The New York herald., 1869-03-05
THE INSURANCE COMPANIES.

business OF the country. There are probably 200
companies foreign and local, with their head onces
or branches In this city, and, matter Of course,
there is spirited competition among them to mo-
nop0llze the business. The law under which they
act is In many respects faulty and facilities are
offered for irresponsible corporations to work them
selves into popular favor, and by skilfu manipus-
ton Of figures in their annual reports deceive their
patrons as to their actual status In the insurance
world.
Many OF these companies are known TO be entirely
responsible and deserving Of public confidence, but
that there are others which, If the truth were not
skilfully covered up. would prove spurious no one
who knows anything Of the insurance business and
the loose manner in which policies are secured win
attempt TO deny. Hence 1t Is important that their
internal affairs should oe closely scanned.
TIE "GO-BErwEENS."
Nearly all the insurances are effected by two
classes OF per5ons-brokers and canvassing
paratively few policies are issued. by compa
MES on personal application OF the party
9S o q ot srea m hos not t ms e
spare from hts business TO make personal study OF
the standing Of companies ana decide upon the ones
He consequently trusts to broker to negotiate the
insurance. The brokers drive q thriving business,
and In time become individuals whose influence N
not to be ignored by companies. The corporations
that desire to extend their business are as matter
OF course, forced , to secure the patron
they are prompted to accept risks at q
lower rate without closely examining the nature
dends on as small capital as possible ana to accom-
pllsh this they must not be scrupu0us In their
ventures The brokers thus in time control the In
surance business OF nearly all large establishments,
and feather their own nests while sacrificing the in
teresis OF the insured Tor tho benefit Of the COM
panies who Will venture most. -
But there is another class OF go.betweens VINO are
equally dangerous They ore the local canvassers
who live by the percentage divided upon policies
N ptfr-aQ rsrfn .alIx
confined to small property owners and they spread
themselves out over the city In search OF business.
Their percentage Is merely nominal sum, and
there Is natural temptation to careessness In their
negotiations. Rarely do they take the interest Of
tne companies INTO account. lher ices Is tne grsat
secure the more pay they secure, and the result 9
that In many cases they do not stop to inquire into
value OF the property covered by policy II the
application will go. through the head oilce 1t Il
enough to serve their ends. An evdisposed party,
who Is on the eve Of falling In business one who
has large stock on hand ana no prospects Of a
speedy realization OF its value has every induce
ment oered to insure for twice its value In the still
hour OF the night whom darkness wells him. apply the
match and secure handsome profit providing he
has sufficiently covered his tracks TO DEFY detection.
THE ATTEMPTED coscEALMENrs OF THE COMPANIES.
No responsible insurance company should lear
time. II 1t be solvent the publication to its patrons
OF Its losses In each and every fire should not cause
alarm. Yet how few Will permit this information to
be given to the public press the only medium
through which insured parties can learn OF the
misfortunes OF the companies In which they
have 30 much at stalker The great majority
of them have pcrslstently endeavored to
suppress this Information, as 1t presents at
the end OF the year twhen they come to make
up their reports o nystllcation OF figures, by
skiful accountant, to blind the public as to their
actual status. The Fire Marshal OF the city Is also
kept In tho dark IN this particular and company
may sustain In one month losses that equal quar-
its capital stock without its patrons being aware
cessity for the passage OF special law compelling
the companies to furnish the losses monthly oftener
to the Fire Marshal, where the public can examine
the statements and learn the actual losses paid.
Ii gratifying TO that Fire Marshal Bracket has
OF last become impressed with the Importance OF ex
posing the abuses practsed by these corporations
During the Investigation OF tho nrc at Abraham
Marks no. 70 Suffolk street. who Is held on his own
charge OF .ncendiarism, II transpircd that he had
an insurance OF sL1oo-ssoo IN the Rutgers
his property was worth only
about S40o. According to the evidence given
below 1t appears that the agent OF one company at
In Issuing risks 10 parties and taking ventures that
should cause alarm In the community, whose IN
terests are so closely bound UP Ia the solvency OF
corporations doing business IN the city and en-
virons:-
John Prayer being sworn deposes and saws that
he lives at NO. % Riyington street; am fire ana life
insurance agent; know Abraham Marx; he an.
piled 10 me for insurance. aoout three months since;
no wanted $500; visited his apartments at 70
Suffolk street; ! made thorough examination OF
his household enects; | am positive they
"a
surance In the Pacific Company two days snbse-
quenty for said amount; have no remembrance OF
hearing Mr.. Marx say he had etected previous In
surance OF $500; did not ask him the question; am
not In the habit or asking parties who apply for
Insurance If they are or not insured elsewhere
when the amount described Is no larger than the,
above; consider II the business OF parties when ap-
plying TO for policy OF insurance TO make known
whether they have another policy, and not my busi
ness to ask them the question, In cases. before
stated, where the amount applied for small (be-
tween $500 and 5000. The more Insurance effect
the larger my commission.
From the aildavit below II appears that no survey
was made OF the premises named TO determine the
actual value of the property insured.
Robert M. u. Dodge being sworn says:-I am In
the employ Of the Pacific Insurance Company; about
three or four months ago insurance agent BY the
name OF Prayer brought me an application for IN
surance on furniture, clothing, &C.. belonging TO.
Marx, No. 10 Suffolk street, to the amount OF
5000; the company issued the policy; some
time after Marx came to the Office and
made application to have privilege for $500
other Insurance by the Rutgers Insurance Company;
he had their policy; that policy gave him the prv
lege OF 5000 other insurance. asked HIM how much
room he occupied; he told me he occupied the floor;
also asked hum II he had that much furnture: he
said that was about what II was worth; am not
positive that asked him. but from what he said
Judged that his apartments had been surveyed by
the RUTGERS Insurance Company: we did not send
any one there TO look at It; the privilege then
put on Tor $500 other Insurance In the Rutgers.