The herald., 1898-12-02
LOSS IN PREMIUM INCOME AND
EFFECTS OF LOWER RATES
INCREASE Of ACTUAL MONEY
Facts About Copper Exports-Tobacco
Trust Observation-Disclosures
neutrality-suspicious.
OFFICE OF THE HERALD,


The fire insurance companies are begin
ming the work of calculating profit and loss
during a year which has been attended
with unusual difficulties for those engaged
in the business. 1t is estimated, says the
New York Evening Post, that the compa-
nies will lose from 10 to 10 per cent OF their
aggregate premium income (Sl96, ,229, z96) re-
ported year ago. This results chiefly from
the general reductions in rates at centers
where the companies have done an enor-
nous business, and in territories where the
insurable values, although not concentrated
within narrow limits, as in the cities, usu-
ally aggregate very large amount. Then,
too, some think the commercial depression
incident to the war furry" had something
to do with the showing, since merchants
were not particular about replenishing their
stocks, and for that reason required less
protection than formerly. However this
may be, it is true that the companies report
all increased business of late, which, under
normal conditions, would be likely to yield
fair profit. This may help out the showing
from now till the close Of the year, and make
up in part for the poor business of the last
few months. As regards local conditions,
it is probably true that the present strain
falls chiefly on twenty y-tive companies. Some
have been managed with unusual ability,
while others not all Of them small ones)
have been run in such a way as to cause ap-
prehension lest they encounter early dis
aster. 1t is seldom difficult to pile up heavy
liabilities at ridiculous rates. There may
even be profit in such transactions when the
risks are properly selected, but in the re-
cent strife for business much was said to
have been taken without regard for the safe
guards considered essential scarcely one
year ago.
The loss record is still favorable, although
the chances are it will show waste of 49,
100000 or more above that reported in 1897.
New York, up to few weeks ago, had been
visited by scarcely any large fires. This was
especially true of the metropolitan district
where the underwriters have most at risk
and where a single fire, given headway,
could cause almost incalculable damage
within a few minutes. The companies have
sustained a few heavy losses of late, but
nothing like those reported at the time the
old tariff association was formed. In this
lies the secret many believe, of the present
difficulties confronting the companies. One
underwater of prominence declares openly
that nothing but great fire or a series of
large ones will avail to bring about the res
toration of rates in this city. This may
seem strange. in view Of the negotiations
now pending, but it is the opinion of one
whose cooperation is necessary for the
formation of tariff association in this city
He argues that the companies have not yet
had medicine" enough, that the agents
whose dishonesty contributed to the denor-
alization have not yet lost enough business
and that the large companies, because of
other reasons. are not enthusiastic over the
movement. However this may be, the com
mittee OF fifteen is apparently making pro-
gress, and much is hoped for in some quar-
tiers, as a result of the deliberations. II the
companies get together on any reasonable
basis, so that rates in whole or in part. are
restored, the outlook for fair business next
year seems encouraging. AS it is, the West.
ern Union (fre underwriters) is thought to
be slightly stronger Notwithstanding the
recent withdrawals) than it was few davs
ago. Underwriters appear desirous of hold,
ing that together at any cost for if it should
go at such critical time as this, widespread
decentralization, it is thought, would almost
immediately result