The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-05-04
OFFICE OF THE HERALD,
LOS ANGELES. May 8, 1898.
zone can stop when he ascends, but not
when he descends.''

A very interesting feature of the insur-
ance business is brought into prominence
at this time on account of the fear of
possible bombardment by the enemy of
coast cities and the consequent numerous
applications that are being made for in
demnity against this risk. The New York
Evening Post says that requests for such
indemnity are received daily in New York
from many important coast towns, and
heavy risks upon exposed property have
already been negotiated at fair rates con-
sidering the probable hazard involved. Up
to Friday last such business was confined
almost entirely to marine insurance COM
panies. but since the underwriters at
Lloyds, London, entered the field, other
companies have been considering the mat
ter and 1t is probable that additional facil-
tiles will soon be offered The hazard has
received general attention in Boston,
where underwriters are being constantly
appealed to for such protection, and Gov
ernor Wolcott has just addressed the leg
tslature upon the subject.
Although fire insurance companies I'M
der the laws of New York state are re-
stricted to making insurance on dwelling
houses, stores, and all kinds of buildings
and household furniture and other prop
Z erty, against loss or damage by fire, light
ming, wind storms or tornadoes,' some
have covered the new hazard by waving
the war clause in the standard policy.
President Beddall of the New York board
of fire underwriters points out, however.
that If fire insurance companies should
undertake to insure all the destructible
property concentrated in Greater New
York and Jersey City ESTIMATED to be
worth $2,000,OO0, 00W against loss resulting
from bombardment, their combined assets
would be sufficient to pay Tin case of de-
struction) but seven and half cents on
the dollar. He adds 1.-THE charging of a
premium for the assumption of risk Of
that kind by any insurance company, I'M
less the amount in the aggregate were re-
stricted to the capital and surplus pos
sessed by the company, would be an i'm
moral transaction for the reason that the
obligation could not be fulfilled if the con-
tingency insured against should arise.
am not aware that any case has ever &C.
CURED where a fire insurance company
has paid loss by fire arising from the
act of foreign enemy, policies of the COM
panies of all countries wherever issued
containing an express provision that the
company shall be relieved from liabilities
for loss thus occasioned." Superintend-
ent Payn has been asked for assurances
that parties obtaining the protection de-
sired from non-admitted companies shall
not be prosecuted by the insurance de-
partment
Single risks for as much as 100000 have
been applied for in New York city. Grain
elevators at the SOUTH merchandise shell
tered near wharves, warehouses, dwellings
at New London, Conn. Monmouth Beach,
Bath Beach, Sheepshead bay, Bensonhurst
along Long Island sound, and office build
ings are said to have figured in the trans
actions thus far. The clauses covering
such hazards are worded differently, but
the following form gives an idea of the
protection afforded: 'This company
agrees to cover against loss to the said
property arising from, caused by, or in
consequence of hostilities and warlike OPP
erations."
The rates charged are governed largely
by the probable position of the fleets,
questions of exposure, volume of such
business written, and the general policy
OF the company concerned. Five-eighths
of one per cent is asked in some instances,
the tendency favoring higher rates for
southern than northern ports.
Most underwriters admit that such risks
for New York city property are insignifi-
cant, although some speculation is in
dulged in as to the safety of very tall
structures in times of hostility. well
known insurance man said: Local bust
ness men should have such protection if
they want it. The hazard may amount to
little, perhaps nothing at ALL but our in
surance laws ignore it altogether; hence
the embarrassment in such times as these
Bombardment insurance has been quietly
written in this city for weeks past. The
demand arose with the request for war
risks and some companies Obliged their
customers without consulting the insur-
ance department. OF course the expense
OF Smelling the city would be enormous. and
1t is not likely that any fleet could get
near enough to do much damage. Our
business comes principally from outside
coast towns where deficient protection &C.
casions some alarm.
n md rr;t
rates for war risks are governed today
by considerations different from those con-
trolling the negotiations few days ago.
The business has always been considered
hazardous, some companies avoiding it al
together, but calculations until recently
were based on satisfactory adjustment of
all differences without a resort to arms
The captures already reported have oc-
casioned uneasiness concerning the safety
of other vessels long out, and the move
ment OF both fleets Is being followed anx-
tously by all concerned. Some of the cot
ton confiscated at Key West was insured
In New York city, and the heavy losses
sustained by London underwriters have
had decided effect upon the market.
Marine insurance against war began at
the London Lloyds as early as October and
November last when five guineas for
tWeiVe AoHtHS was PAID. Later the rate
rose to twenty-five guineas, at which bust
ness was done, and even seventy guineas
was more recently quoted. 1t is stated
that underwriters who have risks on the
vessels now held as prizes are paying fifty
guineas to hedge their losses.
o O O
The failure of National" building and
loan association is announced in a dis
patch from Kingston, New York. which
says that the court has granted the appli-
cation of the attorney general for the an
pointment of temporary receiver of the
property and assets of the Central City
Building and Loan association of Syracuse
appointing Charles K. Underwood of SYRIA
cuse temporary receiver, and fixing his
bond at $4,000. The liabilities of this assoc
citation, as shown by the papers before
the judge, amount to s219325. It's assets
are $780, 900, leaving deficit of $136, 725. The
association has been engaged in business
at Syracuse, Buffalo, Niagara Falls, and
Tonawanda, and at Roanoke Va. At Ro-
anoke 1t met with serious losses in hotel
property, which SO far injured it's capital
as to render it insolvent
O O o
The German imperial mint in 1897 reports
the coinage of 126,662, APO marks in gold,
124 3.340 marks in 2O-mark pieces, and
l. S39,OSO marks in 10-mark pieces. In nickel
the total was 1,479454 marks in 1O-pfennig
and 5-pfennig pieces, and in copper 2O6,-
ga marks In 1-pfennig pieces. No silver