New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-12-11
AN INSURANCE WAR.
AMERICAN AND ENGLISH COMPANIES Or
POSED.
DOMESTIC UNDERWRITERS SAY THAT FOREIGN

DOMESTIC UNDERWRITERS SAY THAT fof'|i'N
couprryrops HAVE AN UNFAIR ADvAN-
TAGE-TALKs FROM BOTH SIDES
vh., looks TO the outsider like International war
seems 10 have suddenly broken out among the hie
insurance men OF this city. L. l. Moore' P'os"'"'
of the Continental Insurance Company has oeen ap'
r.r.n,,v se,ccted as champion OF the American hre
insurance companies in an endcavor TO lesule, 'he
onerations of some Of the English companies lnes''
4, is asserted are securing undue advantages oNor
the American companies through their ability 10 AZ
ran GA for large amounts OF reinsurance IN Europe WI"
comnaries that have no assets or representatives III
a.. rJr,tcd States Thus an English company VIII
.omstmes write $4,000 on a single rish, but II -
,eaIv only liable to lose $4,000, as all the rest Is
reipsured abroad. IL the company loses money ny
fire here II Is bound to make money on It's REINSURANCE
whether fires heavy or not because the reihsuihs
company pays the represented English company
larger commission than the latter has to pay mere 10
oct the business Then the English company says
10 the broker or local agent, GIVE us your dwelling
house business and will write very large lines LOT
YOU ON your poorer risks" and so the American COM
NAMES have suddenly awakened 10 The TACT 'ha' 'ncS
are getting left the race. The law OF MASSACHUSETTS
provides that companies doing business IN 'hd' "'s
must not reinsure companies shat arc not
An the STATE and MIR. Moore proposes to UNDERTAKE y"
have a similar law enacted in New-Nofk'
On the other hand the English represeh.aN
declare that their companies arc respohsioo '' ~
the risks they assume and that 1t Is nOoouH o"N"
whether they are protected by reinsurance anu "n'oI
- 90 protecicd the companies rcinsuring them arc
represented in the United States or mol Inc mate,
no broupht I'm AZ the last meeting of the Boau oi
yrpserurier and the meeting decided in VIC" OF 'o
sharp difference OF opinion existing AMONG n'e'"o'
that the Board would better not lake s".s' ou "a"'
Of the members Of the Board who took ms vie" Sio
determined to exercise their judgment ana 10 use '"0
influence on side or the Other -,
Il il unders stood that bill has already been drawn
,a viii he presented as soon the Legislature
meets and as feeling already runs high the ihos'
vigorous efforts may be looked for on bo'h SUES MI
Moore said yesterday a &,
Tho question OF reinsurance by companies locaeu !"
New.York with insurance companies on Inc ohcE au'
OF the Atlantic IS simply pa'ailei case win va i"'
narration Of manufactured goods by merchants Tree OIL uu
20 the disadvantage OF American manufacturers Vi nv ~
goods Tho practice deprives those insurance ~
who are located in this State. and who comply win '
laws and are under supervision Of the Insurance D'p
wont NJ business SO transferred TO other countries In"
result naturally is loss TO domestic eeDpsioN "Il ,
praet.ce is largely responsible for the iGue ann
ment from business of American underwriters, Inv "0
-, % he s,onned whether engaged in by foreign or
domestic companies companies who transfer ousl
ness I'm this way object the proposed law De'"u S
make handsome profit Of the TRANSACTION oufhs "a"
business from brokers agents Of smaller oo'''
,hon that received from the foreign rensurng COMPANY
hey pocket the difference. and the foreign company "
be,edted 10 the detrment OF home companies "'."V'
q, any way being interested In institutions or suolc'
o. ara srnc,vson Of our State officials. cannot see why
American underwriters should not be protector J" M
business as against foreign competitors lusV d "
American manufacturers think tae IL" co"p'" +,
are opposing this measure arc naklhs '"i7'"''''
,oud he wiser 10 show proper appreciation OF the soo
fellowship and courtesy shown TO them ON AhoiiV' Va
