Evening star., 1898-04-29
A NEW NSURANCE RISK
New York Business Men Insure Against
Bombardment.
Foreign Companies Take the Bus1
ness, as Local Underwriters Are
Prevented by Law.
special Correspondence Of The Evening Star.

NEW YORK, April y, 1875
In the city of New York today there are
many business men who believe that the
Spanish intend to blockade and lombard
this port and that their only protection is
to insure their property against lombard
ment. No amount of argument can con-
vince them that the city Is safe. They IN
sist on securing bombardmeHt insurance,
and though the cynical representatives OF
foreign insurance companies are demand
ing fancy rates for the required risks. the
requests for such indemnity are coming in.
The requests are not confined to this city.
Requests are coming in to local under
writer's from all the coast towns and cities.
and men who are in a position to know
say that millions of dollars of such risks
have already been written by the London
Llcyds and other big companies in London
and the other European centers of 1nsur-
ance.
This sudden and entirely unexpected conf
plication in the already complicated tnsur-
ance developed about two weeks ago. AT
first the demand for ''bombardment' risks
was light and furnished amusement for the
local underwriters. who did not take. the
matter seriously, considering 1t merely an
interesting feature of the prevailing war
scare.
Taken Seriously in London.
To oblige regular clients the New York
brokers cabled to London and asked for
bombardment rates.
The London companies take all business
matters seriously, and, as they are always
ready to insure anything insurable. they
cabled back their quotation. 1t was a
fairly low rate for a three or six months
premium. When these rates were made
known on this side of the Atlantic there
came a rush of business. Boston started
the boom and in less than week New
York fell in line. Then came Baltimore,
Norfolk, Philadelphia, all the towns 'front.'
ing on the Jersey coast and, last of all,
Far Rockaway and Coney Island.
AS a matter of course rates advanced as
the demand increased. The insurance peo-
pie saw the fat profits that Lloyd's and
other foreign companies were making and
the ''bombardment'' risk quickly lost its
humorous side and developed into full
fiedged business proposition. The fire in
surance companies doing business in New
York wanted slice of the business, but,
unfortunately. ran up against snag at
the very first move. Although fire insur-
ance companies under the state laws are
restricted to making insurance on dwell
ing houses, stores and all kinds of build
ing and household furniture and ether
property against loss damage by fire,
lightning. wind storms or tornadoes," some
of the officials of the companies interested
thought that they could evade the, law and
cover the new hazard by waving the war
clause in the standard.
In order to find out just how the state Of
hcials looked on this move of the COM
panies, one firm of fire underwriters wrote
TO Louis r. Payn. the superintendent of the
il rsurance departm ent at Albany. In his re-
ply to this letter. the state superintendent
defined the laws under which fire insur-
arce companies are organized. and quoted
the CLAUSE in the standard fire insurance
policy provided for in section 121 of the in
surance law. which read as follows:
Cannot Waive War Clause.
This company shall not be liable for
| loss caused directly or indirectly by in
vasion, insurreetion. riot, civil war or COM
| motion or military or usurped power, &C."
|. According to Mr.. Payn. this expressed
provision in the standard policy cannot be
waived by a fire insurance company. In
| &C Inclusion Mr.. Payn said:
In my judgment, the normal hazard at
! present Is a sufficient justification for the
| of the conditions contained in. lines 81 and
| 81 of the standard fire policy. The authori-
| ty to insure against damage resulting from
! bombardment, il fire did not ,ensue is
| clearly not contemplated by the insurance
| laws of this state providing for the organi-
cation of fire insurance companies, and for
! the admission to this state of companies
| organized In other states and countries"
| This statement of the states position
| means, in the opinion of insurance men.
| that the state will not allow any fire in
| surance company to take bombardment
| risks. but will maintain discreet silence
as to the business done in London pro-
viding II Is placed here by brokers acting
as agents for the persons desiring the in
| surance.
! Anxious to Get Army Cloths.
Government officials are seriously consid-
ering some methods by which the delivery
Of woolen and cotton piece goods needed
| by the army and navy may be expedited.
Uniform cloths and cotton duck are the
principle fabrics required. The former
must be dyed in the wool with pure indigo,