The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1870-07-02

The insurance law containing the restfic .
ton was framed when there were no 'm9lsn
companies In the country. I1ey !. Sun ao
qucntly came, and for years evaueu al, IL
troll by the State on technicai goun Ia.
Companies from other States ci,e M unu ~
stra;rts EnoIish companies alone man.
o~ed TO he exempt from its wholesome pro-
visions. 10, ,,n
othor object than to guarantee to the pubic
tho same SECURITY under All English policy
fhat they have under all American one
viz. TINT the capital of the company shall
he unimpaired, and that its transactions
shall be limited to the SAME proportion on
tangible capital as are those OF American
companies.
Its first section SAYS go in terrns.
It's second section defines how the capital
of foreign companies is to be determined
viz. .,by the amount of deposit in Albany,
or in any State of the Union, where it may
he available for the whole Union, by the
amount of loans on bond and mortgage,
and by the amount OF other available in
yestments held by trustees. of whom the
Insurance Superintendent shall be one. II
this aggregate amount of assets, less their
unpaid losses and liabilities for current
risks to the extent of fifty per cent. of the
premiums received for the same, Shall con-
stitute 5000, 900, they may, if they choose,
write policies of go, 900 in one risk II u
shall be equal to 81 900, 900, they may write
policies Of 500, 900. If there is any. dlscrim-
fnation in this, it is still against the
American companies, VINO are restrict
ed to ten Der cent. on their capital
proper, leaving their accumulated az
sets powerless as q basis for their trans
actions. The law, for instance, limits
the Continental to $50, 900 on one risk,
on the ground of its capital heing 500, OO0.
The assets of the Continental are close
upon 81, 100000. IF the law to which the
British companies object applied equally TO
the Continental, it might write nearly SF,o,-
600 in one risk. This is simply said TO point
out the absurdity of the fancled grievance,
for the management of the Continental Is SO
careful that IL would never undertake
hazard to the full extent Of its powers under
the law, and we question whether IL mas
onv risk on its books in excess of three
tifihs of the limit of the law. British under
writing, on the other hand, is utterly reck-
less. In the last report Of the Insurance
Department of Iowa the LIVERPOOL, Lon
don. and Globe, answer the question
"What is the greatest amount insured Ill
any one risk?" With the simple words "No
rule The proposed law OF New York IN
tends that there shall be rule, and that
this rule shall be one of safety to the public.
Your correspondent lays great stress upon
the greatness Of the British companies,
speaks Of their fifty millions, and throws
halo around them, as though they were
something wonderful. In the sworn state
ments of these companies, as published in
" Barnes's Report" they lay claim only
to combined paid-up capital OF $751;
622.50. This is but an insignificant fraction
of the insurance capital OF New York State
alone, which amounts to over S32 900, 600,
to which other States in the Union add over
$40, 800, 900. The American capital devoted
to fire insurance in New York is, therefore,
over $4,000, 900, all paid up, and under
thorough State supervision. This capital is
amply sufficient to cover all the risks in the
State, but it does not therefore object to the
of British competitions. All it
demands is that this competition shall be
fair, and based on proved condition and not
on grandiloquent advertisements.
The capital the British companies claim
to have is less than eight millions. OF
this they have on deposit in all the States
cy-holders in this country $344, 172 ,604 in
sured. *" Barnes Report" 1868, page pa,
shows in his table Of reInsurances charged
to American companies for the safety of the
public an average charge of S124.63 for
every 100000 ut risk. A similar charge
against the amount at risk in the United
States in British companies would demand
a reserve of s., 800, 595 beyond the amount
which they may wish to use as capital, and
on which the law limits them to line' MOI
exceeding ten pen cent. ...-.,....
Has not the public right to demand that
British policies sold in this market shall be
rs well secured as those of home companies!
And will not the public he. benefited by
limiting the foreign companies to such
transaction as are held to he prudent by
the law regulating American insurance
companies.
1t is very easy to raise cry of monopoly,
and to appeal to popular prejudice; but the
facts of the case do not warrant the llsc of
such weapons to defeat what experienced
underwriters deem measure Of wholesome
prudence.
The advocates of the bin have not the
slightest objection to foreign companies OF
whatever degree of strength rs long as their
transactions do not exceed the proportions
to which the law limits American compa-
MES. A Just public opinion will eventually
recognize the fairness of the advocates of
the bill, and also the interested motives of
the agents employed for its defeat. Re
spectfully,
GEORGE W. SAVAGE, Edmund briggs, 3"
j. Fl. PINKNEY, j. Nj. MCLEAN,
II. A. READING, L. A. CoNKLING, So.
X. GARRIGUE, ..A A. Il. ID AsTINGs, .-'+
E,B. FELLOWS, HoRATIo DoRR,
A. c. ELY, --....s Q. l.. SKEELs, -@-
r. F. JEREMIAH. GEORGE II. HOPE, ..s
w. p. PALMER,
SpeciaI Committee of the New York Board
of Fire Underwriters.