The Nevada journal., 1860-02-17

INsuRANcE.-The attention of the
British public. and also of the Ameri-
can, has recently been called to the
condition and soundness of q man.
moth English Insurance Company,
and one in which the property hol-
ders Of this city has large interest,
inasmuch as very large proportion
of all the insurance business done in
this city is done b. that company
This company is the Liverpool and
London Fire and Life Insurance Co.,
and its management has been recent
| ly criticised so severely in the Lon.
don and New York papers that many
regard it as a most rotten concern.
From the cursory examination we
have been able to give the papers
placed in our hands, we gather that
this company has two Boards of Di-
rectors, one called the London, and
one the Liverpool Board. But the
weight Of the power is with the Liv-
erpool Board, who are accused of u.s.
ing it corruptly, and that of refusing
TO allow the London Board to know
what their transactions are.
The late Chairman of the London
Board, Mathew Forster, Esq, has
published an expose of the affairs of
this company, in which he complains
of their reckless way of doing busi-
ness, the means they have tax EN- to
extend it. and their evident, persis-
tent purpose of preventing investiga-
ton into its affairs, He says they
have evinced desire to extend their
operations, even though they knew
they were not profitable, and that to
Dc so they bought up several unsuc-
cessful Fire and Life Insurance Com
panies. This desire to increase a
nominal income by doing a losing bus
mess would indicate that a grand
smash was anticipated.
This company has evidently work.
ed into its large business by its liber-
ality of terms. While other compa-
nies, known to be sound and respon-
sible, have refused to take above
few thousand pounds on any single
block, this company seems to have
proceeded on the idea that the more
they could insure in one block the
better. The result Of this has been
that by one fire. in Valparaiso, they
lost SS50,000. One inducement that
this company offers is, that after poll.
cies are taken out from this company,
other policies On other companies are
allowed without the consent of this
one being endorsed on the policy.
until it is demanded by the company,
On the face of it this looks like pre-
MUM on arson, for it says this "In-
sure with us to the limit of the prop
erty, and if afterwards you can get
insured elsewhere and burn up your
property, you will still hold us and
can make good thing out of it."
This company also allows another
very singular privilege :-"Policies
are assignable by simple Endorsement
and no notice of such as. .ignment need
be given to the company" So. if a
man has property insured that is not
paid for, he can sign his policy TO his
confidential friend, burn up the goods
or building. and find himself rich by
the operation. There are other pe-
culiar features about this company's
way of doing business all looking to
the same end-to get business wheth-
er it be profitable or not. But we
have not room now to enlarge upon
them.
The affairs of this company have
attracted great deal of attention in
England, and the impression as we
gather it from different papers, is
that is in very unsatisfactory co.,
dition, and that it must be ventilated.
The Shareholder, a London Insur-
ance paper, says that the charges of
Mr.. Forster must be Investigated and
if they cannot be in any other way,
an answer of some kiud must be Civ
en- to them on the floor of the House
of Commons. The London Star and
Times both express dissatisfaction
with the answer of the company to
the charges of Mr.. Forster, the Times
declaring that the defense is "excee-
dinghy imperfect and unsatisfactory.
and that it avoids rigid figures and
deals only in generalities."
Mr.. Forster in his charges against
the company alleges that they have
made very bad investments of their
funds, and that the losses OIL railway
shares stood at one time above the
whole paid up capital.
Whatever may be the actual con-
dition of this company, it is certain
that the Liverpool Board of Directors
are unwilling to have it made public.
ThaLondon Board is at best but
sham, and is not allowed to know
what the Superior Board is doing
Mr.. Forster was too inquisitive in his
investigations, and for that he was
turned out of his position as Chairman
of the London Board. This London
Board is but convenient appendage
TO the Liverpool, and the latter ad-
NIT that some $4,000 was corruptly
divided among six of them, in reward
for their action in making sale Of
the Mammoth Insurance Office of