The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1904-02-09
Insurance Companies
To Pay in Sixty Days
Many Maryland Concerns LikeIyto Go to the
WalI--Washngton Lightly Touched--Large
Amount of Foreign Undertakings

In the rehabilitation OF the stricken
city of Baltimore the payment of losses
by the insurance companies must neccs-
sarily play a prominent part Under the
| law these losses VIII have to be paid
within sixty days, and IL becomes n
question of paramount interest there
! fore To what extent the respective COM
panies have been affected
Washington companies will suffer but
I little. Only five OF them have taken
risks in Baltimore They are the Po-
tomac, the German-American. the Com
mercial. the Colonial. and the National
Union. With the exception Of the Po-
tomac the losses to be paid by them viii
| IN each case be but a few thousand
dollars. The Potomac stands to lose
pretty heavily. as of all Washington
companies it had underwritten the larg-
est number of policies. The officers OF
this company were not prepared. this
morning, TO state. even approximately,
either the amount of their losses or the
amount OF their undertakings. They
expressed themselves as quite sure that
the operations of the company would not
be crippled by any losses they might
be called upon TO pay. From well in
formed authority il was learned that
the Potomac had policies aggregating
about $4,000 in the fire-stricken city.
Next in order is the Colonial. from
whose manager 1t is learned that it had
placed about $4,000 I'm the burned dis
trict. but it is not believed that this
viii prove a total loss. The CONNER
cial will lose less than 5000; the Ma
tional Unions losses viii be but a few
thousand. and the same can be said of
! the German-American.
Maryland Hard Hit.
Concerning the Maryland companies
il can only be said that the resources
of many o. them viii be utterly made
quate 10 meet the obligations under
taken by them. Some of the smaller
concerns will be entirely wiped out.
while even the larger ones Will be Sc
riousIy crippled. Companies OF other
States and foreign corporations will
bear n large share OF the losses, but
not even an approximate estimate can
be formed at this time Of the amount to
which they are involved. In a great
many instances the parties insured Will
have to bear share of the loss. Where
! a merchant. for instance. .usures mis-
stock for less than 50 per cent of its
actual value. he becomes a coinsurer
and the company has to pay only. pro-
the policy Only when the insurance Is
so per cent of the value Of the stock Is
the company called upon 70 pay over the
| full amount of the policy.
With estimates of losses ranging all
the way from S65. 900 900 to 500, 600. IL
is idle even to try to approximate the
amount the insurance companies will
be called upon 10 pay out II is safe 10
saw. however, that the very lowest pro
portion VIII be One-third OF the nre
losses ultimately ascertained-
Henry H. Hail. president of the Ma
tionaI Board of Fire Underwriters, said
Yesterday
1T is time for those who have been
complaining about rates TO take a back
seat Prudent insurance companies pre-
mare for Just such eXigencies by charg-
ms, reasonable rates. No one can tell
when heavy losses will come. Balti-
more is the fourth big fire recently,
and IL is safe 70 say that those fires
ate no all the profits Of last year
business and the profits Of some years 10
come. Baltimore risks were well re-
garded. Most Of the buildings were low
and substantially built. with intersect-
ing alleys that should have helped the
fire department. The rates were approx