The New York herald., 1871-12-31
A Lesson In Insurance.

The commercial interests of the country
have recently been severely tried by the ca
lamitous results of the Chicago fire. How to
avoid in future such suffering and losses as
were occasioned by that disaster is subject
for serious consideration. The favorite idea
of patronizing home institutions has been one
of the errors committed. The motto should
be free trade in insurance. as in other branches
of business. The real interest of the mer-
chant is to have his goods insured in the
soundest and best managed company, whether
it be established in the United States or in
Europe. The American people are sufficiently
intelligent to judge of this for themselves, but
it must be evident that an important element
of safety consists in an extended business,
where the risks are more divided and spread
over larger territory. We deduce this from
an illustration afforded by the history Of the
fire insurance companies of Chicago, which
were mainly patronized in that city upon the
principle of their being home institutions. The
iSDectdt0r states in its December number that
the total available assets of twelve fire in
surance companies were only $5,35l, 294,
while the losses incurred by them amounted
to an aggregate Of $32, $50, 900. This startling
fact is alone enough to convince the public
that corporations organized upon the system
of purely local business may become insolvent
when reached by such confagration as lately
laid waste that great city.
The same rule will apply to a life insurance
company. If its business be confined to one
spot it runs disproportionate risk from the
chances of any epidemic that may rage there
and in the vicinity. If its business be diffus ed
throughout the Continent no losses could occur
in any one instance that would imperil its
stability.
Two important considerations should, there
fore, be borne in view by the public First,
that if they insure either their property or
their lives they should select company inde-
pendently of its local intere ct, as the trader
buys his goods in the best market, whether it
be in New York, Chicago or San Francisco !;
and second, tn at a company conining its busi-
ness to any one of our large cities cannot be
so safe as those companies the transactions of
which are extended over the whole country.
There is an additional feature in favor of
companies which enlarge their business by
distributing their risks. They are thus en-
abled to make better selection of lives and
property by declining risks that are doubtful,
while smaller institutions fe Ell tempted to
accept them with view to keeping up the
volume Of their transactions.
Now that the storm is passing over and we
see the destruction that has marked its path,
we can take q calmer view Of some of the
mistakes made by our insurance companies.
The public has been taught in what class Of
institutions to place their greatest reliance,
and the lesson should not be forgotten.
THE PARIS ELECTIONS AND NEW PARTY
PLATFORM. The electors OF Paris are to be
called to vote for representatives to fill seats
which have been lately made vacant in the
National Assembly. Marshal MacMahon de-
clined nomination for parliamentary honors.
M. Victor Hugo accepted. In his reply to
the people NJ Hugo outlines reform bill
in the shape OF platform Of principles.
Many of its points are old, none of them ex-
actly new or in the least beyond the positive
everyday demands of the people. M. Hugo
wants q vote for the non-restoration OF thu
monarchy, for general amnesty, for the rais
| ing Of the siege Of Paris and for another gen.
eral election. Measures Of very considerable
| importance, more particularly II carried into
| practical effect