Daily globe., 1882-05-14

An increase of over seventy million dollars,
or I51 per cent, is here shown in the amount
written, and of some three hundred and
eighty-three thousand, or 13t per cent, in
the amount Of premiums. The losses have o
little more than kept pace, showing an in
crease of barely a shadow under 200 per cent.
The business of 1872 was done by thirty
eight com panies-that of 1881 by one hun
Gred and eleven.
Ten years ago, from an insurance stand
point, Minnesota was small and inconspicu-
GUS state-to-day twenty-five states must
yield the precedence to her. This growth of
insurance business is due, of course, to the
material advancement of the state-to the de-
veIopment of her agriculture, commercial
and manufacturing interests. As a wheat
growing state, Minnesota scarcely has rival;
aad her geographical position is such as to
give her commercial position OF unusual
Notwithstanding her, in fact, the natural
mercantile gateway to a vast country lying to
the north and northwest. Her manufactur-
ing interests have expanded to a wonderful
degree. In certain directions especially in
the manufacture of flour and lumber-she
has made marvellous advancement. AS a
wheat and -four producing state none is bet
ter known in the United States and Europe
than Minnesota.
Considering, therefore, the growth and
development OF her agricultural, commercial
and manufacturing interests, including her
railroads, and other important enterprises,
largely the profuct of the ten years last past,
it is not surprising she should have become an
important state from an insurance stand point.
In fact, the insurance business has barely
kept pace with the genetal growth. The
advance has been along the whole line.
The commissioner shows that the per cent.
OF profit on business in Minnesota last year,
allowing thirty per cent. for expenses, was
1900, or, in other words, S2O2, ,49S was the
clear profit of the companies on Minnesota
business in 1881. This is evidently a vast i'm
proyement on the recent record of the state.
detailed statement, by companies, of the
fire and fire marine business done in Mime
sota in 1881 was published in the Weekth
Jrpderwriter of February is, page 12l.
The following additional extracts from Mr..
McGill's report may be found of interest by
many of our readers:
Another heavy loss, by fire and explosion,
occurred among the mills at Minneapolis in
December last, entailing losses upon the in
surance companies, amounting to 1888, l6S 70.
This is the second disaster of the kind, the first
occurring in May, 1878, the losses to the in
surance companies in that case amounting to
1869, ,159 It had been claimed by mill own
ers that there was no danger of recurrence
Of the explosive feature of that fire, owing to
precautionary measures of safety adopted in
all the mills Immediately thereafter But
the fire of December last refutes this effectual-
iy-at least so far as relates to the mills then
destroyed by that agency. So long as this
liability to explosion hovers over the mills in
any degree, the mill owners need not expect
any material reduction of rates.
The following increase of capital during
1881 is noted among the companies: 4
So large an increase as four and one-half mil
lions in one year would indicate growing
confidence of capital in business of which
it has generally been considered timid. To-
~
and Phoenix of Hartford, the American Cen
trail of st. Louis, Hanover Fire of New York
and one or two Others in the above list, capital
IS never timid An experienced, well managed,
eaterPrislng insurance company can always
command sll the capital it needs or wants.
In this respect an insurance company is very
much like an individual, or another corpora.
prudence and demonstrated an ability to sue
ceed, it attracts capital and can command all
il needs.
The business of the foreign companies in
the United States is very largely the gro with
of she last dozen years. The New York in
surance report of 1870 shows but five foreign
companies authorized to do business IN that
state. Since then the number of foreign in
surance communicable and marine-dOing
business in the United States has increased to
not less than forty, with American assets ex.
ceedlng thirty-twO million dollars. The whole
amount written In the United States In 1851 by
all the foreign companies, could not have been
below two and one half billion dollars. The
twenty-six foreign companies doing business
in this state, named in table F, transacted
almost one-third OF the United States business
reported in that table flor 1881, in competition
with eighty nine American companies. At the
present rate of acquiring American business,
in ten years more the foreign companies will
be doing one-half of the entire fire and marine
insurance business in the United States In
view of this important fact it might be well
to consider whether the American companies
are not entitled to a little protective legisla-
ton. Under present laws they hardly have an
equal chance with their foreign competitions
certainly not more than an equal chance. The
subject is at least worthy of consideration.