The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-03-16

0ohsan copy Oh the cnarter proposed to be adopted
and notes Of such intention to be published In the
county In which such company Is proposed 10 be locst
cd 1t also requires that the capital OF companies loca
TED in the cities of New York and Brooklyn shall not DO
less than two hundred thousand dollars aud in all other
counties not less than fifty thousand dollars and no
company located in the city New York to commence
mutual insurance until notes at twelve months In ad
vance OF premiums to the amount of three hundred
thouand dollars have been resolved and for fire and
inland navigation risks until like premium notes to at
hundred thousand dollars shall been rscsv
ed-a such notes to be considered part of the capita
stock efsush company be negotiable and coectabs for
the purpose OF paying losses In other countries business
shall not hs commenced until similar notes to the value
OF nifty thousand dollars shall be obtained and If for
IRE Insurance. until applications for at least fifty thou
sand dollars shall have been received 1t further pro-
vides that no company shall commence mutual insu-
rance bushes, In the city Of New York until II shall
receive at least 100 applications for risks Of at least
$4,000 each aud If ocAtsd In the city Of Brooklyn AL
any and Buffalo, until 100 applications for rcks of $1,000
each; and II In any other part Of the State until OF
least so applications for risks of $500 obtained
No FIRE insurance to be made upon any building to be
greater than sevsnty-nve per cent Of its value. The
funds of these companies may b. invested in bends
frat mortgages real estate ct fifty per cent of its
value, also in New York and United States stocks and
surancs companies to have the privilege Of losung
bottonry and respondentis bonds. The companies
are to hold such real estate their business accommo
datons dsmsnd such may be mortsagod for loans
prsvisusy contracted, or which may be conveyed in
satisfaction for debts or such IS may be purchased at
sales upon judgment, DEGREES mortgages for debts
due. All real estate not necessary for the business
commodstions of the company, to be sold within six
years after acquiring title.
An annual statement to the Comptroller required Of
the AMOUNT Of premiums received losses paid and
osrsainsd, expenses securities representing the capita
stock, the value Of the same, and list Of the stock
holders If thu losses AID expenses have exceeded the
premiums that the capital Is impaired to the amount
oftwsnty per cent, the Comptroller 10 to require the
stockholders to mako the deficiency good under penalty
of forfeiture by the company of the stock held by them
Until the deficiency II made good new risks to be
taken violation Of which involves forfeiture of charter
and personal responsibility Of the directors they being
responsible for all losses ascruing upon such insurance
Any company already organized may at any time, with
the written consent Of three ourths of its tockholder
extend the duration of its charter twenty years from
the time Of its expiration by altering it in accordance
with the provisions of the general law.
1t also provides that dividends shall net be greater
than eight cent per annum un the Eet earned
Ats are equal to half of the capital Stock above
ten per cent until the net earned profits equal to
twice the capital stock dvdendto be declared when
the capital stock 10 Impaired and dividend to be de
that will impair the capital stock These the princ
pal points IN tho sst to be established upon general
principles according to the requirements Of the new
constitution; and with tbs exception Of the restrictions
upon capital taere appears to be nothing objection
able.
There checks upon any increase Of capital 90 it
may made as large any company wsn but there are
nil helm Wit
tai less than $2ss 600 in this city end Brooklyn and less
than $4,000 In other counties This looks too much
like monopoly, and will prove ruinous to those corpa
MES already In existence, having smaller capitals 1t
looks ~ though the larger and powerful compane,
were to be protected at tho expense and to the extino
ton Of those Of smaller MsAps We cannot conceive
what objection there Is to company Of $4,000 $780,
Geo. located in this city or in Brooklyn, provided they
are regulated by the same rules and established upon
the same rrin eipls One of the principal arguments In
favor of general law upon this and al other thirgs of
the Kind Ia that 1t srablss oflimted to
bine for the purpose Of forming companies larger
amount of capital would in the aggregate be invested in
this b. rins, the minimum capital for each company
was lsfs than that stated and the competition between
companies much augmented. This iSwhat the publicre
qursaiarser aggregate capital and reduced premiums
As general thing, the email companies careful
in tbs distribution Of their risks and much prompt
in the payment Of loses wher incurred they much
moro judicouslJ managed, and pay better dividends
than the companies Of largo capitals large expense',
large risks rge losses and large prstensons We are
decidedly in favor ofsal companies; that s companies
of hundred thousand dollars capital and the trainers
of the constitution intended such construction
to it in relation to this subject given in the BILL sy
nopsis Of which is given above.
Ills argued by some that the stockholders Of insu-
companies should be exempted from the personal
liability clause account of the risk attending the hu-
cipsss that while the Of banking and other
poretiens depends almost entirely upon the skill pru
doroe and fidelity Of It's on the success Of insur-
companies 10 dependent more upon chance than
the exercise of round judgment or prudence his IS
great mistake. If company hazard the whole or half
or orethird Of its capital upon risk ono, or two
three ca'usltss may ruin it. But the ruin in this
case would ARIA not from the fact that the business is
one Of risk but want Of prudence tho part OF
the officers Of The company This Is too often TIE case
for the satisfy Of the Insured There now more than
two companies in the city of New York. which in se-
veral Instances have Lad 1000 at one time On
sbp and her cargo. This danger, the only one OF
consequence, would b. svertsd IT, either by tn, pru-
and fidelity Of oaears by act Of Legislature,
the amount to be taken any risk DO 80 limited ae
not 10 exceed or per cent on the amount Of the
capital eD,poy by ssy association in the business OF
insurance.
is true that the capital should be- and doubt &C.
morally i invested in safe securities, such United
States State stocks bonds and mortgages But it
must ALEC he borne in mind that nearly ALL sy ofthe
marine premiums psyabls BY notes either at or
IL months and the custom hes been established within
the last few years. take ths notes OF customers with
out other endorsement thar that Of the maker or one
Of the firm that in the of few months husi.
ness than half Of the sssets Of the company con-
siss Of notes Of customers, with their endorse
mentr Any loss from this system Of doing business is
tho result of bad management, aud can be guar ded
sgainss.
The section In the new bill requiring annual reports
Of lotr.s. expenEes, 80, will not suit the officers
.,x,na liz La L..