Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-04-09
CON UNICArIox
To iAs SioOklOiasrs u tks Y~sinia Fire and Maria
Insurance Co,apaHs

fasWdhce COMPANY
| propose TO state to you some facts (obtained
from sources to be relied onl in regard to your at
fairs, and, in few observations to point out evils
which may. and think almost certainly will soon
&c or later, fall on the company il some change be
not made IN the management OF them: in the hone
n" your a''enuon being thus directed, you will
MINK proper to apply corrective.
The capital stock Of the company is Two hundred
thousand dollars. With this capital assurances are
maze on single vessels to very large amounts and
seneta"y mot always) reinsurances are effected
IN other othces, as to that part OF the risk which
exceeds thirty thousand dollars; to which sum
RISK Is taken on a single vessel by the company
There Is case that ought to be extraordinary
tho II may be common, which came to my know.
edse IN consequence Of the apprehended loss OF the
Creole some months ago. Ii is this: In or about
October last, there in James river three ves-
sells bound for New Orleans, all expected to sail
about the same time, To wit, the Creole, the Lea
and the Long Island. Upon the first of which were
insured by the company about (the Secretary, who
gave The Information was not more definite thirty
thousand dollars-on the second about thirty -one
Thousand dollars; and on the last n small amount,
The hrst mentioned enormous risk being habiuallv
incurred, and perhaps those of the latter kind aso
"neh must renier the stock, Mt any time, of un
certain value-there Is lent, upon pledge of stock
(which has IN better times been sold at nube ,uc'
uon, at eighty dollars the share at the rate of SO
venty-hve dollars per share, about forty thousand
dollars OF capital. Besides the company four n,
h'N gtais putcntteu one hundred and fourteen
shares, which IS now held at par. There is then
more than fourth oi the capital RESTING on this
uncertain security, Of which large portion is held
nj par. The Directors have been reminded of IN.
insuihcency OF the security and cnIreated 10 lie.
duce the loans on the stock notes The f,lIy -,
lending funds destined TO ply losses on SECURITIES
whose value decreases as the losses increase only
IN much greater proportion, has been pointed on,
to Them. They have leen told, too. that thev
m'sht get better security, and il was due 10 YOU
\ regarded 10y N NS
IL seems 10 me that this course of mao,semc,, :.
IN me highest degree hazardous TO your Interests in
more points OF view than one; considerng tho cant;
ta, the extent OF the risks taken is most danserops
The rensuIances. 20 risks exceeding thirty thou
sahu collars, ma6esthe company, without any com.
pcnsation, Surliy tyr uthe. offices of wboe rop;
| tion, (hey being ~ n 'l,siance) nothiny can br
known; that IS, the company have To nay the whole
l"ss III the hrst place, ana then, II they can they
| may recover the pat as To which reinsurance n.
been effected from those Offices If ,hev sbo,ll
al remain solvent (Which is improbablrl d,spu.e
may arse about hthllIy; aud the trial being Ia
n'h ~ distance, can II be expected that ful ius-
| uee WI" %" done IL IS to he rencmbe cl too,
tAt IN TIE pr sent times, peculiar tempt lions n >
presented To httgiousness end d,shones,v A.
the three vessels hound to New Osleans the IN
surance IN the three was very nearly equivalent IN
an insurance on one vessel; rs sailing at the sam.
TIME, they Se'e probably To bc expo ell 10 The sam,
dangers. THIS part Of the ma nnscrnent f ,h o',
Germs oi The company is the most impciJ.nt # no,
t'0N'esSi anu the having move than a fourth of it's
cs2Nai, or any part, dependent on the value of lis
own Stock; IS absurd. But the portnacity with
WINCH me Board, IN spite OF remembrance insist
on lending upon the stock TO the extent on sevan,,
hVe dol .ars the share, alarms me nm, nor oniy
ussa''shei win tins security, but | am 7icaid n n
'"e resi- OF inc securities are no better These fears
az '"' unhttutll, when we see, all around US IN
st''u IONS winch had been suppns ed 10 be governed
by men OF intelligence and intesr,tv and IN >,h;.L
inc taiicst confidence was reposed soing I'm min
from slhllar causes There cannot be ,loutt thai
oetter security than this stock may be had for tbc
money 'emt on H. why Is the inferior security pre
'eteu' "hat would this security lie worth # one
or two vessels TO be lost in which ,ro,c -
these RISKS OF thirty thousand dollars esnec,lI,, Il
III auul.oh theteio there were large Tensura nccs in
o'"e' o'nces' oil amount exceeding that sum and
pay'he" oy 'hem doubifuli And then add the
losses on these stock notes IN conseouanc. 4,
would he as sensible TO vest the c,ni,,f IN -
and ship II, as TO lend in this manner ,pouIJ H.
10 see director who would lend his own money
on 'he same terms. have repeatedly asked Of
D'eclors ana DINERS whether they would do So and
:; ~ "S' ye' seen me man who would answer il
~ me affirmative. No man, in his senses. womb.
irlehd oil mine once told me- that h. nn,t y.i,b an
Ou gentleman large holder of Stock in 4 cer,ain
panA, VINO SAID he could not be made Director ~
II, ou' certain individuals were so made who had
procured barely enough of shares To ou,lic, ,bon,
My friend replied, ii would not do n MT! b;r,
Director, Tor II that were DONE no person wonId 90,
any money from the Bank but such as were obIs
10 repay IT, when, in fact the intention was To lend
10 hose who had nothing an individual. STANDING
was known to be Jest, except by the bv.s,ander
VINO look 1t Tor earnest. Your capital seems n he
disposed oil pretty much in this msnner. n the
SOCK were not kept out OF market in the mode, he
lore mentioned, an convinced there would be no
preieXt for these loans '0
nave presented TO you the above facts and in,
perfect observations, hoping you will concur in cen
suhhs these practices, and IN an effort 10 arrest
mem. As TO success, confess have great fears
seeing That not more than about two-,hlrds of ,bs
STOCK are IN the hands Of persons who have mo,
loans on 1t, and they may not have votes enough
under the charter, to control the matter. II thew
have, am aware the effect which NAV lie nrodn.
ced on some OF them, by the activity of some
VINO are interested IN preserving the present
STATE oil things No general meeting of the sto,k
ho.ders' believe, has been called 10 examine The
AFFAIRS oil the company, for five, six. or more vsnrs
IS time there should be one, for this purpose If
such should he the wish, which hope will he the
case II may be expressed to the President who. no
uouOi, will call a meeting; ut which sometbin, NAV
be done to correct abuses. '
A STOCKHOLDER.