Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-12-23

- IS at least lTOh Sto,VoO 10
100000 less thsn any fair minded
mathematician could possibly compute
them stA Suppose you figure 1t out on its
risks having from one to five years to run,
and see what you make it-(and for exam
pie see Franklin's, of Philadelphia, state
ment). What would you consider q fair
cash valuation of the S92S,000 "qross
premiums le course of transmission? )"
Ard il there was that sum in s'qroSs prem
iums due them from agents." would they
not owe at least Il per cert of It as COM
mission to agents. and do you find any
such ite,r as this under head of liabilities.
From a careful examination of that state
ment, can a.iy sane mandoubt for moment
that the agency company in question, was
On the LIST day Of January last, impaired III
least Is to 20 per cent, even after it had cut
down IFS capital Sl,eOo,GC6
How is it with the leading Agency Com
pany, No. 2, (as it claims to ba,) of Hart
ford Scan closely the market value it has
placed upon some Of the assets, and see
now YOU find them. Look at the figures it
gives under the head of liabilities rs The
re insurance fund Un its long term risks
and tltefl make the calculation for yourself
and seehow it stands. In its rnstatement
it admits an impairment OF $4,000 and
over, and if it had stated its assets and liza
bilities correctly, this impairment would
have been $4,000 at least, which, under
the law of the State of Ohio, would have
prevented them from doing business in that
State, if Superintendent Church had been
as sensitive about the financial condition
of his Hartford friends as he has shown
himself to be about people Of other States.
The sworn statement OF the leading New.
York Agency Company of the same date
shows it to have been impaired 1888, 900,
and the sworn statement of the Hartford
Agency CompaDy-say No. 8 beforenamed
shows an impairment of S143, 800. The
reinsurance fund of long term term risks
in the last named company is put down on
the same generous basis to itself as in the
case of Nos. l and 2. If you look at the
percentage of losses to premium receipts,
from the date of their respective organiza-
tion up to Jan. last past, underline head
of General heterogeneous, you will find
them all going above 65 per cent.
There is another New York Agency
Company, one of whose respected officers
fills with ability and satisfaction TO every
one, We presume, prominent official posi-
ton In the Notional Board, which
company commenced business in
1926, over IS years since. Its premium
receipts from that date up to Jan. /, 1873,
was only S., 169,075, or a little over $780,
600 per annum. Now that's modest, quiet
business isn't it, for an agency company
with capital of 100000?
Well, wight has its loses been during
the same~dperiod under this exceedingly
cautious management? Just S3,914,03I or
nearly 50 per cent. of its receipts.
Now, the record of the Amazon, as YOU
can readily ascertain by looking carefully
through the New York or Ohio Insurance
Commissioners reports-thus far-is better
in all respects than that of either of the
New York and Hartford Companies named,
and that of the Andes and Triumph was
no worse.
We say that on the 1st day OK January
last past, neither the leading agency COM
pany of New York nor the agency COM
panieS, Nos. /, = and B, of Hartford, before
named, could have wound up their affairs
and paid back to their stockholders % cents
on the dollar. Why is il that they are for
ever and ever bringing forward the Andes,
Amazon and Triumph Insurance COmpa-
MES of Cincinnati?
Why are they forever and ever abiding
to the failure of the AnGes and Triumph?
Were there not over one hundred other
companies swept out Of existence by the
same Chicago and Boston disasters? and
didn't great many of them come from
New York and the New England States,
and didn't these same New Y Ork and New
England companies, in the majority of
cases, pay their respective creditors cOnsid-
cradle less than ffty-five COZ cents on the
dollar? and didn't some of them, after do
ing this, change their corporate names and
90 out into the agency field again, seeking,
through the National Board, "'whom they
may devour.3n
Have all these facts been so soon forgot
ten, and the very name and existence Of
the defunCt Eastern companies forevergonc
''from memory dear?' Can they only call
to mind the Andes and Triumph, which
companies have paid out over S4,000,000
for loSses-four-fifths of which sum was
paid in full, and the other fifth will aver
age 10 cents on the dollar?
If the Andes and Triumph lost all this
money, merely because they set at defiance
= as the circular says" the well known
rules of underwriting-pray tell us trhat
TuieS these other one hundred and odd
companies, that went down under the same
calamities, set at defiance.
What rules did No. l of Hartford set at
definance when it lost S4,0O0,0 900 at ChiCa-
90, and again 81, 100000 az Boston, and the
No. of Hartford, and the big New York
corporation, and the great host Of others in
making their terrible losses by the same
CONGREGATIONS?
What rules has that other New York i'll
stitution before referred to, been defying for
the past forty-eight years in making losses
to the extent Of S0per cent ofits premium re-
ceipts? What are the rules that so many of
the foreign companies have set at defiance
in losing millions Of dollars in the United
States, more than their entire premium re-
ceipts? -
You must excuse us, but the subject be-
gins to be an interesting one, and the furth-
er we get into it the better it ''pans out"
Pshaw! There are none of the companies,
even the hest of them, who have not good
reason and ought to be ashamed Of their
past record.
But who shall determine what the swell
knownTIleS Of underwriting" are? Can the
Nashville Board tell us? Do you imagine
that there are any two of them, who if put
npon the witness stand, cut off from
hearing the testimony of each other, would
agree precisely as to the rate that should he
fixeI upon any par; ocular hazard that might
be presented to them, and especially if a
miscellaneous or compound hazard? Not
at all. They might perhaps come within
fractions of each other, but then as the
profit or loss to the insurance companies
lies exactly in these small fractions-it is
all important that men who thus lay down
laws for Others Should I've absolutely certain
even to the smallest fraction. But they
are far from that. Who for instance shall
determine the exact line where the moral
hazard or ends, or to what per centage of
rate it shall contribute?
Who shall tell how much should be
added or deducted, by the reason of the eff
ficiency of the Fire Department, or water
supply, or exposure to sweeping winds?
Talk about swell known" rules and rates.
Why there is not one of them can tell you
what the profit and loss throughout the
United States has been uDOn anY particular