New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1852-04-09

snouns s,s in cities, it might have been conslo'
"a ,roner bans, ard under iavofaole .ossS.
stsrcss would be yea, r1 o;sS, Se utterly 30 -
less ~ . banking pss'f' a'O A's"
oers ~. ,s.s Of the Legislature evidently " gooi
A.. no,ss should be premium notes, saS Tar pr,
s.,sh for premiums actually liquida'eo' AA1
s os sS, law went into operation some ~ tss
VII, companies sent runners 20 ev" y,,r,sncs and
state. securing what asfeemenso On GOOD risks, but
premium 80 s.,eements and rates possso.s On u.
takMs as xasndriss furnaces, smsaics, cos'o Us
a ,.,lIs Ac where the sreatsH msu, s.s s,sdlv
sssde and where sse ous ,Duiasns thai the agree
eN 80, hssss accepted, the note snouau 90 -
me .s ~ nave been without sucn sapas SO.
Tss." notes soon reached the sum tne arsi GIVEN
S,sd me certificate Of the Attorney ,"a conamis.
nieu . ~. or MS "Ibree disntcrresIeo conu'"
W s,sv ceyu 6ed the charter vas gianseo 1880
% bsnd-bills posted every where INA. we fThs
had capital o. sloc and Inc %oro and pol
IA. l,ommis slonefs haviug turned tuen oeSns
VA the Charter secured, these Agreements ~ofe -
numerous instances rejected, ana inis DaI1o" ~ 90,
csp,al became much less Inflated IA p,a"i no Of NO
bnf rot in appearance for the note coe'u W valne
nsuo ON 6ie. no policy having Issued nor ss'a.
siren tbsrefor and the maker NOT oeing Pmn notf
sr,mfnls year remained before rae iegSl psss
new notes might supply tae dencE lac
mepss were on file, which vote Oh ss ni,ect
could readily resusci,ete into capital OF gag id
cye cauld DEPOSIT their own notes INC teP"i' ~
hs MADE ana the work proceed. ,.s 4, This
Property-holdes would NOT 90 ,y.s secesssry.
style many sIues, 50 new device we. s,s' ~.
Psrtjss were induced 10 assist IN getlns ~ sno
rsptaI an homes. farmer asked 20 aPpy ~, n'S So
snee of thousand dollars on some "oisu H ;os
asSn and contents; and to aid In tlls COCO helsn,
So,hcoo epterprse gives his note Tor I'VE h9HaTea
and ten dollars, sen dollars Oh "nich ~ pIsm."m,
i've hundred dollars 10 CANNON Inc aSens s"ss
him receipt seeking 20 explain inc no.e, 1ia W
al MI 4 d..
- vii answer the lag if cone on tae ten, denar
rsrs ouIy or mat the balance shall be Cancelled on
ssscoupe the chsrter The farmer pockets the re.
capt, eating of, as ne supPasss, tae nve naeo.os
dolsrs AID pockets q iaio- SUI, and trouble at the
same time. II the matter stopped here, the puonc
snsxkt be secure, Ultimately, In mahlng tnese poor
dupss disgorge the whyte amount Of me mites, ou'
he fact IS, they in numerous instances HtITty
i,sepsaf, and in others, the notes are enormously
Aevcud ne Gbiify Of the makers, and one ttths 0
fAsm could never Dc collected,
VIVA, . monstrous system is this These coinpa-
MES o. this capital, insurng IN every N0rnern
STATE ana IN both Canadas, penetrating every city,
village settlement and cross road, DISPLAY ing TINS
Cspisi secured according to law oil the great stare
Of New YORK, obtaining cash premiums only, as
much 40 possible from three 10 I'VE years In advance
having all the premium notes they need Az
The expiration Of the first year great DIVIDEND
Il declaIed, IN other words new balt Is set f0r
sulls Risks accu nulate, and within hve years
efsnd smash up seals our state legislation with
Srefable disgrace.
