, 1874-09-27
SHERIDAN ON INSURANCE.

Police Board, when called upon by the Citizens
Association to discuss the present organization
Of the Fre-Departmont, made speech. present.
ing his own plan OF insurance, which he pro-
poses aha1l supersede all other flre-insurance.
II ne rightly comprehend this plan, it is that a
new braoch OF the City Government shall be es-
tablished, called the Board OF Insurance, which
Board shall insure all the buildings aud property
therein, collecting therefor a rate Of insurance
to be determined By the Board, the premiums
received for ten years to be get apart as HI in
surance-fund, and an annual tax to be levied to
pay the 1oases likely to occur during tho year.
When the insurance-fund shall become largo
enough to yield an annual income equal to the
losses, then the tax to Pay the same shall be
discontinued.
This scheme, which is u very old one, is the
very quntesscnco OF folly. The human mind
can understand no greater encouragement to in
cend1ariem than standing offer to make good
every mans loss By fire. Insurance is a busi-
ness that has engrosscd the attention Of some
OF the ablest minds in all countries, and. despite
the experience and observation Of centuries, the
system has not get been 80 perfected that, taking
one year with another, the business can be
made profitable. Tile lis companies doing
business in this State in 1872 including the best
companies in the country, had, in that year,
cash capital of ssG, ,0oo 900. Their gross receipts
wero sG4, 500, 900, and their expenditures &c.,
10000. leaving deficit of S2.10o.000 for the
year. Here, then, was al immense uuslne 81.
carried on with all the care and skill that long
experience could suggest, with an actual loss,
leaving the immense capital employed without
any profit The losses Of the preceding year
had consumed the capital OF q large number of
insurance companies. Tho business done in
able one bnt the business in this State for the
five years ending Dec. 81, 1872, show balance
of losses paid in excess Of receipts Of over ?45,-
0o0,0C0.
3lr. Sheridan proposes that the City OF Chicago
shall underwrite all the property in this city, and
that this business shall be committed to Board
composed Of such gentlemen as Sheridan,
klokke, and Reno! These Commissioners Of
course, are to be elected by the people, aud must
include one German one lrishman, and one na-
tire, in order to concil1ate the different
" elements " that make up the voting population.
Tho insurance of all the property in this city
By political Board would, OF course, be farce
and fraud. Ench man would be taxed to insure
the property Of all bis neishbors, not against
accident, but against arson. Even with the
closelY-managed business Of insurance By pri-
yate companies, o large percentage OF the fires
mny be assumed to have their origin in the at
tempt to sell the property to the insurance CON-
panies. Make the City of Chicago the
paynlaster and the Board of Aldermen
and the Insurance Board the guardians
Of tho treasury, aud it is within reason
to suppose that there would be liberal
consumption OF insured property orcry twenty
four hours. The rates OF insurance would be
regulated by ward-meetines; the amount of in
sarance on property would be such Us corrup-
ton and political influence might procure and
soon be overwhelmed by tho tax to pay fire
losses.
There is one branch of the question which AIr.
Sheridan does not seem to Aaye studied. It is
that insurance is d business, like that Of banking
and manufacturing, that requires Skill and e1-
pcrience, personal integrity, and public conf
dence in tho management. The rates OF insrr-
ance to enable the company to pay losses and ex-
penses are governed by the confidence that may
be reposed in the Government of the city, and
especially OF its Fire-Depariment. II Mr. Sleri-
dan has any doubt on this subject, let
him resign and witness the effect it
will have on the insurance market, on
rates, and public confidence. At the East, insur-
ance companies have moro dread of Mr.. Sheri-
dan and his associates than they have Of tho
wooden buildings and S1aneard roofs. II Mr,
Sheridan would resign, lo would restore conf
dence vastly and if Reno and Klokke would
show an equal regard for the public interests,
most OF the distrust now felt in Chicago insur-
ance would be removed. Ne have no doubt
luAt tuCa6 k4Ico lJcI6o0S LII ulHCo 0AFe COSL Lie
owners OF property iu this city III average oi
one~four.h of l per cent on all the insurauce
OF thelast year. ar. Sheridan, therefore, can pro
pose no more beneficial plan OF insurance, ane
no greater advantage and prop to tho public
credit, than the resignation Of himself and his
associates, to the end that their places may bt
filled By threo citizens having the will and ability
to reorganize the Department.
=r.--.----..-.....- =.---.....-
LOCAL INSURANCE COMPANIES.
A movement has been inaugurated looking tt
! the organization Of new local Insurance Com
psny. Mr. r. S. Critchcll, agent for many
years OF tho Phoenix Insurance Company o1
Brooklyn, IS low receiving subscriptions to the
stock, with aattering prospects of succesB.. Til.
| movement il neccssitated iu some degree by til,
action Of the National Board OF Underwriters il
Withdrawing from Chicago, but is not in antago
nisls1 to that Board. The withdrawal Of larg'
number Of the companies has created demani
for the commodity called insurance, which de
| mand will he supplied by somebody at Bom
| price; and if it is likely to bo profitable, ou
! oH1, fUainaes uer mimi wall }Eo rro4i