The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1858-08-07
TROUBLE .Mow the INSURANCE COMPANIES.
prom the Philadelphia Ledger. ]

ltrom tho Ihladephla leagefI
There seems TO be SO much trouble among the insur-
companies Of New York that the Board Of Under
writers has been dissolved The old proyerb runneth,
when rogues fall out honest may got their own
proves true in this instance there dread reckon
ing for of the begsarly concerns The address OF
OF the secretaries to the stockholders of the Fire In
surance Companies of New York exhibits rather serious
state of affairs He says ''As officer of Of the
companies in which your capital is embarked esteem IL
duty TO notify you that your whole property invested IN
these companies is in imminent danger of humiliation,
of such extensive depreciation to make it presently
unavailable and vaueess. You see your stocks daily
quoted at about the old figures and you doubtless fancy
that all is we'll But within the past week meas
uro has been adopted which, unless reversed by
your fiat, viii, at distant period reduce insur-
stocks from the proud position of credit which
they maintained during the crisis OF last year TO
point where the holders may be glad to get rid of
them at any price This Is strong language, and il
did not intend to justify 1T, should shrink from
making Of it, The difficulty that has provoked this
strong language arises from the want of harmony among
the several companies of the city and mainly from
virtual reduction of the rate of insurance per cent
on what it in 1857. The great increase of Offices
having caused unusual competition in the business and
there much 10 fear, TO the profit of the
officers OF new companies and at the cost Of the in
sured There was adequate security for the payment
of losses under the risks. When this is the case the
policy is dear at any rate of insurance The evil at
tempted to he cured by association and the establishment
of rules for the government of each and all This after
tabshed at reduction of IL per cent and the commits
sion paid to insuance brokers reduced from ten down
to five per The association including eighty two
of the eghtysix fire insurance companies OF the city,
went into operation Within two months, four com
panes two of them among the oldest and richest gave
the prescribed notice of their intention to leave the
board tho avowed ground that they would not longer
consent to the payment of five per cent to brokers, UNI
less they had also the privilege of making the
duction to the assured The yielding of this demand by
the board it is argued, is equal to further reduc
ton of five per cent in the rate of insurance and is
than the business will bear Hence the declaration Of the
secretary, that the business is threatened with ami
hilation The number of fire insurance companies in
New York in 1857 about eighty covering capital
of millions Of dollars The threatened an
Inhalation of much property is well calculated to excite
apprehension and as further effort to save it and the
business to it, adjourned meeting held on the
thirtieh Of July, and motion made restoring in
effect the first basis yet recognising the horizontal
duction of five per cent by permitting five per cent
to be deducted to the assured where business was
brought direct, ten per cent. where brought by
a broker--thus leaving the broker the original
mission of five per cent. supposing NIL to demand
of him rebate of similar amount out of his commits
sion. Twenty-Five members were found unwilling to
vote 10 return starting point but willing to stick
to the alleged unfair advantage unwarily granted The
propositions though carried by vote of forty to twenty
two, failed for want Of constitutional majority of two
thirds Ihereupon resolution, previously passed, pro-
vding that if all efforts to induce the retiring companies
to return should prove unayaing, the board should
thereafter pay such commissions they pleased to whom
they pleased virtually dssoving the board, permit
ted to 60 quietly into operation and matters stand
now Already old company of large capital adver-
tises that it will take risks Mt rates reduced from those
established by the late board and this is the beginning
of the end The remedy for the difficulty apprehended
is such action the part of shareholders MS shall
compel the officers of the insurance companies to enter
into an agreement recognising commission of ten per
cent to brokers only. and restoration to exactly the
rates of last February.