The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-02-23
ICommunicatrd.]
The Insurance Question


and in year or t,ro at most zoe 7s,hrepedt
these deposit ia,rs, for the bureau eoiH So.
persede The need Of them"
We quote the language of an honorable
member OF the Legislature. But why let
them remain ga year or two at most 7" Ihey
are ITO quote the language OF an eminent
hwpcr), "a snate anil desus,on; anu
why continue them even ga year or TWO!
The bureau eau be Instituted 10 short
time, and under forms and plans OF
operation-wel tested and in full prac-
ticc in many of the other States-it can
speedily be brought into active usefulness
and if it is TO supersede laws known to OPP
press an interest represented by large class
of .ax.payers and useful citizens, why con.
tinue such laws for a period Of even 8 one or
two ycars 2" .-,......,,.-...,
We hold the prompt repeal of these
laws to be an lmperious necessity
for the general welfare of the people.
They are partial in their character; inyidious
10 their operations; pIcudlcial 10 the inter-
csts Of our home insurance companies; ex-
elusive in keeping from Virginia some OF the
hes, companies in the world: restrictive of
the priyileycs of the citizen in the. exercise
OF the right of choice of the company he
many companies away and beyond his feach ),
onerous on the insurers, in this, that tney
lessen competition and therefore enhance the
cost of insurance, and at the same tme iul-
njsh fewer com panies and less insurance capt.
tai for protection. They compel our own
mpapies to deposit, under the retalIatory
laws OF the other States, large suns OF money
(uow some 5000, 000l and constantly being
Increased. They have been tried by many
of the other States and abandoned. west
Virgins lately repealed hers; Tennessee
likewise. The public officers of the other
States bear testimony 10 their inutility and
damaging character; the laws Of the other
States in retaliation Of ours evincing dis
countepapce of them not 10 be mistaken for
u hostile spirit. but rebuke OF what bas
proven TO be upreciprocal in commerce, sell
fish in conception, and destitute OF decent
existing example.
We have many good companies from which
the citizens can promptly obtain Insurance;
and though others might be admitted With
ont prejudice TO them, We cannot see, having
reference TO the character Of the companies
generally, occasion for the protection of the
people by resort to the deposit system. Our
home cor: panicS are solvent and good
known TO be so. Enlightened by general
acquaintance with their condition ana re-
sources as well as by business relations with
them, our people have now tested IN, many
WAYS their stability and integrity, and en-.
dorspd them fully. Many of the companies
IRON the other States rank high, and their
policics are freely taken by experienced bust
ness. men in the large commercial cities o!
the North, where no deposits are required of
them. Thus we have reasonable guarantee
of security as is the usual basis oil
confidence ard satisfaction among men III
the transaction Of buSincSs-and more would
aupear supertluouS, and would cost those for
whom it is supplied more than any advantage
to accfu, TO them from it. Businessmen
can real re this. They know full well the
sensitive character of trade, and the injury
which legislation often intlcts in attempting
to establish what seemed TO be facility TO
commerce.
The support of the deposit laws by few
Of the agents strikes Us as il great pli>takc IN
them. Surely it will be construed as
a di,trust of their companies, and The pub
lie likely to follow them in such dstrus', 1t
will get their policies in foreign COM
pancs cancelled, and with the premiums
returned to them get insured IN bone COM
pauieS, who have greatly more assets III VIZ
ginia than all the foreign companies com
biucd. For if having the assets in Virginia
is the one important matter, Suca IS plainly
the course the views Of those agents would
suggest. and thus they strike blow at the
credit of their own companies by claiming
consideration for the deposit law.
And does not any merchant know that.ttne
deposit Of $4,000 to $4,000 w'odId not be Il
sufficient Insurance fudu to guarantee him
against loss. when IN the same block, and IN
buildings near enough to be burned by Tue
!; same fire, company inSurIng him had be-
sides taken risks amounting to S3O,0Go, SG0.-
900, or Sl00000; and being detective IN this
most important feature for which II should De
fully scrviccable, is not properly part OF Il
system that should receive the confidence and
favor Of this intelligent class of business men.
In the next place, if the deposits are to Sc
cure the return premiums on broken foreign
COMPANIES that may not survive another
Chic,go fire, it is simply enough to say that
the law does not provide for such al admin
istration Of the funds, though they were so
applied after the Chicago fire, but may not
be again so distributed. Besides, the very
remote probability Of such an occurrence in
tic next fifty years is OF too little importance
, to Justify the cost to the insured which this
dc,,osit system is daily imposing on them in
the way of higher premiums for insurance
than they would otherwise have TO pay.
We know the value Of this view of the sub
! itct, and so DO the merchants; and hence
! they signed the memorial for the repeal.
! They know the rates are higher in Richmond
than in Baltimore, Washington, or Pbadel-
Dhia and why? Not on account solely of
! other Disadvantages rs against Richmond
| where there are fp,rer companies, tetrer
agents, and $40 900, 900 less Insurance capt.
| tai than would locate in Richmond (but Tor
these deposit aws), the higher rates Of pre-
miums to our people is easily accounted for.
Rather than encounter this cost of the sys-
! TEN our merchants and insurers generally
would be quite content to take their chances
for indemnity in the usual way-such rs
their foretathers had before them, and such
as the most prudent and sagacious men in
this country prefer to the deposit system.
Resort to the general assets is all they ask !;
it is all that businessmen expect to share
in; it is 10 harmony with right principles of
trade, and they properly look with disfayor
90 Transactions in the nature OF preferred
creditorship.
The other States do not demand of our
Virginia companies deposit when they go
to them TO do insurance business, except
under their retaiiatory laws. The repeal of
our law would at once render theirs iuopera-
tive, and immediately release the large sums
our companies have had 10 deposit in the
other States ; and these funds coming hack
would greatly assist every department Of
trade anu industry by bring loaned out to
our people and put in circulation in the
usual way the capital OF these home com
panics is employed. Thus, these home COM
! pauieS deserve consideration of the Legisia-
! lure and the people, for while it is 10 their