New-York tribune., 1879-02-08
EIRE INAIRiNCE.
SMALL COMPANIES VERSUS LARGE AND IoEEiGE
COMPANIES.


COMPANIES.
To tn, razor Of Thc Trtbpne,
SIR: VIII YOU allow me space TO answer
some Or the conundruIns OF Small Companies in your
issue OF today
NO WHO first reduced the rates oE dwc!lin-AouscS
to 10 or 10 CcntSt
Probably the large companies. but not until the small
ones had succeeded in breakn, up the Board by their
uon-adherence 20 rates When there no longer any
obligation resting upon them each company sought the
hu-lncss that most pToHjd0le duu mc>t u t'p are
experience las shown That the profits are large ON TINS
class oi business
No 2-wAo fist wrote floating policies covering al
cICatIOn"f
The large companies are entitled 10 the credit Of TINS
great accommodation to the pIbc. Floating policies
are an absolute necessity whenever the insured cannot
know N advance precisely where ms property is to he
small companics cannot afford 10 take these :Isl>, b}
so doing they are liable TO increase 'hor ea 10 ''V
great an amount.
No 8-Who first wrote policies covering three TO five
millions Of property single policy. aud wlo continue
that same kind of liberal undeIWrdHG no"
The large companies. Most Of the smail companies
have more than twenty-five millions az risk. and me
entire SUM- far regards sdlci, High a. wei he i!
properly distributed.
No4-Who nrst wrote term policies OF five years for
the premium OF one year
rive m. But if / may he permitted TO guess,
VIII answer by guessing that the county panes both
stock and mutual smali compancs. wcrc the leaders IN
this movement
No. 5-who first combined life and fire insurance
cured TO each class ofpolicv-holdcIsi
Ido not know, but this has nothing to do with the
question Of rates por under proper management with
solveucy.
No 6-Who first reduced the rates and violated the
rules of the Board by VIKING participation policies
Disqualification companies. Some were large aud
some small.
AZ the safety Fund law, whereby moneys are Withheld
aerecncy by rcs Ike Bo5ton ana Chicago and such
reserYe money held 10 continue the business o suc
company 2thOush u has not pau l' IV'ees III I ~
presume the law Originated with one OF the best
underwriters in this or any other country. Il
was "passed" by the Legislature. II recognizes
the rights Of those who have Taii FOR Insurance.
whether the property insured - burned or not The
cadng company acting under this law, has assets nm
rescrycdy Liable oI loss 10y contagfeton or otherwise
exceeding ia amount the combined ass-9 o. fourteen
small companies.
No. s-Who alvertiscs millions Of subscribed carilal
(aot paid In winch the stockholders are alleged u DC
liable to pay when Wdntcdi
The English companies ana in all the leading compa
MES Of Great Britain these arc reliable assets whenever
needed.
No 9-who advertses T.mhuc:oo, Ui-a stump, Hieh
TIdr and SAT River bonds and Stocks 'ie the wildcat
shinula GERS Ot other day= security and asSe'sf
This couundrum ia ambiguous, hut II probably ie'crs
TO those small companies whose assets are mostly bonds
and mortgages on property Of doubtful value several of
which nave been recently prohibited from u"Hsdrun%
business IN THIS state.
No IO-Who first deGal our laws and refused . pay
taxes in this country but compelled 10 pay y our
courts -, T., -..-., Al. .
Nos il and 12-WE0 takes millions Of insurance, and
when los, coiuer claim To most OF II REV sur'dt
Who gets the proet n- reinsurance aud who gein-
sure, these immense corporations WAO lean upon the
little companies lor hcIPi
Most companies carry more less reinsurance bat
don't see how ANYBODY get any "proit' if-as IS
claimed nv the sma coInpauc present rates are unGc
muucTatlve.
s.. 13-who first took down from cilded Gos. wiz
dOws the nj lions p&radCd ~ assets Wa'h oui laws maze
and now show smaller hg0ics
Some OF the American companies procured the passage
of % law requiring companies u exclude from Their signs
and advertisements. subscribed capital, etc, hat tie
Boston and Chicago fires shovel these asset reliable
Assets N hanI better. however than those sub
scrDed, and the companies who took down Their NH
lions from the windows left more millions there IMAM
several small companies combined can SNOW.
No.1f-Who parade largo Numbers OF millions %
o.,,f, in NeW-Jtr~cy ana jersey CITY accnccs ad
vcrti.emcuts ana IA New York Guy and STATE put tho
York law campc.s Tie truth 10 BE- toidt
Nv answer 70 the last question covers this: Sub
cribcd capital is advertised in New-Jersey but not III
NcW-HurL
No.15-who take more in single policy in amount
tan their combined assets can show IN ed5n or hard
pan bonds =
The comrauy. unless the policy covers property
widely scattered and thou az sad before, II matters
not whether such property covered By oAa poAcJ or
mere.
No. 1G-wno trembled when the Bank Of Glasgow
failed.
LIDO not know. The Stockholders presume
Having answered your questions without dolsinE y
ana g.. truthilly aud honestly Is consistent with
proper breyity. permit ua 20 ak yery frw ia return
TAo recent fire in Wr;h-,t showed mat
some ~ TIE SNAIL companies had risks amounting
10 moic tuan ouo,isbth of ihclr cspt ~ The limited
,,c, covered Dos tie urc. What N0uld their poli.,s
'.r. I.cn t,it 10 th" a.sa-ad had ire nsc ct,u4.I
a. I- lis Is