The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-05-29
FIRE W A,STE;
VERY GREAT
Necessity for More If
fcctlve Preventive Mca- Z,
surcs Is Felt.
RESULT OF BALTIMORE FIRE.
Losses Therein More Than Cons
sumed Profits of Insurance
Companies for Two Years.

The Monthly Journal of Insurance
Economies, published at Boston, has as
tho leading article Of n recent number
2 discussion Of tho Baltimore fire and It's
results to underwriting, which says In
part.
the Baltimore confagation has sud
denly changed the entire outlook In fire
Insurance.. On December 81 the fire insur-
ance companies Of this country closed q
year of unprecedented profit. Within
six weeks not only this profit, but tho
profit OF 1902 and much more besides was
wiped out.
T.re insurance, with Its violent fuctua-
tons of profit and loss, has Its fascina-
ton like other games OF chance. Tho
spirit Of the real underwater, therefore,
Ia never a gloomy one Flo tukcs his
gains and losses with the same philos-
ophy, not only because experience has
taught him that 1t is a part of the game"
but because he realizes that on its scien-
atitic side the function OF insurance as an
industrial factor is to replace with the
profits Of to-day the losses or tomorrow.
The Baltimore conilqgration began at
10:4b A. NJ Sunday. February 7th, origl-
mating in dry goods store Of largo
area. 1t spread with rapidly to adioin-
ing buildings of inferior construction,
and, aided by a high wind, developed In
to body OF flame which irresistibly
swept before It buildings of tho finest
type of freproof construction.
The fire continued for thirty-slx hours
and destroyed the larger portion Of this
business, financial and insurance sections
Of the city. The latest estimates place
the property loss at about $65, 0OO, 600.
The insurance loss Is about $4,000, 0o0.
The Baltimore connagatton Is the third
largest which has occurred in the history
OF this country. The famous Chicago fire
of 1911 destroyed S1e2. 0O), 900 worth of prop
erty IN that fire 1875 American companies
were involved for losses of ssoooo,o0o. OF
which they afterwards paid between
%ooooooo and ss5.ooo.ooo Five foreign
companies paid losses of $5,S;5,oOo
The Boston fire of 1872 caused a proper
ty loss of $4,000. 900. American compa-
MES to the number Of 1874 were involved
for s56oo0,oO0 OF Insurance, OF which
100000 was paid. Eight foreign COM
panies paid Insurance amounting to
1855. 900.
In the Baltimore fire some IS American
companies were involved with an esu-
mated loss of s20,oo0.oOo and 26 foreign
companies, with an estimated loss OF
50. 500.o 900, besides Ga American and foreign
surplus line companies. Lloyds and indi-
vldual underwriters for about s2,0oo,o0o.
AS n result OF the Chicago fire 6S Amer
lean companies retired from business. Fol
to close their doors. Since the Baltimore
fire the retirement Of nine companies has
been announced. six located In Baltimore
and three elsewhere.
Maryland, OF Baltimore. reinsured in
the Liverpool & London & Globe.
Peabody OF Baltimore, rensured in
the Home Of New York.
Firemans, OF Baltimore, local business
rensured In Firemans Fund, outside
business In the Providence Washington.
Baltimore Fire, receiver.
Home, OF Baltimore, receiver.
Old Town, OF Baltimore. Receiver.
Greenwich, of New York, reinsured In
the Commercial Union.
Hamilton, of New York, reinsured IN
the Hartford.
Millers and Manufacturers, st. Paul,
receiver.
EFFECT ON THE COMPANIES.
The most interesting effect of the Bal
timore fire upon insurance indemnity Is
the ease with which the bulk of the COM
pantes have absorbed this exceptional
drain upon their resources. The Chicago
and Boston fires not only Immediately
wrecked many companies, but laid the
foundation for subsequent ruin. Further
more. many OF the companies. which at
that time. paid all their losses and have
since become strong. successful tnstitu-
tons, were only saved for future use
fulness by the additional contributions
of stockholders. Insurance was then
young and the companies were not fnan-
clally strong.
To-day the entire situation Is changed
Tho agency companies OF the country
are able in the main to meet their Bait
moro losses without tremor of an Inn
paIrmcnt Of their financial strength a
reference to the table published else
where Will show how the losses of all
tho agency companies run and the rela.
ton which they bear to their financial
strength. Seyenty-one companies nave
A-=-------- - $1,000