The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1886-01-07
THE FIRE AT GALVESTON.


years past, so that the fire at Galveston
should make British fire offices more hap
py in their minds. We hardly like to
adopt the theory that trades unionism
had anything to do with this catastrophe.
This is one of those things which will be
shrouded in mystery to the end of time,
but it is perfectly certain that fire of
this class renders both American and
British offices very chary of mourning
fresh obligations of any kind, at any pre-
miam, in places so liable to such calami-
ties as the one on record. Of course, the
usual list of companies having policies in
the burnt districts have been published,
prominently amongst which, with a risk
of about double that of any other affice,
is that of well-known London fire insur-
ance company. But these lists are always
more or less deceptive, for the
simple reason that an Office
may nominally stand to
lose 100000, whereas it may really, by
reinsurance stand on the risk with only
the one-twentieth part of that sum, having
given off, in fact, 19-20th, all for a reduced
prem iu n, or having taken higher com
miss which means the same thing. Our
New York contemporary, Insurance, just
ly speaks as follows upon the present
situation "Some of the companies got
pretty badly blistered down at Galveston.
And now they respectfully think: 'Oh, if
we only had the pluck to get away FROM
the state when Texas passed its valued
policy-law' The reasons for such retire
ment were quiet as strong as, if not
stronger than, those which dictated the
exodus from New Hampshire. For six or
seven years past the companies have con-
tinuously lost money there, and no law
makers ever exhibited a more truculent
attitude toward insurance than have those
of Texas. Then, too, it is as certain as
anything unknown can be, that had the
companies abandoned Texas, they would
have never been confronted by valued
policy law in New Hampshire"
We utterly fail to see upon what grounds
any community can expect insurance
companies to continue offering indemnity
upon such terms as those ruling in the
state of Texas. The exodus of the fire
offices from New Hampshire has created a
strong and beneficial effect Had the fire
insurance companies las our contem-
porary suggests) retired in body from
Texas, to mark their sense of the valued
policy-law, they would at the present mo-
ment be very considerably in pocket. II
is not reasonable to suppose that fire
offices exist for the benefit of the in
habitants, although here in London this
impression appears to prevail in the
minds of some of our rulers. It cannot
be too strongly insisted upon that the fire
offes exist for the mutual benefit of them
selves and the community at large
They exist also for the purpose
of collecting from the public large
numbers of small payments out OF
which small number of large payments
are made when losses occur. If, there
fore, the people of Texas, like the inhabi
tants of New Hampshire, had been sud
denly deprived of that provision for in
demnity against fire, which they appear
to need SO badly, they would have been
compelled TO do one of three things:-1
repeal the valued policy-law; 2. start fire
Offices of their own lin which enterprise
we would wish them all possible success)
or 8. do without insurance altogether
Upon the whole, it will be found, that fire
insurance companies so long as they con
tinue to act upon those sound business
maxims, which have characterized theil
conduct so far, will be found to have the
best in these arguments, both in theory
and in fact, over the people of New Hamp
shire, the inhabitants of Texas, or ever
that august body closer at home, the Met
ropolitan Board of Works, notwithstand
inQ.-The Review, London,