Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-01-06

York Insurance Report for 1872, by the
agents of the Amazon quoting from ii, on
| turning to page 217 we ind some facts in
regard to that company truly astonishing,
possibly TO the agents themselves Passing
by the fact that a portion of its assets are
loaned on such collaterals IS candles In
surance Co" stock Company since failed),
Triumph Insurance Co." stock COMPANY
since failed) t.B0ttomry Bond st. Shannon
stock, whatever that may be), "National
Rubber Co" stock, it remains to be shown
whether the Amazon is entitled to the dis
tinction Of being ''as safe, Solvent and re-
table, rs any company in Nashville. IN
der the head Of General Interogatories, y
it is seen that J. 49, =.
The Directors own stock to the
amount OF. .................. SlUl, $50
The amount loaned to officers and
Directors Is. .................. zoo,cVU
The amount loaned to stockhold-
ers, not officers, is............. POI 200
Total amount loaned to officers
and stockholders. ............. $4,000
The stockholders have paid in 500, 900,
and nave borrowed this back and $4,000
more. Won't somebody, as Allen A. Hall
used to say, ''stick pin there?" A company
claiming to have $4,000 paid up capital,
but all of this sum and $4,000 more of
money legitimstely belonging to the policy
holders, diverted from its proper use and
loaned to the stockholders of the corncerni
The Directors own S101, $50 of the stock,
and they have borrowed 1921 200. Is this
policy? Shall we pay money into CON-
pany, expecting that its assets are intact,
when all of the capital and $4,000 more
received from its business is loaned to its
own stockholders? The actual amount of
from its business alone. 1t may be stated
that the Andes stock was never in fact paid
up as claimed; that Mr.. GanO was called
from his office to save what he could from
the wreck of the Andes, our Triumph, and
while he is President Of the Amazon, his
time is chiefly taken up with compro-
missing claims against these two defunct
Ompanies and endeavor to wind up their
fairs. .. ans
Capitalists put their money into insur-
ance stock for the same reason that mer-
chants put money into their business, not
from philanthropic motives, but with the
hope of gain. For two years past il has
proved very improbable, and the. dividends
of several years TO come were paid up as
s1oSCcSlAGAAto eAlCA NlAANNh-O. 4nCA CApCNb
to get from insurers in small sums as much
money as they pay back in larger sums,
and profit besides. They have not made
money out Of Nashville, at least only a
very few of them, because of the losses
sustained here, and because the taxes,
State, county and municipal, average from
four per cent, the lowest, to about eight
per cent. on receipts. Will a mer-
chant ask himself what profit he would
want if compelled to add to the cost of his
goods four per cent. for taxes?
The Board have had their sEsay." Time
which sets all things right, will yet show
TO the people how fallacious it is to hope
that companies selling policies below cost
can long survive, and the Board agents will
''regiSter" again this fact, so well known to
every insurance man. There will be occa-
sion soon for "little more grape" but the
salute will be funeral one.
TRUE BLUE.