New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-28


lent almost to panic-that would
have followed the San Francisco
conf1agration OF 1906. with its un-
precedented loss, had it not been
for the confidence of the people.
everywhere, in the good faith and fl
nancial integrity of stock fire in
surance companies?
During three days time that dis
aster wiped out insured property
values greater by some sixty or
seventy millions of dollars than the
aggregate surplus of all the stock
companies then licensed to do bust
ness in California,
Was this confidence of the people
misplaced? No AS stated in one
of the earlier Sketches, the com
pany failures were negligible and
stockholders promptly responded to
the call for the restoration of de-
pleted capital and surplus Golfers.
Stock fire underwriting, quite ss
much as if not more than banking.
is dependent on the confidence Of
the public, and that which destroys
confidence works almost irreparablc
damage so insidious is the progress
of calumny and so difficult is it to
overtake and refute
Ero
seems of but little importance and
often is tucked away and forgotten.
Hence it is of first importance that
those who buy fire insurance to pro
tect their property interests, and as
sure the peace of mind which leaves
them free to prosecute their own bus
ness affairs, should have nothing but
the best tho market affords ANY form
other than "stock" fire insurance puts
the policyholder in the insurance bust
ness himself, with all it's hazards and
responsibilities. and merely creates for
him new liability; not relief from
one already existent
In public conception, all branches
and classes of companies are 100 often
Jumped together, even though they have
nothing in common and are vastly dif
ferent in organization requirements
methods, practices and operation The
impression exists only because they are
called insurance companies
Let me divide the groups Of co.n-
panies first into those indemnfyng
for (O property damaged or DESTROYED
CD accidents and injuries to people;
go failure in surety or fidelity; and
"a death, naturally or accidentally.
They known broadly as fre and
marine, casualty, surety, and lie nsur-
ance companies Again these are sub
divided into classes stock and mutual.
Each branch, and each class in each
branch is governed by separate insur-
ance statutes OF the several states and
in every case except life. the reserve
requirements for stock com panies are
the highest and their standards Of 90.
vency the most rigid In life Insurance
alone-an entirely distinct service and
with no relationship whatever 10 oth-s
branches-both stock and mutual com
panes are required to reserve under
Identical Standards
This explanation IS made n answer
to inquiries that have developed slncr
the publication Of these Sketches was
undertaken. am. Of course. speaking
only for stock fire Insurance companies
and am trying TO make plain that fen
NJ and fpu CD c0rii~-hia
TO other branches properly could BE- az
piled 20 them The functions and eme-
gency requirements in our branch ard
class are peculiar TO Us alone.
You will have observed in these artt
cles. Of course. that no attempt hns
been made. except by mere referen<..
to touch upon outward and visible *
vices OF fire underwriting sueh as the
adjustment and payment of fire lostes
You meet that every day, and know all
about it. can say, however, with yhe
certainty Of expressing no more thar
exact truth, that every stock IRE IN
dence of the public, earnestly desires
to pay its losses promptly and honesty
and in accordance with the policy pro
visions. .Ehe honest man has notht-1
TO fear. ever, as every legitimate con
pany viii gladly assist him in getting
ms just Que WneH .o5s comes.
The policy contracts issued - 49,.
which guarantee indemnity for ;oA-
the property specified, are mo- -
your protection than ours. Fer ma
years these contracts have been pr
scrbed by statutes Of New York
many other states both as to inr1-f~
conditions and restrictions. and to
Of type. They are STANDARD polic.e.
in fact as we'll as in name. the nrc
visions fer our common protection hsr-
ing been clarified By court decision
until there is no doubt of their inten
Before loss occurs as previous
stated. policy of Ere insurance seen
ingly is OF little Importance but az
that event it becomes a document o.
great value Then the contracts to
which the stock fire Insurance com
panes put their names and guarantee
are. to all ntents and purposes, sigh
drafts within certain contractual linn
tations, of course but still sight drafts
upon the makers in favor of homes
claimants These guarantees arc
backed by capital. surplus and the stat
utory reserves previously expla ined
They constitute Insurance within ths
f..1