, 1881-08-28
The City Of London and Alliance Cos
- sip-How the Personal
Part Is Managed. 49,
Appreciating the Ncst-An Embryo
Half-Breed Company SQuelchcd
Various Items.


column of losses and expenses against
the total income is somewhat deceptive,
nnd, while many companies appear to have
l,ained handsomely in their net surplus,
the same returns show that their eNpendI-
lures have largely exceeded their Income
=: This is no paradox, lnasinllch as the he1 sur,
plus column shows the SUMS held over and
AIRY many Offices lad heavy liabilities: ln
July they had only small liabilities. .Itle
amounts required to diminish the latter, now
ever, had to be paid; from receipts, and thus sAe
. expenditures were increased but liabilities re"
!: duced. The reduction in outstanding losses IS
especially noticeable in the returns of English
their 'Tcccip1s. but it u company In 1851 pays
of the losses of 1850 it follows that its profits III
1850 are thereby enhanced, or else its losses il
1ssl should be diminished by tho sum chnrscao1e
THE RELATIVE: PROFITS
The large agency companies regularly Ill
vide their business into four sections. accord
ing to the territory lin which they operate.
The comparative profits and losses in these
departments afford the basis for rates in
:hcse localities and determine companies rs to
whether it is desirable to continue the strug-
zle when the odds are apparently against
shenl. Having recently been permitted to
Zee the exhibit to the Directors OF a proml-
1ent agency company doing 4 general bnsl-
ness throughout the country, it may interest
-FOUR readers to learn tht relative experience
III each. The figures given represent the
percentage Of profit to net receipts, allowing
Dper cent for reinsnrance,as as required BY law:
New England, profit ~ per cent; New York
western statcs, profit Il per cent; Southern
States, loss Of - per cent; Pacific Coast, profit
81 per cent. Probably this is Il far example of
the exeriencc of majority of the companies
Of this country, as some may" vary from this
sIateMeut one way and some another. The
striking feature III it is the small profit made in
New EuglandJ and the fnrEe loss in the SOUTH
The Yankees nre unfortunate US other people
In tho matter Of fires, and do not pay anything
tise adequate rates for their Insurance. II
their risks were rated as they are in the West
the profits would mount up to 10 per cent, even
with present losses But Il frame range will he
taken by all the companies In country towns in
New England ut IL and = per cent each which
In Illinois would be charged TO per cent.
That's what's the matter with the small profits
IN New England. The fuult in the South il
TIE COTTON LOSSES
These are so numerous and so exasperat-
Ing that tits becoming a question whether
the companies will longer insure cotton, cx-
ceptlng in compress warehouses divided into
compartments after the manner Of New Or
leans and Galveston. At such ports as
Savannah and Charleston the losses on cot
ton III the last few years have discouraged
difficulties are numerous. The cotton is col
lected in bags or loosely ba1cd on plantations,
sent to railroad stnioEs and loaded on open
cars until they mount so high as to resemble
haystacks OIL wheels; sparks quickly ignite
the cotton, and the result is (: eortagration.
Ii loaded into box-cars and safely delivered
at seaport, then there is careless handling
again. The warehouselilen treat cotton as if
it We're no more liable to take fire
than pig-iron. Then there is a teinpta
iuccndiarfsm, inasmuch as tho wurehouscmaa
issues his own certificates, and deposits them In
bank rs collateral security for Advances. He
uuy issue fraudulent receipts without fear Of
detection, provided he can produce an insurance
policy for IN amount sufficient to- cover the
or fire, and if thore is no fire the warehorscmun
tnkcs up one receipt by issuing another. Tho
Home Insurance Company, OF New York has
doubled its rates cotton Some of the Hurt
ford companies have prohibited their Southern
agents from accepting cotton risks at ALL The
business is now largely in the hunds of the British
locals have n controlling interest in it through
the fuctors.' The cotton losses handicap the
profits arising from al1 other kinds Of tire-in-
snrnnce in the Southern States and the expert
eucc Is so universally disastrous as to make
companies shy of the risks
THE WESTERN UNDERWRITERS UNION.
This Association is composed of the Gem
eral Western Agents of companies whose
headquarters are in Chicago, St Louis. and
Cincinnati, including State agents west of
Pennsylvania and the few large agency 10
calls Of the Western and Northwestern
States The operations Of the Union are
supposed to be secret, but every agent who
has two ounces Of sense and cares to learn
the why and wherefore Of certain acts can
discover the secrets very easily, and most Of
them do it. In fact, the secrets Of the Union
are the laughing-stocll Of the great mass OF
agents who live in cities and towns large
enoug gh to make their calling their sole sup
port The Association is ,9odeled after the
secretsociety Of companies Commonly known
of ali The Engiish most 10 % Of the I'll, a,rtfori fna aud
Philadelphia and the largest of the
New York city Offices. The Westerncrs' ure not
more numerous 10 companies actually repro
in different States being called into the service,
the '' Cnion " has more members than the
Alliance Each member is addressed by
1.uni,er, and are known only By such a number.
THUS Mr. Disseil, Of tho Hartford, is not known
as the Iiartford's Western Manager, but us No.
-. The object OF the Union is to advance rates,
and by a concert of action compel agents in
every city under the jurisdiction Of the Union
to conform to the established rates. If they
cheat, then the Union proposes tc punish Them;
md, II the agents persist in cheating. then tho
Union tries TO takc away the offenders compa-
MICS; Thus far they have generally succeeded
agents to rigid accountability for every devia-
uon. The effect Is seen In the improved receipts
1r<,m the West, and hence it js now rcga rt1cl as
altogether the most hopeful Held Of undcrwrlt-
ing in this country.
NEW YORK CITY BUSINESS
has on the whole been the most profitable
for the past year done by 4 large majority Of
the companies. The rates have been slowly
advancing, aud so slow us to be impcr-
ceptible, willie upon. dwellings and other
buildings the bottom prices are still fabul-
ously low. Dwelling rates have become
byword and reproach to the companies, and
yet they. continue to accept them with an ap- !:
parent RELISH Think of cents net per
$l0o for one year, Is for three years, and -
for 1--WE years on Fifth avenue dwellings,! In
spite Of these drawbacks the companies have
made money, and the published returns of
the companies which contine their business
wholly to the city present some remark klbty
results Several companies show losses Of only
percentage Of loss on this business is not over
20 per cent The secret is in tho reduction Of
losses generally throughout the city. The im-
provcrncnts in water supply and the Fire De-
partueut have reduced the chances of fire
largely, and the multiplied appliances for the
curry detection Of fires throug gh mercuria1 aiurms
and other devices have saved many .ontgra.
don. Greater pains are taken by the companies