Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1892-08-21
DISCONTINUED.
TWO LOCAL INSURANCE COMPANIES RESOLVE
TO CLOSE UP THEIR BUSINESS
The Underwriters and American Companies Find
It Best 10 Reirs1rs Thar Risks and Wind
Up the Concerns.

Two more local insurance companies,
in common with scores in other parts Of
the country, have come to the conclu-
sion that it would be a waste Of money
and business energy and ability to con-
tinue TO write risks which bring in
nothing in the shape of profits for the
stockholders, and have passed resolu-
tions winding up their affairs.
These companies are the American
and the Underwriters.
The former has been IN existence for
about eight years, and the latter some
what longer-perhaps ten years.
Neither has come up 10 the exDecta-
| tions of their founders and Stockhold-
| ers. Both companies have made little
money, az times, but have lost more
! than they have made, and as there
| seemed no better prospect, but on the
contrary, the future held out promise OF
greaSer losses, il was deemed best 10 re-
/ tire from the field while IL was possible
20 do so with minimum Of loss TO those
interested. Both companies have rein
sured their risks, and have levied assess
mentS upon their stockholders Sufficient
10 liQuidate all Indebtedness which now
exists or which may become due before
the final closing up Of the corporations.
The American Company has in all
lost about twenty-five per cent. OF us
capital stock of 500, 600 in the effort TO
build up a paying business. Ten per
cent OF this was money originally paid
In, and fifteen per cent. was in the
shape Of cash receipts. To close up the
business will require perhaps twenty
two or twenty-three per cent. more, and
two assessments Of ten per cent. each
nave been ordered, one payable Septem-
Der 10th, and the other September
goth. IL is figured that these two as
sessmentS, which foot up $4,000, will
about pay of the liabilities, but there
NAV be an addition assessment of two
or three per cent. 10 clean up any small
remaining liability which can not be
foreseen or provided against az this
moment.
The Underwriters stockholders ex-
pect to get out with little less outlay,
It being figured that an assessment OF
about thirteen per cent. will straighten
I'D the affairs of the Company. This
Company originally paid In ten per cent.
OF tho stock, the same as the American,
and has sunk that as well as q good deal
Of cash coming in in the way OF receipts
from policies. Both Companies have
declared dividends-the American one
and the Underwriters perhaps two or
three, but il was uphill business.
The fact OF the matter is that there
is little money in the insurance bus
mess for even the best Of companies,
with ample capital and surplus, and
perhaps seventy-fve fire insurance cor
poratious have gone out OF business
during the last twelve months. Profits
have been cut down all around. In the
FIRST place the rates have been cat a
great deal of late years, largely due TO
the competition Of large foreign COM
pauies, and on top OF that commissions
nave advanced. These items, with the
rapid increase in the fire loss OF the
country, have knocked the bottom clear
out OF the business for many companies,
while even the best managed and strong
est have felt the pressure not little.
A gentleman we'll posted in insurance
matters said yesterday, in discussing
the matter:
IA few years ago-Say about the
time the two local companies now wind
ing up their affairs started In business
there was money in well-managed in
sursnce companies. Then the losses
from fires ranged at about fifty cents
90 the dollar Of receipts, and the COM
missions ran along at about fifteen
cents. Now the fire loss runs up 10
from sixty 70 ninety cents, in extreme
cases, and the commissions have run up
to twenty or thirty cents on the dollar,
You see, there is nothing left. In ad-
dition, rates have been cut. It's like
taking both ends off OF thing, and
piece out OF the centre. The big English
and other foreign companies are respon-
sible for part Of this unsatisfactory sit
uation, and the increase in the tire loss
did the rest. The loss Of the country
from fires ran, not many years ago, at
about 500, 900, COO. Then it jumped to
$40. 900, 900, $50. 600, 600 and 500, 600, 900.
Last year the FIRE loss was $3.50, 600, 900,
and this year it may run as high as
$40, 600, 600. That is an enormous bur-
den for any business, however strong or
well managed, 10 bear and make money,
and the effect is seen in the winding up
OF scores OF insurance companies. II
would be strange IL they were not thin
ned out, and I expect to see a good
many moro go TO the wall. What is the
remedy? Well. il will have to come in
several ways. For one thing, insurance
rates will have TO go up. Commissions
will have to come down, for another. A
careful selection of risks would help
matters some. Other remedies have
been suggested. but do not care to dis
-sRSs them at this time"