The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-04-25

DieLed their OrSanlZaJ!on or q peFIld-
nent board Of fire underwriters. This
is but the first step toward the forna-
ton of state board of underwriters,
similar to that Just organized in the
state Of Montana. for the purpose OF
Derpetuating the rules and regulations
of the COMPACT. The work now done
eements the insurance interests Of
this city and leaves on the outside but
one regular agency. Il is anticipated
that general harmony viii speedily be
restored.
At the meeting of union agents held
Yesterday afternoon in the board
rooms. the new constitution and by
laws came from the committee in
whose hands they had been for general
revision. and. after being thoroughly
considered by the members of the
board. were put through without dis
Senting vote. InaSmuch as the organl-
cation IS not to take effect until the
force put comes. through the threat
eped break in the general board, no
permanent officers were elected, that
matter being held in allegiance pending
the receipt of adViceS from the coast.
Under the new constitution. the affairs
OF the board will be administered by
OOdGu COItrOl 0dQ6 up Oh TIE IONI
executive officers. with the addition or
Fhree other members of the board.
AS stated by The Herald the other
day would be the case. the ms urance
companies are making a great war on
that provision of the repOrcof the com
mittee on corporations other than mu-
nicipal. whic,, provides for the deposit
ing with the secretary of state by each
of the insurance companies doing bust
ness in the state. bonds and other Sc
curities to the value Of not less than
$l00. 900. At recent meeting of a local
board the agents took decided action
and appointed a legislative committee
for the purpose of presenting the mat
ter in its true light to the. members of
the committee making the report and
also 10 the members of the convention.
This committee got right down to
work and evolved an address to the
committee which drafted the proposed
section of the constitution. This state
ment, which takes the form of a Pc
tition and is signed by every insurance
agent doing a regular business in this
city. was yesterday presented TO the
constitutional committee and it will be
acted upon at once. 1t is as follows:
Hon. W T. James, Chairman Commit
tee o. porations Other Than Mu-
nicipar~=2
We, the undersigned fire insurance
agents Of Salt Lake city, Utah, do
hereby beg to lay before your honor
able committee facts incident to the
question of a bond deposit as called
for under sections %. 26. y and %, as
reported from your honorable body to
the constitutional convention, now in
session in this city.
Such requirement as called for I'M
der this provision would work injury,
not only to the insurance companies
doing business in the state OF Titan.
but TO the detrin ant of the interests
of the insuring public.
We desire to call your attention to
the number of companies seventy
eight doing business in this territory
at the present date. The forcing of
these companies to make a deposit Of
500. 600 each will compel their retire
ment from this field. We are assured
of this fact by reason of the present
companies doing business here having
called q meeting at San Francisco on !
the 22nd ultimo, at which II was unall-
mously resolved that If this provision
became a Law they would be obliged
TO retire from this state. That you
may the better understand the amount
of business done in this entire terri
tory for the year 1894 we would state
that the amount of premiums received
by the fire companies was approxi-
mately 1856, 600, and that the amount
returned the public on account of fire |
losses was approximately $155, 900. This |
will show d loss ratio TO premiums re- !
ceived of about 81 per cent, and this, !
together with the expenses of operat- |
ing, demonstrates that the fire COM !
panies in general have made no money |
in this territory the past year. This |
condition of facts can offer no encour, |
agement TO fire companies to remain |
in this field, and if no better results !
can be obtained during the current |
year, it will certainly cause a. with !
drawal of a number of companies now |
operating in Utah. These circumstan-
ces can also be shown to apply 70 the |
year 1888. as well approximately to j
previous years.
The aggregate total premiums for |
1884, divided among the seventy-eight |
fire companies operating here, shows |
an average OF less than $500 per an
mum TO each company, and for the /
transaction of which business the
provisions of this bill would require
the deposit OF 100000 in securities. |
the unreas onableness OF such a re-
auire4nent appears upon its face. Al
ready some forty fire companies have
withdrawn from Utah during the past
five years. finding their business in
this district unproftabl And even
with the remaining companies there
are today lines OF risks in this terri
tory which can not secure ample In
surance protection.
we further beg to state, that in ouf
ooinion the provisions Of Section 25
making the stockholders of ANY in
rornoY5tion" individually liable to an
o-1.ol.rt equal TO their stock holding
in such corporation. would be uncon-
et;fi1tionaI; It could only apply to
sfch companies as might be organized
n ITtah aid to impose such a condi-
t:on on nome companies would be I'M
,Ie1Ial. oppressive and prohtbHive.
They file annual statements Of their
assets. liabilities and surplus with the
secretary of the territory, publish
sworn statements of the same and
their securities are invested locally.
Service in process Of law can be made
on their local officers, as we'll as upon
the state attorney for foreign compa-
MES doing business here in this ter
ritory-
The provisions of Section IS, requir-
ing the fling and publishing of state
1nents semi-annually, instead of an
nually as heretofore, will work an
other hardship on the companies. AL
ready the tax on the companies for
filing and publishing statements and
having city licenses each year is an
onerous one, ard has always been
cause of grievance on the part of the
To double the tax, as
this measure proposes, and TO put the
companies to the inconvenience and
additional expense of furnishing the
stat ements now required twice a year.