The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1846-05-23
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don.
The war clause" does not seem TO taks 90 w.,, a
anticipated Very few policies are taken out with h In.
serted In them; and those companies which continue 10
saSe RISKS as usual win stand the chance Of making
inc oe'' dividends, II they make any at all The NOR
on o. Boston are very much opposed to the nse rton
.nls ciause a. they consider unnecessary and uu.
oaleo ior VIII be recollected that when q war with
rance was anticipated during the administration a.
oeneral Jackson only insurance company in BOSTON
would underwre to pay all losses in case Of aapture
- 1na' was the Ocean Insurance Company and tho
inc course 1t pursued was dividend of fifty DER
cent iorthe first ak months and fortyye per cant s
ne second SIX months, making, for the year ninety Dor
CENT returning to the stockholders in that short time
nearly the whole of their original investment TIL.
principle this company went upon in underwriting In
u" way, was, that in the event of war, they would
- ruined IN tho regular way and they might as well
se' al the business they could the chances wero in
their favor, in any event.
Inc insertion of the war clause, is perfect farce
as every company in Wall street has already sufficient
risks enough to ruin them, should captures DO made !.
s'osesner 100 oncsided an affair The companies get
INC premiums but We venture to say that very few
'o''o' would De paid The only clause owners
% vessels can be sure of is the security few guns on
paying three or four per cent premium for insurance
against capture or for the payment of all losses produced
oy capture It would be much better and much safer to
appropriate the same amount to the purchase of few
raixhan guns, and the employment of extra hands
mere would DO some real security in that method Of in
ssrung the war clause the insertion of few forty-two
FOUNDERS in the hull Of prvatecr would be much moro
grauying to those Interested In not only preserving
'ner property, but their hvcs and liberty than trusting
nero clause in the paper policy of any insurance
company. Even in the event Of a war clause, being
soodor the value Of tho property captured 1t will not
90 good Tor the lves liberty of those who may be
Killed or capturedin an engagement We would there.
ore the policy Of arming all vessels engaged
in our foreign trade.
we have very little confidence in any Of the marine
or hre mutual insurance companies. Tho immense
amount OF risks taken upon limited capitals makes the
chanccs OF recovering losses SUCH that It impossible TO
tel whether one actually insured not The mutual
system rapidly going out of existence and the cxplo
sion OF few more of the companies conducted upon
that principle would condemn once tho whole concern
The president Of the Atlantic Mutual Insurance Compan
NY Of Boston, has given notice that tho losses of that
company have recently been great that holders of DO
lcies are not SAFE and them to take such
measures respecting the procuring Of other insurance
as tney may deem proper for their safety Az un
fortunate as this may be for those who have paid pre-
ium the timely notice given of the insolvency of the
company enables those interested to protect
49, In many respects fortunate that this system has
proved detective and unsafe before had more ex
tensvey established az the evil has not become SO deep
y rooted but that be eradicated without causing
much damage Had the market become filed with the
scrip Of these mutual insurance companies, and had il
become 4 species of investment to large amount nm
explosion of any company, or of the system generally
would have taken millions of dollars from those holding
the scrip as Investments, who were interested in
any other way in the companies Az 1t is notwithstand
ing the limited extent to which the system has been car
ried, scrip to large amount has been cancelled
The system ofstock companies is decidedly the best
premium is paid and if loss is suffered and the compa
ny cnn pay there Is the end of the matter The stock
holders are the sufferers, and perhaps dividend or two
the extent of the loss but that system long as
has been in existence is very defective the manner
Oh taxing risks under it. is In Massach there
arc twenty insurance companies with specific CAPT.
tails amounting in the aggregate to about five and half
millions of dollars The aggregate risks of these twenty
nine companies. marine and fire. amount to nearly
ore hundred millions Of dollars Should they experience
losses amounting to about millions Of dollars being
the amount of capital and premiums more than
ninety millions Of dollars upon which premiums had been
paid would remain uninsured and those holding policies
would be compelled to get another insurance elsewhere
OF run OUT the Daiancc OF the time thcr
and risk.
Tho little discrimination used in taking risks botl &,
nd marine and the njudcious distribution or we might
say concentr ion of risks exhibited in the conagraon
OF July one great cause not the sole cause of
the frequent explosions Of these companies There is
however, one other great cause and that tho limited
capitals compared with tho immense amount of bu sness
done. We want complete remodeling Of the whole
business Of insurance. and the best place begin the re-
voluon Is in the selection of proper officers conduct
the busnes Of the companies established upon any new
system 1t notorious fact that half Of the compa
MES now in existence, both stock and mutual arc man
aged by those knowing no about the business than
80 many school boys, any acquainted with the
abuses praccsd particularly upon marine insurance can
testify to-
The annual report Of the banks of Connecticut for
1885, compared with former years. exhibits an expan-
sion IN all the principal Department. II will be OBJ
served that the circulation of the banks the aggregate
now larger than at any former period yet not
reach the amount allowed by law.
The whole amount Of banking capital in the State is
and they allowed by their charters
culate onceandshaf the amount Of their capital stock
and deposits; that will DO seen that $l27I3445
would bs their legal limit besides that which they are
cording to the returns hereunto annexed is only sA
so5 PAT, being a very little than onehird the
amount they are entitled to, saying nothing Of their de-
posits:-
BANxs OF CONNECTICUT.
Ysor. Cop. Stock. Circulation Specie Loons Dir
isss sia'M 9 i's@sss s $50 q s,ssssss 90