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

acting the business OF insurancs which
contain copy Of the charter proposed to be adoped
and notice Of such intention to be published in the
county In which such company proposed 10 be locst
Cd 1t also requires that the capital Of oca
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 of New York to commence
mutual insurance until notes at twelve tbs In ad
vance OF premiums to the amour. of three hundred
Thousand dollars have been received and for fire and
Inland navigation risks until like premium notes to at
hundred thousand dollars shall have been rscev
ea-an such notes to be considered part of the capita
stook efsush oompanyo be negotiable and coectabs for
Of paying Losses In other countries business
shall not be commenced until similar notes to the value
OF fifty thousand dollars shall be obtaned and II for
IRE Insurance. until applications fer at least fifty thou
sand dollars shall have been received 1t further pro-
vides that company shall commence mutual insu-
rsncs business, In the city Of New York until 1t shall
receive at least 100 applications for risks Of ut least
$4,000 each; aud located in the city Of Brooklyn AL
and Buffalo, until 100 applications for ri.ks of $1,000
each; and II In any other part Of the State until at
least so applications for risks $500 each obtained
No FIRE insurance. to be made upon any building to be
greater than sevsntynve per cent Of its value The
funds of these companies may b. invested in bends
frat mortgages real estate at fifty per of it's
value also in New York and United States stocks and
stecks OF incorporated cities In the State marine in
surance companies to have the privilege of losning
bottonry and respondents bonds The companies
to hold such real estate their business
dations dsnsnd suoh be mortIagod for loans
prsvisusly contracted, which may be conveyed in
satisfaction for debts, such may be purchased ut
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
osrtansd expenses securities representing tho capita
stock the value Of the same, and list Of the stock
holders If tho losses aad expenses have exoseded the
premiums that tho capital Is impaired to the amount
oftwsny per cent, the Comptroller IL to require the
stockholders to mako the deficiency good under penalty
Of forfeiture by the company of the stock held them
Unti the deficiency IL 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 fourhs Of its stockhodes
extend the duration Of its charter twenty years from
the time Of its expiration by altering 1t In accordance
with the provisions of the general law.
1t also provides that dividends shall net be greater
than eight PSF cent per annum IL the earned pro-
FITS equal to half Of the capital Stock above
ten per cent until the net earned profits equal TO
twice tho capital stock dividend to be declared when
the capital stock 10 Impaired and dividend to be de
that will impair the capital stock There tho prnc
pal points IN tho sst to be estsbshed upon general
principles, according to the Requirements Of the
constitutions and with tbs exception Of the restrictions
upon capital, taere appears to be nothirg objection
able
There arc no checks any increase Of capital asst
may made large company wsn but there are
prohibitions against companies being formed with capt.
tai less than $2es in this city snd Brooklyn and less
than $4,000 In other counties. This looks too much
like monopoly and will prove runous to thoSe corpa
mics already in existence, having smaller capitals it
looks though the larger and powerful compane,
were to be protected at the expense and to the extnc
ton OF those Of smaller We cannot conceive
what objection there is to company Of $4,000 $780,.
Geo. located in this city in Brooklyn provided they
are regulated by the Same rules and established upon
the same principle One Of the principal arguments In
favor Of general law upon this all other thirgs Of
the kind Ia that it enables oflimited to
bne for the purpose Of forming companies. larger
amount of capital would in the aggregate be invested in
this b. rnse, # the minimum capital for each company
was than that stated and the competition between
companies much augmented This is what the publicre
quirsaarger aggregate capital and reduced premiums
Ase general thing the small companies careful
in tbs distribution Of their risks and much prompt
In the payment Of loses wheE incurred they are much
moro judciously managed, and pay better dividends
than the companies Of largo cSptas large expense',
large risks lrge losses and large prsten'ions We are
decidedly in favor ofsma that s companies
of hundred Thousand dollars capita End the trainers
of the constitution intended no such construction
to it in relation to this subject given In the BILL
nopss Of which Is given above.
1t IL argued by that the stockholders of insu-
companies should be exempted from the personal
liability clause, account Of the risk attending the bu
sipsss that while the Of banking and other
poretens depends almost entirely upon the skill pru-
dsnee and fidelity of its on ,srs, the success of insur-
ancs companies IL dependent more upon chance than
the exercise Of SOUND judgment or prudence his Is
grea. u,istsks If company hazard the whole or half
orethrd Of its capital upon risk ons or two
th-ce casuaiss may ruin it. But the ruin in this
case would not from the fact that the business
one Of risk but from want Of prudence on the part oil
the officers Of The company This too often TIE case
for the satisfy of the insured There now more than
two Panss in the city of New York, which in Sc
verl Instances have Lad 500 900 at one timo On
ship and her cargo This danger the only one OF
consequence, would be svertsd If, either by tn, pru-
dsnos and fidelity Of officers by act Of Legislature,
amount to bs taken any risk bo limited &C
not 10 exceed or per cent on the amount Of the
capital eZspoy by asy association in the business OF
insurance.
IL is that the capital should be, and no doubt
Morally is invested in safe securities, such United
States State stocks bonds and mortgages But it
must aso he borne mind that nearly all sy ofthe
marine premiums psyabls by notes. either at A. or
II mouths and tho custom hes bsen established within
the last few years. to take the notes Of customers with
other endorsement than that Of the maker, or one
Of the firm, that in the of few months bust.
ness than half Of the assets Of the company con-
sists Of notes of customers with their endorse
n.nts Any loss from this system Of doing business, is
the result of bad management, aud can be guar ded
sgaiDss
The section In the new bill requiring annual reports
Of losr.s. expentes, 60, will not suit the officers