Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1896-04-12
LIVE TOPICS.
INSURANCE rnopLnms.
piscus.e.i ny one Of the Leading In
.uranee Men Of the sosfh.

4 nI
There has been much discussion IN
business and legislative circles or Va
rious phases OF the important topic,
To secure an authoritative presentation
OF material facts bearing upon y, the
| Gazette addressed m inquiry 20 Mr. ..
| r. Trezeyant. senior member OF Treze-
! want & Cochran. Dallas, one OF me
4 largest and Oldest general agencies IN
the South. His reply Is full OF interest
and suggestion:
Dallas. Tex. April 10, 1896.
/ have before me your note asking
six questions. as follows:
1. what amount OF Insurance Is car
ried IN this slater
g How many companies are now
operating In the state? Have they IN
creased or decreased IN number In the
last five years?
.. Has the business been profitable
i OF Improbable TO the companlesg
T. How many men IN Texas are de-
pendent on It for incomes2
8. Are conditions favorable to the or
| Ranization OF successful companies In
| Texas?
g. In what respect may the laws OF
| the state be amened 80 as to promote
the general interests Of the assured?
| /. In 1891 the amount OF insurance
carried in Texas was si9s. s74 90. The
premiums received were 1882, 597;
| lltHth Idiut s-sooVtJJJ+bvs ltIltAAdhc u
losses to premiums received was a per
cent.
In 1892 the amount OF insurance car
ried In the state OF Texas was S2lo 49,
| 35s.00; premiums received. $3.457.50600;
losses paid. f2,5i3.245. 90. percentage Of
losses to promiums received. ~ $40 per
cent.
In 1898 the amount Of insurance car
ried in the state Of Texas was t20G 1885,
| .01; premiums received. S3,65s. 30S 90;
4 losses paid. f2.465. 1888. 90; percentage OF
losses to premiums received, 81 4-l0 per
cent.
In 1898 the amount OF insurance car
| ried In the state of Texas was sl79a37-
| 4S7 90; premiums received. s32i7. 273 90;
losses paid TO premiums received, q
$40 per cent.
For 1895 we haven't the exact data as
| yet, but as near as / can estimate from
the figures at hand the amount OF In
surance carried in the state OF Texas
for 1895 was about ss0o,00OOO0; pre-
miums received about $1,000 900; losses
paid about 80 per cent.
You Will see from the above that the
| amount written in 1924 was smaller
than for several years, and is again in
ereusing.
2. There are now aixty-fve or sixty
six companies operating In the state OF
4
125.
3. That the business has been I'M
profitable will be seen at glance from
the above figures. gathered from the
department OF insurance and statistics
at Austin, and the Improbable nature
Of the business has caused the retire
ment OF about sixty companies.
The expense OF transacting the insur-
ance business is from 81 per cent TO
30 per cent, according to the economies
practiced by the various companies
~ l-S per cent. Is a fair average. Add
this expense account TO the loss account
for 1891 10 1894. inclusive. and you will
see that for every 800 90 taken In the
company paid out from 500 10 $40.
In 1895 the results were entirely differ
ent, showing a handsome profit for
the companies but not enough 10 re-
coup the losses OF the previous four
years.
4. It 10 difficult for me to approximate
the number OF men engaged IN the fire
insurance business in Texas. but
should say easily 1900. counting agency
firms, individuals and their clerks
8. do not think the conditiois gem
orally are favorable to the successful
organization of fire insurance COM
panies In Texas. Ten or fifteen COM
panies have been organized and havn
failed in Texas In the last twenty-five
years, No business Is OF SO hazardous
and paecarlous nature as FIRE insur-
ance. The factors leading TO success
or failure In no other business are so
entirely beyond the control of the man
agemcnt. Sweeping CONGREGATIONS
poorly constructed houses, hard times
and the bad moral hazard Incident
thereto. failure OF water supply and
FIRE departments at critical moments
all these are factors beyond the control
OF the insurance manager, and for this
reeson II Is safe to say that the condi-
lions In new state like Texas are I'M
favorable TO the successful organlza-
tIon OF fire Insurance companies. IL Is
notorious fact that no successful FIRE
insurance company OF any national
Importance have been launched in the
United states within the past ten years.
and great many which had been nrc-
viously successful have failed and gone |
out OF the business within that period
There are no fire insurance companies
other than small concerns OF local i'm |
poitanee outside of Connecticut. Penn |
sylvania, New York. New Jersey |
M assachusetts. California, Illinois, Mis-
souri, Wisconsin and Minnesota; and |
Of these. California has but one Of i'm
portance Missouri one, Illinois two.
Minnesota one and Wisconsin one or
two. Even the great and rich state OF
ONO has no fire insurance company OF
suihclent Importance TO be well known
- HNfN''A 'tstnb AAo bNn UufucrH. Tlo
same can be said OF Indiana, Ken
lucky Tennessee and Virginia, and ono
OF the other Southern states. excent
Louisiana New orleans has two or
three very good companies, generally
known throughout the South, ana 10
limited extent in New York.
0, The avs OF the state of TEXAS
In regard 10 IRE insurance are n hotcb-
potch OF the worst legislation copled
from the statutes Of the Western states
fhe law which most seriously Affects
adversely the interests o the assured
y the valued policy law A law which
was passed by uninfUrmed legislators
apparently In the interests OF the aa-
'ured, but the practical operation Of
mat law IN thar any scamp who can bv
any means succeed IN obtaining ton
much Insurance can readily procure
ne burning of his property and collect
nc face Of his policy even though II
may PC 80 per cent or 100 per cent more
nan the value OF the building destroy.
~. The popular impression that the
mount thus frnudulonuy obtained IL
Nruny from the Golfers OF forolrn cnr-
porations ought 70 be readily dispeIled
when man reflects that the object OF
lre insurance In 90 collect a small sum
rom s,eh piece Of property to repair
ne uieAster 70 an Individual by the d.
itfuction Of one piece. n TOO mnnv