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1 Legal & Ins. Rep. 1 (1859-1860)

handle is hein.journals/lglir1 and id is 1 raw text is: JAMES FULTON, Proprietor. One Dollar Per Year. OIFIFICE, 4241Walnut Strtet. 1 uflftfl4andFive Cents Per Copy. VOL. I. PHILAIELPHIA, DECEMBER 31, 1859. NO. I. The Legal and Insurance Reporter; JAMES FULTON, Editor and Proprietor. Published Semi-Monthly, at No. 424 WALarr STREET, PHITAELPAIA. TERms o SusstrsPsIOX,-$1.00 per year. RATES oF ADVERTISEMENTS,-As may be agreed upon. Select advertisements only inserted; and when insert- ed will be continued at the regular rates, until forbid- den. PERSONAL CONTRoVERSy is entirely excluded from this paper. The Reporter will not even reply to its own assailants. Its only answer to attacks will be to labor more faithfully and industriously to make a paper whicheshall be worthy of the patronage of Merchants, Lawyers, and reliable, upright Insurance Companies. LEGAL AND INSURANCE REPORTER. IN laying this first Number and Issue of our undertaking before those who have al- ready engaged to become our patrons, and also numerous others that we hope will like- wise enroll themselves on the list, we think it fitting to offer the following descant and re- marks upon its plans, objects, and scope:- In this day of advanced and systematised improvement in the transaction of business pursuits and the arts of life, with the expe- dients that have been invented and adopted to hedge them about with security and safety, little can be said of much import to the more intelligent and experienced portion of those who may concede us an examination and perusal, to exemplify and impress the value of what, in our course, we shall offer, which has not already attracted their notice and under- went their inspection and conclusions; yet, in that department which we propose to make our more especial and predominant subject, we may be able to treat of and bring into view points that previously escaped observation, or at least had not been weighed with the care and scrutiny their character demanded; the consequences of which discover themselves in the almost daily legal contentions that their peculiarities evolve, and against which it would be advantageous to be fortified by an acquaintance with, and study of the system- atic record of them, (which it is part of our plan to make,) added to the deductions ands remarks we shall be impelled from time to time to submit to our readers. With the important advantages of I.Nsux- ANCE in counterpoising a precipitation of the various disasters which unceasingly besets property and business processes, few are una-N ware; but yet there are those who entertainC so oblique an idea concerning it, that a terri-s ble reverse not unfrequently demonstratesr their mistake, and proves ruinous in propor- i tion to the error of the calculation. Somec will, with self-satisfying shrewdness, reasont with themselves that the operation of insur-N ance must be gainful in itself, or else so muchs real capital would not be embarked in its en- terprises, or so many irresponsible or ques- tionable institutions started, professing toa execute its functions, with little or no inten-t tion to act in good faith, They then array,e perhaps, numerous cases within their knowl-' edge wherein, in the course of years, anr aggregate of insurance had been paid thatc would be equivalent to an entire loss, at thet same time omitting to make a collateral re-L currrence to the number of cases opposed ine which such loss was averted by prudential caution; and so, like the renowned Girard,n they resolve to become their own under-p writers. Such calculations, however, are more falla-t cious than at first glance they may seem. It is true, that insurance investments must have an average of gain or profit, otherwise we cer-t tainly should not have the benefit of their existence; yet instances are not unknown oft upright insurance companies being entirelyt overthrown by the result of their adventures. But take a closer view of the position: sup-t pose the gain of insurance capital to average h 10 per cent., then it would appear the chances for safe escape to the insured are only as 110 to one hundred, or as one to one and one- tenth, a difference on which no prudent man would hazard his all, or even such a portion thereof the loss of which he might severely feel. The only safe aspect such a system or method can present, would consist in a per- son's property being so dissevered that any one portion might be destroyed without dan- ger to the rest, and then those portions so niumerous that the aggregate of insurance on the whole would cover the loss incurrred by the destruction of any one of them. On this principle the discreet and penetrating Girard undoubtedly acted. Yet, still, the more the assailable points the greater the liability to mishaps. In proportion, however, to a per- son's peroperty being concentrated, in the same proportion the foregoing position loses its value, and the more imperative it becomes to provide himself safeguards. True, his