National Republican., 1883-06-04
INSURANCE ExAMINAr1oN.
A Few Well Timed Remarks By. An Au-
thorlty on the Subject.
Net0 York Commercial Bulleifn.

thorlty on the Subject.
NesO York Commercial Bulletin.
1t is high time the agencies and branches
Of foreign marine insurance companies oper-
sting among us to the disadvantage, if not
destruction, Of our own companies wore
brought to the test Of thorough and period
ical examination. 10 is TO bo seen by the an
nual department reports that for the most
part, they are weak concerns, and yet, be-
cause able TO put 100000 on deposit at AL
bany, they are FREQ to compete for business as
If their assets counted by millions, and at
rates which conservative local companies
find bo DO ruinous. Moreover, IL is noticea-
BILE that few of these foreign marine branches
show any great increase Of assets in the
United States, however much money they
may receive OF gain. Instead of doing as
the foreign fire companies have always done,
that is, strengthen themselves on this side by
retaining here the gains of United States
business, and evon adding thereto by re-
mittances from tho home offices, these for
elgn marines get oil they can and then send
homo all they get This Is, to say the least,
poor policy as regards success here, however
important to languishing home offices these
remittances from the United States may be.
The recent back-out Of the Swiss-Lloyds
should serve as good reason for action on
the insurance superintendents part with re-
gard to tho entiro brood of foreign marine
agencies at this port.
In the same connection IL seems proper and
fair TO suggest that general examination of
the New York marine companies would be
quito in order, in view of the long period
which has elapsed since any such inspection
was made. In fact, wo cannot recall so far as
the records show, any complete examination
of this class Of companies for many years past.
The thing was undertaken, we remember,
nndar Millaria ananicaa hut ~ cafn IN 4 gVtd-
den stop, for reasons which are best known to
those who conducted tho negotiations which
knocked the examinations in the head quito
early. Under Mr.. Mccall we shall expect to
500 them begun and completed without much
successful interference from Interested par
ties.
But one thing especially appears to us inn
portant to be restored to tho state supervision
programme, and this Is tho prompt publica-
tion in full Of all the work done by tho de-
partment in the line Of examinations not
only, but Of prelimluaries leading thereto
yhich tho public interest" requires should
90 known. 1t is notorious and stock alle-
CATION against insurance supervision that 1t
has never forewarned nor protected policy
holders as against tho impending failure of
moribund companies. In this matter nobody
has learned from official sources when to get
out from under failing company, although
the insurance press has done considerable
warning work of this kind. If an insurance
department cannot be depended on to do this,
and do it in time, 1t fails 10 fulfill its mani
fest mission, and may as we'll shut up
shop. But at least the public has a
right to know, and it is a faithful super
intendents interest TO lot the public
know, whatever will warn policy holders in
time of coming danger. And the publicity
always promptly given TO reports Of examina-
tions, under the nonpartisan regime Of Supt.
Barnes (and always suppressed under his par
-
too strongly be insisted upon as worthy Of
restoration under the administration of Mr..
Mccall. AS that gentleman knows, better
perhaps than anybody else, the suppression
lby Smythl of his own reports anent the
Globe and Knickerbocker life companies was
the cause of untold loss to the policy holders
of those then moribund companies. That
kind of performance, We trust, cannot be re.
peated very soon again. But the best way to
convince the public that it will not be re-
peated is to go back TO the original system Of
Supt Barnes, whereby the fact and the result
OF every examination was promptly given
publicity in the press and thereafter put on
record in the department reports.
Should the powers that be in the insurance
department at Albany show any disposition
to accept these or other practical suggestions,
made In the interest of the public of the COM
paniess and af the department itself, there are
several other matters equally important
which we have in view to present But there
is no need of hurry, and when the new super
intendent indicates his receptive disposition
we will be glad to give him enough hints to
keep him busy, in the direction Of the public
interest, during the usually inactive season
intervening between the sessions of the legis-
lature.
ANSWERS TO "sUBsoRIBER."
TO he Editor.
SIR: A few words, If you please, in reply to
"Subscriber's" defense of local fire insurance
companies.
In referring to the attempt to reform a
board Of fire underwriters he says; "It was
through no fault OF the home companies that
the efforts proved futile" About three years
ago the secretary Of one of our homo COM
panies, who had written line on mansard
roof dwellings in row, at fifteen cents, when
the rate should have been thirty cents, de-
clined to enter board unless permitted to
continue low rates.
"The agent of New York or foreign
company, with the exception of small an
nual payment for license Is entirely free from
any form of taxation" The district compels
insurance companies, life and fire, to pay 1
per centum per annum on gross receipts.
"A loss occurs, and how Is it in the matter
of payment2 The rule with the home COM
panies is speedy adjustment and prompt
payment. They ask no delay of sixty days.
"The destruction by fire of the Jefferson
school building is an example of this, as both
foreign and homo companies held policies on
the building. The home companies were the
first to pay"
The facts in tho case are these
The representative of the foreign companies
declined to pay until after adjustment. The
home companies except the Potomac we be-
lieve, paid at once. One Of the homo compa-
nies had policy Of $1,000 on the building
Tho secretary paid that sum. After the ad-
justment, which had been demanded by the
foreign agent the loss of this home company
was ascertained to be about $4,000. Forum
ately for its interests the district commission.
ers refunded the difference. In nine cases out
of ten it might have had to resort to litigation
for the recovery of the amount Managers OF
insurance and the community generally car
readily determine which man displayed the
best business sense-the one who paid imme.
diately or he who awaited adjustment.
VERITAs.
GIVE US PROTECTION.
TO he Editor.
SIR The person who signs himself Sub
scriber" in The REPUBLICAN, Of this morning
is under the impression that 'our companies