The Portland daily press., 1895-05-21
Belfast. or to Or. John G. Brooks, vice
Submitted by Board of Lady N1onooers
Belfast, May 20, 1895. 81 ''
IN. Y. Journal of Commerce and Com
mercial Bulletin.

N. Y. Journal of Commerce and Com
mercal Bulletin.
The enormous fire loss of the TTnired
States should direct the atlantic, of
property-owners to the necessity of &C.
lecting their insurance with care If is
the common practice Of business men to
refer to the bad methods which have be-
come rooted in the fire insurance busi-
ness and to sharply criticise insurance
managers. Much of this criticism is
merted, but some is undeserved An
entirely disinterested judge might, how
ever. conclude to award some of the
blame to the policy older OF buyer of
| insurance. If there were no foolish buy-
ers there would be no sellers of SCREEN
goods" insurance. Too many insurers
| have become habituated to taking any
kind of fire insurance policy, and no
doubt the fact that State supervision
has been maintained for so many year
is largely responsible for this fatuous
optimism.
AS far as State supervision is con-
| cerned it must now be remem bered that
| a large number Of Lloyds are not amena-
BILE to the Insurance Department., and
| that many people are insuring in COM
panies of other States and countries
which are not legally admitted to do
| business in New York aud cannot there
| fore be regulated by the Superintendent.
The Department cannot prevent disas-
ter overtaking insurance companies, and
| if reckless or dishonest men secure con-
fuoI - 81 l.
no power to remove them before they
| have done it serious injury.
AT its best, State supervision should
only be q valuable aid to individual
Judgment in selecting indemnity-it can
| never be su bstitute. Too many insur-
ers have drifted into tbs belief that any
institution which is allowed to issue
policies is, and will continue to be, good
| for it's engagements. Large firms will
enced buyers to search the markets for
the best goods, and then will unreserved-
| ly entrust the Insurance of their entire
| esta blfshments to some irresponsible,
cut-rate agent who will furnish those
policies which can be gotten at the low
est 1ates and pay the highest commits
sions. firm having large values at
| ploy any other than a high-grade, intel
ligent. influential agent who has ac-
CURED reputation which is worth keep
ing. Furthermore, the policies he pro-
cures should lie carefully looked over.
| Ii business men exercised the same
caution in choosing insuring companies
as in selecting banks, fewer people
would suffer by insurance failures; but
the very men who will pass over several
nearby banks to favor one they know is
safe, will hazard the value of their en-
tire establishment ny taking lot of in
surance policies upon the recommends
tion of some man whose opinion on not
for 500 they would net consider.
There will in course of time be anoth-
er contiagration in the crowded mercan-
tile section of some large city, and lucky
will be those of the merchants involved
who have made it point to get insur-
ance Of the best qualify. The companies
which furnish that kind are. of course,
those which limit their lines in con-
fagration districts to an aggregate
which they can pay in case they burn.
Hence the supply is not any too liberal
in the congested business districts of
New York, Boston and Chicago. In
view of the fact that both the stron g
and the weak companies charge the same
tariff rate, it seems absurd that so many
insurers fail to insist that their agents
| shall cover their establishments in high
| grade companies as far as possible.