The New York herald., 1867-03-13
FIRE INSURANCE.

FIRE INSURANCE.
-
The Better Regulation OF the Insurance
Busine ness-Pr0tectiOn TO the Interests OF
Both Companies and tho Iusured-Thc Ren1s
edy Against the Injudicicus Systcm Which
Led TO the Disasters Of 1868 and 1866, &cs
The annual exhibits Of tho various insurance compA
MES OF the State now collecting In the Office OF
Superintendent Barnes, in Albany, who s busly en-
gagged coatng tho facts thererom for the preparations
OF his report to tho legislature The vast and comp
Gated extent OF this work win preclude its completon
for several weeks perhaps especially the crcumstan
COS connected with the insurance interest of the yeaI
render unusual aud consideration requisite to the pre-
paraon Of this document involving as it Will practical
suggestions for the5 remedy of the evils which punge0
tho insurance corporations into so many disasters.
These reports not all yet received or in condi.
tion TO permit the comparison Of facts on which supers
intendent Barnes can proceed to his analysis Enough
known, however to indicate the moro saent causes
Of the hapess condition in which many Of these compa-
nies found themselves when making their annual state.
ments The HERALD has already referred 10 anu con-
dcmned these chief causes VIZ she agenoy 81
risks-a system inspired by unhealthy kind OF com.
petition into which the companies were led by desire
to immense surpluses instead OF carefully cons
serving the interests Of the insured By judcious bua
These reports reveal the financial unsoundness Of many
old companies adjus! whose difficulties. both in the
interests of the public and Of the stockholders has bee4
Of INV has been impaired ho has already used
his endeavors and IN many cases with success
to induce the stockholders to make good the deficiency
trary powers OF procedure Ia the OF anea
whose stock has been impaired to the extent Of cc
tain percentage but no has not chosen to pursue such
oonoilias sii the - holders q stock to the wisdo1
H1 M to the Of tho osns
tai His policy is Of conservative character on the
ground ha. the o. cp - he ~ g
country. He therefore, favors the resumption -
company where is possible instead OF its lquidaiion
cldo
impairment OF their capital ho vors the measure nov
before the Legislature to permit the resumption OF bus
great public necessity not to force cut OF empoymena
any amount whatever Of insurance capital The entire
sum now invested In this class OF corporations
in New York State does not exceed Sc, 0,o00.000
perfect tro in comparison with the value Of its rea4
% sDd ns e e' va. VI
lately in the case Of large firm on BroSdway Who's
10 all ons
panes combined In consequence large proportion o.
their risks located In companies Of other States and
in some hail dozen English companies
The disasters OF the past year land and at sea hev4
created such feeling OF insecurity in the public miA4
companies which have established oices in New Yor6
and other cities, where several or them are ransacune
as 70 tho deposit Of guarantees fund There ia no r..
why this patronage should be thus diverted 70 the
injury or our own country ana the benefit o.
all their disasters and arc 81.
tremely few Of loss to the insured One only %.
Company--in which dishonesty had a. much as mis-
management to do with sappng ts vtals Tho insurin0
community therefore doing themselves an Injustice
in withdrawing their support from own compani7
and thereby assisting In the retirement OF homo capital
One curious feature Of the causes OF loss to the com>
panes will probably bc developed By Superintendent
Barnes In his forthcoming report v..shs dscreass g
THIS singular course Of the companies is shown In The
statements for the years the period from 1850
the prices OF everything rising, the rates OF
surance went down. The companies made money. BE-.
property, which was constantly enhancing in value
Thus, IL a had insurance Of $4,000 under old
sum II his property royed whereas his goods were
In cash worth an advance OF fy or hundred per osue
Sssan 'ns 70 a and cuOus
commenced. Men now became less vgilant, in fact,
perhaps even careless as 70 the security OF their goods
because they insured for certain amount and the
market continually the decline. This 0bsorva~
ton does not Of course apply to insurance Of real estate
insured by our companies Mr. Barnes does moi wish =
such persons OF dishonesty or to attribute the re-
Il is not human nature 10 be ever yrilant and wholly
disnteresed where such course does not result In in
divdua profit or where tho contrary would porohanse
The remedies which the Insurance Superintendent will
suggest are among Others the bearing Of portion OF The
loss by the nsuredto the extent Of not more than
fifth OF the amount-and tho adjustment of ratos
TO make the receipts OF premiums adequate TO losss&
cerned for his goods and more vgant against The OCCUR
Of Gre. In tho Of increased ratios tho Insured
would reap the advantage OF scrip the possession a
which would induce them 10 jeaonsly watch againse
rnismanneement The Superintendent deems the lnvsst
fnent of capital also object to be laborcd for -
every way. In his report the examination Of the
Affairs Of the Sun Mutual Company Of New York, he
points the "impsrious necessity for strength e
capital In order adequately TO meet the exgences OF oug
modern commerce. This remark made In connectio0
with company, but s force Is applicable In Am
branches OF the businesa He further suggests thao
companies should be organized shaped and Intended -
meet The casualties Of exceptional years ~ extraordinary
losses In the eye Of the sast are inevitable result %
the loss OF time - and again. that the capital Of
corporation should be so large that with s incoming
means, the danger Of failure would DO entirely elm
mated It's solvcncy should bo a. certain - the exss
ence Of the government"