The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-10-18
ADVERTISEMENT
BAYLY & POND FIRE.

BAYLY & POND FIRE.
10 Editor New Orleans Bulletin
:, Your Sunday edition contains . card signe
Merchant, calling for names, ETC., OF the Under
writer's liable for the Bayly Pond loss.
The Underwriters III this case have been g.
persstently and unjustly censured for the non
settlement Of this loss that deem it necessar
to state, for tho information of the public, s.
often appealed to by the insured and thei
friends, the cause Of the delay.
For the proper understanding of the case, i
will be necessary to review the circumstances at
tending the loss and the cause Of delay, and thi
without intending any reflections upon the par
ties insured.
This fire occurred ON the Goth Of May, about .
O'Clock P. NJ.
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.
Both trcmen and citizens were on the ground
soon after the alarm was sounded, and agree that
the store was fired in two or three places.
This firms stock was burned out on the same
spot in 1866, at which time Underwriters paid
so, 900 to then, there being 10 As4gnable e
for the hre
In case OF a second burning out Underwriters
always exercise q closer scrutiny into the circum-
stances accounts and claims Of the assured than
they do at the first accident and are unwilling to
take estimates to loAs based on guesses as to
profits Of the party insured, the profits Of other
people in the same business being offered as o
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 q legitimate
and honest business, properly kept, no matter
what the trade, Will show, almost to dollar the
profit if any, well as the stock on hand at the
date Of the loss; and l am surprised to see the
nf ont,
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 sl93,721 Ga ;
scented for SIS, 312 So and still later, tO-wit
the 7th day of July, third claim was presented
for the sum Of $751; Cos 05 consequently, if the
last claim had been admitted as lust, the loss
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, the friends of
the insured commenced their newspaper attack
on the Underwriters, seemingly with tho 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 stock
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
Tor 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 correct statement OF facts, and employed two
thorough accountants rs experts to take the
books, which showed stock on hand 30th June,
1873, $1G6, S39 81, and go through purchases and
sales from that date to tho date Of the fire.
This was necessarily tedious operation, but
the amount claimed was large, and truth and
JUS tce 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 |
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 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-
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
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 .
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 no part of the world where, in the {
practice of sound and honorable underwriting, {
such claim would be admitted, and the mer- i
chants OF New Orleans do themselves injustice s
when they taboo sound insurance companies for {
refusing to settle loss by gue IS, in opposition to
The books of the assured, the only true index to
every honOrably -conducted business.
S. A. DURAND, Adjuster. l
NEW ORLEANS, July Z, 1874. i
hterrogatory statement of b. N. Pono, Of the
irm Of G: N. Bayly & Pond, concerning their
he fire which occurred May %, 1874. ,
Y. Are you one OF the firm of Bayly & Pond ?
A. am
Q: Do you claim indemnity Of the North Brit !
al insurance Company for loss or damage to t
our property?
A. We do. !
g. Was your store ever on fire before? i
A. Yes =
q. When? =
A. In June, 1866 J
Q. We're you insured? f
A. Yes.
Q. Bow much? b
A. $4,000. a
9. How much did you get? i
A. $50, 900.
Q. Where did that fire begin? b
A. In our store. $
2. Have you ever had fire since until May {.
,, 1874? n
A. No. !;
Q. What has been your net profit each year? g
A. Owing to an error which has existed in our "
ooks TOR series of years, we have been unable q
D ascertain from them exact profits. Said G,
rror was corrected July l, 1872.
Y. Did you III any manner manipulate whisky?
A. Yes.
Q. State how you manipulated it?
A by reducing high proof, coloring and flavor A
lg, bottlinS, titering, etc, etc, and have used
Om five hundred to EIGHT hundred Larrels Of