New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-12-15
INSURA MEN SURPRISED.
?. B. ARMSTRONG RETIRES FROM HIS I IHRE.E
COMPANIES.


COMPANIES.
THE LANCASHIRE SECURES CONTROL OF THE
MUTUAL, THE FIRE ASSOCIATION AND THE
ARMSTRONG FIRE INSURANCE COM
PANY - THE ANNOUNCEMENT
MADE AT A DINNER
few days ago p. b. Armstrong, president OF
the Mutual Fire Insurance Company, the FIRE
Association and the Armstrong Fire insurance
Company, all of New-York City, issued invitations
for q dinner a: Dclmonicos. which took place last
night More than 100 persons sat down. MT.
Armstrong himself in the chairman's seat, ana
Colonel Ransom, editor Of The Standard, an
insurance journal of Boston, occupying with tact
and cleverness the place Of master OF ceremo-
MES In the large company which had assempPu
were many Of the best known and most influential
among the fire insurance men from all over the
United States, most Of the leading editors OF
insurance journals In the country, many lie
insurance officers and number OF representatives.
of State Insurance Departments. These are
fow of the names: John A. Mccall.
Michael Shannon, Deputy Insurance Superintendent
Of New-York: Il. r. Kennedy; John E. De Witt,
nresident of the Union Mutual Life Insurance
",
Straight. of Chicago; ex-Judge Charles Ii, Rus
sell. James a. SiIvey, and Matthew Griffin
Not the slightest hint was given to any OF
those present that the dinner was any more than
one of the occasional dinners which Mr.. Arm
strong has been in the habit Of giving TO his
friends. When the coffee was served aid the Dlue
wreaths of smoke curled upward from the
fragrant cigars, Colonel Ransom raped ior
order and in a speech which was neat, brlef, ana
to the point, proposed the health OF Sir' arm
strong, which was drunk with enthusiasm. LII his
reply, Mr.. Armstrong announced his RESIGNATION
from the three companies Of which he was pres
Ident II was a surprise TO everybody IL Is not
too much TO say that no equally surprising dis
closure has been made in long time to COM
pany of frensurance men in the United States
His speech in substance as follows:
Friends associates, competitors journalists, Dld
YOU each and every one hearty welcome You pave
been invited to join me this evening IN ceeorat&g & te
tain tnat have Just cause to celebrate the event be.
cause no one who has dealings WIN the nre henu e
has been more kindly nrsaeS a ba nave @ rmaed in the
business until my theories and p1cuceS nav & t
business with an unbemshed character, my companies
solvent good fair health, competence or my sen ~ aa @
family al peace with the whole world-more do not
The entire business of our three companies, aggre- gre
eating s2OOOOOOOO, has been reinsured IN re ,a Ian
cashie Insurance Company, OF ManchesteAr T. Eogiau, @
and the reserve amounting to about Sl,O0o,0oo mas
S bay y necessary for me to state that this by all odds
the largest transaction in the Aecaa hor 1enOr Gi isnaS @
Inv me. nom the organization OF the Mutual until tho
present time. and frank to tell you that not 20, one
ports, without exception, took tho position s naor
FrstThat it is as much the duty Oh 'ne M ie @ t
writer to prevent the occurrence OF IRE As 10 pay ue
loss when fire occurs -.,,. ..s
secondTha the inslrance Of large mercan,ie NJ . ana
Iaie @saIsfsa%s nsteaa Of P;Si1''''' PTsta' '''"' -
necessity so far as Il relates to the insurance Of large
mercantile and manufacturing properties, ,u. .,
Fourth-That companies should estaDlish bureaus vi
inspection for the purpose Of writing policies upon
facts, rather than hcarsay statements A.. ,,,noss
of re insurance greatly in excess OF any other ad
junct of commerce. A., - ,oo, ~,
been the most disastrous one in the history OF American
fire underwriting and think that am perfectly E fhfs ths
country have been conducted at an underwriting loss
In excess OF SIs,OOOOOO.
losses an nrrease in rates and reduction in the per
cenage OF expense, fire underwriting cannot Prov p
prontahe to companies conducted under the Ordinary
The report Of the Insurance Department Of this
ance ' premiums received by all companies eomPlyiag
With the laws Of this state aGsegae eo te UTScD
would had we mt %Ss IN baye wran yc oEe GS
orteth Of the entire premiums all the companies
complying with the laws Of this state.
cured has been greater during 1891 than in any pre-
yious wear. This general destruction has attended
coming i'm for their full sharethe great destruction OF
so-caled fire proof warehouses-the large mercantile
IN 1s %es TO o. the syndicate %
vatively estimated at S1oOOOOo, al these IN con
necton with extraordinary loss risks OF msceane-
ous character have made up the alarming hgires pre-
II would be proper for me to state that the fire
loss OF 1891 has had nothing whatever to do with
my retirement.
Mr.. Armstrong then referred to his elaborate
inspection department. which he claimed to be
superior to that Of any stock company III the
country. II, also gave figures showing Tire
efficiency and large saving of his bureau to IN
vestigate the moral hazard of risks. lie also re-
ferred to the special effort his company had mad,
to secure the improvement of risks, and SAID that
about one-quarter of the risks his companies were
now carrying were thoroughly equipped with
automatic sprinlslcrs. lie praised warmly his asso-
ciaes referring especially by name to j. c. Hattie,
| II. r. Rod,n and Oscar Meyer, entitled to
,,rcat credit for the success of these various in
stitutons.
| He said that he had endeavored to remove from
the property insured each and every perceptlble
| hazard Of fire. and to confne the insurance OF
the companies TO risks absolutely free from moral
hazard. lie further explained his motives in
many of his peculiar methods and suggested 10
his underwriting friends present the adoption OF
greater caution in the selection of their physical
| hazards and in the investigation OF the moral
hazards OF risks Continuing; Mr.. Armstrong said
The negotiations which have happily ended have
been pending between Mr.. Lltchfeld and mysell iOr
more than SIX months. Later on Mr., fritclaiN was was
admitted to confidence. and the whole matter was
then submitted t0 Mr.. Stewart the head manager by
! n special trip to Europe by Mr.. Prtchard, who had
| lust returned, the whole matter cOnsumnlatcd
venture here TO suggest that by closing these con
tracts the managers Of the Lancashire Insurance COM
paDy have pursued the wlSest ever adopted by
a fire Insurance company To secure a large ana Valua
| BILE business. business out OF which they must
necessarily make large sums of money By this single
move the Lancashire has added 10 its American bust
ness $780, 200 coo, the American companies losing
| like sum.
| Referring to the insurance journalists Mr.. Arm
| stroug awarded them need of praise in connec-