The daily union. [volume] (Washington [D.C.]) 1845-1857, 1850-12-18

Mr. UNDERWOOD, / hope now that this amend
neot a. amended will Be adopted Several senators ssy
70 Be- adopted suppose this corporation possesses
ita of million o dollars and then lnsures property "
the extent OF its capital and all its properly insured is
burnt up; then, OF course, the whole million Is swept
away Now. ask, will this prevent the company from
mionl Will they stop and wind up.or. will they 60
on II they 90 and insure another Million and their
capital is all gone after paying the first million, and then
fire takes place and burns up the second million, where
will the insured get any pay Now. II does seem 10 me
that there ought 70 be something like individual respons-
bll, something like al obligation on The part o. the
stockholders OF this company TO watch 10 lake care and
TO the management OF this concern-th copoIa-
ton and If the capital which is actually paid into the
Sy III ps o asoas ss
way OF obtaining this responsibility OF insuring
this wachuness this vigilance on the pa Of the eopo-
Iatols. uness you impose upon them something like the
Mr. DAVIS, Of Massachusetts. What is the capaIl
Mr.. UNDERWOOD have not inquired into that.
1t makes difference whether the capital be one million
ten millions OF dollars, the principle - precisely the
same. Suppose they have more; suppose they put IN
their notes as have understood is sometimes done IN
matters OF this sort-suppose nothing s actually paid IN.
and il is capital consisting OF paper obgatons why,
sir them il The company should prove unfortunate there
would only Be liability upon these coipora,oss r.. iof Of
much capital. Well suppose they actually paid 1t IN,
good faith and il is not taken to pay for property ac-
tualy destroyed by fire. but suppose. from mlsnanage-
ment finds it's way Out OF the Golfers OF the company,
and when re occurs when liability takes place upon
the part OF the corporation when persons insured cal
upon them for the compensation to which they are en-
titled, il is not orhcomngit is not in the vaults or IN
the srong-box of the company: now, in that state OF
case, unless you impose some individual Liability some
special guarantee upon the private estates OF these gentle
men, what responsibility has the insuredi None what
ever N& 6a 5
Now. sir, this is wisely limited. il seems 10 me; You
amendment, not Tor the debts OF the whole corporation
bu, only for his roporonae share OF those debts But
TO illustrae if there he 100 corpoators and debt ac-
OF 81 900 or ,000 that debt in this ndvd-
nal liability is to be made is divided amongst the whole
100, and each 10 meet his hundTedth part OF II only,
and when he pays that by the amendment he is exone-
for the whole amount of the debt--it is only liability
upon him 10 the extent of the stock which he holds in
The corporation. II is limited 10 that, and to that extent
think wise provision TO 20, to secure that vigilance
and that responsibility upon the part OF these companies
which they ought to incur, inasmuch as they usually
make from 10 10 20, and sometimes 80 per cent per an
upon their investments for they can make their
30, as their 80 per cent; and you will find according
to the reports which usually have in reference 10 the
proceedings OF these companies, that they make Their
capital good and great deal, Notwithstanding the
losses they incur occasionally and therefore II seems TO
that the risk OF the amount OF stock taken 10 not
Mr DAVIS, OF Massachusetts Mr.. President there
are other matters connected with insurance 10 he consd
ered besides these stringent liabilities when you make
charter Ii is TO be considered whether the charter which
you make to which people will furnish the neces-
say capital This consideration should enter into the
subject when we are egslang upon the charter Now.
sir, | do not know but gentlemen OF large fortunes
might the individual stockholders are to be held liable
for all the debts and liabilities Of the company which
might Possibly Be y tnsn ss
subscribe the stock thus created but think they
would consider The matter very long before they would
subscribe think they would consider carefully before
they took upon themselves liabilities OF that description
IL is therefore matter for consideration whether or
exactng that will deter men from enter
ing inotbe business at all know very. well that
Al n ng
which would take all The funds the company had and all
that could be aised IN the manner proposed by my
friend from Kentucky, Mr. UNDERWOOD but these con
tngences do not often Ia very obvious indeed,
thai the company entering into the business OF insn
rance, the capital you exact OF hem-he more strn
for yos Ss you
Ordinarily sir, what are called mutual companies are
carried without any capital at all They have nothing
except what they derive from claims. They the very
safest and best companies which exist in the community
can call 10 my mind one existing IN my own immediate
neighbohood. which has been in operation for twenty
years, and there dollar Of capital in not
dollar But they have relied during that time upon the
premiums which are paid in TO meet the losses by the
charges upon the company This company has gone on
with entire for twenty years The premiums are
liberal enough 10 meet the losses. and all the charges,
without any assessment upon anybody The consequences
believe that the insurance OF dwelling house costs
but about tenth OF per cent for years. In
by that process becomes extremely saieenrely
sae-and very low be unburdensome TO any in
dividua who desires TO be insured That Is great OBJ
ject TO be attained.
In order those who obtain insurance from heavy
expense, and from losses. would avoid imposing terms 40
stringent 10 deter OF business from entering into the
company | must confess that, in my own Judgment all
these companies must depend upon their reputation
and skill in doing business the guaranty for the safety
OF those who insure with them rather than upon any
stringent laws This company, suppose, las some
capita suppose The senator from Virginia IL able 10
state how much, II requred-and II they have paid 10
that capital Why is not that assurance enough Why,
is il not all that be reasonably exacted from them
proceed upon the supposton that they will conduct their
business honestly and fairly Ii they do when this csp
tai is sunk and exhausted losses and incanges, have
not the company suffered enough The stockholders
have lost all that they put in. But nov IL IL proposed
that they shall not only lose that but shall lose double
that sum. because they will be liable even under tins
owned BY the parties Some gentlemen pushing the
matter even beyond this. They for making the
stockholders liable 10 the extent oi their individual prop
erty, II necessary, 10 satisfy these claims All that
be said with regard 10 that ~, that II suck terms
imposed, will not enter into tie business at all
Prudent men, my Judgment will not be associated with
such company; and that is exactly the sort of men
whose eonnexion and support in company OF this de-
serplon Is desirable II this company has capital paid
in, am disposed for one 10 exact anything more Of
them, but 10 give them their charter, and make them
liable TO that extent and let the matter rest there
Mr. CLEMENS u seems 10 me that the Argument OF
the from Massachusetts when translated into
plain English, just this and that the
beTs OF the company will trust another, but ask
the public TO incur risk they wiling TO take on
themselves Are the public 10 be less guarded than the
individuals who compose the company Are we 10 look
10 those who compose the company, to the public,
in legislation This the safest scheme Of gambling
knew, as was demonstrated BY the argument OF
h. frnua Kan n NJ Thav