New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-01-31
STATE SUPERVISION OF INSURANCE.

| Having the trouble of Babcock in full
view we feel no disposition to put ou1
finger in the fire-insurance, yet we can moi
forbear to express an interest in the bill
now before the Legislature, which pro.
| poses to establish some such public
supervision over this great interest, as
has been adopted in New York, Missouri
and some other States.
An exhibition can not impair the legiti-
mate standing Of those operating upon
smaller capital. We do not choose to
refer to any example in which large
calamity has befallen city where the I'M
derwriters were not prepared to respond
to the par of their obligations.
The values of fire and marine insurance
are very large, and the consequences of
any large disaster may require the verif-
cation of adequate ability to make good
any liabilities, by exhibiting here as
elsewhere evidences Of response bility.
Just as those banks which circulate the
promises to pay of the governme Mt ore
required to cover such liability by de-
post Of assumed values, SO society re-
quires that any associations representing
large responsibility shall demonstrate,
by an exhibition-not deposit avail
able assets to make good any undertak-
ing in the premises.
In expressing these opinions on behalf
Of commerce and property, we offer no
especial advocacy of the pending bill.
We do not desire to see lucrative Office
created. We should apprehend under
any power of appointment rather parti-
san than an expert. It would be better
that the companies in interest shot
elect a superintendent in whom majority
in interest will have entire confidence.
The superintendent will be CONNER
cial, not a political duty, and we simply
advocate the system, not the particular
details which may be put up in any bill.
Will not, then, the Legislature look at
a. measure of public and popular protec-
ton? Not upon any alleged want Of char
acter or responsibility Of any insurance
company, domestic or foreign, but as a
careful guardian of constituent interests.
If the companies are sound, and there is
no reason to believe them otherwise, a
comparative exhibition of assets will add
to the confidence in the stronger, while |
such supervision is merely precaution-
airy measure Of protection, to which no
responsible institution should object, and |
which society should require from any, if |
there be such, as may have incurred a
dangerous extent of obligations.
It will be remembered that We advanced
q suggestion some months since that the !
city might take fire risks, on behalf of |
the fire department. This was based on
the large contribution made by the tax
payers for the water supply, and main
tenance Of the fire force. We have |
neither time nor now wish to argue this |
but in view of the very large !
sums collected and taken abroad by |
foreign fire companies it has become
subject worthy of discussion by our city
authorities.
Returning, however, to the bill for es-
public supervision over the
insurance companies, We have to ask the
careful and honest attention Of the Legis-
allure to the principle and detailes which
nay be adopted. 1t may involve re-
possibility in the Legislature to enact
N unjust or Intellectual Law, while it
would certainly be just subject of con-
if, without injustice to the in
urance interests, the property and legal
lights of the people can be protected
gainst any possible calamity which may
'efall the best institutions as they do occa-
iorally the best people. |