The Portland daily press., 1870-02-14
Letter from Augusta.
AUGUSTA, Feb. ~, 1870.
TO the Editor Of tk Press:

hOVCoIA, ICU' ~, 1OtO.
To the Editor oftl Press:
HEARING ON INSURANCE
The hearing during the week before the
Committee on Mercantile Affairs and Insur-
"nce mas been exceedingly interesting, and
perhaps one of the most exciting contests
tnat mas ever heen had on the above subject
before the Legislature.
Inc discussion has been participated in on
the one side by the Safe Examiner. Albert
w. Paine, Esq, and on ire other chiefly nv
INDIVIDUALS representing Che several agencies
in tue city of Portland, j. w. Munger. a.
Chase, Prentss Loring and = Morrill,.
The discussion has occupied five hearings.
and has been conducted with unusual spirit
and sharpness, and it is but just for us to say
that the Portland gentlemen have DISPLAYED
great ability, a full and complete knowledge
of their business, illustrated by collection of
statistics which have established the strong
points of their arguments, which, as they say,
have forced the Examiner either to admit
that they are right, or seek a recitation by er-
roneous statements of facts.
AT the hearing this norning, Prentiss Lor-
ing, Esq, of Portland, appeared before the
Committee in opposition to the bill of the Ex-
aminer, and in a clear and forcible manner. in
a speech of an hour, presented his views on
the subject, which, as it was his first effort of
this kind before a body of legislators, was
considered by all present exceedingly credit
able, and could not fail to have had influence
with the Committee. Mr.. Lorine's remarks
were substantially as follows:
Owing to the almost entire absence of fire
insurance capital in this State, there being not a
siDgle purely fire insurance company in exist
ence under our laws, and only two Offices that
write lire risks in connection with marine and
these representing only about $3.50 OOO-iL has
become matter OF necessity that the great
bulk of the insurance business of the State
should be done through foreign companies hay-
ing established agencies here. The agents rem
resentng these companies stand on middle
ground between their companies and the neo-
pie. While they are bound, as simple mat
ter OF hdelty and integrity, to guard scrupu-
lousy the interests of the great corporations
which entrust their local management in their
hands, they are no less bound BY honesty as
well as expectancy to consult the welfare and
secure the entire protection of those on whom
'hey must depend for patronage. Hence thew |
'ppear before the committee not merely in the |
nterest OF the capital they represent, but IN |
nat OF the great insuring public as-Well They
anction and urge the enactment of such laws
s snail subject every insurance compapv en-. |
erlng the State to the most thorough scrutiny
to Its character and soundness, and as shall
n1orce rigid compliance with every contract
With those who accept their policies. They ia |
or the establishment of an insurance depalt-
nent which shall aid in accomplishing these
esults, but they ask that the provisions direct
ng the action of such department be whoJe |
ONE. inst and nracficanlp 80:
ldlclous Why or how it is, it is impossible |
o state with exactDess, but the facts and the
lgures prove that Maine has been an unproft-
ble held Tor ire insurance companies This |
conclusion is reached not by Considering the |
experience OF any one year, or five years, or of
ny one company or small number of compa |
hes. 1t is found that twenty of the leading |
Insurance companies doing business in this
tate through agencies extending over a term
years, ranging from five to thirty wears. have
,st nearly $2OOOOOO more than the premiums
1ey have received.
1t may properly be asked whether these COM
anles referred 10 afford fair criterion by
men TO Judge OF the aggregate results of the
ltlre business. Turning to Examiner Paine's
cond annual report, It is founi that in |
le year 1868 all the companies doing business ,
this State, 67 in number) wrote 1884 poll
es covering property to the amount of $52,-
3,75S. Now from the same report it is ascer- {
lned that these twenty companies already
"IO.C 'ud0 y car ZO,0OO pUlCleS, IN /
ring $36s570, 659-or in other words, three
larters of the entire business of the State.-I
tniS list OF twenty companies embraces | .
arly every leading Office in the country, as
ey have done three-fourths of all the busi- 4
49, not for the year 1868 merely but for a |
ng term of years, and as they have been |
rong and popular offices, sharing largely the |
st RISKS, Is 1t not safe to say that their expe-
ence is safe basis on which to calculate the
suits OF the entire business of the State?
In of tleSp STARTLING fact |
ia OF the no less surprising fact that in this |
tate which Mr.. Paine regards as such fertile |
eld for insurance business, there does not to- |
~ exist one pure Fire Stock Insurance Com
lnyMour capitalists being either unable or +
lwllllng to hazard their capital in insurance |
Dcks-and in further consideration of the | 1
nth that every fire insurance COMPANY ever
gained In this State has failed or retired | y
I'm BUSINESS, SO that the only facilities for in.
ring against fire in home institutions are
,rine,and representing capital of about $3.50 d
}; ana again recalling the lberality and
lity displayed by foreign insurance compa-
IS when great CONGREGATIONS swept over L
rtland. Augusta, Belfast and Eastport, I'M a
ralleled in spirit or practice by that of any | T
Ter class of cOrporations-is it wise, is it gem
JUS, is it in the interest of the people to levy
ak upon these companies? They are willing c.
pay all proper fees for the support of an in | 3
,ance department if it is called for by the a.
/
!, they must in the light of their experience
ner retlre from the State or lay the tax back j
the people by adding it to the premiums H.
ich they charge III
Inc In PRESIDENT of the Etna Insurance Com L
IIy, IN letter dated Feb z. 1870 addressed | b;
! examiner Paine in reply to his letter of ~,
W. IA oth says: I'm fixing rates of prem
! Is ~ ~ u, n.e Iisks located in Maine, regard is
u5 SnI iace mat no State tax is required of pc
tn.dan ny Judgment rates of insurance | is
/
ite OF country In which we do business dno | 81
ar s, pslng mad to climate and the materials ar
~ anu the mode OF constructing buildings Fl
me Is lhe only State in the Union i'm which l.
company is represented in which it's ra- Il
pts have not been in excess of its lossaS GA FRI
ncy expenses, and Maine business shows |
}; In view of our experience we sbon,d
hdraw from your. State with less regard
n from any other"
everal other leading offices mako s;ur
tements. Is it soand policy to tax ;nsnr.
e companies under all these circumstances | ed
{ by such course in this or other matters | at
we shall invite foreign capital to aid in fir
elopement OF our resources? We say to tn
corporations, IF you will locate here we fiji
impose no tax for five or ten years" Wbv ed
distinguish against foreign insurance |
panles which come in here; carry our risks of
leave our own capital to be employed in
hazardous channels and in the advance
It of our productive and mercantile inter-
surance il the back bone of trade and COM wa
,ial prosperity. By it men of limited in
rs secure credit and SO are enabled to en- KIN
in great enterprises, and to obtain for IS
lseves wealth which becomes the taxable
erty of the State. Aside from all losses Ma
, Maine is to-day largely indebted to for Co
Insurance capital for much of her taxable the
ems co erected by security which her own coo
,ssible to not not or would not furnish. Were 4
eased vafsS1eftain the tangible results in est
s accruino to - property and other advan- for
70 the State through the instru- VIII