Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-01-31
Bill to Increase Authority Of Poto-
mac Insurance Go.
COMMITTEE TO REPORT FAVORABLY
Experimental Farm Bill Passed by
the House.
OTHER LOCAL MEASURES

the House District committee today gave
hearing to Mr.. w. Riley Decide of the
Potomac Insurance Company on a pending
bill Oh. r. 2736) to amend the charter Of
that company. This bill was reported,
through a mistake to the House some time
ago. but when the error was discovered the
bill was withdrawn and again taken up by
the committee.
At today's meeting Mr. Decide explained
the provisions of the bill. These, in the
language of the previous reports are as
follows:
Provfsions of the Bill.
This company was incorporated by act
of Congress in 1881, renewed and continued
in force In 1887, again in 1851, and again In
1875, with amendments to respond to the
change of conditions and to it's increasing
business. Within the last few months it
has absorbed and made part Of itself cor
poration known as The Lincoln Fire In
surance Company and the object of the
proposed bill is to secure authorization by
Congress of a number Of amendments to
meet the exigencies growing out of the
above consolidation, as also to modernize
many features of the o.iginal charter, and
to relieve from ambiguity certain rights
and powers hitherto conferred by Congress
upon the said company.
The amendment embodied in section
Of the pending act provides that The
town shall hereafter be known as The
Potomac Insurance Company Of the Dis
trict of Columbia by reason of the fact
that Georgetown has no further legal exist
ence.
1.-The first amendment in section Of the
pending act provides that section of the
act of incorporation be amended by insert
ing the words a board of not less than
before the words twelve directors in order
to make provision for a large directory. to
meet the enlargement of the increased and
increasing business Of the company.
The second amendment in section 2 Of
the pending bill provides for striking out
all Of the words of section in the original
act of Incorporation and substituting In lieu
thereof the following words:
" Each stakeholder shall be entitled to
vote in person, or by agent or proxy, APP
pointed under his hand and seal, attested
by one witness at the stockholders meet
ings. and shall have one vote for each
share recorded in his name on the books Of
the company.
1.-THE original act provides for a system
of voting which now has no place and
should have no place in modern corpora
tons, viz, that each stakeholder is en-
titled to 1 vote for each share up to 10
shares, and thereafter l vote for every
shares up to so shares, and thereafter i
vote for every 20 shares which he may
hold over GO shares. AS this system of
voting is obsolete and obviously important.
the company should be authorized to adopt
the system now in common use, and which
gested.
The next amendment in section of the
pending act provides for the striking out
from section Of the original charter the
words not exceeding $4,000 in any one
policy because the increased assets of the
company do not demand a limited policy.
THE next amendment in section of the
pending act provides for the striking out
of the words in Georgetown where they
occur in said section of the original char
ter, for the reason before stated-that the
city Of Georgetown has been abolished by
act of Congress.
THE next amendment in section of the
pending act provides for striking out the
whole of section 8 of the original charter
as being unnecessary and as SO much sur
plusage, the previous section in the orfgi-
nal act providing how contracts shall be
made and the contract itself fixes the mode
of settlement.
THE next and last amendment in section
2 of the pending act provides for the strik-
ing from section 10 of the original charter
the words not oftener than once in six
months This amendment would authorize
the company to declare dividends quarterly,
If desirable. instead Of semi-annually, as
enjoined by the original charter.
The first amendment in section of the
pending act provides for striking out all OF
that part of section 1 of the act amend
ing the charter of the Potomac Fire Insur-
ance Company of Georgetown. approved
March g. 1887, which follows the clause
and from time to time to after or repeal
following words: And to make, execute
and perfect contracts of indemnity and con-
tracts and agreements of reinsurance. and
for underwriting the various risks and
hazards and other undertakings of the in
surance companies. and to execute and per-
feet all agreements, bargains and contracts
necessary to carry these and It's otner pow
ers into effect This amendment enables
the company to exercise the general tnsur-
ance powers contemplated by its original
charter. The last amendment In the pend
ing bill authorizes the increase of the CAPT.
tai stock at any time to any amount not in
excess of 81 600, 900 in order to enable the
said company to meet the requirement OF
localities demanding large capital in the
event of the extension OF lts business
abroad"
Local Bonding Business.
Mr.. Decide said that 1t was desirable to
give the company authority to do a local
guarantee and bonding business. At pres
ent such a business can be done by local
only under the general trust
act of 1890, requiring capital
of s., 600 600. A foreign company. however,
with a capital of s200OU0 can come in and
do this business.
Several members of the committee raised
the point that the proposed action seemed
like giving this company special privi-
leges not possessed by other companies to
do any kind of an insurance business. 1t
was feared that this objection might be
urged against the bill in the House
The committee then went into executive
session, and decided to report the Potomac
insurance bill favorably, but striking out
section 3. That section provided for the
Indemnity business against which the point
was raised in committee and was as fol-
lows:
The Section Stricken Out.
Sec. 8. That the act Of March 8. 1887,
above mentioned be amended by striking
out all that part Of section which follows
the clause land from time to time to alter
or repeal the same and inserting in Lieu
thereof the following words: land to make,
execute and perfect contracts of indemnity
and contracts and agreements of reinsur-
ance, and for underwriting the various
risks and hazards and undertakings OF
other insurance companies, and to execute
and perfect all agreements. bargains and
contracts necessary to carry these and its
other powers into effect" and to further
amend said act by adding at the end of sec
ton the words. "and the board Of direc-
tors created under this charter shall have
the power to increase the capital stock at
any time to any amount not in excess of
81 100000"
Safety of the Long Bridge.
The committee also authorized a favor
able report on House resolution 49, which
provides as follows: