Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1872-09-27
FIRE INSURANCE.
eusueuafon OF the Andes Insurance
company.

1
OyFIcE ANDES INSURANCE COMPANY, /
CINcINHATI, September 10, 1872.
W r. Church. Esq, Superintendent Of Insu-
rance for Ohio:
SIR-I am instructed by the Board OF
Directors of this company to acknowl-
edge the receipt of your order OF the 18th
inst reouiring the stockholders to pay
within thirty days from date an amount
which, including assets now IN hand,
shall equal five hundred thousand dol
lars. and all claims outstanding against
the company; and an amount in addition
thereto. equal to one half of all premiums
on risks not terminated; together with
YOUR further order to cease issuing new
policies or transacting any new business
until the amount required is paid as
directed by you, and in your advertise
ment Of the 18th inst. in the Cincinnati
Daily Gazette set forth in detail.
In reply thereto, you are respectfully
informed that the agents of the company
have been directed to desist from issuing
or renewing policies or transacting new
business.
Your order directing stockholders to
nav in the sum required will be laid be-
fore them at meeting called October
4th, and you will be informed Of the re-
suit
/ am further instructed to inform
YOU that your order is obeyed under
protest. and that an appeal from 1t to
the Supreme Court, as provided by law,
will be taken; and further, to inform
you that the operation of said order Will
cause great loss TO this company. Also
that the item of 1914, 449 % which you
have carried into the statement OF the
companys liabilities as reinsurance
reserve fund, is believed to be erroneous,
and that the company has advice OF en-
inent counsel thst there is no provision
in the law authorizing you to deduct
that item from the assets OF the com
many in making up your statement.
In view of the foregoing, | am further
instructed to notify you that the com.
pany will hold you responsible for all
losses that it may sustain BY reason oil
YOUR said order, if it should hereafter
appear that it was issued without the
authority of law.
Yours respectfully,
JAS P KILBRETH,
President pro tenn.
The Commercial editorially comments
as follows:
One million and half of dollars have
been paid in by the stockholders. The
whole sum has been lost, and the only
ouestion is, whether the stockholders
sball be assessed for further sum, in
order to close up the business, The
capital stock was one million dollars.
That passed away in the Chicago fire.
An assessment of half million was
made. and the most curious inquiry is as
TO the mode of evaporation OF that sum
About one hundred and twenty i've
thou and dollars Of it was expended IN
establishing agencies. Another one
hundred and twenty-five thousand dol
lars disappeared in advertising. The
agencies and advertising we're, perhaps,
essential to the production OF bnsl
ness but when the company Las
persisted the money will not re-
turn. Nearly fifty thousand dollars
went out in stamps upon poll
cies, an outlay that the law does not
now require. We have thus accounted |
for the loss Of one million three hundred |
thousand dollars. Then the insurance
losses have been larger since the Chicago |
FIRE than they were ever known TO be.
We should have thought the lesson OF
that tremendous calamity would have
been cautiousnsss, the adoption OF safe
guards against fires, a more careful line
Of business as to the acceptance OF
risks. The facts are otherwise. lnsu-
rance companies have been more reck-
less than ever in their management, and
the percentage of losses has increased.
This accounts for the sum needed to
make up the million and a half OF our
capital that this volcanic peak OF the
Andes has blown about the world IN
ashes. The best that Mr.. J. P. kilbreth,
President pro TEN, is able TO say IS:
in case the assessment should not be
called for or paid, we believe the present
assets will prove sufficient to meet the
lust liabilities, unless unusual losses fall /
upon the company.
The Amazon and Triumph companies,
which we're associated with the Andes |
under the management of Mr.. j. B. Ben
nett. did not suffer from the Chicago |
fire, and Mr.. Kilbreth, who has studied
the accounts thoroughly. gives assurances
that they are in sound condition and de-
serve the confidence Of the community. |