The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-11-05
INSURANCE MEN LOSING.
The Low Price Of Cotton and Rapid
Marketing Eject Their Profits.

Marketing Eject Their Profits.
The insurance agents OF the city are
heavy losers by the present condition Of
the cotton market It is rot only the very
low price Of the staple that initiates
against them, but the fact that present
conditions favor the rapid marketing Of
the crop. Consequently it is hurried
through and spends but a comparatively
short time in the port, giving the agents
but little show for commission.
a prominent insurance agent in discuss
ing this subject last week said he did not
believe the receipts of the insurance CON
panies from cotton al this port during the
present season will amount 70 more than
Is per cent Of the receipts up 10 the same
period last year.
The amount Of insurance which covered
two bales Of cotton last year" he said,
covers three bales and little more this
year. Here is loss OF more than 80 l-3
per cent 10 begin with. The loss is even
heavier from the low prices in another
way, however. The buyers recognize the
fact that the market is in their favor now
and the cotton passes into their hands al
most as soon as IL arrives Ia port. Where
the factor held cotton for two or three
weeks on an average last season he now
disposes Of within as many days. As soon
as the cotton passes into the hands of the
buyer or shipper it is covered by marine
insurance. The marine insurance is not
taken through the local agents, the ship
pers as rule covering their purchases
by blanket policies taken from the large
marine insurance companies.
This cuts the local agents out of a large
amount of business, as practically all our
cotton business IS done with the factors.
are able to get along with comparatively
small amount Of insurance. Another thing
that has been against US is that the re
ceipts of local cotton have been very light
until here recently, when they have begun
to catch Up. AS our business is done with
the factor principally this cuts off our rev.
enues again. With these facts before you
you can readily see that the insurance
agents regard the present condition of the
cotton market with as much disfavor as
any other class of business men"
"A little explanation of how the cot
ton insurance is done win show you very
readily why the local insurance compa-
mes make less money from this source
than would naturally ba expected Under
the present system of insuring cotton the
marine insurance policy covers the cotton
from the time it leaves the interior point
at which it is purchased until It is landed
on the other side If a Savannah buyer
purchases 1000 bales at Selma Ala, or
Meridian, Miss, his marine insurance pol
icy is Immediately made out and covers
the cotton on its trip to Savannah, during
its stay in port here, its trip across the
water, and until safely landed at its desti-
nation on the other side. Some years ago
the marine insurance did not take effect
until the cotton was loaded aboard the
vessel at the port and the insurance on its
trip to the port and during its stay at
a.
All this is changed now. The buying is
being done more and more in the interior
every year.
Instead of waiting for the cotton to be
brought to the ports the greater part OF
the crop is now bought at the interior
points. AS soon as the buyer makes his
purchase he draws sight draft with a
bill Of lading attached and a certificate
upon which he secures money from the
banks with which to pay for the cotton
4 The cotton, of course, must be protected
and this makes 1t necessary to insure il
at once, and the certificate of insurance
is attached to the bill of lading. TIL,
cotton is then hurried right through to it.
destination.
with an Improvement In prices ant
/ an increase in the local receipts, accom-
! panied by a tendency to hold the cottoT
/ longer at the ports, the insurance agent.
/ hope to fare much better in this particu
lar line of business this month than they
did last. Aside from cotton business has
been very good with the insurance compa
MES this season"
! Other agents who were spoken to on tn,
| subject gave the same experience as tn,
one quoted above. AS an instance, on,
/ agent said that where last season h,
| turned over to. one of his companies $50
in cotton premiums during the month o
| October, this year he only turned owe
to the same company $50 of October pre-
| miums.