Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1872-12-13
The Leglslature--Extra Session.
Changes in the Insurance RIIl~speaker
Sanford Addresses the House.


BOSTON, thursday, Dec II.
Contrary to expectation the house did not
reach vote on the general insurance bill to-
day, although in session till nearly six o'clock
p. NJ. The hope that was INDUCED that final
adjournment would crown the weeks labors is
deferred. 1t now seems sure that the session
will extend into next week. The house has done
better than it would have done by hurryng the
bill TO the senate without due deiberation. 1t
is very important measure, and the progress
made to day has been of such a character as to
strengthen the conviction of the wisest observers
that the new insurance law will not only help
the insolyent companies out of their embarrass-
ments caused by the extraordinary fire, but will
put our insurance business on a sounder basis
than ever before.
The principal discussion to-day was caused
by successful attempt to amend the bill so that
companies may form with a less capital than
$500 600 Mr.. Washbum of Boston moved that
in Boston companies may form with a capital
stock of not less than 5000 900, and elsewhere in
the state with not less than $780, 600, Mr.. Cor
liss of Gloucester supported the proposition in
an able speech, in which he showed the mpera-
tive need of immediate legislation to put the
old companies on their feet again; the practical
embargo which would be placed on honest out
of town companies by the $500, 900 clause; and
the good policy of encouraging the growth of in
surance companies in various sections of the
state. Mr. Cogswell spoke in opposition. He an
imadverted on the palatal buildings and great
salaries and costly machinery of the insurance
business as now conducted, and said that there
should be security provided Tor the future if we
can not get indemnify for the past. Everybody
KNOWS now what the insurance companies
ought to have known then, namely, that the
burnt district in Boston had only four-inch
water pipes, and MIGRANTS incapable of furnish
ing quantities of wafer; that insurance risks are
not properly distributed; and that risks were
grossly out Of proportion to capital.
The appearance OF Speaker Sanford on the
floor to discuss this question made u deep i'm
preston, for his knowledge OF insurance mat
tiers IS conceded to be superior TO that of any one
else here. Moreover, every one admits bis can
dor, ability and great integrity. Surrendering
the chair to Moses Kimball, he spoke
in favor of the amendment of Mr.
NashOurn. 1t was with great reuc-
lance, he said, that he awaited himself of
his privilege, il not duty, to speak There were
three questions he wished to consider First,
what IS fair and just judgment on the system
of insurance as heretofore practIced in this
state; second, what is the lesson taught by the
Boston fire; and third, what legislation is
needed. He denied the reckless assertion that
had been hastily made, that the insurance sys.
TEN oil this state has been a swindle and fraud
Not one, lie said, attacks the managers of orr
insurance companies; they nave the confidence
oil the public. No charges of excessive Insur-
ance rates are made; these have been regulated
as they always must be by the law of demand
and supply. Our companies have had the rep
utat0n Of paying promptly their losses, and
have been universally acknowledged to be the
most prudent cautious and conservative of
any IN the country. Judged by the right stand
ard they were the strongest companies in
America. Before the Boston fire the statement of
theivarlous insurance. companies of the country
showed that those OF Massachusetts held sur
plus OF 20 per cent, while those OF companies
elsewhere held only % per cent. In this particu-
lar, companies like the Htna OF Hartford and
Home oil New York compared unfavoraby with
those OF this State, which had to their capital
Twice as much surplus as the former and three
times that Of thelauer.
Mr.. Sanford asserted that, iudgedsby any
standard, the Massachusetts companies were be-.
tore the fire the strongest in America. lie al
luded 10 the estimation in which they were held
abroad, and spoke of the compliment paid US
on q recent visit Of our insurance commissioner
(Juius L. Clark 10 the great British GONNA
mes. Bur, SAID he, the fire came, and the
popular tune Is changed. IL Is said the
risks were too large. Amid the clamor
1t seems to be forgotten that the in.
surance business does not differ materially
from other business, and the cost oft cannot be
regulated any more successfully than that of
other commodities. He showed how i'm the
point Of economical management, the Massa.
chusetts companies stood before ali others. The
cost Of running the com panies in this country
outside OF this state has been seven per cent
greater than IN Massachusetts, wilhelm England
II is ten per cent more; SO that the Massachu-
sets insurance companies are managed more
economically than any others in the world. Mr.
Sanford reviewed the history of insurance in
this state from the year 1851 when j. T. Bige
low made the first report that was made on the
subject AT that time we had lorty-eght Joint
stock companies. Thirtyiye years later only
eleven Of them survived, and now only two Of
them are left. Experience has shown that in
one generation twenty-iour ont OF every twenty.
tive companies 90 down, aud capital and all Is
lost. Yet i Is popularity reported that the in
sufanee business is very lucrative; this in the
lace OF the fact that charters have been issued
70 lour hundred joint stock insurance cofnpa-
mes ~ TINS state; and where arc they now2
y was also urged by MIR. Sanford that MI orr
eSisiAllon on Insurance should not be very
dlherenl ~ principle from that we apply 10
DINER business, and combine our efforts 70 maj.
leTs OF probability raihersAau to possibilities
Oh tie otl Of last mouth a mhllwOgld have been