! The Controller in his Report, at pages AZ and
g. says -" After all the precautions pointed out
IN the Law of 1919, suspicious rest on many mnds
thai some Of these companies, either from mlsre-
PRESENTATIONS in regard 20 their capital this being
somstjmes thought 10 have been boyroDed for the
eecaaom,-or from secret Understandings win the
makers OF large premium notes, should be sxonerated
from assessments In case of losses or from other
caHses, will not prove so Arm and responsible as TO
be safe guarantoIs against the disasters they profsrs
70 relieve."
sThe Controllers certificate amounts to
nothing more than declaration that, apparently the
Company commenced operations according TO law"
- The iliDg OF the Charter Ia the office
Of Secretary Of state the Endorsed opinion of the
Attorney General, aud the certificate oil the Control
le-al relating rather TO the forms Of proceeding
than to the substantial power and strength OF the
Company"
"fhat our insurance companies are generally con.
Quoted with uprighness and prudence there Is much
reason TO believe but the act OF lSi9, under ,ohtct
most Of them are organized, is sadly defectsUe"
Had the Controller been aware that the law wal
evsded spirit and intent, he had power in tn
premises. Neither he nor his Commissioners could
20 behind the agreements for insurance" or notes.
They could not inquire whether the notes were
hsolvent, or suspected the notes mere (orgerxs,
.hey had neither power nor authority, but must Ger.
aT;, a..
Nv Of these Cpnpsniey and ~ show that The appre.
heDGens spoken OF by the Controller and the 50
na:snoss are not altogether gIoundlsss. Thsye
81 which many matuals, and IL "a To ths<s rsfss
more particularly had.
The Act requires them TO report to the Controller
m January OF each year-io file copy thereof Ia
the Clerks Office OF the County OF orgaolzasicn,
and ever other County where al Agency is estao-
uAnso, and 10 publish the same In al least one news
paper IN the County of the Office and tho Agency.
Inc following exhibit must be made thereby, ''dsT
ssh:
lW The total amount of Premiums received
ID. The total amount OF Losses paid and dscer'
tened. including expenses during the year.
d. The total amount oil debts owing by the Com.
pahy; the amount OF CLAIMS existing what part
GeItof considered fair, and what part ffauduient.
9Th. A statement OF tho Securities representing
he CAPITAL Stock, and all funds Of the Comps my,
and also whether any OF the Securities hsd or o,sned
y such Company are considered eaG or dovoDu' snd
So specifying the amount of such securities, 80.
The hiss report to be examined is published In q
newspaper OF The County Of organization, purport-
Ing TO be the Annual Report OF the North American
Mutual Insurance Company dassd January ., 1852,
whole amounto Of property at 90
49, amount sa, q ,.. ss 90
Premium notes. 1891 90
S:i ,s.S" s%isms I:S sa S on s %
Teal amour, Of assets ercapiss sioss--.- issils 80
TAH IL not compliance with the statute, for it is
Dol uAder oath, ano smportanf, II does not show
whether any Of she securities are considered bad
| ssabuai. This becomes doubly important when It
Known that Hon. Calvin +. Hulburd, the FIRST Pre-
4 ~ sre SVAP' eeAsAo&"S" "suoay ons niVss
mvcsably known IN the State, considering the sys-
VEN as unsound, and as net afording the security II
pfoiessed, resigned hs Office In October refusing to
| ten.
Tho brothers of Mr.. Hnlburd lkewise resigned
| Director.
LEI the reader look at that Report, and apart from
ne iaet that many OF the insurers may have given
nouins bat boss fde premium notes, By dividing
We sosa amount OF notes by the sum insured, this
Suspicious fact Is disclosed: That the rate Of insu.
race, II these be genuine premium notes is upward
I~kSrr'FolR per cent. Of the properly On.
sfed. Comment is unnecessary. But the reader
1 vi conaider that the Company has been Ia opera
~ some months, and that had this division been
l Ioe a an earlier Cate, the rate OF insurance would
l s0eeaess have been much greater.