derwriters who consent TO their beng perm''''' " Wv
business hero on the basis with thenSsNeS' I@o
than to pursue selfish course for the result mus
inevitably be strong antagOnlsm, which may Che INC
shape OF taxation. which will practically DC PfoOO' "
foreign capital. , ,s,r
An officer of another well known American lnsu'-
anee COMPANY said that he believed In equality for
eirn COMPANIES should lot have advantages over no
nestle COMPANIES lie added At present Inc
English companies do not come under the teltoiIdl
laws of any of the other states of the uh'oh WHO"
apply 10 NewYork companies. You can get al 'helh
by forbddng any company doing business IN tno
United states 10 einsurc any portion Of lis RISKS on
pp6perty in this state IN companies not authorized
rs do business in this State; and by forbddng the
companies on the other side einsuns any portion OF
their risks I'm companies outside, requiring them u
make a statement that they have not done so. as
condition precedent to the renewal of their license
T. Il. Biddall manager OF the Royal Insurance
Company had this to say from The ohef side Oh lne
hedge: .
In the first place there very large NUMBER OIL
,sr On this city which cannot be insured in companies
authorized to do business In this sate may ihs"ncc
the case OF McKcsson & Robbins. whose premises "eio
burned last night the list OF assurances upon the properly
contained in thai building showing that cohslde'a'
.,nount Of a. was paced European companies MOI auo
lied TO do business this State The demand eNsthg of
this insurance led few OF the English companies W s0uu
contracts abroad under which they were en-
,bed 10 increase their writings ana 50 give the poC'con
which those merchants needed This appaTentY Is wha'
has raised the and the companies Iepcehci oS
the Continental apparently are taking The psfo oil 1e W.
I'm the manger, refusing 70 take the lisks uehsoNe ~
from IN,
~ they can The advantages which the companies having
these reinsurng contracts derive arr mr. except sucn "
rect advantage may arise from the ability u tihe 'o
lines and the disposition OF tire merchant to paole
such companies The amount of busiress uansacHd il
this way is exceedingly small. amounting to PROD
ably less than ] per cent OF tn tOta! premium
receipts from this city. The companies hNlhb me-
reinsurance contracts age no, sumcIthN EVoi''''' "
their retention to take any active steps " pr,o.s
passage OF such law Mr.. Moore is said to- Dc
.avocstior IL T. question for the merchants theI-
selves and IL they Indifferent as u whether such raw
is passed not, presume it WI 90 through - "'
Moore and the companies ASSOCIATED WIN III" "'' " -
op,pon that IL is profitable % Transact this rcsuaVe
there Is nothing the law at present exist
ing 10 prevent his company doing 80 1t Wishes TO- II Il
well known a number Of the native compahie' as We.
Is foreign eompanies have th2ss reihiufahce coh'',
both I'm Europe and companies Of this country hot
.u,hori,ed IN do busirass Again, " merchant
cannot get all the he wants he VIII use MS III
nrenee and his money to the starting oil ne" co"p"'
which when started become competitors for business ec
,rally we believe Therefore that taxing tese excess
lines is an advantage "a all the companies ana certainty
great benefit 10 the merchants themselves
II Is the opinion Of the underwriters whoh Inc
Tribune reporter able 10 see yesterday that uie
contest over this proposed legislation will not be per
mted TO interfere with the organization of an asso-
citation to regulate rates Of Insurance and brokerage
which is now being established The leading contest
ants in the one mater working together most |
assiduously and hamonously IN the other and declare
that they all determined TO have better rates and
l0wor expenses in this district.
McKESSON a. ROBBINSS INSURANCE.
The insurance the stock Of McKcsson & Robbins. |
Nos 81 aud SO Fulton-st, and Nos. 80, o. and 81 /
Anu-st, is: