Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1893-11-01


themselves obliged TO operate under for
ty-fOur sets Of laws, the laws OF every
one o. the forty-four states OF the union,
differing in important particulars from
each and every one OF the other states.
Restrictions and conditions differ in
every state, and the home office OF
every insurance company has TO deal
with a situation sufficiently complex
and involved to puzzle dozen Philadel-
phia lawyers. These forty-iOur sets OF
laws are constantly changing,
and IL must be confessed
that as yet little progress toward uHi-
fOrmigy has been made. In ono State
there Is tax on gross premiums, In an
other tax on net premiums and In an
other a graduated tax on everything in
sight. 10 all the States there are re-
Quirements for reports, but no unifor-
nifty is observed as TO the time for
making such reports or the information
required. In some States cash deposits
are required ranging from $4,000 to
$3.50, 900, and In most States an attempt
In the line Of protection is made by
compelling companies doing business
therein TO make q showing Of substan-
tial solvency. Something more tan
gble for capital than the notes OF
stockholders or sWamp-land mortgages
is required.
BURDENS GROWING TOO HEAVY.
II is true that reputable and legiti-
mate insurance companies do not seri-
ously object TO sound legislation against
wildcat concerns, il being as much TO
their interest as 10 the insured 10 get
rid Of rubbish. But the burden i'm
posed is none the less dear gift, and In
the insurance business, as we'll as in
other lines, it becomes a simple matter
OF arithmetic whether capital can az
ford to pay the tax. The conclusion
evidently arrived at In many cases by
stockholders in insurance is that the re-
turns are no longer commensurate with
the risks aud the collateral burdens i'm
pOssd.
The names OF the important compa-
niles that contemplate retirement from
the field are not given, and the prOba-
biities are that ia most cases those
going out OF the business will be the
newer companies, concerns which have
not been at It long enough 10 accumu-
late great SURPRISES, without which IL is
difficult TO meet the requirements for
deposits by several States. The compa-
MES may be solvent in every respect,
but unable TO compete on even terms
with the older, stronger anC richer
companies, hence they pull out. One
company In Denver-the Denver Fire
dropped out few weeks ago for that
reason. Insurance people, too, are TAX
ing alarm at the disposition on the part
OF State Legislatures TO enact laws com
pelling the payment Of losses to the full
face value OF policies.
Commenting on this development In
the business, w. II. Freeman, editor OF
the Investigator, an insurance journal,
says: "Such laws are dangerous to
insurance companies. They ignore
the principle that insurance is an In
demnity only and go to the extreme OF
companies to pay the full
amount named in polidies regardless Of |
the amount Of the property destroyed, |
a merchant may insure his stock for |
SIC, 900 and let il run down TO $1,000. |
Then II he Is burned out he can collect |
the full $4,000. This would seem 10 |
offer a premium on raScality and de- |
ceDtiOn. In large communities whore |
the companies can employ experts 10 |
place safe valuations on property there |
is a chance of partial protection, but at |
points, where reliance must be |
placed on Tom, Dick and Harry, the |
are left at the mercy OF |
whoever may buy insurance Of them. |
The risk is entirely out Of proportion !
90 the returns, and the result is the |
OF capital and an increase
in tire cost Of insurance in the localities
blessed by such legislation.
CAUSE OF THE INCREASE IN LOSS.
How do the insurance people account |
for the great increase in fire waste OF |
late, =" asked the reporter for the EUCH- |
ing Post.
Various reasons are assigned" re-
piled Mr.. Freeman. "Some attribute ii |
TO an increase Of fires OF an incendiary |
origin. Others hold that the hard times |
have made people careless and that
property-ownsrs are less waJchful OF
small things tending to protect them
selves against loss. They do not per-
sonally Inspect their premises IS much |
as formerly 20 see that there is no in
hammable material In proximity 10 fire
aui generally relax vigilance. l think
there Is something In this latter theory.
The main cause OF the increased number
OF fires, however, is due TO the more
general introduction Of electricity into
during the past two or three
years. In large cities where there Is
rigid official inspection OF con-
structiont and where owners
have superior advantages and are gov
erned by an intelligent desire to insure
the safety OF costly structures there is
no notable increase in fires Of electrical
origin, but elsewhere the destruction Of
property from that cause is terrific.
Wires are strung in buildings with reck-
less disregard OF insulation and by In
competent persons wac have no concep-
ton OF the risks run. The wires thus
strung are covered up sad the current
is turned on. Some day fire breaks
out in the building and nobody can i'm
agine what caused il. Until there is
radical change In this respect and
strong safeguards thrown about con-
struction the losses from fire by faulty
electrical appliances will be immense.
Insurance companies are doing what
they can 20 compel the observance OF
ordinary uIe o. safety in construction,
but they cannot DO everything. and
hsve not thus Tar been able TO make a
deep impression on the general public.
Education will come of costly expert
ence."
Express CLERK Under Arrest.
New ORLEANS, October The
man who is supposed TO have stolen the
money package sent by the American
ErDress Company from New York 10