New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-04-19
PROFITS NOT REMARKABLE.
NESS PRODUCES UNUSUAL
DIVIDENDS
THE RATES. THEY SAY. ARE NOT OUT OF Pro
PORTION TO THE RIsKs-soME WILD
STATEMENTS CORRECTED.

THE RATES. THEY SAY. ARE NOT OUT OF PRoA
PORTION TO THE RIsKs-soME WILD
STATEMENTS CORRECTED.
Expressions Of the strongest condemns alton are
uttered by those in the insurance world who know
whereof they speak against the allegation made yes.
terday that rates are excessive an allegation en-.
AMAZING from a source denounced by Insura nco
representatives totally deficient in a knowledge
of the facts The tale recited is that all the prom.
inent companies in New-York have been collecting
an aggregate of premiums OF all proportion 70
their aggregate losses. that they have been man.
aged with extravaganza and have been paying divi.
dends with gilt-edged trimmings. The allegation
goes on TO recount that the organization Of the Are
insurance companies into a tariff association had
resulted in elevation Of the rates that seriously
impeded the movement OF the clouds.
This picturesque presentation charged that all
the companies were fairly staggering under the
load of profits and the specous argument was
fortified with figures showing that the Home Fire
Insurance Company last year paid cash dividends
of $780, $50 on capital OF s3OoO0O that the CONT
mental paid even higher percentage tho German.
American still more. and the Germania cash divt.
dends OF 100000 on capital Of 100000.
The officers of these companies affirmed yester.
day that this presentation of profits was wholly
misleading as indication OF the aggregate bust.
transacted in fire insurance. and that the 1t.
Tempt to show enormous gains as a result OF the
tarin association rates was distortion Of the
truth.
association benehciaries. Is not a member OF the
organization Of insurance companies. Several yearq
ago when the various companies had not formed
an association. the competition forced such cutting
OF rates that the business became Improbable and
a number OF companies went TO the wall. On No
vember 5. 1891. the prominent fire insurance com.
panies formed a tariff association TO adjust rates
on equitable basis and put check to ruinous
This arrangement while afrordng some oppor.
tunity to conduct operations without loss. has not
as represented by short-sightad critics. resulted Ii
the enrichng OF all insurance corporations to Q
puocratic degree. Instead, the facts that the
profit columns In the balance sheets Of many com.
panies are absolutely bare; they have lost instead
Of profting in the business in the last decade.
Three-fhs OF the great corporations actually lost
In the ten years from January 1. 1885, to January
1896 no profit on business is credited to the AGr.
Greenwich Hanover. Home, Niagara and Phenix ol
Brooklyn.
and expenses, record duplicated by Others which
represents anything but an enormous percentage e
profits on the capital invested.
..The question to the Justification for the pres.
ent fire Insurance rates." said Mr. Weed. Of Weed
& Kennedy. insurance brokers' yesterday. If there
ence in this Grand-st fire. where half million hao
been lost and the insurance companies are called
on to pay. The rates charged are wholly reason
II The great risks at stake, insurance men MA.
are factors which capital seldom faces Money tus
vested In fire insurance business 10 likely e
sny time to be wiped out Of existence by snothSS
such confederation as the Chicago FIRE.
Further as a REPUTATION Of the charge that a. +.
Companies yesterday cited the rates with which
many residents In the uptown districts are familiar.
The usual amount for which furniture. etc. y y.
sursG yen. n charged and for 9 two xssss wSs
Z policy 10 taken out for more than Nooa The rate
AA0x1aisA \ RnQ policy soatins only = ln4A NJ