The Portland daily press., 1891-08-05
A New Insurance Field.


| Beginning at IL o'clock noon on SATURDAY.
Aug. 1, the West End Street Railway Co,
| will have no uncertain elements In its month
ly expenses, such as damage claims, en-
| ployes' accidents from horses or cars, or
| damage claims by reason Of the use of cleo
trlcity. After some six weeks considera-
ton Of the matter Pres. Whitney has ar
ranged with Mr.. John G. Paige, represent
Ing tho American Casualty Insurance & Sc
curity Co. of Baltimore, by which for the
payment Of a stipulated monthly sum, Mr..
Pages company insures the West End Co.
| against all liability, as we understand it, for
every accident to employees or the public.
The removal Of this liability by the pay
ment Of a fixed monthly sum will be appre-
ciated by the 5000 "West End" stockholders,
while for the public all the safeguards will
be added, which a company with $4,000 900
assets owned as well as managed by the
largest insurance men In the country, can
devise through an organization equipped for
this special field.
We are informed that the cost of this in
surance will be less to the West End Co,
than it has heretofore paid in damages and
legal expenses for defence upon Its accident
account
As near as we can estimate 1t the average
monthly payment upon this account here
after will be but about per cent. Of the
gross earnings Of the West End Street Rail-
way Co.
As this company is the largest street rail:
way company In the world, and carries one
hundred and twenty million passengers
year, the possibility of the accident liability
from which 1t is now relieved can be better
Imagined than calculated.
1t is Mr.. Paige's belief that this form of
insurance will be extended before long over
the steam railroad interests of the country
and just as thoroughly as 1t is being extend
ed to all classes of manufacturing, real es-
tate owners, express companies, etc.
Such insurance would ultimately add
many millions to the market value of rail-
road investments, and give security holders
confidence they have never before expert
enced.
The Quincy granite quarry Cos. and other
employers Of labor liable to accident have
insured themselves in some foreign Cos.
against casualties, but the Co. which has
taken this West End insurance is, we under
stand. the first American Co. organized to do
this business upon considerable scale, and
concerning 1t an interesting bit of business
history may be told.
When after the war the son Of the Rev.
Henry Ward Beecher left the army he took
up with insurance as many another has
done, not because of any known qualifica-
tions therefor, but today the firm Of Beech
or 6 Benedict does the largest insurance
brokerage business In the world. They saw
the field for casualty insurance. and some
time ago wished to start Co. to be owned
entirely by themselves and Mr.. John G.
Paige, who does the largest insurance bust
ness In N. E., but the arrangements could
not then be perfected. Later some of the
richest men in Baltimore proposed such
Co. with $500, 900 capital. Messrs. Beecher
81 Benedict suggested a union Of interests
and offered to put 10 million of capital.
1t was finally arranged, as the Baltimore
men wished third of the interest to be held
outside the management. that the capital
should be S1,eO0O00 for which $1,5OO,000
should be paid into the company the insur-
ance managers to contribute q majority Of
the cash and the outside capitalists to invest
the funds and hold the financial manage
ment. Upon the board of directors Mr.. W.
w. Spence and his associates of Baltimore
represent the largest fortunes in that city,
and Gen. Henry w. Slocum and Pres. Graves
of the st. Nicholas Bank Of N. Y. represent
In part the Northern capital, while among
the owners not directors ares. V. White, the
N. Y. broker, Mr.. Duryea, the starch manu-