New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-01-04
THE INSURANCE OUTLOOK
ARE THE COMPANIES LOSING GROUNDa
a REVIEW OF THE YEARS WORK IN FIRE

"a thu state Commissioner of Insurance have not YET
been compiled by the various fire Insurance compsncs
but win be Published. it, is expected III soou, ieo
weeks Tribune reporter called the other DAY ."
r n Kennesv of tho firm Of Weed q Kennedy
Ere underwriters and asked for his opinion ana
a brief review of the business OF the iast year WI
Kennedy replied "Until the annual statements a''
published by the various companies IL IS omcui' "
cav ANYTHING Interesting about fire Insurance. because
,ast years business has included but lew ho'aoio
..,sndas A few small companies have been wound
mn one English company has withdrawn rom this
country and a number of companies lncorpora'ou !"
other States have also Withdrawn from ths 'iO' y"
account of Improbable business rev NC" 'oo'
panies have started in the United STATES anu oA'
one the Empire State Fire Insurance Company Va
pocbes,er has becn incorporated in this State The
reneral insurance business of tho country curing VIC
srst six months Of last year was disastrous. An
officer OF one of the largest and most succesiu CUM
nan,es in the country told me last summer that the
Srst six months of the year had proved the most
unavoidable his company had ever experienced.
h "The second half of the year was not iemaihaoio
either for profit loss, but was propaoV larry
,,roatahe 10 most companies Here and there CON-
nanv NAV have done well in the first hall Oh inc
wear and on the other hand some companies may
have lost on tho last six months, Dut 'he sonciA
statement is that the first six months was disastrous
am, tho latter part of the year only fairy
,roe,ahl. seme fields which have generally been
r.,arded as improbable, such as Kentucky ana Ten
nessce have been profitable during the las. soa'.
Nsw-York State seems 10 have broken QUE WIN no
measles all over, and there is scarcely company o"
has lost money this State last year. Inc ""i "
rates between the rival companies In New-iorh Guy
has continued unabated. The companies have been
burning the candle at both ends, writing business ~
49, ,-,t.s than tho risks warranted and paying
,arror commissions TO brokers than even higher pre-
niuns would bear. There have been no gre%e eon
dagrations in this city, but the losses nave ooo"
heavy and the period of comparative exemption HUH
loss in tho summer was not enough TO Offset the LOSSES
Of the early months"
LITTLE HELP FROM RECENT BUILDING,
elias tho fire insurance business not increased IN
an equal ratio with the large number oil pu'idlisS
erected in the city 2" asked the reporter
~No.p said Mr.. Kennedy. "The business has ho'
,ca.sed mpch the now buildings erected In the up"
tawn districts having been constructed wholly VI
nartlv for dwelling houses and the rates have Deen 81
ridiculousIy low, that the entire premiums oh TIC"
buildings would scarcely pay for total loss on any
single policy that a large company wouid issu' oii
risks of that character"
ais there any prospect of settlement OF inc rate
war between the companies to which you referred r.
was next asked.
al n,esnmes was the reply. "that most of the
comnanies will agree before the coming spring Is
ended on a tariff both of rates and COMMISSIONS ~
IS desirable both for merchants and manufacturers
that something should be done 10 encourage the hopes
Of the companies for better state Of business other
wise many companies of other states VIII 1oho" uno
exsmne of those which have retired from this CITY,
and merchants and manufacturers will be In the con-
dIdon they were in some years ago. OF being eh'reS
unable 10 cover the value of their properties by IN
suIance."
awhat is your opinion Of the general outlook Tor the
near future9'
ct must say that the sense of danger from persons
setting fire to their premises has become more ana
more source of anxiety TO all obsevant underwriters
IT, is impossible TO furnish statistics of this feature OF
the business but believe that most underwriters are
convinced that cne-half of the fires reported are IN
.entionay stasted by the of the property In
which tbsy take place. Underwriters have their own
means of investigating the individual features Oh the
rsks they assume but those means are most III
effective except in the case OF persons VINO nave hso
preyIous fires 1t has been suggested that the Gov
eminent do something 10 repress fncendiafism, ana
the propositions which have been discussed look for
some law by which every man, matter whether
his business is large small, and no matter how
large or small his insurance, should be compelled to
bear n shar, of his loss after has been adjusted.
When YOU bear in mind that the losses by lire last
year in Now-York amounted to nearly Sl2O,ooo,ooo
vou will see some justification for the arguments Of
tbose who think the Government ought 10 intervene II
the loss Of only onehalf this large sum was the re-
sIt of wilfu incendiarsm. In the long run the IN
surance companies Will make rates high enough to en-
able them TO pay the dishonest as well as honest
losses but 1t will be by taxing those who do not will
fully get burned out. 1t is not in the power OF IN
surance companies to prevent incendiaIy fires, but
II Is in the power of the Government"
"What has been the percentage OF convictions for
arson?'
"There have been so few convictions that 1t is i'm
possible to tell, and those obtained have generally
tho rsult Of large expenditure for detective and
legal charges.
ELECTRIC LIGHT COMPLICATIONS.
"one of the most Interesting problems now before
insurance is the increase in the number OF cleo
trc lighting stations. Several of those which were IN
buildings erected especially for that business and Cd
superior construction have been destroyed
and, it was said at first, most I'M
accountably. The theory has been propOunded by
some of the most thoughtful In business that
these fires have been started by an access of cleo
tricity In the atmosphere in the buildings. in other
words, that they have been practically caused by
lightning generated In tie buildings. Whatever the
cause, there have been many fires in buildings OF
this class that many companies will not take these
risks and others will only take small lines Of such i'll
surance.
! "The use of natural gas for many purposes has
been subject Of much study by insurance men rd II
regulated that it reduces fire hazards, while some
places II admitted into towns and buildings as tC
also IN some places where it can be- used as fuel IN
certain kinds Of manufacturing. and insurance mer
look for many fires in such places when nanufact
urers who still coal, begin TO lose money from The
competition in trade. Another remarkable develop
mcnt last year the large number of fires I'm car
rage and wagon works. The ownership of some o.
these and their prosperity forbid the suspicion OF dis
honest origin OF the fires, but IL is generally believed
that of the smaller risks have been burned OF
account Of inability compete with the large factories
which are flooding the country with their products
"will you give comparative statement Of hi
present condition Of the insurance business as com
pared with It's condition a year ago?'
There are few exceptions TO my statement, but II
view of the increased amount Of term business AM
total amounts at risk believe the companies are no
so strong they few years ago. and maxim
those exceptions, they arc not Likely to grow
stronger"
NO LACK OF BANK EXAMINES.
The suggestion that the resignation OF Valentine r
Snyder as a National Bank Examiner would let tn
hanks OF New-York defalcatOns and robberies
Il, oontraaiced by the fact the bank examiners