The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-10-15
TAdyertisement.1
RAYT.Y e POND FIRE.

BAYLY & POND FIRE.
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 q Pond loss.
Tho Underwriters in this case, nave Doen 30
nersistently and unjustly ensured Tor the nom
settlemept OF this loss that deem it necessary to
state, for the information OF the pubic, SO o1ten
appealed to by the insured and their frienos' the
For the proper understanding of the case, it
win be necessary to review the circumstances at
tending the loss, and the cause OF delay ana this
without intending any reflections upon the par
This fire occurred on the 10Th Of May, about
Abon. an hour previous to this time, two en-.
ployees Of the firm. were seen to come OUT o. !ne
second story window, 1.-THE store below being
closed for the night and lOcked), slide down an
awning-pO and leave.
Roth bremen 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 sto K was burned cut on the same
spot in 1866. at which time Undersriters paid
$50 600 to them, there being nc ssslgnable cause
In case Of second burning out, Underwriters
Always exercise closer scrutiny into the clrcum-
stances. accounts and claims OF the assured than
they do 1t the first acc dent and are unwilling to
take estimates 40 to loss based on g9esses as 70
people in the same business being offered as
guide to guess bv.
The policies Of insurance companies transact
ing fire business provide that the claim OF the
panied by his books, and Underwriters have the
right 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 if any, as well as the stock on hand at the
date Of the loss; and am surprised TO see the
names OF well-known merchants and accountants
to a 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 &193,72l Ga
this being erroneous, second claim was pre-
scented for $1S33l2 SO; and still LATER to-wlt on
the 9TH day of July, third claim was preseaI tea
for the sum OF $18l, COS 05; consequently, II the
last claim had been admitted rs just, the loss was
not payable until September 5, according to their
policies and the rules Of the Board OF Under
writer's
Yet, before the LIST day of July, tho friends of
the insured commenced their newspaper attack
ON the Underwriters, seemingly with the idea OF
creating such public odlum 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 stock
The parties assumed they had made ten per
cent gross profit, which, if admitted as correct,
showed stock on hand at the date OF the fire OF
$3.50, OOO-nearly 500, 900 more than they had on
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 months previous
to the fire, thereby reducing the volume Of bust
ness, Underwriters were unwilling to accept this
rs a correct statement Of facts, and employed
two thorough accountants as experts to take the
books, which showed stock on hand 3Oth June,
1873, $l66, S39 G. and 60 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
careful and thorough examination Of their books
and vouchers. reducing the amount OF the claim
to $132, 891 76 appears by the report OF dlslr-
terested experts made 28th 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
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 weghtA
and by the use of from five to eight hundred
barrels Of rain water per annum, in reducing the
Now while it il not the business Of Under
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 shew by the books, should be
held in of loss by fire, to strict proof of the
actual amount of such gain, when he calls upon
Underwriters to have such a claim entertained
and allowed, not only in addition to, but in con-
tradiction Of what his books show his loss to be.
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
k~1>
refusing to settle loss by gue S. in opposition to
the books of the assured, the only true index to
every honorably conducted business.
8. A. DURAND, Adjuster.
NEW ORLEANS, July 2, 1874.
Interrogatory statement of B, M. Pond, of the
firm OF G. NJ. Bayly Pond concerning their
claim for loss and damage Of their property by
the fire which occurred May 20, 1874:
@. 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?
9. Was your store ever on fire before?
A. Yes.
@. When?
A. In June, 1866.
Q. Were you insured?
A. Yes.
Q. How much?
A. So, 900.
Q. How much did you get?
A. $50, 600.
Q. Where did that fire begin?
A. In our store.
@. Have you ever had fire since until May
o. 1874?
A. No.
Q. What has been your net profit each year?
A. Owing to an error which has existed in our
books tor q series of years, we have been unable
to ascertain from them our exact profits. Said !
error was corrected July I, 1872. |
2. Did you in any manner manipulate whisky? |
A. Yes.
Q. State how you manipulated it?
A. By reducing high proofs, coloring and |
favoring, botting, fltering, etc, ETC., and have
used from five hundred to eight hundred barrels of
rain water in manipulations per annum.
Q. How often did you take stock?
A. Once year, and on 30th June.
Q. Give the footing Of your stock-book for each |
year, since commencement?
A. cannot textbooks were burned
@. What amount of merchandise was sold to |
omplOyoe or others free of profit9