New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-02-11
HOME NAY ABSORB n.
PEABODY co. CRIPPLED
Big Insurance Concern Wosa D.
SmGIler's Baltimore Fir. Jo,s.

terested yesterday IN Information TIA, a.. - -
one OF the strongest OF the New-Yor;s -o-.--oss
was negotiating to take over tho Peabody -
the Baltimore companies which have bs.- -
pied badly BY the great fra Ths xsn,r.,
preston OF opinion seemed to be that !. -.
DC mastery stroke OF business FOR "a. -
company TO pay the little company. - -
take over its growing patronage.
Elbridge C. Snow. OF the Home. .asa
afternoon that he was not advised ~ ~. -
pletion OF such negotiations but h. 49, -
think that It might pay his COMPANY - -
over more than one OF the BaItfror. ccr,-..-.
and acquire their extensive business AZ g. -
pense OF the losses IN the great fire. IT n,.
In position TO make a definite aunouno.-..-.
tomorrow" he said
Two high officials Of the Home Ins1ranc.r.
pany have been in Baltimore since Monaaz ~
company has among its directors Levi p ~
ton, Cornelius n. Bliss, William + Hav.r,.---
John Clahin. George H Hartford. DE-
Clarke. Lucien c. Warner, Warner Van No-s--
James B. Van woert and Cord Meyer. 7. -.
capital Of 100000 and surplus far in -
OF that sum.
The Peabody Fire Insurance. Corpanv :.
Baltimore. has capital stock Of only s127rn
and year ago its Insurance report showed a..
It's surplus was only $137. 514 The couuapvs..
both inside and outside OF the burned distr.c,
and It IS the opinion OF Insurance. sxu.r., o..
its losses IN the fire win wipe out its capital ,,S
surplus
The Home IS an enterprising Company MA
well informed Insurance man. "and look. 49,.
for the future. Just consider what n r,,,ss
gain by taking over the Peabody. and usrhs,.
one or two more OF the Baltimore companl.. =.
the price Of their losses in the fire. The Hons
would acquire at a stroke millions OF pavrv
risks outside the burned district which might :,
to other companies If the little BaIrimors cor.
panies we're forced TO failure II would acquh.
too. the good will OF the companies and. za.n
probably the bulk OF the insurance on the bura
ings which are to replace the ones burned down
This big fire will make the people Of Baltimor.
so careful that another big FIRE there probabIy
viii not be possible for many years to cons.
The burned district win be rebuilt largely ~
hreproof structures So this IS the best the FOR
any strong company 70 extend its Insurance
business IN Baltimore"
President Evans OF the Continental issued A
statement. saying:
The ContinentaTs Baltimors losses VII "a
paid IN fun. and It's net surplus win stiu be over
100000"
vics-President tanning Of the Continental has
been in Baltimore since Monday. and has mada
a careful examination Of the companys commit
ments IN the burned district. The total amount
involved was said yesterday to be S1.135O00.
or this amount 100000 covers 'areproof' risks
on which the salvage is likely to be important
Alfred NJ Best said that even II the Insurance.
losses BY the Baltimore FIRE should be as low a.
$4,000. 200. which Is lower than his estimate.
II was plain that the insurance companies were
giving too low estimates OF their individual
losses. This. he said. applied particularly to The
large companies which are to pay the bulk Of
the losses. 1T is a fact he added. that ths
bulk OF the losses falls upon the strong com
panies which are able to pay them withou;
greatly decreasing their surplus"
The Liverpool. London and Globe viii Jay
81. 900 900 OF FIRE losses in Baltimore. and gsvs
$4,000 n addition 70 the fund for the relief q
business men who are the worst sufferers n thzi
city. The home once sent message to NsE-
York yesterday. directing that the Baltimos
losses be paid in full and that 80 per cent -
paid 10 the policy holders Immediately. without
waiting for proofs OF loss. TO permit business
men 20 start building operations quickly as
possible.
Some az the Insurance men OF New York sad
that they wished to warn Baltimore merchants
against the operations OF several private inslr-
tusters.' who went 70 Baltimore from this city
soon after the fire. These sdjustsrs are said to
be making false proofs OF loss to cheat insuraacs
companies. and Baltimore merchants who en-
pIoy them may have difficulty IN collecting
claims.
Z. T. 1Iostert. OF the Insurance. firm OF Weed
& Kennedy. returned from a meeting OF nsur-
ance men IN Baltimore. He said he thought the
total losses by the fire would amount 70 $50
100000 and that the insurance losses would D.
about S65.OOOOOO.
The New-York freman saved the day IN Bal
timore." he said. They were delayed at jersey
City because OF the difficulty in getting thar
heavy fire engines on cars. but as soon as tnsS
reached Baltimore they hitchsd up IN quick tine
and took the most dangerous position n tas
Path Of the couhagration. They checked the nTs
in time to keep il from spreading into the Can
ton district. where there were miles OF dwellings
and lumber yards.
A prominent business man OF the city $40
that il was evident that the Insurance. con-
panies were belittllng their losses IN Baltimo'A
when the list OF estimates OF losses anOuntedw
less than S2O,OOOOOO. and the adtusters Of ne
companies at a meeting IN Baltimors estimates
the losses at from S50OOOOOO to SsO000Oe~
He added:
notice that the companies are giving cur ~
amounts that they say they have lost altar oD
Iecting reinsurance. Now. as understands :
the companies whose policies We hold havs 10
right whatever to daily that reinsuranes oef0ls
US. am told Il Is the practice Of eompanss
allow their agents 20 write larger policies ll1.'
they are willing 70 hold. and that then ths So
panIes themselves place parts OF these p0n'i9-
with reinsurance companies. But what haVs w
direct policy holders to do with thars WnAl
the reinsurance companies should fail? lns -
rect companies must Fay their losses WneeA.