New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-01-21
WITHDRAWING FROM TEXAS.
ACTION OF NETWORK INSURANCE COM
PANiES.
EVIL EFFECTS OF TEXAN OBSERVATION-DISCLOSURES IN
suRANCF TOPICS.

Evil EFFECTS OF TEXAN OBSERVATION-DISCLOSURES IN
suRANCF TOPICS
The Home and other fire insurance companies Vi
this city have instructed their agents III Texas not
to insure buildings in that State aiter feoraais 4.
This noIicv is due TO decision of Judge Pardee OF
the United States Circuit Court that the r'ee Oh
Motley oxnresses tie value OF the property insured
incase of It's destruction by fire. This decision up
holds what is known as the valued policy law
which "a in force in Texas and some other States
Several atempts were made TO introduce the law IN
this state and tho Legislature passed it once, only
10 have il vetoed by Governor Cornell. The Cham-
her of Commerce opposed the bill in these words;
II will tend TO increase the crime OF arson 10
encourage the perpetration OF frauds; to greatly
and improperly enhlnce the amount OF losses 10
be paid by in surauce companies and lead not ohiy
to a degradation of public morals, but also I'd an
increase of the burdens of honest citizens, BY in-
volvng their property more frequently IN deStrur-
ton by fires caused by iucendiares and by making
it necessary to pay such eIeaty increased rates OF
premium for insurance as will be required, uilder
sucb circnnlsi ances TO pay the increased losses
The New-York Board of Fire Underwriters held
tina; lit would offer a direct inducement to DIS
honest property-holders 10 insure their property
for more than it's real value and promised them the
solemn sanction of law IN enforcing the COLLECTION
of claims however unjust or e1OrOltant. proNlded
only that the clam De UOI idiultu WIN
fraud. a thing well nigh impossible to prove IN
Vice-president Head, of the Home, said TO a
TRIBUNE reporter yesterday: This law converts
n simple contract of indemnity for actual loss
into an arbitrary Indemnity il removes all
interest of the insured IN the protection Oh
his property Ii offers premium Tor tic fraudu-
lent burning of property insured 90 reaize beyond
its actual value. 1t stimulates over insurance ana
tends 10 increase enormously the destruction OF
property by fire: III hne, II changes the whoieo
theory of insurance and ~ most lnlqnltons law
"If is the old story of friction SAID DIT; Men
nedy ofthe firm of Weed a hennedy: M, 10 rs
the oldest insurance story there Is IN existence ne
added. g farmer whose house had been insured
for 81, 900 and was worth 81 300. was telling ihc
fire. oh IFS the old story; OF friction said me
agent. But there couldn't have been any frction,
sad The farmer Where does the friction come
ins' 1t Is caused by rubbing a 5000 policy
against a 81. 800 house. replied the agent.
The retirement of John l.. Douglass from the secrc-
taryshp of the Merchants Fire Insurance company
AFTER twhnty-eigh years of service, caused much
surprise in insurance circles. Mr.. Head sald tiht
Mr.. Douglass had always been spoken OF rs lrst-
rate mar OF business and OF the closest ADJUST
in the city. Mr: O>;tander spn "i eN. fesineh'
Ostrander of the Merchants. SAID: he direc-
tors thought they could nor afford to retain
Mr.. Douglass. They have cut down all ouf salaries
aud are reducing expenses IN every way. NOT
word can he said against Mr. Douglass.
Hereafter. New-l0rk companies viii be able 10
compete with those of Philadelphia ana Baltimore
in making rates on steam vessels running south of
New-York The rates fixed by the Tariff Assotla-
ton the same III TIE tnrcf cites, Dul the cn-
missions offered by Philadelphia and Bal
timore companies were larger than those
allowed in New-York. which was in tins
way deprived of a good deal 81 business. ne Ss-
ISOLATION yesterday rcscnded It's action fixing
rates and hew-lork companies can insure these
vessels al what rates they please.
u. Marshall Lang. for many years hrc manager
OF the New York agency of the Commercial Union
Fire Insurance COMPANY, oi London. has been sue
coeded by MI W indsuT fof1ncI ~ deputy manager
of the North British and Mercantile me Insurance
company, OF London.