Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1859-04-06

losses and honorably prompt Ia eong ~ demunds dpon
-, 6s bin 50 evidently the offspring of few domestic
argue The case We cetaly hope ard expect
that need public legislative % asst them little dssoiv-
tho indorsemgnt o. ths state Of Ohio.
Youn: iespecifglly,
Der X Il. BiahE5IL.SSNk. Bni3ah5ILSSNk
1855 I'ss1 70 IN g AS 5kSs S ls sSo @ s and
were for the port ofClsyaaad aud iy covered by FOR
From these letters it will be seen that both
the foreign and home Insurance capital is really
inadequate TO do the business of the State and
protect its property And Il will be further
seen that of all the immense losses occurring in
Cleveland TO insurance companies, nearly eyery
dollar has been fully and satisfactorily paid.
But the gentleman from Hamilton admits
that the bill as il stands at present cannot be.
come a law, but hopes the House will recon
slider the vote, SO as to amend the bill by COM
pelling foreign companies to deposit in the
State $4,000 only. Now, Mr. Speaker, this
provision is far less objectionable than the orig
inal bill, but | claim it to be objectionable and
wholly useless. It is impossible for any insur-
ance company TO deposit $4,000 in each of the
States Of the Union. Such course would so
impair their strength, and SO divide and weak.
en- their capital that no company could long
live under such a system. Tho capital of a
company must be within its control, ready for
use, earning money, and at all times be in such
shape as to be Immediately convertible into
money TO pay losses. To tie up $50 900 in
each State, place the money beyond the power
Of the company, and only release it when the
last policy has been cancelled, is so utterly i'm.
practicable, that all must see il at once. Since
Che passage OF the present law regulating insu.
rance in this State, SIR of our sister States have
placed the same law on their statute books.-
Supposing the bill under consideration to be-
come law, as proposed TO be amended, and il
be also adopted by our six sister States as in
all probability it would, and what is the RESULT
Why it would take from the active capital Of
each company the enormous sum of $3.50, 600
to comply with the demandsl The thing is i'm
practicabe-utterly so, and no company can
live under it that is worth living at sll
But, sir, claim that the present law is
wholesome and stringent in its provisions, and
wisely and sufficiently protects the interests of
our people. Every foregn company doing bus
mess bere, must prove their solvcncy under oath
before they are allowed TO insure dollar in
Ohio. In fact, the entire history of the COM
pany must be published, and set forth, both at
tne Auditors office, and in the office of every
Agent where they do business before they can
! offer to do business. Parties insuring, and they
are generally the most intelligent persons in a
community, have thus full opportunity of be-
| ing informed of the merits of each company,
and can make their own selections, as to where
they viii apply. Since the passage of the pres
ent law, but one foreign company has failed in
Ohio, and that only had eleven policies of in
surauce Issued at the time Of its failure, issued
after the law passed, and these were Cancelled,
and the parties holding the policies were rein
sured by the failing company in other RESPONSE
BILE companies. Thus it will be seen that up
to this time the present law has proved amply
| competent to prOtc ct our people
Again-the present rates of insurance are al
ready heavy tax upon our citizens Insurance
is still held at high rates. Notwithstanding the
multitude Of companies represented here. Drive
one-half, or more, Of them out of the State, aud
The rates of insurance must necessarily greatly
increase. Our own people must pay this tax,
because they must be insured. The home
companies must be applied to, to a great ex-
tent They must not only increase their rates,
but they must necessarily increase to great
extent the number of their risks, without a cor
responding increase of capital, and the conse
quence would be that the insured would run a
| greater hazard of eventual loss, beside aging
an additional rate of premium, for what might
prove worthless policy.
But the gentleman from Hamilton says we
should favor our local companies if we can, or
should, at least compel the foreign ones TO be
| placed on the same basis with them If possible.
| 10 this l agree, ii it can be done without det-
| riment to the interests of the State If our
| State had $50 900, 600 Co put into the business
OF Insurance-thus making our home capita
ample for the business of the State, would bc
willing to see every foreign company driven ou
of OHIO But unfortunately that is not the
case, and we are, and must be, TO a considerable
| extent, dependent for the present on foreign cap
| ital for our protection But says the gentle
man, what protection have the people against
loss by Foreign Insurance Companies / an
swer none, except IA tAe s0lueney Of The Company
But ask him, what security have the people o
| Ohio had against loss from tho multitude of
worthless home Companies that have started
suddenly into full life and after living few brei
days. and swindling all with whom they camo
| in contact have suddenly died Go ask the
holders of their worthless policies where is thsiI
protection Go ask the thousand dupes who
| have been deeoyed by some miserable agent in.
to trusting their all, in the hands OF these worse
| than worthless companies, and who, when TOD
| late were houselesa and hOmeless-haVe woke
up to tue terrible fact that they have been trust.
1 ing TO n broken reed Where is their security
Echo, answers--- Where? Sir, know men and
women, widows and orphans, who trusted theii
all, in that model home company-the Western
Farmers, Mutual, Insurance, Company Greal
heavens what name suggestive of powei
--solidity, wealth and dignity The GRaAr
WEsrERNl FARMERS MUTUAL Fire INsuR.
AECR COMPANY q Napoleon HOHaparte Jose
phHs JehOssphat Smith was no comparison TO II
in bombast and grandeur. But it's lofty name
and high sounding title, and the fact that it was
a home company, all was not sufficient to save
| it, and when it went down, il carried with IT,
the all of the widow and orphan, the strong
man and the helpless wOman-and its worth
less promises were all that was left behind. But
says the gentleman, II this bill as amended had
been a law they would have had protection. =
! Yes cir, Just as far as $4,000 would go TO pay
milons-for it is the genius of some Of these
model home companies b. multiply their agent.
like the sands upon the sea Shore and their risks
are only limited by the explosion Of the Com
pany itself
But the gentleman sneers at the brilliant
showings" Of these foreign companies, anl
sneers a. them as though they could be sneered
out of existence. Sir, have since last nigh
been examining a list Of the securities, and
admit, Sir tBas startled at the brilliant show
ings"--and, sir, they arc brilliant because they
arc trus Sir il Is enough TO make poor mani
mouth water, as he looks over column after col
umn Of these securities, and sees the millioni
upon millions Of the most splendid securities
known TO the commercial world, the property o
these foreign companies nited States stocks
Ohio sixes Missouri skies, New York Stat'
stocks, the best Of Maryland and Ponnsylyani'
securilies Sir, they are "briAiani shOi0ilgS,
for they show a mass Of securities that glitter
because they are gold.
To show the inadequacY Of the home cOnpsn
les 10 do the business of the State, | wish Z
call the attention Of tho House to the amount 0
Al.