, 1881-03-26
INSURANCE.
largo and Small Company Erie
tion.
a Magnificent Increase Of
Capitals.
Tears of q Further Foreign
Invasion.
Masonic Interference for the Co.
operative Companies.
The Changeab|e companies-cot'
ton.Transit Losses.
Boomerang Legislation.

Hst<ta{ Correspondence Of The Chicago Tribune.
new YonK, March a3.-Tliu progress Of
tho fire-insnrance company, like Tie coarso
of true love, does not always run smooth.
There Is considerable friction ntnorg the dit.
ferent Offices, mainly between tho large nnd
small companies, III tho practical conduct of
the business The big COMPANIES want to
put OH the screws III forms Ut pnltcy, rates of
commissions, privileges 10 polcyho1dcrs,
and various other matters connected there
With, but they are not 80 anxtnus about
rates. Tho old gnnn which hus becM prac-
tlced here fh New York for several years, by
which the large companies take all tho gontt
risks At the best rates they Gun yet Nnd turuw
Oh the poor ones on their atnaOr rivals Is being
extended all oror tho United States ut this time.
Tho mammoth companies, BY virtue nt tl1etr
enormous Incomes. H,n'1ago sholr business nphh
low ratio OF expense: while tho dinl[n.1tivo
companies. which. IN S@o0.000 capital anu
hnlf million Of total nsscts, nre rtlI1t,'a4 nj,
agency business on high tatio Ut cxpcnsc. nIo
unequatIy matched. Tho former can atntd Il
loas Ut Id Or L. per cent moro ttleir rceeirts
greater profit. Like everything blsc. tho lrc-
Insurance business tends tp!ynIt enlarged cntl-
dlIng iafgo @ risks upon sn;ail Comparative coat
INCREASE OF CAPITALS.
The long heads IF tlld business have for
some tlmo past realized that in tho future
race tue companies having tho largest cup
itas must win. Ind those which arc coll-
Quoted OH tho basis of tile old-tin!o capitals Of
S20o,0o0 to S5l),0 % must losa castu alld il'lal-
1y 70 down. Alurc than year aEO Soho ut
the bcst managed ind most prosperous cnnl-
ranies begun quietly to ltlcrcase their cap
itais BY bona ti.lc payments Uf additional
cash. The Gcrmaria of this city Increased
it's S500, GOO capital TO MI even million. Then
the ancient Insurance Company Ct North
America ran T., lts sp'endtt s:hooa.ooo can.
capital frnm S50o.0W to Sl,Q00,0tU. and, to
provo how CAPITALISTS appreciate successful
lnanagelnent, tho ."pt9ns on thls ancrcase q, s;f
Nov, It Is reported tho Getlnnn- American. one
Of tho most prosperous OF Tho iargg, COM
sicieat,"n % p prs5SIiy % Il % iho incrsuse, bis II.
FsIs % a spessa S II a9tP e ee wers o t
Pnu,nix. mt To be onttfone ~ Its New fnrk
h"s vo,sd tG % "abs M f. H. stnsb ,'E m
order TO oisslsno tlu rhads'pl,in tnn1n,n2th. u
on 1hs syS q =" INT ~ y s sPlSa
III world The sonpa ,."w ealoylix tlat M d.. H..
tInctton is tho Guardian. Ut L0IltHl. which has
% s;ssiT esstse es4t @ ers "a SsFsf He is: hss"
s ,G a saa nd 'eSS aa 81
pad.up capin to lts nrcsGnt iamas; anH ne
"nSQnKtnn fi thNt CITY. WIN TT 3bhtNS ieHtt>H
suit. Other cUElphntes nto ngltntln9 Il H1tnsar
increase.
FEARING FonEloN COMPETITION.
Tho bottnn fnc. for this movement for an
increase of present capitals is tho growing
fear Of American underwriters lest the
foreign companies nnw here. and tho others
expected to arrive. viii slowly hut gradually
monopo.Ize tho cre,lnl Of thu business In this
country. The returns slloN tt,ut the for
ali nh FIrr i
BY year. willis tho American companies
either loss or remain stationary. To statO
the case precisely, the foreign companies gull,
ubuut Is per cont Of what the sualt American
compuuIes lose, mud tho nannn,oth domestic
companies the balulIcc. Even tho Home, Etrn,
md othere feel tic foreign competition IN al-
tnost every quarter. They rrohuhy do not foar
nent to increase theIr capitai is III tho nature
psrt!salas Zig issrlxncrs hive I;!;.i Sa14ss
sSs9,ss ,he9 basoe.. nGf On ;,o @ srsA nrss sub.rrs
'iut unphll cup.mi. whiis IN ,his eonn.ry tho
e"ndi.ioe dn" Of H; sx!s,enc" @ Ta tsar of forsir,
comreiltton4s n.st ssyue!y fcll; howeyor; 4, r.
