The New York herald., 1872-12-02
Prudent Distribution Of Risks
Advance in Rates.
Actual Condition Of Fire Insurance Companies
and Agencies in the City Of New York.
Tables Giving Their Names, Dates Of Inoorpora-
ton, Paid-Up Capital, Net Assets Risks in
Force and Liabilities to Policy-Hold-
ers January !, 1879, Together with
Their Recent Losses at Boston.
FIRE INSURANCE IN NEW YORK.


Although each isolated case OF loss by fire Affects
more or less grievously its immediate victims, it
may claim but a brief mention in the newspaper
and win but q passing glance from the general
reader. Such cases. however, are 80 numerous as
70 swell the losses Occasi0ned by them to
enormous aggregate and to intensity and extend
the anxiety Of the public to seek for the indemnity
pr0fered by fire insurance companies. The rapidly
Increasing number Of large and costly buildings
In this metropolis which are occupied by these
panies, and which, If standing all together, would
almost form city within city, may be thus ac-
counted for But the public awakens to full
sense Of the ever possible danger Of fire and Of
the value OF fire insurance only when startled
from Its usual apathy by such terrific connagrations
Ns the recent
FIRE CYCLONE AT BOSTON,
which laid waste sxty-four acres in the heart OF
the Tri-Mountain City, destroying nearly one thou
sand buildings, estimated at 800 000, 0OO together
with $50, OO0, 900 Of other property; the Chicago
fire, in 1s7l which swept over 2124 acres, destroy
ing 1900 buildings, estimated at $53 ZOO, be-
sides other property to the amount OF $143 900,
killing 100 people and leaving 80 900 without shelter
che December fire OF 1885, which burned GAS OF the
best warehouses in New York and bankrupted
nearly all its companies; the Charleston fire OF
1888, In which ], 1853 buildings were consumed; the
fire OF 1872 which destroyed Onethird Of the we'll
built city OF Hamburg, In the OLD World; the Pitts
burg fire. in 1s45, which burned 1000 buildings the
fire In 1845, when 302 OF the best stores and dwell
ings in New York were burned and at least hall OF
Its companies became insolvent, while others lost
large portion Of their capital the Albany fire, in
l84S. which destroyed 800 buildings; the st. Louis
fire. in 1s49, which destroyed $50 buildings; the
Philadelphia fire, in 1850. which destroyed 400
buildings; the two fires Of 1851 which destroyed
nearly three thousand buildings in San Francisco,
and the Portland fire Of 1865, with its $1O 600 900
loss.
HUNDREDS OF MILLIONS OF DOLLARS
might probably nave been saved at Chicago and
Boston had the New York Legislature set tie
Legislatures OF Illinois and Massachusetts and
other States an example, which doubtless would
have been followed by adopting and engraftng on
our building laws the wise and timely suggestions
made In 1870 by the New York Board OF Under
writer's relative to Mansard roofs Notwith-
standing the fatal neglect in this particular,
INSURANCE LEGISLATION IN THE STATE OF NEW
YORK
has been, In the main, highly credit able to the
peoples representatives at Albany. 1t has grown
TO be a goodly flower, even If it sprang from
weed and II its origin is due to mixed motives,
like that OF SO many other improvements recorded
in legislative history. Without attemptinga digest
Of our insurance code, let us refer to few points
IN 1t which are now especially important in view of
She awakened popular interest in the subject.
THE INSURANCE DEPARTMENT.
BY an act OF the Legislature, passed In 1885, there
was established o geparate and distinct
department, (which shall be charged with
the execution of the laws heretofore
passed or that may hereafter be passed in
relation to insurance. The chief officer OF the
said department ''shall be denominated the Super
intendent OF the Insurance Department, The
g Mr Orln
OF Binghamton, who was appointed and confirmed
November 20.
AMOUNT OF CAPITAL REQUIRED.
1t is provided that no joint stock compsny shall
be Incorporated in the city and county OF New
York or in the county OF Kings nor snail any COM
pany incorporated in this State establish any
agency for the transaction OF business in either OF
the said counties with a smaller capital than
100000 nor in any other county in the State with
. smaller capital than $4,000.
THE ONLY INVESTMENTS PERMITTED
1t shall be lawful for any fire insurance company
organized under the insurance act or incorporated
under any law OF the State TO invest its capital
and It's surplus funds or any part thereof in bonds
and mortgages on real estate situated within this
State and in United States, State city or
county stocks and to invest or to loan
any surplus money over and above its capital
stock in or upon United States and State stocks,
or the stocks, bonds other evidences OF in
debtedness Of any solvent dividend-paying insti-
sutton incorporated under the laws OF this State
or OF the United States, except their own STOCK
provided always that the current market value
OF such stocks, bonds and other evidences of in
debtedness shall be at all times during the con-
dnuance OF such loans at least ten per cent more
shan the sum loaned thereon. IL may here be
semarked that the limitation OF the mortgage In
sestments OF New York companies to real estate
IN this state operates to their prejudice In many
ways. 1t restricts their income from interest and
Injuries them in competing abroad with companies
from other States who humor local preudices
by investing portion OF their money where 1t is
obtained Attempts have been made at Albany to
secure the repeal Of this limitation but Wall street.
eager to keep New York phethorlc with investible
sunds has always succeeded in defeating them.
IMPORTANT REsrBIcrIoS on RISKS.
No fire insurance company organized under the
general Incorporation laws or transactng bus-
ness In this state shall expose Itself to any loss on
any one nre or inland navigation risk hazard to
m amount exceeding ten per cent OF It's paid up
capital.
ANOTHER RESTRICTION on DIvIDEsDs.
No money is earned by fire insurance company
unti the risk on which it was taken has expired.
IRE insurance company ia prohibited from pay
ns dividends cut OF unearned premiums. 1t is
easier 10 suspect than TO prove except by such in.
sesligafion IS the superintendent is empowered
20 make that this like many another restriction of
she insurance law, is too often disregarded.
FOREIGN COMPANIES,
shat II, companies Incorporated or organized under
enc laws 0f any other State and OF any foreign conn
cry, and duly authorized transact business In the
State of New York, are brought under the same
supervision as the New York companies, and are
scquired moreover, in certain cases. to make pre.
hIninary deposits.
POWERS AND DUTIES or THE SUPERINTENDENT.
The Insurance act provides for the examination