, 1874-10-19
INSURANCE..
How West Virginia Companies Arc
Organized.
Insurance. Becoming q Family
Business,
Amount OF Capital Required.

s"'1ottI VI SaEttdl NVHuIE6us
Nsver bsfoto In the history OF this city Was
there auoll necessity for psope to b. cautiouB In
regard TO sho insurance companies Ia which they
tnsura thetf property than at the present tLms.
Tho Withdrawal from the city Of tho National
Board companion has brought hcro = number OF
irresponsible wildcat concorus. which iutend to
maxs money during tho proaeut a1citoment.
Ihus Tar these compauioa havo rcaped ROB
harvest. for thors are hnndrods Of ignorant and
nnwary people who thlnk they arc all right whom
they have their poIicoa In .hoir pockets. Most
hoopio do not 60 to tho insurance Offices them
ac!yos, but got their nsuranco through solicitors,
aht thcse solicitors, mauy Of whom &te Bcala-
WaEs. placc tho risks In sueh companies az pay
them the highest commission. not caring q tly
whether tile Injured gets bis money In c~se Of q
lire or not.
Hanareds Of pooplo have III this way Lost tho
earnings Of lifetime, aud frum sasa aud con,-
1ort "ere turned into poyer.y and privatfon IN 4
elugle night ouly BECAUSE tlet trusted IN tho
representations 0f the o1fy-tongutd solicitors
aud utd not satisfy themselves whether sle cun-
pany wss what it MAS represented 10 them or
not Although nearly avery Stats ID the Uui,n
has stringent Insurance laws. and officers hp-
pointed to supervise this branch Of business, In
spile OF this everr citY Ia tho CO lntry auretH
more Or loss from Wildcat insurance s"indlers.
AZ tA4o 1tatOs !Nl oAHtul5Ot tutlH GA+Dks a IAN
which .prohiblts an insurance company from
doing business In thia city with \ lans ca ,itR
thau @150,o00. Apparently the law .s wire one,
tnd II prope,lY enforced would prouab.y d.
sone good. But as it stands
IT AMOUNTS TO ALMOST NOTHING.
1t is ea3J Tor company to prepare 4 stAse-
nant showing that 1t owns an im,nyuso ca;,itaI
stock. and that 1t had mortgages on valuable
property to tho amount OF half million, wnlis
in fact that property is almost wortlleap. The
railroad stocks, mlnin. stocks. United States
bondo, and other securities, ara. usually In arch
caaos, private property OF tia slockbolders, mid
merely taken to the Conapany'a oaics whcn an
examination is mado by..she Auditor or Insurance
arc inexperienced men, rho knou bnt little about
the TRICKS practlccd by wildcat companies, and
arc easlly imposed upon. Tic Ohio Coma.is-
Hloncr ia practical INSURANCE MAJ, md couse-
quentT that Stato sufSetB iesa to-tt&Y from bogus
companies than any o:hor city In the country.
CHICAGO COMPANIES.
This cisy has already suffered mitch from these
unkrlt,clr.el sharks. and it IL exceediu.lY nluu3
thai sloy "re still permitted to carry their ne
farions trade. W. sut1er not only from ulid-ca.
companies Of othor cities but from such as wore
organized iu our midst aud under our laws. It
~ almost impossible to tell how u,any people
Vera thus redlcRd 10 poyotty by the Great West
ert, Atlantic Ii Pacific, and tns Etnn. Al the4e
companies represented an immense Ga pital STOCK
and many Of OAR respectable merchants wero ln-
dlced, by rrnu!ulont representations. to becoms
members OF thaso institutions. Sill, wnen they
eellapse1. and thcir Affairs we're pacod in the
hands Of Rccelve1s, It was fonud that taer assata
were bogus, and hardly anYthlug could ue r~al-
lied on item. Ihus it comes that tho Great
Western, which was At 1irst Huuposod would
pay a,most IN ial'. Will MOI be able
pAc!tio, at tho time Of its o3llapss, claimed
TO be able to pay tbs roloy- -aoiders in iull. Dr.,
Y. A. h1rpia, the Receiver Of th,s Company, told
= TRIBUNE reporter Saturday that hs lid ,,ot be-
licve 10 could rea'izs onoaga to par ID per eeut.
