?7 aw 910 170.718 201"64
I 200,000 12.066,918 6.160.641 4.812.208 6.857.E04 6,510.608 7.239:654 8.476.S15 8.358.946
00.600 2 01.622 l.OOS.IKS 878 34 1.6.74 1.946.490 1 993 71 863 267 876.392
200 000 2.113 003 884.136 849 61 l,O.0 1.477.1P l'476'lH 673.184 628 188
200.000 1,734 ! 674.576 692 37 1,387.612 1.37 716 L 444 930 74).ff5 804.81
200,000 816.183 476.154 811 641 13 JO 63 270 1 421 T 280. 2"3 476 966
200,000 8,302,911 769,744 609.648 8,647,883 t.915.574 8.658:2m l.C63,17 1,626.659
200.000 642.711 438.20 463 44 1524 1 30.6" 17 040 65.788 6OSO6
200 0O0 6.W1.37S 1643.326 2.272 4 8.700 916 4.0S 37 1 883 064 I.OTOOtf 8 8x9
200,000 1.400,488 1.O97.6O0 1,424 6' f.306 oat ?144a 2111 430 1,070.0T7 86 33
. 8,631.429 864.661 726.764 2.044.9O2 l.R91.(U 2113'' 896.606 900.72
200.000 1.946.036 852.836 756 22 1.270.151 1.209.483 1.311.676 608.r 638,886
JOO.OnO 1,978.912 869.292 66533 138.66 t.W 9R7 2,337.(r4 1 468 334 1,77.K64
O.OOO 1.01090 408.045 347.22 671.126 643.688 699.091 313,086 148,218
Ofl.io 664.600 6646O0 ..... ...
200.000 1.620 383 1.316.618 1 416 497 4.990.881 4.966 034 6 36 464 1 478.89 2,fM.(1
200.000 1.1S1.S18 1,003.001 81C.0S 1,309.630 I.028.864 1.374.975 670,579 604.87
OO.rtlO 1,10.604 383.51 5 86J 17 995.83 705.41 1 0 244 46 092 S99 71
200,000 4.4fl.ll0 1 787.107 1.381 1,901.841 l.:C. 611 1066 76 97.J5 1.17 848
200.000 1 0"4.144 877.860 7 7S3.103 r0.11 793 94 444 87 436. 7R
200.00 1911,882 90,12 967.711 2,0.649 . 996 430 2114 361 1,007 983 99199
200,000 '(67.462 J30.134 310 408 637.036 637.748 657,921 824.450 149.111
OO nOrt 1,23 48 846 42 405.4 1.100.781 1,132 3T2 1.1340 WS I R62 ?1
200.000 6a.06J 869.793 81 1 322 67 347 38 33671 ) 77 78 I 184 037
J'JO.Ortl . I.CMt.536 878 264 7428 1.046.303 966 30 1 1 127 19 636.6 I 498 990
200.000 2.3K2.811 7F4.801 776.901 2.601.662 2,440.604 1 2.676.695 1.622.871 1.601.8C8
$63.07 $366 722 15 tl 22.360.467 ( $17..4f 1 1209 892 919 197.181 8oo' (7 160 446
LKiO OOA 27 12 84 11,021.220 t 11.734,714 I 11.ri.Xl t 815,927 283 8"4
81.402 875 SM.S0t.lK7 S111.S2T.T I 816 631.694 I 1.71 M 197 T '"H I r '1
1.40 7S .1 84 10 7899 .(. 4IT I 176 688 r 96 363 SO 304 3"
64 6ri2 875 10.996.8 10 984 ' 146.442.60 I 16?8ft3 l r K7 ! 68-6
6 02 7S .304.914 140 103.513 7 134 4V.S 14. (544 3 91 W (T77 I 78-018
330.r8 99 36.0R4 109.19 "4 127.730.7? 139 6U 74 66A 64 I 640 64
nmr5 ?8S,9S7.:'2 10O.5S3 7M 12764 77 1 137 396 08 63 r, V7 ! 733 674
66 830 875 267.031 432 77.161 61 . 133 8 62 133.646 16 M 791 24? I (14 S
64.223.026 S40..fc 8.S.t17 124.6.n 1 7 771 70.73? 996 I H M 18
84.330.875 231.4M.450 84.7W.281 124,649.376 131,877.101 ' 7,06,18 I 6.2.til I
H
e
6.108.53
1.119.696
180.112
394.414
483,083
1,593.818
1.416.619
1.632,631
723.834
1,376.474
24.418
186.K7.S
491.586
20.446
!.E18
227.997
398.111
479.801
100. 121
194.1LI5
164.203
279,037
669.S--.4
2.587.368
6.168,467
790,700
411.140
482,620
129.512
787,936
699.223
3,381,791
247.773
2,830.823
61(1,3
736.50
748,478
416,62;
'2,471,466
276,830
411,442
375.871
113,676
4,483.789
1.7U9.2G4
474.061
1.183.122
1,048,600
376.216
1,806,347
167,354
2,442,686
9,037.246
239.930
7,070,821
918.241
249,334
24,881
8,445.712
76-496
180,607
449.96S
149.585
222.476
818,722
- 208. 890
' 819,225
3S6.W3
262,641
1,209,820
28S.896
166.873
1,620,07
539.767
1,687,107
284.529
202.547
2,170,814
97,364
284,729
M4.039
rP2.729
1.202,756
978.641
115.779
. 247,016
2,812.650
122,004
4,710,237
1,222,228
262.670
1.816.692
1,780.990
606.6.35
863.873
49,070
771.306
679.481 I
2.944 62
2,632,769
