, 1874-04-04
LAKE-IN SURANCE,
The Vessel-OWners and the
Underwriters,
A Statement in Behalf Of the
Latter.

70 tho Editor of The Chicago Tribune:
SIN: II In With much regret that tho writer
inns observed tho rccont expressions Of D hostile
fcolng on t1e part Of roputed vossol-owners and
masters towards insurance companies and
against tho Classification Of vossols aud otllor
mcans adoptod by the companies for tile rcason-
ablo protection Of tlloir shareholders, which can
not fail to result boneHctally to all who aro coll
rectod with the shipping interest In D Legitimate
wny. Several articles havo recontly appeared in
Chioago aud Milwaukee papera. ono Of which, np-
penrlug In tho Inter- Ocean Of tho 25th inst., las
tho following head: A Man with Grievance
-ITo ia II VcBaol.Owner, and IIas Moro Than
Ono Of Tl1om-An Inter- Ocean Reporter Right
in Among tito Most Discontenteti Lot OF MortalB
On Enrtll." As no ono appoaln to have word
to say In behalf Of tho poor, misguided insurance
companies ethor Of ntlyco or adnonition, tho
writer bcgH loaye to submit fow faata for tho
candid consideration Of al CONCERNED, believing
that tho wholo trouble arisos from
IGNORANCE
Of tho subject aud tho antagoniam assumed
towards everything that en,anates from insurance
companies encouraged by diaaireotcl, Interested
Mon, who fancy themselves uggrlovod, and by
tho ryal interests which turn thla antagonsm to
account in diverting bunness to themselves.
Tho first thing to bo takon into consideration is
tho fact, statou hero without foar Of cont1adlo-
tio1, TINT, III tho wholo history OF our lake COM
morco, not ono dollar has boon mato by insur-
a,lca companies inauring nulls. On tho contrary,
the buginoss Inns boon dono at MI average loss to
tho underwriters. Insurance companies have
thrown protection ovor yossela for tile owners,
yoar after year, without ONO cont Of reimburse
mont. How long would sonsiblo mon pursue any
othor business attor such miserable resulss
And why IL 1t tlat insurance companies DO 1t?
1t ie bccauBe comnanica come and 70, Thoso
trs5 s nsSs sxsen}o 1SSws s 5 sqsGsss ] 1 T i sro e.
ublo, md "pt,ll out,'-somo OF tho,u il, time to
uayo themselves from bankrnntcy. hit ]et IN
look back md poo tic Insurance. companies Which
l1ayo gono down, uttorIy shpwrocliod. Taho
ot1r own CITY of Chicago md connt nm tl,a oon.
nauca oricinntot1 here TINT bnye fnetf ar retrnf]
from tho ticld rs tho result Of losacs ontailed
mon tLotn by inland mariuo iusurauco. Take.
for Instance, tho ;"'
nGruu11o INSURANCE. COMPANY
Of Chicago which came to tic rescue whom about
such q stato Of things existed au now docs. This
Company on1no forward as tho tllaintcregtod
friend OF yossel-owuers pnd masters. Tho latter
,Yoro pay,,,E too rnucl, for insurance. Tho Ko-
public took their risks for lower rates. Tho
Comnany's stock vas placed IN the lnn3s of its
agents, ind in tho hands Of voaaol- owners .Tbis
made oyorytling lovely, and It vas conceded
tint tho Republic filled want long felt, and
everybody was happy. Tho pont-up accum,l-
latod wrongs suffered by vesBel-owners and
mastors at tho hands Of grasping insurance
companies for loug time were about to bo
avenged. With this feeling, and cheap inBur-
ance (one-lalf coilt or moro under rates), ca,no
an enormous business. Tho result WAS that tho
Republic was slaughtered, and tho losses rolled
up between 4 half aud throo-quartcrs of mill
Ion; Of which $150,00 was lost in single gallo,
Tako tho
U1TY OF Dn1pnB.
Not many yoars ago, Milwaukee had fyo or
moro insurance companies doing lahe-busineaa.
To-tlay they all gono aud It waa not their
wealth resulting from proiits Of lake business
that causcd them to retire either.
Go back some years before, when somewhat
similar feeling to TINT recently manifested
existed among vosael-owners. They combined
VESSEL INTERESTS ....
purely, putting enough together to nuke ST 000,-
600, or more, in value, Of sail-vesBels Boloiy,
and called 1t tho Lake Navigation Company"
They insured thcn,Bolyos, and it was ali man.
aged by owners aud CaptainB. No g1asping ill.,
Buranco company had anything to do with it.
What was tic rosult7 A Receiver BOLD thom
out in two or threo years. Tho Whole capital
WAS hol]elossly Bunk. Another company, formed
in the same way, at tho Eamo time, Of eteanl-
bontH only, WAS oallod tho American Trnnsnor-
tation Conlpany;" capital 31,00D,U00. lii q
short time I, Receiver sold them out,-the mag
nfticent capital being q acaa loss They also ill.,
ali insurance companies with two or throo OK
coptions) that lsaye followed tho fortunes Of
particularly insurance OF llulla.
Last year was not bad ycar Us to weather;
tho SEASON was fair; and vet no more tlan two
or threo insurance companies n,ado cent from
the lnll business md m average OF tlo latter
would doubtless show a loss to tho companies.
Tho exceptions wero, rs before stated, ono or
two, perhaps three companies, that made.
n1oIp nu1rs.
md lived up to then, without deviation on-avo}l-
ing poor. fow-gradcd risks. leaving nothing to
luck. aud taking those riska only thai nromsod.
on tic law Of chances, to Yield q fair proiit.
The marine insurance business Of tic lakes,
both hull and cargo, ia done at much losu rato
than a1ly other In tic Anown world. Arc ti,o
risks any lesH In view Of tho above facts,-
aud they aro :iucontroyertiblo, this howl
against tho insurance companies, Tint vessel
owners aud masters deponl upon as their friends,
to protect them, now and for ali time to como.
companioy. of as smart practical men al ever id
business upon the|lakes, hay fully demonstrated.