The Great Western, as we'll IN tho Atlantic 4
Pacific, ~erc managed BY una 2nl tile sans man,
c, p. Hooker. Alter sha failure Vt aha Greas
Western, lo nta1tct
THE ATLANTIC 4 rAc1rEc,
and became itH sscre.zys. Ths Great Western
IN which tho afralgB OF this Company we.e con-
Quoted beats an, thing that has over bceu A.
tempted III this line. DR., Turpin. the Neceiyer,
states TINT siuce last January mona or very tsw
always being put OF with some promise OF othor
The 1no'ey reoeiTed FROM policies 7as 81
pended II last as 1t came in. The President.
Secretary, aud fico lyes.dcrt received a aalsry
Of s7'5oo each. Tlsts "ero uu.nos.ls.s
o:hor employees, ul,o rtcei,stl flom
$l,50o to so,tt0 per anauu,, xnd most OF tIcs.
peraons were !nsvels pasa,ses nLom the Com
pany nuunortct for Eono cauue. Although no
debts were paid By tho Company. still tAs oiicsrt
aud employees vera va1y regular in ira stuy 1hoil
thsr duo Many people appear Oh the cheos-bons
~ having recctfe IRON *lG0 to s., ,UED,e mud nu
reason IL asslgaea why this money A:.s natn psii
out. For example, Il appears that III. Slduelt
hss drawn the a,ltn Of ;:l,0Uo, although tbs lie.
cciscr aaautts thas the mau owos const<lesxhIs
sum of money 10 tho Company. Among other
ltems tue4e atpears Oh the cneoa-boal that
seTorsl
INSURANCE JousHALs
have besn paid larEa anio.lo.A VI monar from
[ltnH 10 time. M ttltNuth:It iX ~ rf
thls money las been pad Tor, but 1t tnxy easily
10 Bllrnlaed nom The fact sll:t almost asery i,i-
slsauoa paper "poas rory highly Of tois insii:.,-
tha people. Aad, when THE Tn1nt,sh nrss ss-
posed the fsaadu'ont condition OF this Company,
tneto papo7s dcn,od 1t, Only to b. convinced = |
[ew t1ara afterw uas b. tha uo!ianse Of ths Coni-
p4nr, that lilo asseltsons mada had been Gorlsr.
another insurance oon'p.ny, thu time not in ts
:liy. bit in Nneelttg. ". Va, though, in fact.
!ls stock WEB mostly soll sro, and ,s held by |
Chicago mon. This Company is called
THE HAI!. CITY, |
and its President. Mr. l.. D. Phelps, wa. fo"m.r |
y u solicitor for Atr. Hooker IN thu Great Vest
,rn aud thu Atlantic i Pae.llo. The Ha.ret,ry |
u this Company, Mr. G. ". Norris uaa also |
,leEk OF Mr. llookor in tbs Atlantis l. paoilc, |
dooser that tho money with,uilich this COMPANY |
Fas started catns from tins Atlantic l. pao,lic. |
md tl1at alt its printing 10 dona in |
ms city. one Gont!emAu. who holds |
',5oa shares OF stuck in this Company,
representatives. a. 10 oouts the DOLLAR, nut lis
'ffer Waa rofusel.
), sluce ths collapsa Of thu Atlantis t. Pacific
]oolpaDy,
4 NEW INSURANCE FINN,
Y. z. Norris l. Co., llung out tta al.inslo noxt
loor to tho formos a!cs OF tho Atlantic Il Pacific.
Upon Inquiries al to wllst companies uosa rapr.4-
anted w. tho now firm, 1t wAs learned that it
ooa preuiiams Tor policies In ttls Nail CITY,
lsnorxl llountala, aud Commoraial. of West
'isgpia: Au none Of these companies had tho
aIu!sed capital to do busincsa III this State, the
act that these companies were doug business
lere III svasiou OF the law, was mads known
Trough theso colusntle, and at the
a1ns time 1t was intilnnted that tho
rm consiatcd Of some Of tho officers Of tho bank
nrt Atlnnle.t Pacific. Although no namea wore
asntiouea, still Mr.. Morris tllonaht it worth
Fhits 10 protest against The innlnua.ions nlatle
that article: fie amphatlea!Iy donicd having