National Republican., 1883-06-01
rlre nnd Lir. In.nrnnrs.

/
which reported to that department for the
year ending Dec. 81, 1892 The value of the
risks written by these companies aggre-
gated $s,55s7ls,91s, the net premium upon
which amounted to $61171, $3.50. The in
come of these companies was $so,0ss ,563,
and their expenditures amounted to $s4,.
1910. The total assets aggregated $780,
274,263 and their liabilities $64, 4,5s2, ,O5i.
Largo as these sums are, they by no means
include all tho business of FIRE insurance in
the United States But they may be regarded
as representing very truly the good fire insur.
ance. 1t is matter Of impossibility to ar
rive at the figures which misrepresent the
bad fire insurance. And yet the "wildcat {"
companies are by no means entirely extinct /;
and If the wildcats were all dead, as they
ought to be, a system of underground" In
surance of the indifferent kind still survives,
and Of which wo will take particular notice
on future occasion.
Nearly every state in the union has found
II necessary to adopt some supervision over
insurance companies, and to provide de-
partmont intrusted with the duty of caro-
fully guarding the public interests, by estab.
fishing legal standard of solvency with
which all companies must comply before they
arc admitted to transact business in those
states. That standard to some extent varies
in different states, but there is nevertheless
standard in all tho states. A few states
still permit capital stock Of 100000 only;
but not one of the stock fire insurance
companies, doing business in Massa-
chusetts, has q capital of less than
100000. This capital is regarded as lia-
bility, and with the unearned premiums on
outstanding risks, and the amount reclaima-
BILE on perpetual fire policies together with
ness, constitute the liabilities. When the
liabilities exceed the capital stock by 20 or
30 per cent, according to tho laws of differ
ent states, the impairment of capital must be
made good, or the companies cease doing
business, and proceed to liquidation. These,
with other requi rements, not necessary at
this writing to explain, create the standard
of solvency with which the public in the
states are guarded. How Is 1t at the capital
of tho country?
Congress has left the people of this district
without either a standard of solvency, or
that supervision which requires the officers
of companies to swear to the truth of their
statements, or even to make public any state
ment whatever. There are ten fire insur-
ance companies in the district, whose capital
stock varies from 81 900, to $25, 900. to $780, ,0oo
to 100000, and 100000. But in what securi-
ties that capital is invested there is no way of
ascertaining. except by the courtesy of the
officers. The public has no rights which tho
directory Is bound to respect. There being
no law requiring standard of solvency, as
long as losses are paid tho public must take
on faith the risk which in the states reposes
on full and exact knowledge. These local
companies do no business beyond the limits
Of the district; their entire risk is centered
in one locality, liable as all communities to
visitation by sweeping conhagrations. Chi
cago, Boston, Portsmouth, New York,
Baltimore, and nearly every other city,
has in its history the record of a
great conhagration. If Washington city is
exempt there is no use for any fire insurance
companies /; but if it is not exempt there ex-
lists n necessity for good and safe fire in
surance companies. We hope we have them,
but we don't know that we have them, and
when the destruction of a single square may
reveal the fact that the city did not have
good and safe fire insurance companies the
knowledge will come too late for those who
have leaned upon the broken reed.
Fortunately there are eighty-six companies
of the states and foreign countries represented
by agencies in Washington. OF these twenty
six were organized in foreign countries, but
their branches in the United States are for all
practical purposes local to the country They
have $32,744,676 Of assets invested in the
United States they have deposited with state
officials $6,767 900; and since not one dollar of
their invested assets in the United States can
be withdrawn from the country until every
liability is discharged, either by payment or
reinsurance, they enjoy the confidence of the
insuring public equally with the best compa-
nies of the states. Twenty companies, organ
lied in New York, are doing business by
agencies in Washington; ten from Pennsyl-
vania; eight from Maryland; six from Massa-
chusetts six from Connecticut; three from
Rhode Island two from New Jersey two
from Wisconsin; two from California; one
from New Hampshire; one from Illinois, and
one from Virginia.
There are degrees, both of the good and tho
bad, among fire insurance companies, and
while some, which are no better than they
ought to be, squeeze through state insurance
department and receive its certificate, which
is always ready for exhibition, yet they have
to leave on record a history Of their years
work, which when carefully examined will
show whether the seeds of success or failure
have been sown by its management
while struggling for business. An
unwise and unrefecting public will
sometimes permit tho rate of
premium to influence in the selection of the