Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1872-12-13

laughed at heartily for his reckless talk if he
mad admitted the possibility of the burning OF
the fifth ward of Boston in the manner in
which it did 90 two days later. Yet, said the
speaker, our insurance commissioner, who was
dining with some of the London insurance Off
GERS three DAYS before that FIRE, was surprised
to find that they had accurate maps of all the
streets Of our principal cities, with their build
ings and peculiarities distinctly set forth, so
that it was as easy TO Judge correctly OF Boston
risks in the London office as on the spot here.
81 have been looking at your DeYonshire and
Milk streets in Boston" said one OF these insur-
ance officers 10 Mr.. Clark, "and your next Chi
cago fire will be in Boston" This was the Lon
don insurance officers opinion three days before
our fire. And yet, said Mr.. Sanford, if our
commissioner had come home and called atten'
ton to this fact, and urged some legislation in
the matter, you would have told him his head
was turned and that he showed indications of
softening of the brain. To be insured against
such extraordinary possibilities would require
an enormous increase in rates.
The lesson of the fire in Boston Mr..
Sanford found to be simply that we
basket particularly if that basket is covered
by a Mansard root. The salvation of the Ktna
was owing entirely to the fac: that their risks
were so widely dispersed. The mistake of the
Boston insurance companies was that, trusting
IN the ncombustibility of Boston they placed all
tuGlI ItShS luSTes Inc le4lSldllOH HCcuCu WIS III
ms opinion, first, a general law, similar TO that
before the house, which if it had been passed
last winter when it was considered, would have
Obviated any occasion for this extra session. IL
would be a mistake Tor the legislature to pnt up
the system where common people cannot reach
it. The effect of the 100000 provision would
he to give to four or five Boston
companies the monopoly of all the insurance
business of the state. 1t has been the custom
in this state to grant charters to insurance COM
panies with 500, 900 capital out of Boston, and
il in that city with 600. New York state
has four times as much money IN insurance as
Massachusetts, and in that state outside of the
metropolitan cities, companies are allowed to
form with capital as small as S5000O The
system there has always been ireer one than
in this state. Mr.. Sanford urged the wisdom OF
allowing companies TO form in Massachusetts
with capital as low as 500 600 in any place but
Boston, where the minimum limit should be
5000, 900. Ii should be determined hereafter to
adopt the system disqualification of profits. The
Etna OF Hartford started with less than $780,
600 capital; but out ofthree millions Today, two
millions WAS composed ofcapitaliZcd profits. Let
us, said the speaker, start humby, if you please,
but don't fail 10 adopt that principle of capital
izing the profits. Above all don't put up our
system so high as TO practically place an embar-
90 on all but two or three Boston companies
Even with the amendment of Mr.. Washburn
our insurance system will be more severe than
that of New York
Mr. Sanford was listened to with the closest
attention, and at the close was applauded. His
speech made great impression, and the house
was in the mood TO pass all the amendments
recommended by him. Messrs. Cogswell, New
ell, Thompson, Bacon and others spoke. Mr.
Barnard stated the position Of the committee,
and moved to make the least amount OF capital
required 5000 900, which was not carried.
On motion of Mr.. Hoyt damage by tempest
tod Of l,g laf
tiles covered by the policies. Mr. Bacon moved
provision to give the provisional right to mu-
tual companies now existing to accumulate a
guaranty fund, the same as is provided for new
companies, which was carried. The bill was
further amended by incorporating the senate
bill limiting the dividends by Joint stock insur-
ance companies. While discussing the propriety
of striking out the last section relating to a
territorial limitation of five risks, the house I'D
iourned