New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-02-12
AFTER SMALL COMPANIES
Big Insurance Changes Likely to
Result from Baltimore Fire.

Osaciais of TIE Home Insurance Company OF New
York ratd yesterday that. while arrangements had
been made 20 get for the company the business OF
the Peabody Fire Insurance Company OF Baltimore
Tot affected by the big fire. the Home vas not go
Ing 10 rensure the Peabody or become in any man
uer responsible for the Peabodys losses. In Of
reinsurance and absorption OF a small fire insur-
ance company. the practice is for the big company
20 take over all the unexpred policies and receive
from the little company its unearEed premiums
less 81 per cent. The little company then has its
capital surplus and IS per cent Of its unearned
premiums left with which TO pay its debts.
The losses OF the Peabody company. il is said
Will be greater than its capital. surplus and IN
earned premiums combined. and the company
therefore will be unable 10 pay losses in full II
was reported IN fact that the company would be
able TO pay only about 80 per cent. What the Home
is doing according TO OF its officials. is TO take
into its employment the agents of the Peabody who
obtained the business OF the Peabody in Baltimore
and outlying districts These agents viii say to the
policy holders:
Your policies in the Peabody are TO longer OF
any value. hut II you want new insurance you can
get new policies IN the Home Immediately on faNoF-
able terms. The Home has copies OF your policies
and will give policies in exchange Tor your
policies Immediately application"
Any other method OF taking over the business OF
the smaller company. II was SAID. would make
the big company liable for the little company 9
unpaid losses. There a report among insur-
arce men in this city that the Continental Insur-
ance COMPANY OF New-York had negotiations on
hand 20 get the business OF two or three small
companies which had been crippled but Henry
Evans. president OF the Continental. declined to
talk about 81.
There was a vel defined report, that the Home
Fire. Insurance Company Of Baltimore had arranged
10 turn over its business 20 the Orient Insurance
Company OF Hartford. A 9. McIiwaine, IT., man
aEer OF the Orient vas in Bal{imoTe and his as; as
report. but it was believed by well Informed insur-
The orient passed under the control q the Lon
don and Lancashire Fire insurance tomI,eny, ny, ~
company. il has continued 10 DO business as an
and last YEAR its report showed thar it had sur
plus OF over 100000 Its losses by the BaitiinoEe
ire have been estimated at $4,000, and II they
are no greater 70 a. 81 lryt sfer he losses are
paid It's net premiums have exceeded Ncot"0
RE FI0r1e Fire Insurance Company Of Balti-
more had before the Ere a capital Of $4,000 and a
surplus OF nearly ssoco The losses have teeh re-
ported be large enough 10 wipe OUT capita, ello
surplus but the company is said 10 have = large
business rot affected by ths hre Wlicn any
Insurance reports credit the company with annual
premiums OF about $4,000 on risks amounting 10
While most Of the large fire insurance companies
having Offices in this city continue 20 keep their
estimates OF losses lower than estimates made IN
Baltimore they are agreed N declaring mat the
/ finish their work. Nearly all OF the foreign COM
psnies have instructed their agencies in This city
losses. II is believed that fully S2oococoo OF the
] losses viii thus he paid by drafts on English
/ banks This will make it easier for the New York
1 banks 10 furnish the cash needed by the New
4 York companies "a paying losses.
. u was announced that the New-N York State SUI
/ perlntendent Of Insurance would require reports
/ from the fire insurance companies showing their
gross losses In giving CstimateS of losses for pub
irat.on Il has been the rule Of the companies TO
state what they reckon 20 Ice their net losses az
ter deductinE reinsurance. out tho law requires
the companies make reports showing the gross
lossN we'll L Is possible that the real losses
/ % the companies Will not be known until they
make the required reports TO the State Superin-
tcndert Of Insurance for It IS rot at al certain
that all the renSuring companies VIII pay up the
losses which are referred 10 them by the com
panes issuing the policies.
Baltimore. Feb. IA composite estimate Of the
total loss from the fire by twenty-five expert rep
reseutaJives OF leading Insurance companies out
side 81 Baltimore places the figures at So or0.co
The loss 10 the insurance companies IS estimated
/ by the same experts At IS per cent Of the total
J los