, 1880-11-28
INSURANCE.
Doubtful Experience Of the
Year 1880.
Dissatisfied Stockholders The
Liquidation Profits.
Foreigners Who Have Not, and
Who Have Come.
A Small Row in the Queen 0Rce-l
Mutual Scheme Nipped.


NEW York, Nov. 2G-As the year draws
toward its close tits apparent that the results
Of the twelve months as to profit and loss are
largely dependent upon the experiences of
the coming thirty days. With the cold
weather and the building Of enormous fires
for heating stores, dwellings, and manufact-
uring establishments, there is always heavy
increase in fire losses, and it is now the most
potent factor in the problem whether or not
the next month will produce only an average or
an abnormal amount of such losses. If De-
ceinber may braycly hold its own, that is,
that receipts may equal expenditures, then
the year as whole will prove fortunate
| one compared to the two preceding years.
Upon the final outcome of this year depends
the future OF the f1re-iusurance business of this
| country far beyond the belief or understanding
/ of those who arc not familiar with its inner
workings. The fact is, that the stockholders
| who have heretofore pinned their faith upon the
smnller companies are beginning to partake Of
the general decentralization which has pervaded
the business for several years. and their dlssat-
isfation will be increased or diminished by the
experience Of the present year.
| INSURANCE STOCKS AT DISCOUNT.
t The Immediate cause Of the discomfort of
stockholders may be found in comparison
| of the prices of insurance stocks four years
ago and the present time. There has been as
rule a steady downward tendency, relieved
only here and there by an advance in some
| favorlt. These stocks have been an accept
able collateral in the banks of this city until
lately. Now they are refused utterly by a
majority OF the banks, and even those who
| receive them at all do so on terms which are
| suggestive Of distrust- There are many bank
| Directors who are also Directors in prom
I f1rr {F11%1 .S-fNo HtS4+ In
! National bunk whose Directors are all, with
| a single exception, Directors in an insurance
| company. Its stock is quoted above par, and
| Its book value over 15O. Yet this bank declines
| any terms TO rob such stocks of their value rs
bank collaterals is to destroy. them rs invest
ments in the minds Of many holders, and hence
there is hn inclination to sell. It has come to
pass that it pays stockholders better to wind up
company, having even moderate surplus,
business. BUSH There is a W very % generai feeag that
the stockholders OF companies which prove un-
| successful during the present year will demand
The fate OF many Offices is bound up in the
balance-sheots which they may present on the
Blst Of December.
THE W1SD1SG-uP PROCESS EXPLAINED.
The unsophisticated reader maynot under
stand the windlng-up process by which stock
holders get more in liquidation than in any
other way. 1t is very simple affair. The
first thing that usually happens to COM
pany about to 60 into liquidation is to rein
sure its outstanding risks. Bids are some
times requested from leading companies.
Generally the company which will take care
of the retiring President or Secretary can ret
the reinsurance contract on its own terms
There is lively competition for desirable REIN
surance. and the commission paid ranges from
2ssn to IS per cent. Within year one Of the
Hyeltest competitors for reinsurance has ap-
pcared in the "Gcperal Reinsurance Com
pany" Of Paris, with its American head
quarters IN Boston. This Company has the
reputation of having paid for the reinsurance
Of the Shaumut, and other companies, as high
as 35 per cent commission upon the pro rata un-
earned premiums of the retiring Companies
The commission received by tho outgoing office
below the legal standard, and If the balance Of
the business Of liquidation is 1udtciously man
az agcd rcd. the the stoekholders may make good thing
London 8 Lancashire, has pnid its stockholders
already lD cents OH each 500 Of stock. an6 $40
Sc to be bo pad Before its retire
l04. Winding up n company Is therefore pay
ing process to stockholders, and it is for this
reason thut the step is contemplated with satis-
faction by many holders of such stocks.
MORE FOREIGN ARRIVALS EXPECTED.
The few arrivals Of foreign companies dur
ing the present year has been disappoint-
ment to many individuals, doubtless, but
b,rd1u IN +hoeo who h,,,a ,}oeol,, e+,,3;ad +ba
situation. The English managers have bet
r,ottors tban t}av ara cro,itad with Tho,
f,roco,,- +ho a,n,or,,;,,+;o,, cooror +ha,, 49,.
A.ss: ~ 1,.at..o. a'', s4 s't Sa', s..A
CIV allo s"1 eA1S
The managers of English companies now here
't'e ~ uos'le W oee osuelS c"1e1 'uo uoiu' anu
".o ~ nos ~" ~ "4an ~ 9
Iue'1 .ueA ~ tue 11.use VI .uo p.e' a''nk ue"1-
"..Aao'' 80 @1ue 'e' Gu, iotclsu
uu'esS' ,.I-s' nne o"s rau.. ..'. eoo41on'
so' ~ ~ nNeu"o@s' a"eso4' 1'"s' nst-
e'I;.. en; ooos' Ge:n,l,,.l. aeiseta'
s".o'' ~" ~ ,., ','-, a o'ne.s'
M navG psea 1avuLaoS s,IS tneHneo u enter &c"
; torn, oua tho h h ~ y. n,su LILIES III nIe
Inut , .nsS @ uas" . pes.. ~ .tuuAeAus ~ iease
mncn n1 rooI. ior e encqueMRe!nchir lnucea, upon
ine 1eoeas ~ iMG @ n tor
January ana Jnty IL YES painiui H apparent 1nnt
,neio was ouI Mst1e ~ cnntiee " uol1g psontApie
u4a,i % .ua s'es ~. caunsea to1 me petter:
FFese!lty, no"cter, tue tunsue " uusy runor
,s nns s5a.fa th tnat nIee Ue ,nr
uilu tne !u@GoloRHc afe sci,'ous4y resolvcu 20
Fentule upon AiaeIlcan st''!, m sp'te ol tho