Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1872-12-16

Three DAYS after that the fire took place. Let
me ask every man in this house, suppose an
insurance commissioner had got home and
had sent into you a communication telling
you that he had been alarmed at this prophe-
cy, and, asking you to act with reference 70
it, saying that Mr.. McLaren believed the nfth
ward would be reduced to ashes, should we
have believed it? We should have SAID to
Mr.. Clark, "You are a very honest man
we believe YOU are sincere, but we are lit
lie afraid that the royal Inequalities you have
enioyed have slightly turned your hesd," and
we should have suspected some incipient ten
dency toward what is known as softening of
the brain. We should not have paid the
slightest heed to that warning; not one OF US
that would have brought in a bill or an order,
or would have done anything in the matter.
Are you going to demand that we should be
insured against the possibilities of FIRE? The
sum of human wisdom is made by judging
what will probably occur in future by what
has taken place in the past. We do not act
upon improbabilities. If we demand to be in
sured against the possibility of loss the first
thing to be done is to increase the rates of
insurance five fold or ten fold. That is the
only way to insure against possibilities. If
we are to be insured against these fearful
lUsSts VT sltUuiu pay lOE ISUplC say
that the rates of insurance have been raised
since the Boston fire. Why that is the first
instinct of self representation. Insurance com
panies cannot make bricks without straw ;
they cannot pay losses without premiums,
and one thing must be set over against the
other-great losses, higher premiums. What
is the lesson taught us by this fire? 1t is not
that cur system CT insuranceis not sound, il
is not that our companies were not all that
was required of them in just and honorable
way. 1t is simply this-that, to use a homely
phrase we must not put all our eggs in one
basket, particularly when that basket is COW
cred with mansard roof. That is the whole
lesson which is learned. You may look here
and look there, may legislate with reference
to any other lesson than that and you are on
the wrong track Why take the Etna In
surance Company Of Hartford, which is per-
haps one of the strongest of the American
companies. What is the salvation Of that
company in Chicago and Boston, Simply
because their risks are dispersed. The com
pany does business in thirty-six of the United
States; it employs nearly $500 agents, and
in that lies its safety. believe the mistake
of the Boston companies was simply this
That trusting in what they thought was the
ncombustibility of Boston they put all their
risks here. Now believe that the true laws
to pass are general laws. If we had passed
a general law last session there wonld have
been no need of this extra session. But |
hope now that we shall not make the mistake
at the outset of imagining that we have got to
legislate for some great elephant; l hope we
shall not make the mistake OF putting this
system above the heads of the people. 1t
would be fatal mistake to put it on stills, so
that the common people may not reach up
and get hold of this law. As the bill now
stands it requires capital of $780, 900 in
every case. What would be the effect? 1t
would be simply this-that upon the ruins of
three cr four companies in Boston that had
been the most successful, and which are to be
reorganized, these companies can organize
under this law, and no others. You are go.
ing to give to two or three companies in Bos-
ion monopoly Of the joint-stock corpora
tons. believe the necessities of the people
demand general law which gives to people
in any part of the State the right to have
company of their own. Let us have compan-
les in all our larger cities and towns if they
want them, with capital of 100000. Our
system is ODE hereafter, as l hope, that of
growth Of capital. There is somewhere about
the State house bill which looks towards
the capitalizing of profits. I hope we shall
pass that bill, for it is the true system in my
humble Judgment. Our plan then would be,
or rather now is, to increase the resources of
the company with its growth. Now let us
have chance to start with capitals within
our reach, and then if we succeed and make
money oblige US to make more money by cap
italizing our profits. The Etna company
started with less than $200,00 capital, and
now they have 100000, and fortunate
holders of the original shares have been re-
ceiving $50 per cent. Nobody has any right |
to find fault with the large dividends so de-
clared. Now that is just what want to do
in Massachusetts. Let us start down humbly. |
If we succeed oblige us to capitalize our
profits. l would like to see in Massachusetts
fifteen or twenty years from now twenty COM
oanies with capitals of twenty millions each.
hope that the amendment of Mr.. Washbnrn
will prevail