The herald., 1898-11-19
AN EASTERN VIEW OF THE WAR
FARE AMONG COMPANIES
MASSACHUSETTS Benefit LIFE
Mexican vestments-Lacteal Statis-
tics-The Financial Situation.
interpretations
OFFICE OF THE HERALD,
LOS ANGELES. Nov. l8, 1893.

Underwriters throughout the country
are still anxious about the restoration OF
fire insurance rates in this city, says the
New York Evening Post. 1t is estimated
that the companies are losing about S6OO0,-
900 year on local business alone, and with
compacts threatened at Boston, Phlladel-
phia, Chicago, Baltimore, Cincinnati and
st. Louis, the situation has become ur-
gent, demanding attention OF some sort at
once. The committee of fifteen charged
with the formation OF tariff ASSOCIATION
governing local business considered the
matter yesterday and will meet again in
day or so. The ground has been carefully
gone over and the more important problems
thoroughly discussed. The question of re-
insurance is still one of great difficulty
which the committee will probably find
hard to agree upon. The resolution of Sep
tember Goth provided "that members of
the association be preferred in all reinsur-
ance," which means that the profitable
treaties made with outside companies be
abrogated and that surplus lines of in.
surance be distributed first of all among
companies belonging to the association. a
well known underwater whose advice has
been sought in the present crisis said: "If
no company was allowed to take larger
risk than it was willing to carry, the whole
problem would be solved at once. Under
such conditions, in fact tariff association
would be unnecessary. know what want,
but for the life of me do not know how to
bring it about"
Although it is true that the large COM
panies take today single risks for six times
the amount they formerly carried, it is
difficult to see how the practice is to be
corrected. Business men have become ac-
customed to individual policies for 100000
or more, and prefer them to dozen little
ones for smaller amounts. The large poll
cies are more convenient and easier to
handle. Some of the companies making a
practice of such business point to tie fact
that large policies are really safer when
protected by reinsurance with outside COM
panies since the capital of non-admtted
companies is not exposed in this territory,
and could not therefore be affected by a
great conHagration which might wipe out
a dozen local companies at once. A case
in point is the dry goods district of this
city, where the insurable values are said
to aggregate 5000, 900 or more, and where
the companies have always been able to
get all the business they were willing to
accept For years past merchants i'll this
district have filed annually affidavits with.
the insurance department at Albany, set
ting forth that they could not obtain suf-
fcent protection from admitted compan-
les, and asking that they be allowed to go
abroad for additional insurance. The home
companies had all the risks on such prop
erty they were willing to carry, and rather
than increase their lines in section of the
city where they already had millions at
stake they refused extra business at even
exorbitant rates. Although the supply of
indemnity now equals or exceeds the de-
mand even where great values are concen-
trated, it is still said to be difficult to cover
stocks worth S2,OOO,OOO or $3,OO0,0OO, not
withstanding the present strife between the
companies.