The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1870-11-05


drawn and insured with other companies,
have simply exercised their undoubted
right to do so, which it does not become
any one to call in question or gainsay.-
Whether these Withdrawals have been of
any practical disadvantage to the Company,
remains to be seen. Certain it is, that at
one period in its history the losses that oc-
Cured in property withdrawn, after with
drawal, were more than sufficient to have
swept away, had it remained insured with
lis, all the premiums that could have been
received on all Withdrawals from the organ
ization of the Company to that date.
Whatever other causes induced those
Withdrawals we think there could scarcely
have been any distrust of their fellow
citizens, the members of the Board of
Managers; than whom more cautious
and prudent body of men cannot be found
in the county.
The economical administration of the
business of the Company under their super
vision is shown in the fact that exclusive
of the Internal Revenue taxes paid the
General Government, the expenses do not
exceed 10 per cent. Of the annual revenue;
an exhibit which it is believed but few
Companies can present.
Not only has a strict economy in the
expenditures been carefully observed, and
a prudent limit affixed to each single risk,
but the Board has rigidly adhered to sup
posed understanding at the organization of
the Company, in declining all classes of
risk that are usually considered, specially
hazardous such as cotton and wooden fac
tories, paper mills, FORCES, boundaries,
steam mills, and manufactures of every
description where steam power is used.
1t is now becoming a matter of question
whether it is wise to adhere thus rigidly to
a supposed condition in the establishment
of the Company; but which has no founda-
ton in either the Charter or the Bylaws.
In the earlier years of its operation it was
doubtless prudent and proper, and yet the
history of the county during the twenty
three years of the Company's existence
shows very clearly, that in the excluded
classes of risks which the owners would
willingly have paid large and liberal rate
of premiums, that would have brought
many thousands of dollars into the treas
ury; few, if any losses worth naming have
occurred
Nothing is more capricious, uncertain
and erratic, than the Fire Demon in its
path of destruction. Human ingenuity is
at fault in its efforts to guard entirely
against its ravages. An experience of
twenty-three years has taught us that the
origin or particular cause of fire can rarely
be ascertained with positive certainty. In
some instances buildings considered, if not
entirely, fire proof, at least more than
usually secure, have been destroyed, while
old frames adjoining or within few feet
of them have staod unframed for years.
During these twenty-three years exper-
fence among those classes of risks on
which the higher rates of premium are
charged, comparatively few and unimpor-
tant losses have been sustained. On hotel
and livery stables, clover mills, bark mills,
and grist mills, with corn kilns attached,
rated at the highest figure, no losses at all
have occurred. On carpenters, cabinet
Makers and other trade shops the losses
have been but $4,000; on grist and saw
mills, but So, 800; while all the balance of
losses amounted to nearly 1920, 000 have
occurred among the other classes Of risks
not rated at SO high figure; the items of
dwellings and stores largely predominating.
The true philosophy of Insurance seems
to be to take all classes of risks, making
the rates of premium commensurate with
the hazard and limiting the amount of
each policy to reasonable figure. For
years the American Companies misunder-
stood this subject, and consequently re-
hazardous. The English Companies by
their resident agents accepted these Offer
ings, and thus carried off large sums of
money for the heavy premiums paid on
them, until the American Companies dis
covered their mistake and accepted the
offerings at proper rates.
The whole subject is worthy of, and in
the minds of prudent and thoughtful men,
as the Board Of Managers certainly are,
will most likely receive a patient, careful
and intelligent investigation.
1t would be improper to close an article
of this kind without some reference to an
impression which has prevailed to some
extent in the community, and which parties
who should have been better advised have
made the subject of frequent and unfavor-
able comment, to wit: That the managers
are predisposed to litigation, and when
losses occur the parties are obliged to
resort to the law to enforce these claims.
Now in this connection it might be suffi-
cient to state that of the 1873 losses that
have occurred, amounting to over $12S.000,
only four have been subjected to suit at
law. The first of these was that of James
\. Davis & Co., of Port Deposit. In that
case, which happened in August, 1855, the
payment of premium was made by Mr..
Davis partner, who, it is alleged, designed
to pay the policy held by the firm, but who,
in transmitting the payment, by mistake,
it is supposed, directed Its application to
another policy on the individual property
of the partner, which he did not intend to
renew The remittance was in writing the
number of the policy distinctly stated,
and the amount of the payment also, both
being different from the number and
amount of the policy held by the firm.
The receipts for the particular policy
named, was sent by the Secretary to the
partner and held by him for an entire week
without discovering the mistake until after
the fire occurred. Had the loss happened
under the policy paid on, the Company
would have been unquestionably liable.
1t would be worse than folly to pretend
that the Company should or could be held
responsible under two seperate policies for
one payment. The Board, of course, de-
clned to pay, and suit was brought. This
case, however, has been recently COM
promised the plaintiff suffering a non suit,
the Board being satisfied that there was a
clear mistake in the payment, and anxious
to remove every reasonable cause of COM
plant have paid the parties the nett princi-
pie of the policy without interest, they
paying all the costs. The fact that Mr..
Davis and his partner have remained
members of the Company and have ever
since been heavily insured therein, exhibits
no want of confidence in the Board of
N,narars IN their mart IT, is worthy of