New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-09-13
ZIG SIGNS TAKEN DOUN.

About month ago we called the attention
of our readers to a proclamation from the
State Insurance Department, enforcing the new
law requiring companies to state their assets
truthfully. 1t is well known that certain con-
Germs INDUCED IN fabulous legends of display
representing millions OF dollars as capital"
assets" and the like, which have had very
seductive and soothing influence upon people
who wanted a safe insurance on their property.
1t is not in human nature to scOrn the spen-
dor of sign over a doorway which tells
of $4,000 900 as capital" or to with
hold admiration from an advertisement
that begins with an assertion, in type of APP
prOpriate size, that the "assets" are $19,-
5,071 16. Doubtless it has been great
comfort to the holders of fire insurance poll
cies in certain companies, to contemplate SINH
lar statements of the wealth in reserve some
where, into which they may dip their ladle the
next morning after their property burns down.
There seemed to be something substantial in
these big figures, especially as they were re-
peated Oh the margins of policies, at the tops
of statements and letter-heads, on the backs
of envelopes and sheets of bOttingpapor.
These sums far topped those which our old
est and most respectable fire insurance compa-
MES put forward as their assets or capital.
The difference was very remarkable, the cor
responding sets of figures of our most trusty
underwriters being scarcely tenth of the
amounts displayed by some of those whose
home offices are not in this State.
But the law passed last May, which Super
intendent Smyth says he means to enforce,
has changed all this Neither in advertise
ments, signs, circulars, policies, certificates,
nor otherwise, is a company doing business in
this State at liberty to make such misleading
statements. Whatever a corporation of under
writers represents as its funds or assets. must
be actually owned by it and available for the
protection of holders of policies of fire insur-
ance; and whatever it declares as its CAPT
tall must be what has been actually paid, not
what may have been promised. These DO not
appear to be very severe requirements on the
part of the law. They only provide that 4
fire insurance company shall be honest in its
general exhibits and public statements. The
effect has, however, been quite marvellous in
the sudden disappearance of sign-boards with
millions OH them, and of stationery fringcd
with similarly attractive amounts. Where new
sets of figures were substituted the contrast
was freqdently remarkable. Instead of. for
instance, capital, $12, 500, 600" there appears
"paid up capital, $3.50, 000." or course
there is no particular haste about displaying
these shrinkages in general, there is mere
withdrawal of the earlier display. But if the
correct figures were substituted in every case,
the contrast would be yet more astonishing.
As specimen out of nearly a dozen, the fol-
lowing might be given "Assets" as orig
inally advertised, sos, 425, 100 assets avaia-
bic for fire risks, $7,025,717; assets to meet
fire risks in the United States, 1862, OG3
Somewhat similas sets of figures would be
found to apply to at least dozen companies,
none of which have their home Offices here
Our native concerns have been generally trust
worthy on this point, and though doubtless
sorely tempted, have not gone into a compe-
ttion in such misleading displays
The big signs were not falsehoods out of
whole cloth. Their performance is as if q
HORSEPOWER were to reply to the question
GLOW much are you worth ~ 81 own q
building worth $4,000" The reply is not an