Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-03-26

AMERICAN Of Friday INDUCES in an article
so we'll calculated to deceive tbs public, 80
i1ii OF misstatements. and so unjust to the
horeign insurance companies doing bust
ness here that we, as their Representatives
reel called upon to correct the errors into
which that article is likely 10 lead our cili-
4 zens on the subject.
The object of the writer seems to ba In
prove to our people that they are annually
sending abroad large sums Of money for
which they receive no return; that these
sums are being paid 10 hsartless corpora
tons who are in no way interested in the
welfare Of the State; who do not contribute
to the wealth Of the State or the pubic
enterprises of the city. Ergo, the city
snouid start another Cor severaD insurance.
company Cor companies
Let as examine these statements for a
moment He says $500, 900 per apuurn
are sent away from Nashville for premiums
on insurance II he means for fire insur-
snce, we can assure him That the ureui-
ums received by all the agents in Nashville
do not certainly mount to half that sum.
Bot be says nothing Of the sums returned
by the companies In payment Of losses to
our citizens. Now, the fact is that since
1860, and up to 1870, the companies lat
least majority Of them) paid two dollars
IN losses for every one dollar yeceived for
premiums For instance, the unfortunate
Home Of New Haven" receives from the
citizens Of Nashville SS1, GOO, while she
paid them $50, 900 for losses. When she
failed her policy holders were made secure
BY being re-insured without cost to them
In a solvent company.
Looking over the history Of home insu-
rance companies in this city for the past
twenty years We find that Twelve in all
have been established here. OF this num-
Der eight have failed, one las retired from
business, leaving three only IN existence.
The failures involved IN loss policy holders
and stockholders alike.
Let rs look back over the history Of the
past twenty years and examine ths List Of
wrecks along the shore.
The Merchants Insurance and Trust
Company failed in 1S49.
Nashville Insurance and Trust Company
failed in 1855. ~.
United Firemen's failed In 1852.
Mutual Protective failed in 1854.
Protection failed in 1858, q
Cumberland Valley failed in 1868.
Southern failed in 1863. .-.
Merchants and Manufacturers failed in
1869.
The old Tennessee Marine and Fire re-
tired from business on the expiration Of its
charter in 1861. - -
We do not want to say one word against
home companies. We have never done
80 In the prosecution Of our business We
are more generous than that. But as We
as the representatives Of foreign compa-
MES, are directly attacked by party who,
we learn, is now seeking to organize an
other home company, We can do no less
than point out to our citizens the fact
that of the twelve companies organized
here within the last twenty years eight
have failed, one has ceased to do business.
and but three remain OF these last We
can learn of but one that has declared q
cash dividend. With such an exhibit, We
think our capitalists will readily find far
more profitable sources of investment. But
If they think otherwise and establish new
companies We will welc 5me the new insti-
tations TO the fraternity most cordially.
It is by generous and liberal conduct TIE,
companies we represent have amsssed their
enormous capital. Not one of them has
been. built up on the rims of another.
They believe in free trade and prosper
en- it.
In the article referred to the writer sup
poses a case. He says: Suppose We
were to lose all our banking capital y
Let as suppose case. Suppose We were
to lose all our foreign insurance cOmpa-
MES representing $50, 600, 900. Could
the home companies furnish our citizens
with full indemnify against loss BY ere;
and, merchants, word in your ear, vo1ld
they do il if they could at the low rates
competition his induced? Do you remem-
Der the rates paid local companies few
years ago when they enjoyed q monopoly
of the business?
But again: The local companies paw no
tax; while the foreign companies pay as
follows:
Each foreign company pays the State
annually :. 500
Eeach foreign company pays the City
annually ...........................-... 10z
Each foretgn company pays theCounty
annuauy ................................ l53
Besides per cent on all premiums re-
ceived in the State. The income derived by
the State and city Doth in debit from
these companies, amounts in the aRgre-
gate to a sum which very materially aids
in paying the State and city Indebtedness
every year.
As to the spirit Of illiberality mentioned.s
We can only say that we know of no agent
here who, when called on, did not sub
scribe to the extent OF his means to the
approaching Exposition. We believe the
Stockell engine was purchased by the local
companies purchasing Matt Brown bonds
at a very large discount. II was by no
means gift to the citizens on their part.
We merely mention these facts to remove
wrong impressions.
Finally we assert that for the past ten
years the foreign insurance companies do
ing business here have paid more money
for losses than they have received for pre-
miums; that the business Of insurance IT.
self is not profitable as q general thing;
the successful companies being the excep-
tons to the general rule, that it can only
flourish where capital is cheap and plenti-
full and in communities where insurance.
stock is sought after as q dernier resort in :
investments. Here where capital is Meth
or abundant nor cheap, there are 80 many
more profitable modes Of investment that
capitalists will not long continue stock
holders in companies whose ultimate sue
cess is at all problemstical. The expert
ence of all who have done so thus far has
not been satisfactory.
One word more: The writer says keep
your money here where the home compa-
MES can loan it out. We have Just seen a
blotter issued by our most successful local
company, "a company by the way which
has made its money By profitable invest
ments and not by its fire business and on
its blotter is this line beautifully printed
in red ''Eutire capital and surplus IN
vested in bonds." So much for loaniDg
out the funds PICK q OAHIL,
Ross & GALE,
JNo. n MooRE 4 Co,
FARNswoRTH & THOMAS,
JOSEPH NAsH.
wheat Prospects
From our exchanges, and from CONVEX
sation with parties from various parts Of