New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-02-13
ABOUT A MONTHS LOSS.
Cost of Baltimore Fire to Insurance
Com panies Put at $50 900 900.

While there have been reports among insurance
men in this city that the losses by the fire in
Baltimore might take away the greater part OF
the surDluses or some OF the weaker New-York
FIRE insurance companies there has been expressed
general feeling Of confidence in the security of
all the companies and their ability to pay the
losses without calling the stockholders for as
easements 10 Increase the SURPRISES. Many Of the
insurance men say that the fire in the long run
VIII be benefit to the companies. because IL will
stinen insurance rates. 1t has been known that
several companies were preparing to lower the
rates, partly account Of competition and partly
because Of large profits at the present rates
Harrison y. Vedder. president Of the H. y We'd
der Company. FIRE underwriters said yesterday he
felt that the insurance losses had been greatly
overestimated by the newspapers, and that. with
the possible exception Of a few Baltimore COM
panies. there would be no serious blow to the in
surance companies interested.
lie added:
Owing to the foresight and good management on
ously large oss to- isarahce companies of New
York In city like Baltimore is practically impos-
every city as the congested section. Fire insur-
ance companies, managers realize that just what
occurred in Baltimore ought to occur in various
ciles. hence the congestion or CONFIRMATION ha5-
companies by the iudcious selection and location
When the losses are finally adjusted and settled
in Baltimore IL Will be found that the fire insur-
ance companies will have sustained a loss OF
about &oO0e0. which is about the total income OF
az companies for one month. and about Der cent
a
timore loss will be slightly in excess Or ali OF the
companies, losses for the month Of January. and
VIII have about the effect upon their financial
ARRANGEMENTS as the current losses during any
monthly period.
The regular premium income Of the company will
he suIilcent 10 care for these losses as they he
come due The majority OF them will require from
Were it possible 70 adjust and these losses all
about S3Oooovoo would be a little over half OF the
amount carried in the regular hank deposit Of the
companies interested There is no % ssible way
4 that the occurrence Of the Baltimors fire could
AFFECT the financial money market because OF
the insurance companies losses
The published statements Of the condition OF the
respective companies are in nearly every much
their statements include the actual value Of Their
investments Two-thirds to fo1r-hfths Of The
figures usually used. which leaves in every case a
large marcn in case Of appreciation Of Investment
values. SUCH IS occurred n 1893 1t Is safe TO say
that the combined assets % all insurance companies
Insurance rates may, At times, seem unduly ex
cessive. They are not. in point Of fact. shown
e true enabled tho eonanles to acquire the larg,
and important SURPRISES hand. but IL :,
Re Increased in order that the security 81 fire in
sIrance may be greatly enhanced. Every read del
credit or starding could not be LONG maintained
Tie baltimore fire Shouts have tendency SITTER
ing 70 tho companies better support and co-opera
ton OF the policy holders.
. clearing houses FOR people who property
points 10 which they contribute 'heir share Of tn
taxes necessary to maintain property values. anr
from which points are disbursed the necesSar,
funds TO paw losses. As an evidence OF good faiti
the part ~ tho stock companies. let me SAY
that the dividend earnings FOR the Joint stock cap
ital have been paid entirely from interest earning
Of their various funds. using their underwriting OF
insurance profit for the creation Of the surplus 81
neceSaTy tor me proper ana seIe copduc . 05 C
holder The Baltimore fire viii have O appre ciabl
eject on the value ~ Insurance companies stocks
companies incomes and a greater willingness or
the part OF property holders to insure more lber