New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-09-21
THE FIRST BRICK TUMBLES;
PORTABLE LLOYDs HAS TO STOP
BUSINESS

CIES-IT is SAID THAT MANI MINE
OF THESE INDIVIDUAL CON
Germs WILL STOP
IT., ru,,obIo Ilovds one of the first or the nu-
r,erous concerns which have sprung up III o''' .
IN the last two years. and are not recos''Ne' ~
State on wednesday stopped business "..aa,,,,
cured in the new East River Mutuai
~ " -, ~, many insurance men rs the De-
,,,,,a ~ tho end of these Loyds' "l''o" "
co,oe nm .like mushrooms" as man i'''
said yesterday 800 90 y,,,te poll
r,es about two years and a half ago. - ~ o.
name from the famous marine nhoei ~
nam =, a., h,s,ress In marine and IRE lhsuf-
80. on, .ben u was discovered that the ''"'' AZ
1900 Denar,ment had jurisdiction over IT,
a. the policies were Issued D! l"N Wv ~ ,hra
more concerns like 1t sprans up "''., r,,,ah,o
are fifty OF them. The third one was vi, - ,,,,
I,oyds which began business in May. lss-. F'anN
u Hail general manager OF the 'aS' nv =,
49,, ,rh,cb hogan TO write policies last May 'oiu
rrbune reporter yesterday that the re"Su
tho Enuitable Lloyds with MS COMPANY -.
termination Of a long fight between 'ne
and the Lloyds and meant the TRUMP" VI -.
NOR over the latter The Equitable Lioyus ""u a.
g., dore a good business, but with the repression
.,, BEGAN IN insurance circles last spring 'heir
business began to grow slack. ana hhalS 'ne' -
70 the East River Company IN distress anu ,,
them TO take their risks Inc rau 49,.
bad money, ana pau uoii"i ~
ms they were making none. they thous"' w
.o,,ar got out of the business. The reihsu'a"Ve
dated from noon yesterday. He said that '"e rtu'
table Iloyds had stopped business eh'ie' ~ w.,
.ho amount nj risk amounted 10 S'oVV" M ii"'.
said that he had had overtures from d "u''ip, y.
Ilovds for reinsurance. but did not leei "' '''''
to say which ones they "e'e' Vi ~
woud do about them. ,
The East River Mutual Insurance CorPord'io.i q"
though only formed last spring III d '''.o - e.
nression has been successful IN us business
ana marine insurance. The officers are Coiohe Al
frad Wagstaff. president; A. A Ho"Ie't' Nl'e-p''''
49,. r Baldwin secretary: Jacob Fleschhauer
.rsasurer. Frank b. Hall. general manager
COMPETITION THE CAUSE. THEY SAY.
A. tho office OF the Equitable Lloyds an attempt
a.. coo tho attorneys Z C. Rail- & Co.. was unsuc-
cessfuI but one of the men there toid d lriouhe
reporter the depression OF business hf'u Io'"-
ing 70 do with the reinsurance with the East River
comnany The competition had recently grown 80
great-,hirty new concerns having sprung up IN the
last wear and this causing reduction OF Inc
premums-that some OF the SUBSCRIBERS so' VS.
less and so a meeting was called anu II was re-
solved TO 20 out OF the business ana reisue III 'iie
East River concern. He spoke rather dsparagingy
=. 80 ~ tho other Iloyds, and said ne believed
.ho, not more than three four had money enough
40 nav for reinsurance He declared that the Equ'-
table had made money out OF the deal WIN the h"S'
River Mutual.
he CalleQ
iearn whether the reinsurance OF the Equi'apie
1lovds was regarded as of much importance among
insurance men They all expressed great interest IN
the affair 1T is merely. one man said' the oe
Ginning OF an end that every observant insurance
man in every branch of the business mas ioreseeh
and has lately regarded as nearby.
..Then YOU do regard the Lloyds insurance as
on a stable basis" asked the reporter
.The answer TO this must be the same as the
answer to the question az TO whether the re'aI u'E
goods business is on a stable basis. some are soou
for their liabilities and CHEERS are not some OF the
Ioyds associations have underwriters of undouotei
financial standing their policies. Others are ABB
soutely no better than green-goods 1t is astound-
ing that in a State which undertakes strictly 10
superintend its insurance business, such condi-
ton could exist within year has sprung up IN
connection with these Loyds enterprises. Why. one
man was an underwater In two associations who
had NOT money enough to pay for his luncheons. and
Yet peop;e actually ppld premiums for his promise
these associations nave been made up Of partly
strong people and partly weak peop'e. some ON nav
ing fact with me is that they have been wiling 70
lend their credit ana to rsH hfavy u1nF1
such business. Again others have had very ialr
but have had conditions in the policies which seem
to me TO make them quite worthless as promises OF
''" SONY last week saw condition Of policy that
II at any time, after any ength OF business opera.
sndsrTrers had ost 1Tes times the amount 5 ma at
he
ssd Up an to that time d his name written
op e sDid shut game 10 take in premiums and pay
losses long as the business was prottab.e with
ran the wrong way This leads me- TO call attention
the fact that the purpose OF the state IN havng
Mlran Of Buffalo; Senator Fassett ex-senator
passing bill securing single form OF policy and
this State would he amazed to see how the hard
andfast bill which thy put through has been cir,
two Of their policies are alike in conditions"
us the Superintendent of Insurance at all re-
eponsibe for this condition OF aifairsE
THE SUPERINTENDENT NOT TO BLAME.
mo I must say don't wha, he do in
the matter These people undertake to DO a private
insurance business as individuals. The Legislature
has indirectly but specifically recognized their right
10 do So by making conditions under which the
L,oyds may do business. but putting In saving
Clause as 10 all Lloyds associations organized and
doing business previous TO october ]. lE There
fore those organized previous to that day were eft
outside OF any legal regulations or conditions what
but it is asserted that many of these assoca-
ditions OF the law took effect?'
as thorough investigation as the powers OF
his office authorized him to make he was met With
wildcat enterprises had organized ana transacted
business pro forma before October l. 49, tho
u,ovds associations?''
s ws dys SSa ans Sf The Ss Ss, for aH
started with sufficient capital and good manage
Inent are likely 20 succeed. Those that have not
both capital and good management certain 10
fail; and when they begin TO fail the a.arm Of the
treop,e who have taken their policies will a
great many cancellations. Large sums viii. there
fore be called for in the way Of return premiums.
and there will be certain daboica person TO
compensate and pitch hot.
rIiut have not these Lloyds worked valuable
relief from the situation. wherein many OF the
large property-owners were unable to sufficient
Insurance."
co>,r on rIIr- .ccocJATroEc roOD
This be answered partly yes and partly
I do not care 10 give credit rating to each OF
these associations but repeat that some OF them
are very good indeed. and such introduced valua-
bic element in the insurance market. Others
worse than worthless and am amazed that people