New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-12-06
SOvr PESrLTS or THE JCLY RIOTS.

In view of the sympathy with rioters that has
been expressed by the Grand Jury at Pitts
burg, and the determination OF the authorities
there to resist claims for damages that the
riots occasioncd, it is interesting to note the
steps that prudent managers of property are
compelled to take. Demagogues who for their
own base purposes are willing TO fan the
flames of sediion, may view these precautions
and the consequences they entail, with lit
tle concern. But to the business men
of Pennsylvania. whose enterprises VIII
he crippled, and whose credit Will ibe
hurt, the sympathy with the rioters seems
likely 20 prove more costly than the fires
which were kindled 10y the mob. II IS evident
that the possibility Of such riots must now be
taken into consideration by or fire insurance
companies. They must contemplate, first, the
increased hazard of destructive fires in towns
and cities where the mob is encouraged. Sec
ondly, they must carefully weigh the cOnSe-
qucnces Of granting insurance in such commu-
mites, since it will be difficult to OBJ
tain evidence concerning riots after the
property is destroyed. 1t may be easy to
put saving clauses into policies of insur-
ance, making void all claims for property
burnt during Il riot but such precautions will
be of little avail if the local sympathy is such
that no witnesses are willing to testify fully,
and the facts of the riot cannot be proved.
The chances of recovering from the city or
town for the damage would be small indeed
if the plaintiff were an insurance company in
another State and yet it is among the possible
contingencies of the law that the underwater
may he forced 10 pay the claim to the owner
of the burnt property and take in return his
claim against the local government.
1t will not he easy to borrow money on
mortgage in the communities where mob SYM
pathy is likely To prevail, even if the difficulty
of inSuring the property against fire can be
wholly overcome. An interesting correspond
ence on this subject with one OF our largest
life insurance companies has been recently
published in The Ner- York UndYqryiier.
The company say, "our business is to loan
"mOncy where it Is safe" Buff the authorities
are unable or unwilling to protect property
and punish those who destroy it, no loan upon
that property will be secure. The timidity of
capital has passed into "a prOycrb far less
serious disturbances than the riots OF
last Summer might easily brighten it away
but when those are capped by such proceed
ings a. Pittsburg's Grand Jury have put on
record, the managers of mOneycd interests are
| likely to conclude that at is clearly not q
"place where prudent and discreet trustees
or individuals can properly loan funds under
their control
Most of the ways in which the loss OF
credit Injuries community are not at
once obvious. The damage to trade by
the withdrawal of confidence does not show
itself Immediately. The check to new enter
priscs is still less perceptiblc for while. Blu
even the so-called Labor reformersn cal
scarcely shut their eyes to the fact when mill
and factories must be closed because the mel
who control capital are no longer willing t.
invest or lend it in localities where rioter
! find favor