The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-11
INSURANCE NEWS AND NOTES.

The Supreme Court of Pennsylvania has
rendered an opinion declaring the standard
fire insurance. policy law unconstitutional.
President Edward B. Harper. Of the
Mutual Reserve Fund Life. is gradually
convalescing at Lakewood, N. J. 1t is un-
derstood that Mr.. Harper's physicians have
cares, that there will soon be some re-
organization of the official staff of the COM
pany thus rendered necessary and that
Mr.. Harper will go abroad for a long rest
to recuperate his shattered nervous system.
Insurance Commission Merrill. of Massa-
chusetts. has notified the Commonwealth
to assess it's ~policyholders about $4,000 to
pay outstanding losses and provide the re-
come in 1894 was 1924. 274. IL, and it disbursed
S133, 250.0l for losses and s65,57S.55 for COM
missions. The total expenditures were
sos, 091. 10. 1t had at the end of the year
risks outstanding to the net value of $780,
4O6,o19. on which the premiums were $156.-
665.9L.
Schenck and William Z. Ridgley. who were
indicted for issuing a false statement re-
lean Casualty Insurance and Security Com
pany, have also been indicted on charges
of forgery. Two indictments against each
the name of Frank E. Bond, president of
the Chicago, Milwaukee & st. Paul Railroad
Company, to insurance policies. the alleged
purpose being to make the company'S books
look better.
Marine underwriters can furnish no def
mite information as yet concerning the in
surance on the cargo Of the lost steamer
Elbe and they have to await the arrival
of the manifest by mail. Several insurance
companies, however, expect to lose not less
than 500, O00. No regular insurance is car
ried by the North German Lloyd Company
on its fleet. 1t insures the vessels itself by
setting aside a percentage each year from
the profits. The Elbe cost about 81 .5C0.G coo,
but when lost was not valued at one-half
that amount.
The New York Insurance Department suf-
fered a very severe loss in the death by
pneumonia, after an illness of only four
days, of its first deputy superintendent,
Michael Shannon. Mr.. shannon was regard
ed as one of the most expert insurance ex-
aminerS in this country. Although he has
not been for several months in the best of
health, he worked unremittingiy in the Of
fetal examination Of several large life COM
panies. and thus, when stricken with a con-
geStiye chill, which was quickly followed
by acute pneumonia, the low state Of his
vitality was unable to cope with the dis
ease In June, 1888, he was appointed deputy
superintendent of insurance. When Robert
A. Maxwell succeeded to the office OF su-
perintendent of insurance he created the
office of chief xamine and installed Mr..
Shannon. When James f. Pierce succeed
ed Mr.. Maxwell he appointed Mr.. Shannon
his first deputy, in which position he con-
tinued until his death. During his connection
with the insurance department Mr.. Shan
non examined nearly all the large life in
surance companies transacting business in
New York State, and previous to his last
illness was engaged upon the examination
of the Equitable Life and the Mutual Life.
1t was he VINO cONQuc(Gu the lny6Stipa-
ton Of the New York Life several years
ago, and during the past year the greater
part or his time was given TO an examina-
ton of other large companies. His death
occurred just as he was completing his
work in connection with the examination
of the Mutual Life and the Equitable Life.
The counting and valuation of the assets
and liabilities and the review of the various
companies management were practically
of Superintendent Pierce and the numerous
experts employed by him. The work will
be pushed to completion by the superintend-
ent, who will be in no way embarrassed in
this particular by the untimely death Of
Mr.. Shannon.
The Alabama House of Representatives
has passed, by large majorities. two inn
portant bills affecting insurance. One of
them provides that the companies insuring
against fire shall make investigation of all
the risks on the property insured; that
the company shall pay the full amount
OF loss or damage. provided the policy
was not obtained by fraud, or the prop
stroyed by the insured; that, in the absence
of fraud on the part of the insured, the
property insured shall be conclusiveIy pre-
sumed to be worth as much as the face
of the policy; that any agent who issues
a policy for an amount greater than the
value of the property insured shall be
guilty of a misdeneanor and on conviction
be fined from $50 to 500. The other bill.
which relates to life insurance, provides
that when a company contests the payment
OF a policy for the reason that it was
obtained by fraud, the company must.
an amount equal TO all of the premiums
that have been paio, and in the event Of
the case being decided in favor of the
company, all of these premiums must re-
vert to the heirs of the assured. New York
IRE insurance men do not approve the pro-
posed Alabama law. President Moore, of the
Continental Fire, said the bill was based on
a misrepresentation of what fire insurance
policy is. IL Is only a contract of in
demnity. 1t promises to pay. not the en-
tire amount of the insurance. but only
the amount Of the loss. No man can re-
cover more than his loss and, therefore.
under the insurance Law of New York
State he has no inducement 10 commit
arson. Mr.. Moore said also that the Ala