Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-03-25
A PLEA IN DEFENSE OF HOME
INSTITUTIONS.

To the Editors Of the Union and American:
Somebody is exhibiting himself in writ
ing pleas for the public and passing them
through the columns of the newspapers.
Who this somebody is we do not know,
but he is evidently travelled gentleman,
for he says he walked down Broadway and
saw all the fine buildings recently erected
on that gFeat thoroughfare-and that the
most prominent were Insurance buildings
that the enterprise of that city had Sc
cured nearly all the insurance business Of
the South. Now, if this person had turned
himself round and walked up Broadway,
he would have seen some other prominent
buildings than those belonging to, and oc-
cupied by, insurance companies, and since
he hiss become so enthusiastic on the sub
ject of insurance, if he had just stepped
into one of those most prominent and
recently erected buildings" and make the
inquiry, he would have sscertained that
most of them belong to Life Associations,
who made their fortunes before they ever
thought of seeking good subjects OF in
surance in the supposed sickiy regions Of
the South. If he had inquired further
aud it seems to me that one so deeply IL
terested in making out a case would natu-
rally have done so-he would have ascer-
tanned that the enterprise of the city OF
New York had not secured nearly all the
insurance business of the South, either
life or fire; that many of the cities and
towns are doing large part of the life
business, and that the so-called little city
of Hartford. in the State of Connecticut,
was the pioneer in fire insurance in the
South, and her agencies were the very sal
walton of the Southern merchants and 9TH
ers, when there were no others to protect
them; and if he had pushed his inquiries a
little further, he would have ascertained
that il is these same companies that still
furnish the genuine protection to Southern
cities and towns in time of confiagration.
In many such places they have lett hun
dreds of thousands, while their receipts
may be estimated by tens only. In truth
the people have, comparatively speaking,
nothing else to rely upon
It is true that q good deal of money Is
sent abroad for insurance. And why Is 1t!
Because capital is cheap ana plentiful in
the Eastern and Northern sections of this
country, and capitalists invest portion of
their means in the shares of corporate
bodies, while in the South just the reverse
is the case. Capital is scarce and dear,
and what little there is of it afost can be
used much more sdvsntageously than by
investment in insurance stock. This &C
counts for the weakness of SoLthern insu-
rance companies. Instead of creating COM
panies with commensurate paid up cash
capital, they orgsnize little companies,
pay up ten or twenty per cent, give their
conditional notes for the balance, throw
their flag to the breeZs and do the business
If insurance on their own bills payable
mainly. Is this the protection that one
seeks when his whole fortune rests on the
strength of his insurance policy in case of
conhagration2 1t may be stated as a fact
that one insurance company is as good as
another while no losses happen; but losses
will come, and they most frequently come
when least expected, and ooms in large
doses, sufficiently large to purge out
little bodies Of a naturally weak constltu-
ton so thoroughly, that collapse fatal and
final is the consequence.
Look at the conhagrstions that have hap
pened 10 the South with the last few years,
Ito say nothing of the North.) Vicksburg,
Galveston, jefferson, where buildings were
destroyed by twenties, fifties, and, in one
case nearly a hundred, insured by few
companies for half million or million of
dollars. Try one of your little companies
in such case as this, and what would be
the result? 1t would go out like a snuffed
candle. Yes, sir, a good insurance CO.'S
pany means more than ten per cent. fTf
the stockholders; it means real indemnity
for the assured under any other circum-
stances than the simultaneous burning up
of many of the cities and towns in a whole
country.
Now, there is no one more strongly in
favor Of Southern institutions than myself,
but in all seriousness do not let us start
out on the game of brag
Organize companies with a paid up cash
capital, and sufAciency of it, and then you
offer some real security to policy holders
then you may go into the envied
cities Of New York, Boston and else
whese. And then, after an experience
of ten, twenty or fifty years, as many COM
panies have had, you will be in condition
TO Judge as to the profits on money invest
ed in Insurance stock. But pray start night
and get out of the dense forests of brambies,
auagmire and sloughs before you sing out
to o;hers, older, stronger, and more eSPe-
rienced than yourselves, to quit their we'll
trodden path and follow You. The gentle
man cites Memphis as an example, Will
he be precise enough to give us the exact
amount of paid up cash capital in all the
Fire Insurance Companies in that city, and
also the whole amount paid up by each and
all the Fire Companies in the State of Ten
nessee repeat that 1 am as much in
favor of Southern institutions as the gen.
tleman who speaks so disparagingly of
Northern ones; but until We make as good
OF better ones, until We quit organizing
monetary or commercial institutions on a
basis of Bills Payable, and call it capital,
We had better take care how we throw
stones from glass house. \.