National Republican., 1883-06-02
FIRE INSURANCE.
A Defense OF the Local Companies-"Th'
Republican " Endorsed.
A DEFENSE OF THE LOCAL COMPANIES.
To ne Editor.

DEFENSE OF THE LOCAL COMPANIES.
TO ne Editor.
SIR: There is, as you say in yesterdays
issue, "no subject more important to COM
munity than the indemnity against loss by
fire which is sold by insurance companies"
Statistics from the insurance commission of
Massachusetts,, and general statement as to
companies who have agencies here, but whose
home offices are elsewhere, might lead one not
familiar with the exact status of affairs to
suppose that the best insurance for our citi-
zens would be through tho agency system.
We ask tho further generosity of your col
umns, and bespeak hearing for the
home companies institutions Of our city,
congress has left us without fixing
that standard or supervision which is re-
quired elsewhere, is that any reason why
these institutions should not be encouraged2
The true way to obtain congressional lcgisla-
tion in this direction is TO foster and support
these city industries. BY throwing u ma
jority of the insurance into state and foreign
channels this end is surely defeated. A con-
gresham cannot afford TO forget his own in
surance company at home whose officers may
be his own contestants, but cares little for our
city institutions.
We do not go to England or New York for
our boots and shoes and dry goods, and yet
how frequently is our boot and shoe dealer or
dry good merchant insured against loss by fire.
away from home. The money is spent for
commodities here but is sent away TO in
crease the capital Of other cities. Without
any board of underwriters cutting of rates
necessarily ensues, and frequently insurance
Is bought at rate far below the honest
minimum by an agent more anxious for present
business than solicitious to secure for his cus-
toner an adequate compensation in lieu of loss.
In ftpn ftun fhNa ttf.taa
an effort has been made to fix minimum
rate on leading kinds of insurance, which it
was hoped would be subscribed to by all, or
at least 95 per cent. of the companies doing
business in this city. 1t was through no fault
OF the home companies that tho efforts proved
futile. Several of the agents preferred a con-
tnuation of cutting rates and refused to enter
the compact. Thus 1t is that our own insti-
tutions are misrepresented and often placed at
a disadvantage, particularly in the matter of
taxation. Each home company pays q per-
sonal tax of $500 on 100000 of in
vested capital, while the agent of a
New York or foreign company, with the
exception of small annual payment for
license is entirely free from any form of tax
ation and is thus placed on the vantage
ground in this direction. A loss occurs and
how is it in the matter of paymentP The
rule with the home companies is q speedy
adjustment and prompt payment. They ask
no delay of sixty days, which the agents re-
quire, to enable the adjuster from Massachu-
setts Pennsylvania, or elsewhere to come on
and settle the loss The destruction by fire
Of the Jefferson school building year and
half ago is an example of this, as both foreign
and home companies held policies on the
building. The home companies were the
first to pay.
The paid up capital Of the home companies
amounts in no instance, we believe to less
Fl. al. Ill
capital and surplus Of these eleven companies
aggregate nearly three millions of dollars.
In the absence of a board of underwriters, or
Of congressional supervision the public must
look to the officers and directors of these COM
panies, and the character and business integ-
rity of these gentlemen must be the public
index as to the safe investment of the funds
intrusted to their care, which, in the event of
loss, is to greater or less degree encroached
upon. SUBSCRIBER.