Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-11-15
GOES OUT OF BUSINESS
PLAN TO REINSURE COLUMBIA
CoMPANY's RISKS.

Arrangements are now under considera-
ton for the reinsurance of the business of
the Columbia Fire Insurance Company of
this city The ROYAL Fire Insurance
Company of Liverpool, England, which
has for years had an extensive branch in
this country. will undertake TO do this
The preliminary action leading up to this
was taken recently at a meeting of the
board of directors of the Columbia Fire
Insurance Company. when by unanimous
vote of that body 1t was decided to ac-
cept the offer made by the Royal COM
pany. In effect such an arrangement
when carried out will mean that the
policies now issued by the Columbia COM
pany will he assumed by the Royal COM
pany, and the former will go out of bust
ness
The Royal company will not only take
over the business of the Columbia, out
also the lease its offices at 1922 F
to be carried on. There will be no
change either in the location or in the
personnel. The secretary of the COM
pany. Lem Towers. jr.; the assistant sec
rotary. w. ID. Quinter. and the clerk. A.
Stuard Young, will remain in the office.
The agent of the Liverpool in this city.
Mr.. J. Kemp Duvall. will of course con-
tinue his relations with that company.
Plans in View.
1t is expected that some plan will be
worked out by when it will be possible
for the Columbia company to so adjust
its obligations in it's outstanding business
that 1t will be enabled to make prompt
settlement with rs stockholders and go
out of business. In 'hs respect the course
followed by the Riggs Fire Insurance
Company in retaining its organization un-
til the expiration of the five-year insur-
ance policies will not be follow d. 1t is
probable that such Il course can he pur-
sued so that the affairs of the company
can be settled up within the next five or
six months.
The par value of the Columbia stock Is
500 and the annual dividend IL per cent.
1t Is estimated that its value in liqu da-
ton will be about SlI so per share. This
value, of course. will be determined by
the assets of the company. which will be
distributed to the stockholders.
The Columbia Fire Insurance Company
has always been regarded as one o. tine
strongest organizations in the local field,
and the personnel OF it's officers and di-
reCtors has always been sucn as to enable
il to maintain this position, and also to
| business.
Reasons for Retiring.
! 1t is understood the principal reason
with the board OF directors in determin-
! ing to dispose of the business Of the COM
| pany and retire from the field is the I'M
settled and unsatisfactory condition OF
| the fire insurance business in this city. AT
this time. as has been the case for some
months past. rate war has been going
| on II has not been the usual demon
strative affair. There has been but lit
tie talk. and but infrequent references
to It have appeared in the newspapers.
AT the same time lower rates, especially
these on dwelling house property, have
been brought to the attention of insurers
and the local companies, which have
| hitherto carried the bulk of these risks
have been in a number of cases obliged
| write their policies on the NV basis OF
| lose the business. Naturally this has haC
an influence on the current revenues and
also upon the earning capacity.