The herald., 1898-05-19

Fire Underwriters Meet
Insurance men from all sections of the
country attended the thirty-second annual
meeting of the National Board Of Fire In
derwriters in the Mutual Life building in
New York on the 18th inst. The organiza-
tion represents companies having more
than $244 900 900 In assets. with an enormous
premium income, and for thirty years has
rendered Important service to the under
writing interests of the country in promot-
ing legislation. repressing incendiarism,
collecting valuable statistics and organic
ing locul boards. Unusual interest attached
to the deliberations because of the critical
situation confronting the companies as a
result of the decentralization of the under
writing business at important commercial
Penters and the threatened collapse of rat
Ing organizations governing business In
profitable territories. The recent dissolu-
ton of the Tariff association in this city
was commented upon generally by those
In attendance before the proceedings
opened.
A PROFIT OF 1e-1oo PER CENT
Henry w. Eaton of the Liverpool and
London and Globe Insurance company,
president of the board, reviewed the recent
progress of the companies in his opening
address. He showed that all the joint
stock companies reporting to the New
York insurance department from 1891 to
1897, inclusive, did business during the en-
tire period) at a profit of only SIS, ,056 692,
lmounting to but 16-100 per cent of the
premiums received. Commenting upon
these figures. Mr.. Eaton said: ''They ind-
cate margin SO narrow between profit
and loss as to make it certain that but a
slight reduction in rates or increase in
losses or expenses over the vast field of
American underwriting will throw the re-
suit on the other side of the ledger; and,
lnasmuch as fire losses are beyond our
control, except by means of careful Sc
lection of business by individual compan-
les, 1t seems plain that any pressure for an
Increase Of expense on the one hand or un-
warranted rate reductions on the other,
should be opposed by all conservative fire
Insurance companies"
A LOW LOSS RATIO
Although the rate of premium Ito each
300 Of risks) declined from .s7o5 in 1896 to
,s1S9 in 1897. the expense ratio increased
from 36.15 to 37.G6, the ratio of commis-
lions advanced nearly " per cent. Mr..
Eaton thought these changes were in the
wrong direction, and considered it fortu-
nate for the companies that the loss ratio
10 premiums last year (4S.SO had been the
lowest since 1888. The remarkable expert
ence Of the companies last year was fur
lher shown by the ratio of losses to risks
served in twenty years. Under the law of
average It was too much to expect another
year with such light losses. Mr.. Eaton
closed with an elaborate review of the
methods of taxing fire insurance corpora
lions In this country, and, referring to
the contention that a tax on gross premi-
nms was wrong in principle, said that 1t
had been shown that where company in
the United States pays 100000 the same
IN, Ev,o md b,,t
rhe address was attentively listened to,
winning applause.
NATIONAL SUPERVISION
George p. Sheldon, chairman of the ex-
)cutive committee, reported verbally for
The special committees appointed to con-
Cder the Platt bill providing national SUI
bervision Of insurance, and the revenue
bill proposing tax ON each policy or re-
pewal. Mr.. Sheldon said that the Platt
bill had been carefully considered, and
that the committee would have been repre-
tented at Washington had hearing been
given. Hostilities with Spain, however,
had prevented any consideration of the
measure, so that matter had been indefn-
letly postponed.
PROPOSED POLICY TAX
The underwriters had been represented
before the house committee considering the
imposition of tax on policies issued by
fire insurance companies, and 1t was hoped
that charge Of only 10 cents on 500 of
premium would be finally agreed to.
ACETYLENE GAS
The feature of the report on lighting,
heating, etc., was the results given Of in
vesigations into the hazard of acetylene
gas. The executive committee became con-
WINGED that the rapid introduction of that
luminant made desirable the adoption of
uniform rules. and, after careful consid-
Grafton, numerous requirements for its
installation and use were given, in the
hope that they might be generally adopted.
A drawing showing the proper location and
arrangement for necessary devices accom-
panied the report, together with much ad-
ditional information respecting the prob
able hazards involved.
STATISTICS
The committee on statistics gave some
interesting comparisons Of the experience
of insurance companies in Berlin. Ger
many, New York, Philadelphia and Chi
cago during 1895. These showed that
greater number Of fires had been reported
in Berlin than in any American city. While
New York claimed 100000 more inhabitants
than Berlin, 1t apparently had 1857 less
fires, although 50, 621 greater loss on $24.-
030,742 less insurance involved. Chicago,
with 10000 more inhabitants than Berlin.
reports 1863 less fires and $1534,3 1856 greater
loss on $0U.o ,ybi less insurance involved.
Philadelphia, with 4550O0 less population,
reported 1882 less fires. but ,221 more
loss on s9O.525.764 less insurance involved.
While New York reported but 4-1O per
cent fires to each 1000 Inhabitants. Berlin
reported 92-100 per cent. or more than
twice as many fires, and suffered only 11-1OO
per cent of its loss on nearly three times
the insurance involved.
OFFICERS
These officers were elected for the ensu-
ing year: e. G. Irwin, PRESIDENT George
p Sheldon, vice-president; Robert b.
Beath, secretary; F. w. Arnold, treasurer.
The Real Estate Market
Transfers for the week ended May 18th
were 233 in number and amounted to S19t-
l16, as against 249, amounting to S21S01O
the preceding week, and 266. amounting
to ,S35 the corresponding week of last
month.
Z Mortgages filed for the week ended Nav
18th were 9S in number and aggregated
S147 800, as against 249, aggregating 81 ,13S-
O83 the preceding week and 1875, aggregating
s169,0SS the corresponding week Of last
month.