New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-05-31
FIRE INSURINCE LEGLSLATION

turc has made Il law of on" of the lew InSur-
ancc bills that passed orr last Legislature.
The list of measures that came To naught
dGIing the session Is comparatively long, and
il may be proftably heightened by the with
holding of the signature from one or two yet
in the Governors hands. The ill lately
>gncd had passed both branches of Che Legis-
hturc BY unanimous votes. II Is a measure
that has been very heartily advocated IN these
columns. II gives to companies that have
accepted the restrictions and privileges Of
the safety fund law, the opportunity
to 20 little further in the same
path OF safety. In short, the original law
enabled company, 10y laying aside funds for
the purpose. to secure itself against bank
ruptcy in the case ot Il very great fire and
overwhelming loss. The ncw act enables that
company to provide similarly against a second
grcat fire closely following the first disaster.
II require, considerable scli-dcnal on the part
of stockholders 70 consent 10 the system OF
having aside money against remote contingent
cc>, and only five concerns have yet placed
them elves under the safety fund law all OF
thc live will, probably take position also under
the amendment. With ordinary prudence of
this position should De secure against any con-
c,iyablc emergency.
Two other bill, on trc insurance, passed this
session. have become laws. one of these Is an
amendment 20 the act forbiddng companies to
present deceptive displays of figure, aS to their
assets. SURPLUS capital, etc., and makes it the
duty Of The Insurance Department to see that
the law il executed. The other of the two
bills. now Laws, authorizes companies To merge
together, where they can strengthen them
selves thereby. Two companies IN this city
have so united and become one since the law
was enacted, and two more are now on the
point of doing 80. It is wise Law, and points
the Way to prudent practice where companies
are running bchludhand; since the union of
two OF more of them saves money for each,
by largely reducing expenses. B0h the inmc-
drat. and the ultimate effects Oi the three
hill, that have become Laws seem excellent
\ precisely opposite view must lee taken Of
two bills which passed the Legislature, but
are not yet eve hoppe signed by the Gov-
crnor one of these restricts foreign insur-
aucr companies from the right to litgatc
claim, against them by appeal to the Federal
courts. This restriction does not seem just
rs Il matter ~ tlilftl. liEhlN' III I'lHt VI
fact, the companies do not. for many reasons.
dispute any large proportion of the unjust
claims against them. As a rulc they find that
it conduccS to popularity to pay claims with
little on no investigation. Perhaps II the litl-
cations were more frequent, the inccndidIy
fire, would hc fewer. There Is. also. yet un
signed, Till providing for automatic trap
doors u be used with elevators IN buildings
The history of this bill previous To It's sud-
den appearance ut the end of the
session, is quite unknown. The Build
ing Department did not recommend IT.
The Fire Department never heard OF 1t TILL It's
ua~Sa.,c The underwriters have not asked for
il. The Insurance Superintendent has never
been consulted about il. Whether the auto
matte trap-d0or that 1t orders Is a practicable
device or not is at least very doubtful. IL Is
probably patented con,riyance, and the bill
has the general appearance of job; nj all
events, no great harm will be done If the bill
does not become Il law and time enough Is
given To ascertain whether anything of the sort
is really desirable. OF course, the Legislature
passed the bill without knowing anything
about it, character.