The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-10-23
A TIGER CAT.
How to Start the Insurance Business.

|
On the 9th day Of May, 1878, before E.
Eude, notary, appeared J. L. Raines, A. j.
Burgeon, J. A. Mayeur, E. H. Angomar, A.
availing themselves of the law for the organ
ization of corporations, formed company
known as the Tradesmen's Insurance Com
pany of New Orleans. A charter was made,
and all the requisites Of the law complied with,
and the company launched forth on the sea of
business, to sink or swim. The capital stock
of the company was fixed as follows by the
charter:
| The capital stock Of the company is hereby
fixed at a hundred thousand dollars, said
capital to be divided into shares of ten dol
lars each, to be paid in cash at the time OF
subscription.
How much of the stock was subscribed to
We cannot say, but signs were painted, office
furniture purchased and the usual parapher-
MALTA of such institutions moved in Agents
were then employed and it was not long before
quite number of policies were written and
the bantling became fally fedged. Every
thing went on well until March 3d. 1874, when
| it seems the corporation passed into other
hands and an amended charter was made
differing essentially from the original. The
| original organizers seem to have disappeared
and new ones turned up. The capital stock
was increased to 100000, in shares of 500
each, payable as follows:
According to the new charter said shares to
be paid for in either of the following methods,
at the subscribers option, viz:
l. Five per cent OF the amount subscribed,
payable in cash or in due bill at thirty days, at
the time OF subscription, and the balance OF nine
| ty-tive (95) per cent in note payable in five
years from SAID date, sad notes to De redeemed
and finally extinguished by the yearly credits
thereon OF their pro rata Of the earnings of the
company. Said notes SHALL however, be subject
to such calls as may be ordered by the board Of
directors provided, that the calls so made shall
be payable only after forty-tive days notice, and
shall not be for more than ten per cent of the
amount OF the stock notes at any one time.
2. Or the whole amount subscribed to be paid
in call notes, secured by pledges of public, pri-
| vate or real estate securities.
| 3. Or the whole amount payable in cash, real
/ estate, public or private securities.
Now appears a new list Of stockholders,
among whom we note the following c. c.
Antoine, I. De S. Tucker, P. G. Deslonde,
VIM. Weeks, w. ]. Moore, W. c. kinsela, A.
Deiou, J. b. Gaudet, J. G. Badenhausen,
Chas r. Benton. Alfred Shaw, Leonard
Sewell, Judge Meunier, Geo. F. Brott, W. r.
Fish, J. l.. Smith, l.. f. Ladd and Thos. c.
Anderson.
Charles r. Benton was put in as President,
and on the money realized from the SUBJ
scriptions new start was made. 1t was not
long, however, before trouble began to loom
up. The policies issued, mostly to the poorer
class Of people scattered over every district Of
| the city, increased the chances tor some loss
to occur, and at last the first blow came. This
was followed by others, and at this date we
find the following still Cue, although some of
| them are months old
N. G. johnson, 1851 SO; Mary McElroy,
$500; r. Fisher, 500; Sarah Howard, $40;
NJ Webster, $50; Archibald Il Bro, 1884 so;
L. LANCE, about $780,; C. Fritschler, $475;
Mary femme, $500.
| For some of the above suits have already
been entered in the courts, as the company,
after claiming the legal delays, refused to pay.
| scrutiny into the means of the company
and their assets to meet these liabilities, shows
that the major portion Of them consist of
rather airy nothings For instance, there are
| 5000 shares OF the Mississippi Valley Trans
portation Company stock, valued at sos, 900,
$50, 600 in real estate in the parish Of st. Lam
dry, that would not pay tor the cost of Selling
| it, S14,557 so in stock notes Of the gentle
mon named above, and note $1,000 of
August Berman. Besides this. there is cash
on hand as follows:
| Due bill of L. Seweu $50. Deposit in
Union Bank So 81; in Metropolitan Bank
| 81 %, and 60 cents due by one agent and
| 81 20 by another, all Of which amounts to
the handsome sum, leaving out of considera-
ton L. Sewells note of S12 p, on which to
do business.
On learning the status of the Tradesmen's
Company, inquiry was made, and 1t was
learned that this solid institution has not yet
paid for this years State and city license,
amounting to something like $4,000
| All this would almost lead one to believe
| that this institution was not quite as respon-
sible as many others in our city, bat of course
| to the unprecedented eye OF one who under
stands insurance their showing is really
| splendid.
| The genius required to run a large corpora
ton on twelve dollars and twenty cents GER
tainly deserves encouragement.
| 1t appears that the liabilities, on the other
hand, do not show in SO marked a degree the
business tact of the management. 1t is Gu
| rious to note the disparity between them and
the credit side of the account. The creditors
of the company are awaiting the settlement of
the snug little sum Of something like S9832.
| Here is a problem for school boys. How
shall these twelve dollars assets be divided !?
There are several amusing incidents re-
lated about the mode in which this company
did business One informant states that on
one occasion it became necessary to send an
inspector to Carrollton to inspect property Of
fered for insurance, and the Office had to wait
for some considerable time to raise car money
to visit the premises. About year ago the
company had judgment rendered against it
, for ten dollars and it took several weeks to
pay the amount. We defer further develop
ments until another time.
In Qnandary.
To the Editor of the Bulletin: