The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-08

pany soniesses that Is far as hrs company is con-
LOCKING The STABLE DOOR AFTER THE SIZED Is
srOLKk.n
In other words. he says that his company never
thoroughly examine any premises or goods insured
until after a IRE has taken place. Then, but NOT
tiIl then, Is thorough examination made. Inc
onclal In question lustifes this manner OF pro-
cedure from TWO points OF view-nrst, that as lne
great majority Of representations are made cor .
detect naws in four or nye. especially
WIN cover charge loss such On these
cases anyway (the exact WORDS OF tne onloiai
In question:; second, that II companies were
TO make IL q rule TO examine stores ana premises
insured in advance it would necessltate such a
large iGree al 6s yStes OF
them in fact greatly above their present sthuualu.
Again. It Is claimed that tnorougn exah I'M a
is often, under the circumstances OF the case
utterly impracticabe, or, TO quote again tue phrase
OF the oficial just referred TO, You must 20 II
readily be seen tnat such system as this offers
every facility for the commission OF crime, and is
not only offering premium against loss but pre-
senting an inducement Tor false pretences and for
arson.
the nsuring OF stocks or premises for much more
than their value, Is OF comparatively rare occur
renee, however, Tor the simple reason that after
fre has taken place, and tefOre it pays Its
losses, the company makes a searching examina-
tion and, II 1t appears probable that the insurance
Is excessive, then IL avaus Itself OF the plea OF
fraud and refuses TO pay. In TACT, over insurance
not where the danger lies, but in full insurance
OF goods tsupposlng various circumstances which
II known at the time would invaldaJe the insur-
ance), and then, when the opportunity offers or
necessity demands, getting the full cash value OF
the goods through the medium OF arson All in
surance companies and agents unite Ia the opinion
that none oil the evils Ia our present system oil hre
insurance can be remedled by legislation. Tney
LEGISLATIVE TINKERlNG
and hold that the scheme OF forbiddinR insurance
companies to assume more than three-Iourths OF
risk Is utterly impracticable and inadequate foi
The President of the Glope Fire Insurance Co m.
pany claims that this proposed "three1Ourt AS
law would work most inJuriously to the compa Aies
Not enly would 1t do away with onefourth Of thelr
risks, and therefore One-fourth OF their Profits,
but 1t would entail positive injury upon them. Ii
the case or IRE, under the present system
whatever Is saved from the naB<es les
sens the absolute loss to the insurance COM
they have received The iuil amount Of thei,
charges. But under
THE THREE FoURrHs Law,
whatever was saved from the flames would be
credited 20 the uninsured fourth, OF which the
company would receive no manner OF benefit SO
that the insurance companies themselves are Op
posed to this new scheme
The mercantile class of the community is like
wise decidedly opposed to the proposed three
fourths law. The honest merchant who has $780,
900 worth OF goods at stake naturally enough re-
HIM, In case Of accidental fire, loss of $25,-
ooo-perhaps the full amount Of his avail
the The no4 ae
commission houses, Tor their interest lies
in having the goods entrusted 10 them fully in
sured for or by their principals. In fact, the oppO
nents OF this lhree-fOurths proposition claim that
.he scheme proposes remedy which is far worse
than the disease. They say that at present an
| honest man is charged but a comparatively small
| additional percentage on account oil the rogue
would be compelled to run the risk OF the loss Of
one-fourth OF MS whole property Tor the sake OF
tnadequatey preventing 1t at that for even under
three-fOurths law one scOundrel could so arrange
matters by little trickery and perjury that his
IN nrfh unn no11v fha