The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1869-03-31
Insurance.
NEW ORLEAEs. March %. Isee.

NEW OhLEAHS, mhrcu <os lobS.
Editor Of dhe Crescent--Your correspondent
has had commercial experience of twenty eight
years In this city. He goes back to the time
when all the underwriting was done by foreign
companies. II is TO his knowledge that the I" Sun
Mutual " Of New York was at that time the lead.
ing company of our city, and conducted by the
much esteemed friend Of the public, Leonard
Matthew, now deceased.
A few enterprising merchants, desiring to keep
at home the profits of underwriting, took upon
themselves the responsibility, by virtue of their
subscriptions, to start the pioneer homo company,
then and now known as the Crescent Mutual
Insurance Company Those liberal merchauts
took risk without an adequate consideration,
being entirely governed with the desire to retain
et home the emoluments which have always
grown out Of well regulated insurance companies,
This pioneer company met In its incipiency with
considerable loss; TO meet which the notes of
the subscribers were hypothecated. Fortunately,
arecurrence Of the disaster did not take place for
some time, and the prompt settlement of their
maiden loss encouraged the community to take
risks with them. The sequel aud present condi.
ton OF this company are too well established to
need further comment.
Next followed the Home, the Sun, the Mer
chants, and host of others, until the home com.
panies welded capital apparently sufficient to do
the ordinary underwriting of our city.
So far 80 good. But the management Of these
creatures Of the public,) seem by combination to
exercise dictatorial power. In this: -
First. That each and every officer connected
with each and every company makes. By some
means, his position sinecure.
Second. Not content with unprecedented sala.
ries, these officers make it point to speculate in
the scrip dividends Of their respective companies.
Third. The officers and employees Of said COM
panies consider themselves the embodiment of
their respective companies and ignore when indi
vidualy presented, the rights of the assured.
Fourth and lastly. They have employed some
party or parties without adequate knowledge Of
the various rivers and tributaries to furnish them
with schedule Of rates applicable to the risks at
issue.
Now, what is the matterl II is this: There are
too many insurance companies with small capitals,
too many officers to pay Fat salaries to, too many
easy chairs filed by men Of no practical knowledge
OF marine. river or FIRE risks.
Now the writer would advise the home Board of
Underwriters to modify very materially their rates,
TO take risks at what they are honestly worth and
look well to the men for whom they insure. and
losses viii be less. Keep open policies fully
within the value. and, II possible, make the In.
sured stand part Of the loss, when Q house burns
or boat sinks, and with this policy one half the
present premiums viii yield profit to the under.
writers.
The writer would suggest, also, that the commu-
nifty be informed what constitute the items of
expense account, and that the salary of each and
every officer OF each and every company at the
rendition OF the annual statement be fully set forth
and beRs to remind the Board of Under 1rtera thai
the power that made them may yet unmaks them.
oo--oN NAsAons