chances of damage are curtailed to narrower limits, but they are liable in the same degree to severer effects if they do occur. We could point to a person in this city acting on the plan above indicated, who, four years ago, if at sundown he could have sold his stock and premises at a fair valuation, might have re- tired with a competence for not only comfort and independence, but even elegance, found himself at sunrise stripped of almost all, leav- ing scarcely enough to begin anew on a re- stricted scale, and a nearly deranged mind. The same considerations will apply to In- surance Companies also. The more curtailed in amounts and dissevered in location their risks are taken, the greater will be their chances of gain, and security against severe losses that might depreciate their stock. The great utility, both in a public and private point of view, of the contract of both Marine Fire, and Life Insurance as an incentive to industry and enterprise is almost invariably understood, and it would be next to superflu- ous to enter upon a detail of the advantages which mankind have derived therefrom; they are obvious, as Park says, to every under- standing. With these observations premised, it may become a matter of concern with those on whom they may have any influence, to con- sider their safest resort. In this respect it will be our most anxious object to constitute ourselves a reliable authority and guide to the sources where confidence and security may be reposed, and of which our connections and interests enable us to be fully advised. The openings for imposition and fraud to which the system and nature of Insurance, in its various shapes seem peculiarly liable, occa- sionally originates combinations, acting on baseless representations and illusory promises, which in due time explode, to the severe loss and disappointment of numerous dupes, whom their blazonry, artifice, and wiles had decoy- ed into their toils. To the exhibition of the workings of such, added to the detailed state- ments of the operations of those we mayI consider reliable and trustworthy, our atten- tion shall be directed, and all our capabilities brought to bear upon the attainment of these ends. Perhaps no intercourse between man and man is open to more misunderstanding, dis- pute and contention than Insurance matters generally. Respecting them, little premoni-8 tory admonition can be given for avoidings vexations to which they are open, excepting -first, to distinctly understand what is in- tended; second, strict compliance with whatp is agreed upon; and third, a liberal construc-c tion of all that may justly be inferred from the nature of the transaction. But, notwith-I standing the integrity of purpose in all par-c ties, there is so much possibility of misappre- f hension in preliminary negotiations, and ad- t - I.- ventitious obstruction in execution, affecting the interests of either party, that necessarily they become subjects for judicial examina- tion and decision. In such cases it will be our province and purpose to present the same in a shape that shall serve as useful precedents to those interested, in whose way they may fall. Though the foregoing subjects will consti- tute the main businpass of our efforts, yet improvements, and extension in commerce, manufactures and science, together with use- ful and interesting statistics, &c., will in due form be noticed in estimation and extent, according to their merits; in the accomp- lishment of all of which we will indulge the hope of being useful at least to our patrons, and of receiving from them some degree of approbation, even should we not be otherwise rewarded. ADvERTISEMRNTS.-We have deemed it best to exclude all advertisements of Insur- ance Companies from this, our first number, as the first of the year is at hand, and most of our Companies are getting out their annual statements. We do not wish to advertise some Companies' new statements, and the old ones of others-indeed, some declined, or pre- ferred not to publish their old statements.- Besides, when we see the statements of all we will be enabled to determine with greater ac- curacy their standing and responsibility, and thus carry out our principle, as stated above, more satifactorily. Our object, at any rate, is more to make the 1REPORTER interesting and beneficial to our subscribers than mere present pecuniary advantages that might be derived from inserting advertisements, un-t less the publishing of them would be advan- tageous to our patrons. In such case we will take pleasure in inserting desirable advertise- ments. OUR SECOND NUMBER will be issued on the 14th of January, 1860. Operations of Wild Cat Companies, That the public should be apprized of the workings of some of these institutions is evi-t dent, and we shall attempt to give a few hints0 as to their mode of business and their general management, particularizing more satisfacto- rily hereafter. Some are gotten up by men of straw, for the ostensible purpose of swindling. Indeed, if one-half of what is charged against them be true, then it