New-York tribune., 1885-01-02
INSURANCE--FIRE AND LIFE.
COME FEATURES OF GREAT BUSINESS.

Tho man who deyOtes his days and nights 10
ettiuc up columns of figures. that he assures us cant
lie proyes that our National wealth increases more thah
$500 100000 year. We burn up one-eighth Vi 'i"'
vast sum that may not get rich too fast insurance
rates are high, in comparison with rates charsed III
other countries simply because the ratio OF loss 10 'o
omoun insured is 40 much greater. Wo buiid argey vi
ool which becomes like finder during our tord sum
,oers Arctic winters call for artificial neat Co" ah"
wood are abundant and 1t follows tbat tne "ii'''
monsAs are most dreaded by the hre lhsurance 'oN'
panics Somebody says there are certain eiec'rea co
dit;ons here that help the spread OF IRE III may De-
The exceptionally heavy losces of the past summer
aud au.umn caused widespread among
,nder.vrcrs and one among them declares that II the
losses continue for the next ten years at the rate Oh
increase manifest in 1884 the insurance business ocr
the present practice, will go to ruin But In suc al
event nobody supposes the present practice VIII oo
continued for rates will be increased TO meet ''e
exigency The percentage of fire loss to each 9Ioo Vi
risks written was in 1873, 1888: in 1879. 4olo IN
1880 427s; in 1881, .449i; in 1882, 4iso; IN 1880
Asos The amount OF losses paid during the saiie
perod was in 1873, S26 336.05S 81 In 1917 S0l'ot-
2i3 %; in 1880, S33 SOS OF; in 1851 TSo4o'i''
in 1882 Si43l5,4G7; in 1888, Si976O,9l2 81. Ihesc
figures were given by the president of the National
Board of Underwriters in his last annual address.
r,,. eou,,eman. d. A. Head. on being asked the
o,hr 1av his opnion as TO the of the increased
destruction of property answered that 1t was general
linuidaton" He stated that in ordinary tiles 'no
losses from design contriouory careesshesS
amounted to one-third of the whole, and that OF ae
these causes had exhibited fearful activity Ihese
views are shared by underwriters generally and there Is
loud call among them for the passage OF bankrupt
law u order that the element OF moral hazard ma! o
diminished not pleasant for one who Wouid hAo !"
nut faith in his fellow man, as beng hot "l'er m 50
nuch lower than the angels to believe him gwen Ill SO
General way either applying the torch to MS mueh-
insure1 property or carefully cutvating the deiect III
the detective hue but insurance adusiers nave eA"o
dinary facilities for obtaining knowledge "heIe i"oo'
dsrsm il suspected and there ia no possible cha0c Vi
nroviug the charge threat to contest payment o'e re-
sults in such an eager desire manifested on e
insured to settle at any price that it becomes per
fectlv evident that he had hand in the destruction
of the property The underwriters certainly nave aouh
dant evidence to prove their statement that there Is an
enormous amount Of moral hazard in the business on
falling market although as matter OF course they may
take an exaggerated view OF the evil
Fortunately in life insurance the moral hazard is not
10 an serions consequence it having been described as
tho game I'm which one must die to win-and men don't
like TO die Several companies now make all their pohces
.ncontestble they have been in force three years.
Once in about many years some enterprsinS genius
experiments with cidaver weighted cofn gets up
mock funeral has himself announced In the papers as
duly dead and buried and then application Is made Tor
the insurance money The game is an old one, Inc
chances OF winning are few. and tie risk OF detection
and term in prison serious Life insurance is safe
business-so safe indeed that people siun proprietary
companies rule, preferrlng To he Insured on Ne i
nal plan in order that the cost may be less Not that
The cost is necessarily less in mutual company. but the
chance for getting returns OF surplus premiums I'M
properly called dividends, Is strong attraction ana IL
must in justice be sara that IN Eoou co.haeo
turns have been large. But one American compthy oil
pu'iS pd - thoromghy wcmapaged The company which
was started number of years ago By Jay COoie, with
million dollars OF capital: Is praene"y olt o. t.e @ ne.
fall due. while it, stock j NudDc
that Il could hardly be bought at any price Invest
Inents of the companys money In Chicago real est are
the bottom Of this happy state o. affairs LnglSh
life ins.lraAce companies IN gener are iasSI 'iseH
bonuses That is to say. while charging rate OF pre-
nnTeiy mu;nai companies OF this country the share
holders do not content themselves WIN SlcciHtu Idc
SivdigS al with The insured the surplus preinaus
bonuses they are called II Is on TINS aGcoh' rg
in England havemct with so large degree oi success
for John Bun is stubborn hghter wnen it comes
TO competing for life insurance.
But then he completes vigorously Tor any .ort Of hn&
fines Of his snug little island. The American Nho goes
there thinking to do stroke of work ia J.t hc way ne
bos known 10 collar total stranger in broadway
under pretcnce OF saving him from being run over by
stage, and who immediately Thereafter thrust ne
would find London rough road 70 travel |
Some American agents nave sone IN re ana
companies doing business there adopt English methods
which imply much red tapc-ne mosi rolnaaonn WAYS
possible Of getting at things The agent VINO should at
tempt interview with leading nerchaht or hhah- |
cier hoping TO interest him in life Insurance ana TO Sc
his signature 10 proposal without penE ape 20
present letter OF introduction from some person o. III
CHANCES are that letter OF introduction would be o. no
avail unless the person givngi had first prepared the
uUder consideration II has been limited That le nsur-
anec agents have been known 30 bore people They do
not in London. How they manage TO do hor buo-
ness Is "a my stery the unniuated One obstruction III
their way Is the family solicitor the one particular
o
who has much business aud who fears |
Erw"--for he must have his commission. |
Then too he has his predces ana knows in n %e
ject to deal with lie must he dealt with. however An
he takes it. The English do retaate by undertaking
TO with us for life insurance business on our
3 ior we 81, ~ tir O. SrSat o rc T6nce cor"
panies here and they do immense business And they
IN turn adopt American methods Managers can be seen
c,tx TR% IN mss t ace Whom apnarsnt obseios.
and policies Of insurance are not doomed 10 date om
Christmas, Lady Day, Midsummer or M4chaeinas.
OF late the insurance offices have been busy getting
their annual statements ready work Of small
nitude when TO consider the vast proportions
tails necessarily connected with IT, Unqucstionaby.
there rather too much of State supervision of insur
are, an army OF clerks is required to MI
out blanks and foot y? columns Ls OF Il tfufcs. f
est to the business part OF the community indicating as
they the OF value OF securities that
absolutely indispensable and Certain
" all trade would parayzed If insurance captal
bloted out. Ii has been hard year The companies,
q number have compelled to retire, and the chances
that will 20 the same way.
We do not predict any serious showing Of impairment
Of capital in the forthcoming statements but there will
be indicated notable absence of profits. The life
panies have done large business though perhaps less
than In 1888 In that year they paid to insured members
and their families the enormous sum of S56 1854 and
the last will doubtless be i'm excess Of that
II a wonderful Of life that flows from these inaie
buttons through city and country village everywhere
Q glad stream indeed The money usually comes at
time when II needed whether the recipient be rch
Or poor What effect the American scheme life nsur
ultimately in helping settle dread