The herald., 1898-10-05
AN INSURANCE COMBINE
RATES NOT REGULATED LIKE
PRICE OF SUGAR
NATIONAL BANK STATEMENTS
Bad Record Life Risks-Dividends ds.
San Francisco Bank Clearings.
Mortgages, Releases, Etc.
OFFICE OF THE HERALD,
Los Angeles, Oct. I, 1Sa

Los Angeles, Oct. I, 1888.
The twenty ninth annual meeting Of the
Fire Underwriters Association Of the
Northwest, the largest organization Of the
kind in the country, brought to Chicago on
the 9th ult. insurance men from all Sec
tions of the west. The meeting Is regarded
as an important one, as widely affecting the
interests Of agents The reports Of officers
and standing committees show that the
organization Is in a prosperous condition.
The annual address, prepared by Charles
Janv.er of New Orleans. attracted much
attention. MIR. Janvier contended that fire
insurance had afforded to commercial,
financial and Industrial energy and enter
prise the same encouragement and support
which the diffusion Of knowledge and the
expansion Of civilization had received from
the art Of printing. In commenting upon
the problems confronting the companies. he
urged upon all the necessity Of cooperation
and denounced "those so-called independent
underwriters who skulk on the outskirts Of
tariff associations and take advantage Of
that good judgment which prompts COM
panies maintaining such associations" He
sad:
The theory which is so often advanced
that the price Of insurance, like the price of
cotton, OF sugar, or Of -four should be regu-
lated by the operation Of the laws Of supply
and demand proceeds from EN- erroneous
conception Of the fundamental principle Of
the system.
indemnify Is mot a tangible something
which is either manufactured or produced
by the ,nsura nee companies at q certain
cost or purchased by them at certain
nrce to he rcsOld 70 apother
The business Is simply and solely one Of
collection and disbursement, the sum Of
the collection being determined not by amy
Increase or decrease In the demand, nor by
my scarcity Of abundance Of the supply, but
by the Appropriated sum Of the anticipated
Endorsements.
The mission and the business of insurance
companies is merely to collecA from the
many a tax sufficient to compass three
purposes: First, to indemnify those who
suffer Loss; second, to pay the expense .n-
CURED in the collection of the tax and it's
distribution; third to return to the capital
list. whose money has been hazarded to i'm
mediately supply any deficiency between
the sum collected and the sum dlsbursed.
4 fair return upon his Investment.
Anything collected in excess of the
objects Is am unjust and unnecessary burden
upon the public, and any excess in the DIS
bursements. though temporarily supplied
BY capital. is debt due by the people which
they must pay sooner or later in seme
shape or other.
TO ascertain with any degree Of accuracy
with any degree Of fairness to the public
and Of safety to the business-what the
sum Of this tax should be, Is a task which
Is by no means easy and requires in its sat
isfactory accomplishment the combined ap-
plcation Of sound judgment, practical ex-
perience, and unselfsh integrity.
Continuing, Mr.. Janvier said that Coop
GRAFTON among insurance companies, II
honest, sincere and thorough, must prove
of the greatest benefit to the public. If the
companies must be oppressed by Legislation
designed to regulate the business, he
thought the interests of the people would be
better served by the enactment of a statute
compelling thorough cooperation and max
ing breaches of good faith m.sdeameanors
or felon:es.
Mr.. Janvier then spoke against what was
commonly called preferred business" say
ing that one class Of business should not be
more desirable than another. The exist
ence of preferred classes led to a struggle,
and in the struggle excessive commissions
were paid Most of the present Irregular
.ties and inequalities were due, he thought,
to the imperfect system Of rating 1t at pres
ent in vogue. Mr.. Janv.er advocated the
cause Of the local agent, saying that he ia
vored the demands made through their ma
tional association for the correction of the
abuses which had fastened themselves
tho hlS;naSa IIc h0Dod tbev
succeed In eradicating the evils OF ''over-
head writing" and multiple agencies. In
closing, he said
THAT the time is approaching when the
fire insurance business of this country will
hands must be evident to those who have
signs of the times. The smaller compa-
nies are fated to extinction. either by con-
solidation or by falling prey to the car
nervous appetites of their more powerful
competitors, and though the process may
not be rapid 1t will be none the less pro-
gresslve and certain.
"Concentratscia and consolidation Of in
surance capital will necessarily have the
effect Of driving into other avenues Of in
dustry the great majority of those now
~
1t remains to he seen how far the members
of this majority, when they realize the fate
in store for them will aid IN encompassing
their own discontinue and distress"
Bank Statements
The Merchants National bank of San
Diego reports. September 20. 1898: Re
sources. $6A731G. 40. OF which loans and dis
counts amount to 1893 ,62S 20; specie, $52,-
5000. Liabilities include individual depos-
its subject to check, s299, ,555.62 Capital
stock, 100000; surplus and undivided prof
its, 24,119.20.
The National Bank Of Pomona reports.
September 20. 1898: Resources, s1S3. 775. SO.
of which loans and discounts amount to
$1S6Sl0.73; specie, s12.O65. Liabilities in
clude individual deposits subject to check.
$sS.5494S Capital Stock $4,000. Surplus
and undivided profits, $6267.4O.
The First National Bank of Riverside re-.
ports, September 20, 1898: Resources. s511.
227.y1 of which loans and discounts amount
to s147,696.97; specie, si7.SS1.05 Liabilities
Include individual deposits subject to
check, $347, ,1S4.6S. Capital. S1OO, 900. Surpl,,s
and undivided profits, SIS, ,62689.
The San Bernardino National bank