The Bridgeport evening farmer., 1914-08-11
WAR IN EUROPE
 TOGIVE STIMULAS
 TO US. BUSINESS

opinion of prominent local under- writers onesof the first effects of a con- tinentaI war in Europe will be ob- served in a,4great stimulation or puS- mess in the Limited States and prooa- fbly a strong, advance in prices Be- ing the greatest workshop of the world not engaged .on-one side or the other we shall be called upon to supply the common necessities of the hve European powers of the first class. The stimulation can be depended up on to corrtinue during the waging of wal, until we lave exhausted the cash resources ; of Europe to pay for the commodities furnished When that limit is reached, when iwe are com pe1led to carry European credits or Europe is compelled to do without our supplies, then the reaction of the con f1ict lponA our business will begin and the lossesl of the world through such a disaster, will be felt Even when the, war is over it may require at least l a generation to repair the destruction and overcome the stoppage of indus | try 1Great wars are like great conna- ! grathons fire underwriters say.
 Whenever these latter occur there 1 is an sirnm ediate stimulation of build ing, improvement and protection, but i slowly sthe weight of the actual loss adjusts A-and settles upon the Eeek or ! all the 1world It Is undoubtedly true ! l ter of sos. had it's due effect on the i world of finance in 1907. What is lost 1 by war is ytEe same what is lost by ! fire. It is irretrievahly lost and the world must prepare to bear it. The 1 first effects of the present war, if it 7! eventuabes on the scale expected, wfll be the speeding I'D of manufactures l and the transportation of products [ Opening, American registry to foreign shipping will transfer marine nsur- ! ance largely to the United States. Every branch of insurance may feel i the effects s-but will have to be handled with great care inorder to avoid the inevitable reaction
 Conhaeration Would Be Serious Ohicfalss of both American and for f eisn. fire insurance companies are un- aninnous in the hope that there will be no disastrous conflagration during the present stringency caused by the Flu ropeans situation It is freely admitted 1 that a serious conf1agratiOn would en- l tail severe results. With stock ex- 1 changesg closed it would be impossible l to pay extraordinary losses without l resorting temporarily to the use of scrip.N
 Poitcyhozders Protected.
 Superfntendent Frank Hasbrouck of : the New York insurance department i has iss1led a. reassurfng statement as
  : upon insurance companies of this { country,,both domestic and foreign He I says: Although the market value of i securities owned Sby the companies will at the present time show a. de- precsation, the actual value Of them has not been changed, either by the :, war or by the closing of the New York stock exchange. The policy 1 holders are amply protected and have no cause for alarm. ''
 Foreign fire and marine companies, with branches in the United States ! have more than $1ee.0Oo, 900 of American Esecurities in this country for the protection Of their business in the United States. This fact affords I ample guarantee that their business here will continue uniiterruptedIy. With the outbreak. of the tremend ous war in Europe, tirnid policyholders in some few cases, began to surrender I policies in Continental and English I companies, probably from a misunder- standing of their methods of doing business in. the United States
 Foredgns Companies Cautions. All American assets of foreign com panies are invested in securities of the United States, under the same restFic- tions requiredf of American companies. Foreign companies, as a rule, are very circumspect in their investments and l almost wholly invest their funds in i ibOn6S. A lew companies loan on mort gages, and 8 few also carry some i stocks. but generally not more than one-fifth of the amount. invested in real estate and invariably have large cash deposits.
 Foreign companies at their head of- fees, are large holders of American 1 securities and it is the opinion that, whenever possible, these securities will I be sent to the United States to- insure their safety-an of which will add to i the stability of American branches.
 War Losses Not Covered. l Policy contracts all over, the world exempt losses caused by war, being in l all cases practically identical with ] American covers, and hence the losses of foreign companies in the war dis trfct will be confined to natural fires,
 only. Very naturally their operations
 will be restricted, if the war continues
 for any length of tirne,N but can have
 no adverse effect upon the branches in
 the United States wfzfch are subject to
 the rigorous laws of this country.
 Effect on Insurance Business.
 About the only effect the war could
 have the business here would be
 the interruption of communication ! managers and their home office off,
 cials, but as authority rests with
 American managers, such an inter-
 ruption could be worse than an OTT1c6 inconvenience. The 1nterrup-
 ton of communication between the
 United States and Europe very natur-
 ally will keep many lines in this coun-
 try that heretofore have been placed
 abroad-both direct and through re- insurance. Reinsurance companies without home office facilities will very
 likely curtai1 their acceptances ant
 later on, if the state of affairs becomes
 more acute, it may be necessary fol
 agency companies to adjust their line.
 Co meet restricted conditions. Tht:
 would apply not only to foreign com
 panies but to American compa11ie.
 with large reinsurance facilities tha
 an the stress might be curtailed ma
 terially.
 Fire Insurance.
 cutsfde Of the financial aspect tn.