The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-10-17
ADVERTISEMENT
BAYLY T. POND FIRE.
To Editor New Orleans Bulletin:

To Editor New Orleans Bulletin:
Your Sunday edition contains card signed
Merchant, calling for names, ETC., OF the Under
writer's liable for the Bayly & Pond loss.
The Underwriters in this case have been &c
persistently and unjustly censured for the non
settlement of this loss, that deem it necessary
to state, for the information of the public, Sc
often appealed to by the insured and theil
| friends, the cause Of the delay.
For the proper understanding Of the case, il
will be necessary to review the circumstances at.
tending the loss, and the cause Of delay, and this
without intending any reflections upon the par.
| ties insured.
This fire occurred on the both Of May, about 6
| o'clock P. NJ.
| About an hour previous to this time, two EN-.
ployees of the firm we're seen to come out Of the
second-story window 1.-THE stOr- below being
/ closed for the night and locked), slide down on
| an awning post and leave.
Both iremen and citizens were on the ground
soon after the alarm was sounded, and agree that
| the store was fred in two or three places.
This firms stock was burned out On the Same
spot in 1866, at which time Underwriters paid
| $4,000 to them, there being no assisnable cause
| for the fire.
In case of a second burning out, Underwriters
always exercise closer scrutiny into the circrn-
stances, accounts and claims of the assured than
they do at the first accident, and are unwilling to
| take estimates as to loss based on guesees as to
profits OF the party insured, the profits OF other
people in the same business being offered as a
guide to guess by.
The policies Of insurance companies transact
| ing fire business provide that the claim OF the
! assured when presented, shall be accompanied
by his books, and Underwriters have the right
| to examine them all.
| The books of every house doing a legitimate
| and honest business, properly kept, no matter
| what the trade, Will show, almost to dollar, the
| profit if any, as well the stock on hand at the
date of the loss; and l am surprised to see the
| names of well-known merchants and accountants
to card denying this proposition
| In the case under review, the firm presented to
| the Committee of Underwriters, on the 18th day
of June. their claim for the sum Of sl93, 72l Ga
| this being erroneous, second claim WAS pre-
scented for slS3,312 S. and still later, towit: on
| the It'll day of July, third claim was presented
for the sum of S1S1, Cos O5 consequently, If the
last claim had been admitted as Just the loss was
not payable until September ), according to their
policies and the rules of the Board of Under
writer's.
Yet, before the LIST day Of July, the friends of
the insured commenced their newspaper attack
on the Underwriters, seemingly with the idea OF
creating such public odium as would compel the
settlement OF this loss without such critical ex-
| animation as the Underwriters had the light to
make, and such as they deemed it was necessary
for them to make, in order to protect their stock
holders.
The parties assumed they had made ten per
cent gross profits which, if admitted correct,
showed stock on hand at the date Of the fire OF
$3.50, Oe0-nearly 500 900 ,uore than they had on
hand at the same date the previous year, or ever
had, at their summer account OF stock
Considering that every department Of business
was more depressed during 1873 and 1874, than
for previous years. and that large part OF the
State had been under water for mouths previous
to the fire, thereby reducing the volume OF bust
ness. Underwriters were unwilling to accept this
as correct statement OF facts, and employed two
thorough accountants as experts to take the
books, which showed stock on hand Both June,
1873, S166, S39 g. and so through purchases and
sales from that date to the date Of the fire.
This was necessarily tedious operation, but
the amount claimed was large, and truth and
justice made it necessary to be done. The result
has indicated the action OF the Underwriters: a
careful and thorough examination OF their books
and vouchers. reducing the amount OF the claim
to $132.o91 rs as appears by the report OF dlsln-
terested experts made 2Sth August, which ascer-
tanned amount the Underwriters have all the time
been ready to pay.
The parties make the remarkable admission
that their books do not show their actual gains !;
that it is their custom to sell ten gallons OF molas
SEES. charge for ten gallons, receive the price Of
ten gallons, but deliver only eight gallons; and,
moreover that such is the practice of all mer
chants in New Orleans. (See sworn statement at
FOOT.
They further assert that they realize large
gains by undertaking the tare; by short weights,
and by the use of from five to eight hundred
barrels OF rain water per annum in reducing the
liquors sold.
Now while it is not the business of Under
writer's to regulate the morality Of any mans
business, they do think that party claiming q
large profit by any Illicit practice in trade, which
profit he cannot show by the books, should be
held in case of loss by fire. to strict proof of the
actual amount of such gain, when he calls upon
Underwriters to have such claim entertained
and allowed, not only in addition to, but in con-
tradictiOn OF what his books show his loss to be.
There is part Of the world where, in the
practice of sound and honorable underwriting,
such claim would be admitted, and the mer-
chants of New Orleans do themselves injustice
when they taboo sound insurance companies for
refusing to settle loss by que 49, in opposition to
the books of the assured, the only true index to
every honorably-conducted business.
S. A. DURAND, Adjuster.
New ORLEANS July Z, 1874.
Interrogatory statement of B. NJ. Pono, Of the
firm OF G. NJ. Bayly g. Pond, concerning their
claim for loss and damage Of their property by
the fire which occurred May %, 1874.
.. Are you one Of the firm OF Bayly & Pond
Q. Do you claim indemnity of the North Brit
ish Insurance Company for loss or damage to
your property?
A. We do.
9. Was your store ever on fire before?
A. Yes.
@. When?
A. In June, 1866.
@. Were YOU insured?
A. Yes.
Q. How much?
O. How much did you get?
A. $4,000
@. Where did that fire begin?
A. In our store.
@. Have you ever had fire since suntil May
20, 1874?
A. No.
Q. What has been your net profit each year?
A. Owing to an error which has existed in our
books for series of years, we have been unable
to ascertain from them our exact profits. Said
error was corrected July l, 1872.
Q. Did you i'll any manner manipulate whisky?
A. Yes.
@. State how you manipulated it?
A. By reducing high proof, coloring and flavor
ing, bottlng, filtering etc, etc, and have used
from five hundred to eight hundred barrels of
rain water in msuipulations, per annum.
Q. How often did you take stock?
A. Once year, and on 3Oth June.
Q. Give the footing Of your stock-book for each |
year, since commencement
A. cannot-stock- books were burned.
@. What amount OF merchandise was sold to |