would seem to be the duty of the Mayor to post policemen in front of theirt doors to warn the public of their true charac- ter. One writer describes some of these Trpst as having the audacity to use the names ofI highly respectable and responsible gentlemenf as Directors of their concern, without so muchf as obtaining their permission. Indeed, some men of high respectability are often inducedt by the cunning artifice of their officers to al-t low the use of their names; they, likely, sup- posing it an honor to be made a Director of0 an Insurance Company, which, with a pecu- niary advantage often derived, is sufficient to quiet their minds on that score.f It may here be remarked, that the Officers` and Managers of such concerns commandc large salaries during the existence of their re- spective institutions, and are generally verya self-important personages; some of them have ( been, and are great professors of piety andi morality, while others have the knack ofs getting along without making any professionss of either.a It seems that notwithstanding all that has b been written and done, the Legislative wisdom v of our State has not been equal to the task of p forming a law of which the originators ofa these concerns cannot take advantage, to ef- t feet their ends. They take the money of those foolish or unfortunate enough to trust them, and give in return Policies not worth the paper on which they are printed; unless, perhaps, by the payment of a few small losses, which they are very quick to publish in the form of Cards of thanks from the assured, who thus lend their names to deceit and arti- fice, unwarily. There is nothing so dangerous and so much to be detested as a swindling or bogus Marine, Fire, or Life Insurance Company; at the same time, there is nothing so useful to the public as a responsible, well-conducted Insur- ance institution; and although we are scourg- ed with a number of such Peter Funk con- cerns as above described, yet we can boast of having in Philadelphia quite a number of as reliable, honorable, and upright Insurance institutions as can be found in any city in the United States, and which are managed by men of honor, experience and integrity. The latter have often to suffer in reputation, as a class, and bear the reproaches so justly merit- ed by the former, as the public generally have not the means of discriminating. It must, indeed, be admitted, that it is in many instan- ces very difficult to discriminate between the responsible and irresponsible, at least so far as outside appearances are concerned. In many cases the latter will be found occupying magnificent offices, whose fronts are bedecked with any amount of gold letters, to dazzle the eye of the beholder, while their insides are furnished in a manner truly gorgeous. When the time arrives for publishing their annual statements, there may be found in the columns of their favorite Journals, a lengthy array of figures, put down after their own plan, and which may make a tolerable show of lines. Ore item is generally Bonds, Mortgqages and Securities to the amount of one or two hundred thousand dollars. These are usually found to be worth, on the winding up of the company, about five cents on the dollar. Another common item is, Cash, in the hands of Agents, and in the course of transmission, to the amount of from five to twenty thousand dollars. When the day of reckoning comes, a small portion may be found in the hands of agents, which is readily disposed of by them in charges against the concern, either real or imaginary ; and some will take the liberty of returning to the insured their premiums, thus disposing of a part of that item. But the greater portion of that cash stated to be in the hands of agents is often found in the hands of, or charged to, the oficers, who thus style themselves agents; and a person can probably imagine how easily they find a way of dispos- ing of it. A charge is made up for, say five thousand dollars extra commissions on busi- ness, one thousand dollars for expenses paid for the concern; and if they cannot account for the whole in this manner, they may be found giving leg bail for the balance, and the next thing you hear of them, probably is, that they have gone out to Kansas, Nebrska, or somewhere else in the West, and there opened a banking house; thus leaving the merchant in distressed circumstances, and the widow and orphan in want, all to mourn the misfortune of having been deceived or misled by the cunning artifices of such con- cerns. Persons who have not been so unfortunate as to have had occasion to look to Insurance Companies in these late days for indemnity, may be somewhat incredulous as to the above state of affairs, and feel indifferent on the subject. Indeed if people judgp from appear- ances, it may be difficult to convince them; but let them have a little experience, and we vouch for their being sincere converts. Ex- perience in these cases will be dearly bought, and 1 will be worth more than having been twice taught.

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