The Cass County Republican. [volume] (Dowagiac, Mich.) 18??-1880, 1860-10-04
From the New York Herald.
Fictitious Securities of Insurance Com
NAMES.

From the New York Herald.
Fictitious Securities Of Insurance Com.
panies.
We see that, under an investigation
instituted by the State Comptroller,
the assets Of the Wall Street Fire In
surance Company have been declared
insufficient to justify the future prose-
cution of its business, and that Superin-
tendent Barnes has called for the dis
solution of the corporation. It would
appear from the report of this officer
that most Of the securities which make
up the company's assets consist of
mortgages on wild and uncultivated
lands in this State, or of other proper
ty, the value of which is greatly over
estimated.
We believe that if the securities of
most of the other fire insurance COM
panies in this city were subjected to a
similar strict examination, they would
be found far below tire amount fixed by
law. There is probably not one out of
ten that rs in a condition to meet the
risks that it undertakes, supposing an
extensive and wide spread confagra-
ton to occur. These FIRE insurance
companies are but in too many instan-
ees established merely to provide places
for broken down merchants and others
who have certain amount of COM
mercial influence. All such bogus in
stitutions are drug upon the opera
tions of system which has conferred
q vast amount of benefit upon society,
and which would contribute still furth-
er to its protection if the profits of the
legitimately organized operations were
not cut up by an unfair opposition of
this kind. We trust that the heads of
the insurance department. will perse-
we're in their efforts for the reform of
this abuse, of which the report of Su-
perintendent Barnes is so creditable an
example.
From Philadelphia Paper.
REDUCING THE RATES OF INSURANCE.
Some of the Fire Insurance Compa-
mics of Philadelphia, and with one or
two exceptions, all the foreign Insur-
ance Companies doing business in Phil
adelphia, have made, and it would ap-
pear they restill making, a considera-
bic and almost ruinous reduction on
rates for mercantile risks. There is no
reason whatever beyond the purposes
of competition, and to obtain business
at losing rates, rather than get none,
for such a COURSE The officers and
agencies that take risks at the ruinous
rates referred to, with scarcely an ex-
osption, have neither the ability, desire
nor intention of paying losses when
they occur under these policies It is,
therefore, not the least strange that the
merchant and property owners can get
insured (nominally) large lines at NOM
inal rates of premium.
Cur readers should bear in mind that
a cheap insurance is, in nine cases out
of ten, the most expensive IN the end,
and when an agent, drummer or broker
solicits, or rather drums merchant or
property owner for his risks, and insist
upon placing them, on the ground of
takin o them at low rate of premium,
it will be safe to infer that the inten-
ton is to place them in some bogus To-
cal or foreign Insurance Company, that
according to the above mode OF paying
losses, can safely afford to take lines at
even nominal rates. The Insurance
business in Philadelphia is, by the
above fraudulent concerns, being cut
MP badly, and we would advise our re-
sponsible Companies not to try to com
pete with them, for although many men
are at present somewhat blind to their
interests in Insurance matters there is
no doubt but that great portion of
such will ere long discover their error
some by sad and expensive experience,
and others probably, by observation
IS far at least as the improperly Of
cheap insurance is concerned