The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-10-16
ADVERTISEMENT
BAYLY f POND FIRE.

BAyLy ~ IVNV VxRLo
70 Editor New Orleans Bulletin:
Your Sunday edition contains card signed
Merchant, calling for names. ETC., OF the onoer-
writer's liable for the Bayly POND loss.
The Underwriters in this case have been so
persstently and unjustly censured for the nom
settlement Of this loss, that deem it necessary
tn state. for the information of the public, so
often appealed Rs asd,s to 81 ' delay anu
For the proper understanding OF the case, II
will he necessary to review the circumstances at
tending the loss, and the cause Of delay, and tins
without intending any reflections upon the par
'e This fire occurred on the Goth Of May about 9
About an hour previous to this time, two en-
ployees of the firm were seen to come out OF the
second story window (the store below being
closed for the night and locked), slide down on
an awning post and leave
soon after the alarm was sounded, and agree that
the store was fired, IN two or tn5ee places s.,,a
SPOT in 1866, at which time Underwriters paid
$4,000 to them, there being no asslgnaDle cause
for the fire.
In case OF a second burning out, Underwriters
ALWAYS exercise closer scrutiny into the clrcum-
stances accounts and claims OF the assured than
thew do at the first accident, and are unwilling to
take estimates as to loss based on guestes as to
profits of the party insured, the prohts OF other
people IN the SAME pubiAooo ooAA6 NAN- 49,
guide to guess by. .
The policies of insurance companies transact
ing a fire business provide that the claim OF the
assured when presented, shall be accompanied
by his books, and Underwrlteis nave 'ne i'Si'
to examine them all. -.
The books of every house doing legitimate
and honest business, properly kept, no matter
what the trade, will show, almost to dollar, the
profit, it any as well as the stock on hahd at the
date of the loss and | am surprised to see the
names of wen-known merchants and accountants
to card denying this proposition.
Tn the case under review, the firm presented to
the Committee OF Underwriters, on the loth DAY
of June their claim Tor the sum of 1888, III 64
this being erroneous, "a second claim was pre-
sented for S1S3 312 IS: and still later, tO-wlt: on
the 7th day of July, third claim was presented
for the sum of S1Sl, SOS % consequently, II the
last claim had been admitted Just, the loss was
not payable until September 5, according to their
policies and the rules Of the Board OF Under
writer's. r
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 right to
| make and such as they deemed it was necessary
for them to make, IN order to protect their stoch-
| holders.
The parties assumed they had made ten per
cent gross profits, which, if admitted as correct
showed stock on hand at the date Of the fire OF
| 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. thau
| for previous wears, and that large part OF the
State had been under water for months previous
| to the fire, thereby reducing the volume OF bdsl-
| ness Underwriters were unwilling to accept this
as a 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 90, and go through purchases and
sales from that date to the date OF the fire.
| This was necessarily a tedious operation, but
the amount claimed was large, and truth and
jus tice made it necessary to be done. The result
has indicated the action of the Underwriters a
careful and thorough exclamation of their books
and vouchers, reducing the amount OF the claim
to S132 S91 rs as appears by the report OF dlsln-
| terested experts made 2Sth August which ascer-
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
ses 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.
|
| writer's to regulate the morality OF any mans
business, they do think that party claiming .
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 De.
There is no 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 So, 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. Pond, of the
firm of G. M. Bayly Il Pond, concerning thei1
| claim for loss and damage Of their property by
the fire which occurred May 20, 1874
Q. Are you one of the firm of Bayly Pond
A. am.
o. Do you claim indemnity of the North Brit
ish Insurance Company for loss or damage to
your property?
A. We do.
@. Was your store ever on fire before?
| A. Yes.
| Q. When?
A. In June, 1866. .....
| @. Were you insured?