considered as games of chance, in which the insurer engages with the assurance of being successful in a majority of the cases.

Upon this principle all insurance companies and all lotteries are founded. Lotteries are more pernicious in their effects, than ordinary insurances, and therefore more obnoxious; not so much because the chances of gain in favor of the insurer therein are greater than in ordinary insurances, but because their operations are generally carried on with those who are less capable of calculating those chances, than in ordinary insurances, and who are easily allured by the captivation of splendid prizes, designed by their magnitude to withdraw the attention of the adventurer from the extremely remote probability of his success.

Ordinary insurances are also recommended by their connexion with, and their beneficial effects upon the trade and commerce of the country; and it is upon this latter ground, principally, that insurances of every description are permitted to exist by law, or can be justified by reason.

For it must be admitted that in the aggregate the amount of premium exacted by the insurer, constitutes a high per-centage on the capital actually employed in the risque, and the policy of restraining the unlimited exaction of interest for the use of money, would apply with equal force to the insurer as to the banker, were it not for the aids which the commerce of the country derives from this source, in its tendency to strengthen securities, and to equalize the numerous losses inseparable from the hazards attending commercial pursuits.

Life insurance is urged by its advocates, not only as being adapted to the exigencies of a commercial community, but also as a wise and prudent means in general, of providing against the calamitous consequences of the death of an individual who in his life time possesses the means, by an insurance upon his life, at the expense of a moderate annual payment, of securing to his family a support after his death.

And although the business of life insurance is more or less diversified in its application, extending to a great variety of contingencies involving the duration of life; yet as the committee believe the most general use to which it is applied is the securing a support to the family of a person living on income, after the death of

its head, or parent; and as its operations must necessarily be confined, in a great degree, to that class of citizens most subject to the vicissitudes inseparable from commerce; as its practice is divested of the objection against lotteries, of alluring the adventurer inconsiderately to embark in the enterprize, by presenting the captivating prospect of present gain; and as in its nature its exercise is generally attended with the advantage of deliberate calculation and reflection, the committee are of opinion that under a system of premiums properly graduated, such as from the demonstrations of experience will in the aggregate secure to the insurer a moderate but certain profit, and at the same time will not require an improvident investment of the small sums demanded for premiums, life insurance may be made subservient to the great purposes of humanity and general utility.

But your committee are constrained to express the opinion, that the rate of premium on life insurance now exacted by the NewYork Life Insurance and Trust Company, is much too high to deserve the encouragement of the Legislature, and that the business of life insurance as conducted by that company, will not subserve the ends abovementioned, and does not furnish to individuals having a surplus income, the means of profitably investing such surplus for the future benefit of his family, or others.

The committee, for the purpose of testing the utility of life insurance, as now practised, and of comparing the advantages derived therefrom, with other means afforded for the investment of moneys for similar purposes, have had recourse to the annual return of the New-York Life Insurance and Trust Company, made under the order of the chancellor, on the 31st of January, 1833; a copy of which return, together with the chancellor's order, is hereto annexed, and to which the committee refer the House for a statement of the affairs and condition of that institution. They have also had recourse to a table of rates of insurance appended to a letter on life insurance, written by the president of the company in question, and laid upon the tables of members of this House at the present sessson. The table referred to is graduated according to a scale of premiums reduced by the company more than 30 per cent below the table used by other companies in the United States, and which was adopted by the company in question, on their going into operation.

From the return of the company referred to, it appears that, according to the table of the duration of life used by the company, an individual 55 years of age has a right to expect to live 17 years. And from the table appended to the letter referred to, it appears that a person of that age may secure the payment to his family, or representatives, at his death the sum of $100, by paying to the company annually, in advance, during his life, the sum of $5.78. Consequently, in order to secure the payment of the sum of $1,200, the premium required annually would be $69.36, or twelve times the amount required for $100.

The committee, for the purpose of a test, have assumed the case of an individual, of the above age, possessed of an annual surplus income of $69.36, and who is desirous of investing this sum annually, so as to secure the greatest posssible amount for his family, at his decease. And he starts upon the supposition, according to the table used by the company, that he will live 17 years. By an insurance on his life, through the payment of this sum annually during its continuance, he can secure the sum of $1,200 at his death.

