New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-13
CROWDED OUT OF BUSINESS
TWO INSURANCE COMPANIES RETIRE


FIRE voLvNrARILY GO INTO LIQUIDATION.
Two more insurance companies in this city have
decided TO retire from business, owing TO fercs
competition and the small profits to be made ct
the present low rates. They are tie Knicker-
booker Fire Insurance Company, doing business ct
No. "a Wall-st, and the Guardian Fire Insurance
Company, of No. 1853 Broadway. The suspension
on the part of these two companies has no con-
nection whatever with Wall Street troubles, but
Is the outcome Of three four years Of hard
fighting with big rivals
This action was decided upon by the Knicker-
booker directors on Tuesday, and not alto
gether unexpected, as it has been felt for long
time that their business had been reduced to such
an extent that in the interest of the stockholders
the concern should go into liquidation. The
directors of the company are Albon p. Man, James
Hooker Hamerslcy William II. Taller, Charles @.
Landon, s. Duncan Lovericl, Stephen Is. IIalsey,
James Hopkins Isaac p Smith, Joseph Lentilhon.
Andrew c. Bowden, Alexander j. Clinton and
Henry ID. Hotchkss. They regretted exceedingly
that such action was necessary, but the number
Of big insurance companies in the field, both
foreign and American, and the fierce competition
between them have cut rates to such an extent
that only concerns doing an immense business can
hope to succeed
A Tribune reporter was told yesterday at the
office of the Kniclscrbockcr Company that the COM
panv was solvent and would return q dividend
to the stockholders.
The Knckerbocker Fire Insurance Company Ii
an old and honorable institution, whose records
reach back more than one hundred years, but II
has not kept pace with its youngerborn, high
stepping compeers and has found itself hopelessly
left behind. President Leverich attributed the
downfall Of the company to the influx Of foreign
insurance companies, but other insurance men say
this is hardly tenable, when SO many American
companies are keeping abreast of foreign com
petitors. and are not only holding their own but
are taking the lead in this fast growing business.
AN ILLUsTRIoUs FOUNDER
Alexander Hamilton, the first Secretary Of the
Treasury, drew up the deed OF settlement Ior 'ne
| Mutual Assurance Company. in 1877. which after
| ward became the Knickerbocker Fire. The men
who organized the company were Alexander
| Hamilton Alexander Macomb, Dominick Lynch,
| Isaac Stoutenburgh, William Laight, Alexander
| Robertson White Mattock, Thomas Pearsal,
| Comfort Sands. Samuel Franklin, John ASop,
| William Maxwell, William Edgar Thomas
| Randall. Isaac Roosevelt William Nelson, Will
| lam Constable John Delafeld, John Murray,
| Gabriel W. Ludlow Robert Browne, Joseph HAL
let William Dennng and John Vanderbilt. Ihe
| original deeds made on parchment and containing
the signatures of the members, is now in the pos
| session of the New-YOrk Historical Society, pus
is subject at all times to the inspection and exam
! ination of the officers of the company Ihis deco
| of settlement confined the business to within two
| miles of the City Hall, then in Wal!-st., out In
| l7ss the company authorized by an act OIL
the Legislature to elect president. to hold rsal
estate for office PURPOSES to insure other property
in addition TO buildings and to extend their BUSH
ness throughout the city. ...
Robert Lenox WAS chosen arst president IN l7vH
| and the company became the Mutual insurance
| Company OF the City OF New-Yors, with capital
| of S5OO,OOO At o meeting Of the stockholden
| in 1909 it was decided to purchase building for
| the companys offices at No. "a Wall-st., where
| tbe company now is The building and lot were
purchased for $4,000, and are now valued az
| $500 In December, 1885, fire spread over
| the lower part of the city, burning for two days
and destroying property worth about Sle'ooo'-
| OOO and the company passed into the hands OF
receiver it paid OFF its Indebtedness however,
and on May 10, 1896, was reorganized and began
anew la 1916 its name was changed to tho
| Knckerbocker, and for many years it did a tine
| business.
IL is greatly regretted that this fine old COM
| pany should now have to 20 out of existence.
| Several companies have had their agents exam
| lining its books, and bids will be made for the
reinsurance of the companys outstanding risKs
| by several big companies. S duncan Levericil,
the president, will have crarge of the liquidation.
| and as the company las stopped doing business
already. the concern will soon be wound up The
assets on January j. & Jsyo, can,a of S:1c COO re-
insurance reserve of 39,j49 81, ana net surplus
| of $S2,S76 80.
HISTORY OF THE GUARDIAN.
meeting of the board of directors OF the
| Guardian Fire Insurance Company was held yes
terday and on the recommendation OF the presdent,
Walter K Paye the directors decided to llquidaN
| the business. The Guardian has been In exls1
| ence for twenty-siX years, and has an honoraoie
record among insurance companies ~ ia supNsen ps,en
| fires. and has been doing good business ul ulo
| last few years, when the centrallzlng tendency
of all business has been roDog '1g Te board Of
directors passed resolution rejecting credltaoiy
| upon Mr.. Paye, as PRESIDENT, ana tne o"Ceis y.
| the company and assuring them that III ING
opinion Of the Board they were in no way re-
| sponsible for the poor success OF the business.
| Mr. Pave was made secretary Oh the company
| when it was organized, anu has oeen PieoA~ens
He was seen last evening by Tribune reporter.
| and said that the insurance business was iase
| becoming Improbable to small companies. Hc
was of the opinion that large companies were
| cutting rates in the cities for the purpose OF
| crushing smaller organizations. and were enabled
| IN
20 uoss W. md aSencics throughout the country. He
was also of the opinion that Americans were nos
true true to Americans, and said it was be- be
sure in English companies. This was due
| in measure to the large capital held
by English companies he added but when annsr Amer
| soamed 10 be TO choose foreign organizations
and he believed the insurance men in Americs
should be protected against foreign competitor.
! Mr. Pave said further that bis company would
| nav ali its Indebtedness. and that Its assets
amounted to about Sa6O,ooo. 1t would cost
| good deal of money to rensure, and 1t was ex.
| nnccted that the stockholders would receive about
| s5 ner cent. lie will have charge of liquidatlng
| the business and it will be wound up as expe-
ditiously as circumstances VIII permit. Inc CON- @
pany was Incorporated with capital OF S2oo'ooo'
| KILLED HIMSELF TO AVOID DISGRACE.
Kansas City, Nov. IL (special.-lt was learned 70
dav that direct accusation was made AGAINST sclby
i l4ad s.cS&erdax that la H1d