Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1867-02-15
MARISE DISASTERS AND MARISE
INSURANCE.

From a carefully prepared list pub
lshed in last Tuesdays Herald, il app
pears that an average of twenty-five
large steamships, owned by parties at OF
I hailing from the port OfNeW York, have
been lost at sea annually for the past ten
years. This IS independent of the large
mum Der of smaller steamboats, and sailing
vessels wrecked withiH the same period,
and makes a very startling exhibit OF
marine disasters. When the value Of
one large boat and its cargo is cousid-
cred, it IS not to be wondered at that
those Of our marine insurance cOmpa-
MES that have been engaged in doing an
Inflated business, pressing up their divi-
deuds and rapidly redeeming their scrip,
should find themselves driven 10 the
wall
Insurance is a business in which none
but experts can hope TO prodtabiy en-
gage. Yet an insurance company is the
most common refuge for broken down
merchants. When prominent man
! fails in business, unless he becomes n
wine merchant OF y coal dealer, his
friends set him up as president Of an in
( surauce company, and he receives = lib
I eral salary, secures a large amount OF
premiums, makes q few imposing an
I nual reports and ends by going into
/ liquidation. The maine insurance bust
I ness, in special, requires prudence and
experience TO insure success. The well
/ known "Joe HoXie,n many years
ago, was agent for number
I q marine insurance companies started
J in Kentucky to DO business at this port.
I Before long one Of these companies went
| overheard and was soon followed by
another and another. A friend meeting
/ HOxie on the street inquired of him the
| cause Of the trouble. Oh 1Asaid HOxie,
/ these Kentucky fellows are paying a
( pretty high premium for teaching me
; the business Of underwriting; that's all"
I A marine insurance company in the
Z hands of inexperienced managers is very
unlikely to secure permanent success.
/ The modern plan Of uniting the fire and
7 marine insurance business in one is also
\ an undesirable innovation. A marine
( insurance company should be restricted
/ from taking fire risks.
The main cause. of the heavy losses
4 these companies have experienced, how
/ ever, is to be found in their recklessness
| in taking risks. The sun mutual, which
/ is now in so much trouble, is said to have
| been in the habit Of insuring vessels that
/ had been refused by other companies.
4 There would be no such exhibit of ma
q IlLlt tliStAnlNAH tfAhAAf7-i~N 80
! day, if the insurance companies should
refuse to insure any but seawOrthy and
safe vessels. The companies have the
whole matter under their own control.
I If they would refuse to take any
risks on the old, unseaworthy rot
ten tubs which are now readily
insured and started on sea voyages,
we should have no bankrupt insurance
companies and no such large annual
sacrifice of property aud life as at pres
ent. No merchant or shipper would in
/ trust his cargo on a vessel which was re-
fused insurance by the underwriters,
! and the reckless spirit exhibited in send
ing unsafe and half equipped vessels TO
sea would be effectually checked. The
rivalry between companies, the desire to
make large exhibits on the part Of many
new concerns, and, above all, the broker
age system, lie az the foundation of the
evil. No well established company Will
pay commissions at all, and no company
doing legitimate business can afford u