The question then arises, can he invest this amount in any better way than by embracing the offer of a life insurance?

Although the company in question, as the committee believe, do not receive in deposite, sums less than $100; yet, as in most cases the annual premium on a life insurance is at least $100, and as there are other institutions in which it is believed sums of the amount here supposed may be deposited for accumulation at 4 per cent, the committee have adopted that rate. And have gone

through with the calculation, in order to ascertain the amount which the individual in question would secure, at his decease, by depositing this sum annually for accumulation. And they have ascertained that, by adopting this latter course, the person in question will, at his death, have secured to his family the sum of $1,801.16. The sum of $601.16 more than could have been obtained by a life insurance, at the expense of the same amount annually.

The committee have also gone through with a similar calculation, of the case of an individual of the same age, wishing annually to appropriate, for the like purpose, the sum of $289. For this

sum, annually paid for a life insurance, the sum of $5,000 may be secured at his death.

By depositing this sum annually to accumulate, as above, at 5 per cent per annum, an interest which it is believed a sum of this magnitude, for the term here supposed, will readily command, the individual at his death will have secured to his family $8,345.50, the sum of $3,345.50 more than would have been realised by a life insurance.

But this is not the only difference in these two modes of investment. Many cases may reasonably be supposed to occur in which, during the long term of 17 years, the individual thus depositing or insuring may become totally unable to pay the annual premium or deposite, in which case he who purchases a life insurance unavoidably forfeits all payments, by way of premium, made by him; whereas he who deposites for accumulation, not only does not forfeit his deposites, but the whole amount continues to accumulate, until he thinks proper, or finds it convenient to renew his deposites or withdraw the whole amount.

Another of the powers of the New-York Life Insurance and Trust Company, and which is proposed, by the petitioners to be copied into their charter, is that of granting annuities. By which an individual, by the present payment of a gross sum becomes entitled, by the grant of the company, to receive an annuity of a less sum during his life, or for any other period agreed upon, and to commence at the present or at some future period.

According to the table of rates, by which the company is governed in granting annuities, an individual of 55 years of age is enabled, by the present payment to the company of $1,200, to secure during his life an annuity of $100, the payment thereof to commence at the expiration of one year after the receipt, by the company, of the gross sum. Or in other words, the company agrees to pay the individual an interest of 833 per cent, during his life, upon the $1,200 deposited by him, on condition that that sum shall be forfeited to the use of the company at his death.

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A practice which is said to have found some encouragement with the company referred to, is that of an individual purchasing an annuity of the company, by the present payment of a gross sum, and then insuring upon his life an amount for which the annuity

thus purchased constitutes the appropiate annual premium, by immediately pledging the former for the payment of the latter.

To exemplify this double operation the committee have again assumed the case of an individual, of the age of 55 years, who, by the payment of $1,200, secures an annuity payable during his life of $100.

By pledging this annuity he effects an insurance on his life, by which he secures to his family, at his death the sum of $1,730.

Now, as the individual here supposed has a right to expect to to live 17 years, it follows that his $1,200 would have that period in which to accumulate, if deposited for accumulation; and should he deposit that sum for the term here supposed, to accumulate, at the moderate rate of 4 per cent per annum, he will, at his death have secured to his family the sum of $2,387.

The same difference in the advantages of investing small sums of money by annually paying those sums to the company, by way of premiums on life insurance, or depositing them with that or some other institution to accumulate, for the benefit of the depositor, runs through all the different ages of individuals, and applies equally to all sums of money, whether greater or smaller than those supposed by the committee. The committee have selected the cases here mentioned merely to exemplify and compare the different operations of these institutions.

But by far the most important among the powers incident to the incorporation contemplated by the petitioners, are those in relation to trusts and loans. The New-York Life Insurance and Trust Company, to which the incorporation prayed for by the petitioners, is designed to be conformed, in all respects, except the amount of its capital, was incorporated in 1830, with a capital of one million of dollars. In addition to the loaning of its capital, which it was required to do upon real security within this State, and one-half thereof without the limits of the city of New-York, it was also authorized to receive moneys in trust to accumulate at such rate of interest as might be agreed upon, not exceeding the legal rate, to an unlimited amount, and to loan the same on real or personal securities.

By a reference to the annexed return of that company, it will be seen that the full amount of its capital has been loaned on real se