Year: 1860

mayor. James Is. Caldwell.


Present, Aldermen Haviland, Morley, Ram


LeClalre, Geulieh, Courthsrt, Finley, O'Brien,


Peters. Weinart Evans. Ellis.


Sheriff Thorington was also present with


certain papers.


Minutes OF the last meeting read and ap.


proved.


Sheriff Thorington proceeded to read two


Notices directed to the Mayor, Aldermen.


Treasurer. Clerk and Marehal-one from Clark,


Dodge 4 Co., and another from Tyler Kinsells


demanding that monies be raised to meet


certain debts due by the city to the above


named parties.


Aid. Morley entered protest against accept.


ing notice. on the ground that the Aldermen


did not each receive written notice.


On motion of Aid Geulich, the notices were


received, and ordered filed.


Mayor read communication from Parker 4


Edwards. Attorneys for the Peoria Fire 4 Ma


rine Insurance Company.


To tile Hon. Jas B. Cald.oeH and the City
Council of the City cf Davenport
| At the last meeting Of the Council, . communi-
cation IrOW Us 70 tne Clty Attorney, Win REFER


ence to the claim of the city against the Peoria
| Marine Fire Insurance Company, by reason Of q


fire that lately occurred at the Hospital building,


was received and filed, in which We stated that at
the'next meeting Of the board, the company would
| communicate to you their conclusion in the prem
ises, with reference TO their alleged liability.
A resolution was tn On immedia tey adopted, di


recting the City Attorney TO take such steps as he
| might deem proper to enforce the claim, which
| resolution assumes as matter Of fact that the
sum of 5 900 is due from the company to the
city. We are informed by the Seer etary Of the


company, that during the time the company has
| been doing business in this city, she has paid in


losses $4,000, and an intimation from your Hon


orable Body that the cOmapny has refused to pay


proper and honest loss is calculated to do injus


tce On the Goth Of March last, the committee
| on Public Grounds, in behalf of the city, notified
the agent Of the company that they desired to ef


feet an insurance of 900 on the Hospital build
| ing. The formal Applicant on was to be signed the


next day and the policy to be then issued and de-
| livered.


The next morning on the 2lst, the application
was signed and the policy delivered they are
| both dated the day before.


The fire occurred the night sf the Goth, be-


fore the application was signed or the policy delv
| cred. The agent was not informed of the fire at
that time.


1t will be seen, therefore that at the time the
contract was consummated and the policy deliv-
cred, the city had no interest which was the sub
| Ject Cf insurance, ln2Smuch rs the property nad
| been destroyed the night before.
The company admit that sometime after the
fire, the premium was rendered by the city and re-
| fused they disclam sny intention to resist the
claim upon the ground that the agent was not au-
| thorized to receive anything but money for the
premium. They do claim, however, that If
| the city was net, at the time of the fire, liable
for the amount Of the premium then, that they


not liable to pay the loss, and if the committee


on the morning of the 2lst Of March had concluded


not to sign the application or take policy, but to
insure in some other company, We cannot see how
the city would have been liable to this company
for the premium. Again by the rules and stp-
ulations of the Company, as expressed In their


policies, and which were made known to the COM


mittee, the company in all cases require an appli-


cation in writing tor insurance this application


forms part OF the policy, and is a warranty on
the part of the assured. In the application for
this insurance, there is stipulation by the city
that no circumstance or Information or rumor, in
any manner affecting the risk has been withheld,


and the conditions of the policy provides that aoy


misre sentatons conc ealment of the facts or
circumstances which affect the risk, shall render
the policy void.


1t has been been repeatedly held, that where
there is q warranty on the part of the assured
| to any fact circumstance which is untrue, it
avoids the policy whether the fact Of concealment
is material to the risk or not. When there is
express warranty, the misrepresentation con-
cealment must be material to the risk In tho alb
sence of other proper reasons, this company has
never resisted and would not feel itself justified
| in resisting any claim upon the mere technical
and legal ground Of q mistake in q statement, if
| such statement did not affect the risk the rate
| of the insurance.


The contract of Insurance is q contract of in-
demnity by which for a consideration premium
proportionate to the chances and risk assumed by


the company, they agroe to pay loss by fire if it
occur. The assured makes his own statement as
| to the value Of the property and The facts which
the company require to be n ade known to enable
them to fix rate for the insurance proportionate
to the risk and hazard assumed. When, therefore,
any facts have been withheld from them, material
| to the risk, or which, if made known to them,


would have deferred them frtm taking the risk, or
justified them in charging higher rate OF premi.


um the company is Of the opinion that they are re-
lieved from any legal or moral obligation to pay


loss-sspecialy as in the present case, where when
the contract was executed the facts concealed
from them and which they claim were material to


the risk had already been the cause Of the FIRE
and loss.


The company do not feel that at this time it is
incumbent upon them to make public all the de-
tails and proofs which they have their posses
sion.


1t is beyond all doubt, that there had been sew
era Of small pox in the city about the time
of the fire, and that two buildings lad been fired
in consequence of reports that they about to
be used pest house in cases OF small pox the
company understand that the Council thu prop
er committee some of them had come to the
conclusion to use the building in question for that
purpose, and had stated that fact and the same
had come to the knowledge Of the people in the
neigh borhood Of the premises who become alarmed
and reports had been circulated that if smal pox
patients were sent there, the building would be
DESTROYED by fire. and these facts and rumors had
come to the knowledge of the committee or some
OF them.
By investigation since the proofs were made,
the company has been informed of these fac's,
and they conceive them to be very important, SO
important that they should have been notified of
them 1T the time, and they think, under the cir
cumstance. that th ere is no just reason why the
city should insist upon the claim
The company feel that it II duty they owe the


city to give the Why they refuse to pay this
loss ana also that it 10 but matter of justice to


them in consequence of the passage OF the resolu-


tlon referred TO- that those reasons should be made
public. The company also except to the proofs Of
of the loss furnished them because they are not


verified - provided by the terms of the policy
Fer the reasons given, the company decline to
nav the oss Hoping that this explanation and
the reasons will be satisfactory, and that ysur


Board will rescind the resolution of the last meet
ing. We are respectfully 1eurs
Att'ys for Peoria II. 4 F. Ins. Co.


AID. Haviland moved reference of commune


cation to City Attorney.


Adopted.


Aid. Morley spoke upon the matter; con-


sidered the Company morally, if not legally


bound to pay the loss.


Petition of numerous citizens, praying


that prisoners of the city be required to work
out fines and costa upon the streets