, 1874-10-04

TIE INSURANCE QUESTION.
In YESTERDAYS TRIBUNE were published certain
Statements made by Mr. Rankin, General Agent
Of the Scottish Commercial Insurance Company,
aud Mr. Hore President Of tue Continental H.
surance Company Of New York, to number OF
merchants ard other citizens, in relation to tie
action Of the National Board of Underwriters
These explanations are calculated to remove
many unpleasant impressions, especially the
prevailing one that the action was speciaI blow
.imed at Chicago. Ii is Q rcisf to know from
auch high autho1ity that this WIS not the caee,
and to know further that the same thing would
hare taken placs even If the d1e Of July II had
not occurred.
&11- Rankin stated that the losses BY fire had
been 40 great in ali parts Of the country that &
spccial examination Of the causes Of their de-
etuc:iyeneEs had been ordered in all the priuci-
pal cities. It Was an accident that Chicago was
the first one investigated, and, from the report
nude Of the condition OF Affairs in this city, it
TAs deemed advisable, for the protection of the
Interests Of the companies and their risks else
Thsre that certain reforms should b., n1ade OF the
insurance should be Withdrawn. Az tn reports ara
received the same demands will be 1tade on other
cities, end it WAS By no means improbable that
like notice would be served on m 2re than one
other city before January next. The National
Board would have taken precisely lie same ac-
ton ID the case Of New York or Philadelphia.
Ar. Hope stated that, If the total insurance
premiums Of the United States we're placed in
oae column and the insurance lossea In another,
the losses would exceed the premiums BY fifty
uillious Of dollars. He justified the action of
the Doard upon grounds TINT must aertatl7 bo
accepted as reasonable. Insurance. is vocation,
like any other business; it Ii not--a benevolent
Institution. Unless it be profitable, men will
withdraw their capital from it and abandon it,
The great fires Of Chicago and Boston and goner-
ally throughout the country lad been SO serious
that another great con6agration would blot out
what was left OF the capital invested in insur-
2nce. It wss further stated that at this time
there is not halt enough capital IN that business to
cover the r1sks that zre offered. III consequence
Of the severity Of the losses persons were re-
Iuct1nt TO invest in the business; capital was
withdrawn from it to be placed in more profitable
Investments, and hence there was an absolute
necessity to curtail the losses. The losses by
fires must be reduced, or insurance will have to
be abandoned- Fires aunihiiato the capital in
vested IN the property destroyed, and the iusur-
ADce companies feel the necessity Of derisiur
the means to save :he capital exposed in these
con1agratons. This is the work the National
Board had undertaken, not iu Chicago alone, bu:
IN all tho other cities. The insurance compa-
nies and tho country could not afford these con-
tlnuous End wholesale Losses by fre II Chicago
were burned up sgain. the insurance companies
s1l together would not be ablo to pay so cents On
ths dolia1 Of the 1oss.
Tho action of tho Board was prompted, there
fore, BY the general loss Of the insurance busi-
ness, aud not By Particular losses in Chicago ::
and these Losses we're 80 great as to deter capital
from engaging IN it, and threatened to drive tho
capital nov invested in it into other occupations.
II MAS found necessary to surround INSURANCE
with additional projections. Tho specific faults
1ound IN Chicago were stated by Mr. Hope In
TIA sc:ie square between the river and Twelfth
sseeos' In which was concentrated most of the
valuable property Of Chicago, he found but three
Hfe-ens:nes~ New York had forty-seyen en-
s1nes' and Chicago required nearly as many, be-
cauee It "as As liable to great fro IS New York.
He also found that, in the construction Of bui]d-
ngs u the business part OF this city, rs in other
cities, there had been much attention paid 10
oEn4mentatlon; high buildings, with many OPEN
fngs and an absence Of iron ahutters
4 third defect waH in the matter of
fire walla abovo the. roof; these valls
be considered should be s feet deep. In New
York when such walls did not exceed feet an
extra charge uas demanded for their insurance.
Firemea on roof could fight fire from behind
5.foot 1al} when n 3~foot wall would afIonl
them no protection Tho prevailing high ~inds
st Cheaeeo xots s4u:uor itcm. lAs number Ct