The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-02-09
BIG LOSS OF INSURANCE
COMPANIES IS PREDICTED
Local Agents Compare Present
Situation to Chicago Disaster,
When 68 Concerns Failed.
SURPRISES ARE LARGER
Companies Are Now More Con-
sentative than at Time of
Former Holocaust.
SURPRISES ARE LARGER

Insurance men in Indianapolis fear a
greater loss to fire Insurance companies
this year than was caused by the Chicago
cOnfiagratiOn, when sixty-eight companies
were forced TO the wall. Although many
Of the corporations represented here carry
heavy risks in the hame-swept city, II is
not known how seriously they are affected.
Among those interviewed yesterday by the
Journal, the belief was expressed that the
heaviest losers would be those whose home
offices are in Baltimore
Among these are: Firemen's of Baltimore,
$,25O,56S assets; Baltimore Fire, $i.542.1 1874 as
sets, also the German Fire. American Fire
of Baltimore, Security Fire, Home Fire.
Maryland, Old Town Fire, and Peabody
Fire. With the first two exceptions, all
these companies, insurance men say, are
the carriers of heavy risks in Baltimore,
and none outside the State of Maryland
Under such circumstances, il is said that
these Will pay out millions
In addition to their indemnity losses val
liable buildings owned by the companies
have been Quilted. many of them burned.
These companies face millions of losses,
them.
The buildings dynamlted to prevent fur
Their losses by fire." said Albert Metzger, of
the Metzger agency, will all be subject to
Indemnity
Irving Williams, associate editor of Rough
Notes, an insurance trade journal, said
yesterday: 'B2ltimOre's fire area is thirty
three and One-half miles in extent, and in
this area occurred almost all the loss. Re-
strictons are very rigorous, and wood in
construction is prohibited. There is also
fireworks ordinance, and every conffagra-
ton has always been investigated by the
city authorities. In the light of such pre-
cautions. the loss seems all the more re-
markable.
Rate conditions in Baltimore for several
years have been considered unsatisfactory
by insurance men, and there was some talk
OF raising rates recently. OF course, the
reinsurance, and new risks on rebuilt prop
erty will help the companies in their losses"
john +. Minor, manager of the fire in
surance department. of G. +. Sayles
q Co. cites local examples to sup
port his claim that the companies in
Baltimore have distributed their risks
so that great loss is almost impos-
sible. Said Mr.. Minor: ''There are three
lines or fire insurance writing-individual
FISK. block risks and coDflagration hazards.
When block is insured one company takes
but one store By this is meant block risk.
When cOnfagratiOn hazards are con-
sldered, fire walls, the safety of socailed
nreproof buildings, and other elements are
considered.
There are certain classes of risks that
one company must handle exclusively to
protect itself. Glass factories are examples.
The whole fire insurance business has be-
come mathematical science, and don't be-
leve that the big companies will be hard
f. II. Forty, second vice president of the
Central Trust Company, who has charge of
the cOmpany's fire insurance clientele,
believes that the destruction of the build
ings in Baltimore, which have been de-
stToyed by flames, will cause a reform in
the building industry. He said yesterday
that rates all ''freproof" buildings will
be advanced, when the effects of gen.
eral cOnhagration such as the one at Bal
umOre are known.
The Phoenix Insurance Company wired
its agents here yesterday that its risk
amounted to 100000. and that il would all
be paid at once.
Conrad Stumph, jr., in charge OF the fire
insurance department of John 5. Spann &
Co, cited statistics to show that the loss
by the Chicago fre. and the accompanying
effects on the insurance world, would be
felt greater than ever. The loss will never
theless be met by larger SURPRISES in all
companies