1.797
217.669
604.172
1,272.948
31,841
171.977
442.681
469.60",
120.284
519.880
843.622
819.497
1,840.697
376.988
1,063,243
824.290
811.844
8.2.804
1.867.671
961.466
396.79
2.658 618
1,486.769
90.331
6.562,059
1.6r36
1.200.663
1.284.610
881.691
2,765,634
160 R64
1.845.915
1.85 915
1,4? 980
1,071,252
2. 33. 240
667,978
"4.324'ioo
VA.OfS
7M 7K
l.7.m
691. 464
1.7.65
621.672
1.09 940
308.45
89 49
2.359,532
817 663 613
31 2. M
19 340.767
163 9I7.6"
Mi 10" 23
160 60". 9 '4
131 .66. 044
11 9"7 87
117i.76X
120 98 47
124.079.18
Include trie premium, interest, rent
and income from all other sources except
deposit premiums received on perpetual
rl.ka, commlaaions received on reinsurances
(deducted from commissions paidi, prem
iums of 19(4 received, appreciation of se
curities owned (not sold or nialurtdi. and.
iu the cases of foreign companies, their r
reipts from their borne ofticee. Total
disbursement are almost Invariably the
aggregates ot the Iocs paid, dividend
and expenses, the latter excluding deposit
premium returned on perpetual rlks, loot
on sale or maturity of ledger asset, re
turn premiums aod reinsurance premiums
of 1902 mot deducted from lkul premiums),
commissions on 19ut business, depreciation
of securities owned (not sold or matured),
and similar Heme w-hlca cannot properly
be classed ea expenaes: auto, tn the ease of
foreign companies, their remit txrires to
tbelr bom oOlcea. " Include -&.j0 sur
plus paid In. t First column for foreign
companies is deposit capital, which ta no.
deducted from surplus. Decresse. a
This company abaorixd the National StHn
dard of New York I 13. b Includes l &i
surplus paid in. r Includes tkO.OiO capital
and tlOO.uuu surplus paid In. d Einudri
tluO.000 capital and 1100.U0 surplus paid In.
e Iwludt-e taO.OuO paid In by stockholders,
f Includes pamnt to aorlp holder, g Ex
clude new capital and new surplus plu lii.
P313 0. h Profits on sale or maturity of Jot-urines
are excluded. I Cussed business In
lsl; reorganised and resumed business In
l-3. Includes t,i) surplus paid In. It
Kxcfii of receipts on account of losses.
I Im-ludes tuiuuO surplus paid In. n Kx
rlndlng tluOuiO new capital pild In: o Ke
Inaured Us bualiieaa in 1 and resutnad
Iin-mb(r. 1' p Admilicd to New York
lu lr'bruery, lMsl,
ternal organisations or taken Into consid
eration the extent of the business can be
only expressed In figure that ar almost
beyond grasp and entirely too large to b
appreciated.
Fraternal" 1.1 fe laisrssee.
Fraternal life insurance companies differ
from the old line in that they depend on
the constant Influx of members Instead of
fixed assets to perpetuate the ability of the
organisation to pay the amount of assur
ance written on each of the member. The
difference In the plana may be understood,
probably, with this explanation. A com
pany formed on the old line puvn with, sax,
10,000 members figures that a certain num.
bcr of these members will die each year
and that their places will not be taken by
new members: therefore It Is "necessary to
charge each at a rata that will Insure the
last risk be-lng paid on maturity. T4 do
this each trust pay during the early part
of the life of tho policy more than ths
cost of carrying the rWt and during ths
latter port considerably leas. This Is based
on the mean cost With this plan the last
man Is aa certain of his policy being paid
as is tho first. With the. fraternal ths
general theory Is to furnish Insurance at
the lowest possible cost to the individual.
Must of them have prepared a table of
rates showing the exact coat of insuring
a life for a certain sun) nt a certain ago. '
and this cost la carried on through life,
no provision being made for the Increasing
cost as the Individual grows older and ths
time of his certain death comes , nearer.
To offset this dependence Is placed on the
continual addition to the membership, thug
supplying the deficit in the amount of in
come that would result from the deaths.
So long as the order is able to replace Its
death list by new members Its ability to
pay remains unimpaired, but if the. death
rate exceeds the Influx of new members
the prospects of payment to the survivors
beyond a certain time become less and less.
Some of the order make a partial pro
vision for tho Increasing cost of carrying
the risk by adding each year to ths as
sessment levied on the members, but the
general theory I dependence on new mem
bers. Some have accumulated surplus funds,
but this Idea Is discountenanced by the m
Jorlty, who have faith that the attractive
ness of the Insurance they offer will be
sufficient to Induce young men to Join and
thus obviate the necessity of accumulation
aalr.st the day when the assessments will
not be sufficient to care for the losses.
Hasard in Life Insurance.
By eliminating certain proscribed occupa
tions and classifying all others according
to the. probability of death or disease
overtaking resulting from the pursuit of
any one, the life Insurance underwriter
have practically reduced the question ' oi
haaard.to aa certain a basis as they hav
the clement of cost But they still have
the human problem to deal with, and ths
"moral haiard" element enters aa largely
Into their calculations as it does Into that
of fire underwriting. It takes the same
form, too, the willful destruction of the
property covered by the policy. . Suicide
In the case of life Insurance is as perplex.
Ing as Is arson In the rasa of fir insur
ance, with the exception that suicide Is
more readily established. Many time have
the courts been called upon to dstermlns
the liability of life Insurance companies to
pay the amount of Indemnity written
against the life of a suicide and a long list
of varying decisions hare bean ths result
It Is still a problem tobe Settled.
Other Forms of Insurance.
In many way doe the principle of In
surance find expression and application In
modern business affairs. One attractive!
lino is devoted to Insurance of Individuals
against accidents or sickness, another
against loss or damage to property other
than by fire or marine accidents; another
provides for surety of employes er publlo
officials or other person who are required
to give bond for the faithful performance
of undertakings of any sort, and lit each of
thesa the field ha been found profitable.'
CAM GET KO AOE44IATE FROTKCTIOlf
Impossible to Seen re' Absolnto Pro
vision Against Big Fire.
"The numerous great conflagrations dar
ing the past half century demonstrate con
clusively the fact that there can be 60
adequate provision against the fearful firs
waste that ha devastated many of our
cities and villages.
, "Within ths last fifty year mors than
86,000,000,000 in property hav succumbed
to the relentless fury o". the fire fiend.
Each decade contributes more than
81.250,000.000 of the wealth of the country to
this Insatiable element of destruction.
"Durlsg the same period almost 1000 In
surance companies cam to the rescue of
thousands of their patron, thu saving
ahem from hopeless bankruptcy.
"The record of failures for fifty years
shows that 1,452 insurance companies re
tired from business. This enforced retire
ment took out of the business of under
writing over 8750,000,000. These failures
ar exclusive of the many hundreds of
township and town mutuals that bave
bowed to the Inevitable.
"Today there are 164 companies In the
United States in the hands of receivers.
These already properly belong to the rap
idly increasing mortality list
"Out of a total list of 242 American Joint
stock companies now left to do business
In this country, only forty-two have corns
up (hrough the fire of more than half
a century. Nine of these, beginning, as It
were, almost in the dawning of the nine
teenth century, have passed through a
hundred conflagrations. This surviving
few should be designated as tb 'Old Ouard
of a Hundred Years." They hav stood to
the forefront of every great disaster and
till stand In the grandeur of Increasing
strength In the might of millions of In
demnity. "Many of tii successful managers of
these early pioneer In .he business of un
derwriting hav paased away, yet the
beneficial results ot continued wis and
skillful Management will still bless ths
unfortuiifte in ths years to come."
W. It HARFORD.
Assistant General Agent Aetna Insurance
Company,
LIFE IXSIHAKC-R MAKES PHOCRESS.
Gains Wonderful Strength Dnrlnn
Yenr Just Closed.
"Life Insurance was wonderfully strength
ened in 1903. Owing to the enormous
slump In certain classes ot securities and
ths consequent low price of the very best
Investments, people were LUrious to see
the report of the great life Insurance com
panies. But these millions of Invested
funds show no shrinkage worth mention
ing, fully establishing the fact that the
safest place to Invest money Is with ths
old, reliable llf companies.
"O. W. NOBLE.
General AgaaU"