The New York herald., 1873-12-14

ont ms ccnsent but he often practically nds hlm-
self compelled to consent SO long as the policy
holder per. r.orms his part OF the contract oI m
sUrance he can compel the company 10 perform its
part But his very difficulty may be In performing,
with a company only In name, having no known
place OF business. its officers unknown, It's agents
perhaps removed, or their authority cancelled To
whom is he to py' Precisely oSan o| ncn ,r y ne NO 10
Shall he get a receipt? Is IL not money thrown
away TO pay anybodyY Will the company be able,
he does pay. to ulnl Its part OF the cOntractY
policy holder living In the rural districts OH EN- finds
himself iace to face with these and similar ques-
tions and they present almost
THE ONLY GROUNDS OF COMPLAINT
made by the reinsured to this department BY the
time he has satisfactorily answered all OF them his
day OF payment may have passed ana his policy
consequently expired. Thus while his remed, is
per ect In theory, In practice he often encounters
what to him are nsurmountable difficulties. So,
also, while he cannot be compelled TO accept the
policy OF The reinsuring company. may he not md
that, under the legal rule OF noyation, he nas un-
Willingly done some act which in taeeye OF the
law will be construed as an acceptancen
The superintendent then alter discussing the
ance and giving his reasons, pro and con, on the
subject, says-"The Judgment OF the best In
formed among insurance men would seem 10 be
that the right to relnsure is necessary and some
times productive OF great good. This yiew,n he
adds, lis strengthened by the TACT that so far AS
known ii has been gwen by every legislative body
tnat has passed any law upon the subject and
once given it has never been taken away.
PROHIBITING REINSURANCE BY LAW.
"On the whole. therefore, 1t would seem that pro-
hibiting legislation would be OF such doubtful pro-
prey that II should not be resorted TO, TO say the
least, till every other remedy ails." In one part
OF the report he also says, "Al legislation upon
this subject may be arranged under one OF
two heaus, depending upon whetheri IT seeks to con-
troll a company before or after amagamation. II
before, II must be directed toward prohibiting or
regulating the making or the nature OF the con-
tract II after, it must be directed toward the
lnsurlng company, for the other, having then sub
stantlally gone out OF existence, not ling
legislation directed against 1t as a com any,
The superintendent finally concludes discussion
OF the subject by outlining law that he believes
would furnish remedy for the evils the present
system OF amagamation Is open to, and which
would protect the companies and policy holders
relnsured alike
is THE MANNER" ILLEGAL THIS TIME
1t will be seen by the above that alter all the
arrangement made between the National Lie and
the Commonwealth is not, as the officers OF the
latter claim, a new one as a whole That part OF
it which allows the National to drop the bad bust
ness OF the other company at the end Of three
years may be the novety Of the plan; and yet
there are those VINO contend tnat while the ar
rangement is not illegal in itself in its entirety,
''the mannern Of reinsurlng, as Mr.. Chapman terms
1t In his report '.may be uegal,n and that '.the
the provision as to the three years, when present
unsound policy holders in The Commonwealth Will
no longer be recognized by the National. Doubt
less tins point VIII yet create q breeze among the
three year unf0rtunates