Ills city al,d tho Ensteri states. Ilcrt csptc!ul
~ there Ia positive hhtrcd of thesH ca,lphuics.
na pS6 f '"T IT,. cs p
drive them frufn tho Stnte BY taxnton laws and
othor burdensolnc measured
4 LEGISLATIVE HCMHCu.
A few years ngn the lncal companies, under
the lead Of tho Huard of Underwriters Com-
mites on Law n,ld Legislation procured tue
passase ol II law which, 1t was supposed,
would severely cripple tho English and Ger.
man companies. Its object WIS to prevent
thcse companies from tnking largo lfncs here
and rcinsurtlig tho uXcesscs aver tho Sims
they werc willing 10 rrtatn In Enrupenn conlph-
niles not known oil this n!a. As m Illustration
OF how the huslncss WINS mnnuRol, it Il
known that tito Liverpool & London s. Glpbu
formerly wr,te M byh us Sl0o01o on el,glo
risk, aud relnsured Ii ccrtAn proportion of th1i
sum in tho Anchor Of Moscow, liusstn. Tht
Guurdlan Ut London rntMsurcd tn tho Sun Fire
s oes a1 .nss ~ H ,t ss l9 ns nuw
would dImlllish the Income nf tho fnruIgn cUin-
anles 80 low Us - lcfHsS % .ho Tev"Iv s =, 1f o
reuIized. Tho fnruIgn compal.scs rsgotpe1 In
other quarters whnt they lust on the l,sa ne re-.
Knlned nothing: On tho c,nt'nry, i hns 1usi
Goon dseoycrpI that THIS law hui u l, ll,a,'nsrsnA
effect. 1t has driven lhnNsat'ns u risks AbrsAtl
and compelled uscrct'un.s to senl to Europe ~
f--mnl,su sum In premiums which formerly pai.
purses tho lccrras.s: ic'',,Io fr,n tho f4roisn.
crs hhs tncroAsatl tue tMX4s " tho !!tsal cus,e-
pnses rnn foTsEnrrs aro 3 s ~ eat % ~ ;n! s.ey s q
II ln0ycIIHnt wetn mMtlu nuw e rcsctRd ttst
ltensurance INV IN scrls'as opposition would b
ui!ngcd by the ry chtlpuniEa 'lls'4t earnest AIld
energetic lI la suppnrt two joAra HEb
THE LATEST F0HEt0S ARRIVAL
IL the Ftru Insurance Association Of I.Unt0n
already tioInicllGtl tn Chicago. and ere lUlIt
destined to operate IN scyVfal of tho Western
Siatrs. THIS Company has pursued tl,a mos
extraordinary eut,fsc tn establishing lta bl,st
ness in this country cycr recorded Ut for
clen company. a treaty was negotiated II
14ondou {sccretly, ot course) by Which tht
Compaay rcinsured tho risks Ut tho Little fsu
ysEs IF Doston, aud n,a.lo nir Arrangement Will
Mr. /. II. Hctlmnn. tho rresiiutit nt tho ltoFnre
to reprcsent tho Coulpuny W American nnhapcr
This proceeding wi,la hMye caasc.! surprlue t.
tho underwriting frltnrUtty 4 the Ctnpany r!s
tnscrua had uuen tho EtHuOf tlartrOrtl.uF FrAHk
lin of frntlntolrhia,or any "thor prosperous G'1n
pAuy; but that the LittlU lluv0rB should hAfi
been sciectM' NJ Tho 'nc.'t''m ir NJ on5ranso +
pauy's recnri for tho paat three yDars, W shuWt
by tho Official rocurtis ts as fs'llows:
lGdF. d9fs. ,.r,i.. lneamt ftIiiiaIrrs
lgS, RI ,s7;i|e eCas SOL, ,bA Is Rs,5l
1h7O .21tHllf HHt{| lttS. .f8}l 1u7,H1