The Washington herald., 1907-07-27

Rumors have been current In financial
circles for several weeks that a new
| fire insurance company was forming.
which would erect a hne Office building
for its permanent home, and inaugp-
rate a large insurance Business IN Wash
ington.
Several months ago these rumOrs
/ pointed to the purchase of the controlling
interest in the stock of one Of the local
fire insurance companies. with a view
to its reorganization by New York parties
and its enlargement upon basis equiva-
lent to one of the prominent fire insurance
concerns Of the country, which should
have Its home in Washington, with
branch Offices elsewhere.
This week these rumors have taken a
more definite form. and IT is now claimed
that such a company is about to be
launched. under the name of the Capital
City Fire Insurance Company. and that 1t
will erect a building to cost about $780,
600. The company. 1t is said, will occupy
the ground floor of the proposed build
ing, the upper floors to be rented for Of
fee purposes. Negotiations are said to
be far advanced for the site of the build
ing, which is 10 be in r street, In the
upper part, and the new building. it is
said, will be en imposing structure
among the large business buildings al
ready erected and 10 be erected in the
financial district of the Capital.
Site Already Selected.
The Capital City Fire Insurance Com
pany is already located IN the offices Of
Ricketts, & Eynon, at 1926 F street north
west, and 1t was said last night by inter-
ested parties that negotiations. well under
way for the purchase OF site for the
within the next few days.
One Of the requirements of the insurance
laws Of the District is that fixed amount
Of assets shall be invested in Washington
and it is stated that the company has de-
termined 10 put more than the required
amount Of capital into the proposed build
ing. as il is thought that the rental from
such building will be more remunerative
than similar amount invested In interest
bearing securities.
IL was said last night that the capital
stock Of the new company would be
placed at 100000. 20 be subscribed for and
paid In al $50 a share. thus providing a
surplus of $4,000 over and above the cost
Of the proposed building.
Local Capital In Control.
1t appears that the Capital City Fire In
surance Company was organized several
weeks ago by New York parties. but that
control Of It has recently passed into the
hands Of local capitalists. and 1t is said
10 be the present policy Of the company
TO limit the sale OF the remaining shares
Of the stock to residents Of Washington.
Besides the usual advantage offered for
stock Of q similar character the stock
holders OF the new company are offered
special inducements in the way Of insur-
ance, provided they become identified with
this company.
II is proposed to carry on a general in
surance business. with branch Offices in
the larger cities Of the country. 1t is
expected that the profits from this bust
ness will be such as 10 make the owner
ship Of stock valuable, at least within a
reasonable period. The plans Of the COM
pany, It is stated, are we'll matured, so
that its success is looked upon by those
In the confidence Of the promoters as as
sured.
It was said last night that agents OF
the company are already at work, and it
is expected that the advanced premium
contracts will equal If not surpass, the
capital Of the company on the day II
starts in business.