The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1870-02-02

AMH4A ANU 6NOOAAs
ITO the Editor of the Courier-JournaI.1
| find the following in the Cincin-
natl GazsHe of the 21st:
NATURE OF INSURANCE STOCKS.
To the Editor Cincinnati Gazette:
A prominent insurance company Of
this city has issued and circulated,
literally, a card In which is represent
ed the condition of the company.
The capital stock is represented at
100000, and all paid up. The sur
plus fund is stated at something over
5000. This, according to the state
ment, would show the stock to be
worth q premium of rs per cent. And
yet [ am informed that the stock of
this same company has, within a few
days, been sold at public auction at
par-nobody being willing to bid any
thing for this reputed surplus of 76
per cent. This fact would seem to
argue either very close money mar
ket, or a want of confidence in the
company's statement of the value of
its stock. | am, however, possessed
of few facts which may throw some
light on this subject. In this same
circulating advertising card / find the
following as the sum total of liabili-
ties, viz:
Losses adjusted and not None
Losses reported. but not ascertained
about. S3.50O
In glancing hastily over the records
Of the Courts to-day, | find suits
against this same company for more
than $40, 600, every dollar of which,
with costs and interest, will most
likely have to be paid. Indeed, it
has been stated to me, oE the very
best authority, that the active officer
of the company-the Vice President
in speaking Of one Of the largest
claims for which suit is brought, says
that the claim Is right and just, and
ought to be paid, but he had no power
to pay.
III we arc to inquire into the causes
of the depreciation of the Cincinnati
insurance stocks, and the bad repute
of some of our companies, the answer
may be found, in part at least, in the
fact that people lack confidence in
the integrity of published statements,
and in the disposition of the under
writer to pay losses which eUen the
officers admit to be just. IF the rep
resentative officer of the company TO
which [ have referred will not take it
unkindly, / will suggest that, here
after, the losses under policies issued
by him be referred for adjustment to
the famous committee of three, of
which he is one of the most efficient
and faithful members. | would also
further suggest, inasmuch as there is
no place IN this city where bonds can
be kept with any SORT of safety or
security, 1t any such property comes
into his possession, it be sent at once
to Wall Street, New York, where it
is free from every description Of dan
ger. A.
Wouldn't it be we'll for our mer-
chants, some of whom send to Gin
cinnati for some Of their insurance,
to take into consideration the remark
able statements contained in this
communication? Here is a company,
with reported surplus of seventy
six per cent, whose stock sells only
at parl Why is this? There is a loss
Of about $40. 600 due the owners of
the steamers America and United
States" which, with commendable
caution(O they omit from their LA
bilities; and yet the courts of Cincin-
natl have just decided the America f"
claim to be good one, and will doubt.
less so decide the United States !"
case, which comes up for trial on to-
morrow, (Monday.) The investment
public of Cincinnati seem to have a
just idea, at any rate, of the value of
this Wanting concern.
Let our merchants, steamboatmen,
and others beware how they insure in
such concerns. MAIN STREET.