New-York tribune., 1871-11-09
SUGGESTIONS FOR NATIONAL INSURANCE


PROTECTION AGAINST GREAT DISASTERS ONLY
SECURED BY NATIONAL NsURANCE-PLAH |
POR IT'S ADOPTION.
TO tho Edtior Of The Tribune.
SIR: Permit me to offer few thoughts
upon the unprecedented con1agrations which have
lately befaen tho great Northwest far az they AFFECT
fire Insurance. or rather the insured 1t Is well known
that as system Is based the laws Of aver
Age The experience Of the past forms the basis Of It's
calculations together with such probabilities In the
re of separate sk appear more or less
Upon similar foundations rest Life, accident tornado,
marine and fire insurance. The probabilities Of the losses
occurring In each kind Of insurance being sucienty
certain the rates charged for underwriting have proven
thus far not only ample to give comparative protection
to the assured but also TO enable companies Of long
standing divide very largo sums among their stock
holders But for the possibilities OF extraordinarily large
losses occurring there appears to BIO no provision
made In present system OF underwriting IL De-
hooves the community to inquire whether such fires as
destroyed the City Of Chicago and whole townships ana
villages In Wisconsin and Michigan may not possibly
occur elsewhere and so whether insurance against
even such losses be secured and this too on equ
able rates We read every day adyces OF this or tnat
Company its agents "Not much, or not at all repre-
sented at Cbicago-adrance rates." whie those most
heavily represented there, In all likelihood will not
"adyance" but retreat ingoriousy from the field Nor
lJy
the value OF property exposed to single risk and some
times actually destroyed by disaster amounts to
more than the entro capital and assets OF all the nro
insurance companies Of the country.
The constantly increasing value Of business locations
in and cities prompts to tho erection OF buildings
without Of ground to thin partition walls and
great nights inaccessible to waten There exists too
taste for architectural ornaments. which Gdorn the
facades with limitations Of substantial work. but really
with combustble material while the contents Of miles OF
buildings constructed form mass OF readily infam-
mable articles Our modern civilization has use for
many articles Of which, where kept IN large
quantities will feed conngraton 80 as to mako 1t at
tain magnitude beyond the strongest efforts OF tho
best fire department. Add to these significant facts thG
plausible theory that the destruction or our forests VIII
have such climatic influence as to make the reoccmr %
have every condition required for disaster when nCt
only may destroy city, but may also wipe out OF exist
ence our remaining responsible fire insurance companies
The question. will increased rates be able TO pr
ncnt orc In view OF recent experience, think wo
are constrained in the negave yet the en-
gltened people OF this country, with their multiplied
diversified occupations material interests and territorial
and climatic conditions have 1t IN their power 10 supply
by unfortunate disasters possible as far ~
believe. at the very lowest cost and all by organizing
and constituting, under the General Government one
destruction OF great city strike at the root OF the CON-
merce OF the whole country; re9ScurrGnCS E r OF o,
average. for the whole country would prove
| much more trustworthy for calculations, while
| tho immrnsity OF the income Of n single National
Insurance Treasury would become adequate for the in
dCunty OF the largest losses much the more hs
nations credit would be at its back. Such an nsttu
ton would be really insurance aud not only assurance,
its very trustwOrness would invite property OWpcfS III
every section OF the country TO seek Its offices ana apply
there for its policies, doing away with solctat0ns com
ngd Tse S hS &
ent untrustwOrthy Insurance system NatOna lhsur-
ance Treasury could write the largest risks making only
policy necessary and In OF loss by fire IL would
save the many conflicting shifts which lead 10 tncn dc
lays lawsuits and vexatons For its own protection
laws stringent enough could he passed to guard against
Of the many moral risks against which even our
present fire insurance companies have TO contend.
This institution should not De on the mutual pian,
bnt IL should have fixed uniform rates for the different
risks properly classified, according to the degree OF
hazard, and 1t should have the rates charged and
amounts insured kept that they shonld be accessible
for inspection to every citizen Tho surplus accnnu,
lated could be used for the withdrawing OF our national
while in of extra losses the same could
be marketed again and the assured promptly paid l
OF knaves by fearing that we could hnd to l
such responsible offices honestly; lifelong appointment
uness mpeached) OF agents. would enlist the services
OF every tried, experienced present insurance agent
whose integrity has been proven to the satisfaction OF
the existing stock companies And what shall be-
come OF the latteri Well wish to see every company
hOnOrably withdraw from the business and invest Its
capital in the development OF the cOuntrys resources;
this they could all the safely risk because their
property could be insured against loss by fire in int
tuition much more safe and trustworthy than they oier
to the public.
l look upon this plan simply as a business man.
don't know about its cOnstuOnality, but rca
son. IL the general Government aims At the sppantng
OF telegraph companies acts as banker in lts PosOnce
Money Order Department, guarantees railroad enter
prises and does many other things where conpees
with supplants private interests that in a matter
which fleets every citizen and the whole body polite
the Government should DO the only, the National Gt
zrns' Insurance Treasury. l.. b.
Detroit Mich. Oct, 1871.