Sunday Bee
PART ;V. I
HE
A Ppr for tb M
THE OMAHA lEE
INSURANCE SECTION
Csst & West
"AGS 9 1 8.
VOL. XXXVI-NO. 41.
OMAHA, SUNDAY MORNING, MARCH 31, 1907.
SINGLE COPY FIVE CENTS.
TrwW-tjwrTissyirwvTwi
i J " M M, f t ( i tt M e M 'Tfl
A. J. LOVE. President.
FRANK J. HASKELL. Secretary.
Omaha
si mi a o
cz3
v
UPTON SLINGLUFF. Mgr. Surety Dept.
inmpa-iniy
1
23
:3
certificate op publication.
state op nebraska, office of
auditor of public accounts.
Lincoln, Feb. 1. 1307.
It In hereby certified that the American
Bonding Company of Baltimore, In the
stato of Maryland, has complied with the
Insurance law of this state applicable to
such companies and Is therefore author
ised to continue the business of fidelity,
surety and burglary Insurance In this
state for the current year ending- January
list, IS 08.
Summary of report filed for the year
ending December glut, lDOtt:
INCOME.
Premiums . . . .' $697,884.50
All dthar sources,. 0,65tl.lf&
louu $788,441.25
DISBURSEMENTS.
Tald policy hold
ers 1193,921.68
All other pay
ments 495.613.13
Xotal $39,431.79
ADMITTED ASSETS.
$1,038,652.06
LIABILITIES.
Unpaid claims and
expenses T. $344,768.27
Unearned premiums 404,es8.ua
All other liabilities (i,03J.87 785,583. K
Capital stock paid
up 600,000.00
Surplus beyond
capital stock and
other liabilities... 353.0C2.80 853,062.30
Total $1,638,652.06
Witness my hand and the seal of tho
Auditor of Public Accounts the day and
year first above written.
E. M. SEARLE. JR., .
(Seal) Auditor of Public Accounts.
JOHN L. PIERCE, Deputy.
CERTIFICATE OF PUBLICATION.
STATE OF NEBRASKA, OFFICE OF
Auditor of Public Accounts, Lincoln,
Feb. lHt, 1907. It Is hereby certified, that
the Caledonian Insurance Company of
Edinburgh, in the State of'Scotland, has
compiled with the Insurance Law of this
State applicable to such companies and Is
therefore authorised to continue the busi
ness of Fire and Lightning Insurance In
this State for the current year, ending
January 81st, Witness my hand and
the seal of the Auditor of Publ.c Accounts
the day and year first above written.
E. M. SEARLE, JR.,
(Seal) Auditor of Public Accounts.
JOHN I PIERCE, Deputy. 5
CERTIFICATE! OF PUBLICATION.
STATE OF NEBRASKA, OFFICE OF
Auditor of Public Accounts, Lincoln,
Feb. 1st, 1907. It Is hereby certified, that
the Spring Garden Insurance Company of
Philadelphia, In the State-of Peunsylvanla,
has. compiled . with the Insurance Law of
this State applicable to such Companies and
la therefore authorised to continue th
business of Fire and Lightning Insurance
In this State for the current year enaMg
January Slat, 1V08. . Witness my hand and
t,he seal of the Auditor of Pulwlo Aouounts
the day and year first above written. '
E. M. SEARLE. JR.,
(Seal) Auditor of Public Accounts. '
JOHN L PIERCE, Deputy. , .
EVERY KNOWN KIND OF INSURANCE
Room One, New York Life Building
TELEPHONE DOUCLA S 380
NSUR.ANCE is our business not a side line. We employ experts in every depart ment and
liy give the business our own direct personal supervision NOT some of the time. BUT ALL THE
TIME.
To BANKERS, REAL ESTATE AGENTS AND INSURANCE MEN, who wish to go
into the insurance business or to enlarge their present business we offer the facilities of our office.
. AGENTS warned in every city town and village in Nebraska where we are not already represented.
' We Are Nebraska State Agents for:
, THE AMERICAN BONDING COMPANY OP BALTIMORE Fidelity, Court and Contract Bonds, Burglarly Insurance.
TI(E TRAVELERS OF HARTFORD Liability and Automobile Insurance. NATIONAL FIRE OF HARTFORD CONNECTICUT.
NEW YORK PLATE GLASS INSURANCE CO. Accidental Breakage. ' SHAWNEE FIRE OF TOPEKAi KANSAS.
CALEDONIAN INSURANCE COMPANY OF SCOTLAND. SUN INSURANCE OFFICE, LONDON.
WE ALSO REPRESENT LOCALLY:
THE CITIZEN'S INSUACE COMPANY OF MISSOURI.
THE CALUMET INSURANCE COMPANY OF CHICAGO.
NORTH BRITISH AND MERCANTILE INS. CO. OF ENGLAND.
PHENIX INSURANCE CO. OF BROOKLYN.
SPRING GARDEN INSURANCE COMPANY OF PHILADELPHIA.
6TATE INSURANCE COMPANY OF NEBRASKA.
WE INSURE ANYTHING ANYWHERE'
STABILITY ACCURACY PROMPTNESS COURTESY
CERTIFICATE OF Pr BMCATIO"
STATE OF NEBRASKA, OFFICE OF
Auditor of Public Accounts, Lincoln,
Feb. 1st, l!7.-lt Is hereby certified, that
the North Htltlnh and Mercantile Insurance
Companv of London and Edinburgh, In th
State of England, has compiled with th
Inmirnnce Uw of this Stato applicable to
such Com pa n les tend In therefore authorised
to continue the business of Klre and Light
ning Insurance In this State for tho cur
rent year eudinfr January 31st, 1!M8. Wit
ness my band and the al of the Auditor
of Public Accounts the day and year first
above written. 1
E. M. SEARLE. JR..
(Seal) Auditor of Publlo Accounts.
yJQUN L. PIERCE. Luputy.
CERTIFICATE OF PUBLICATION.
STATE OF NEBRASKA, OFFICE OF
Auditor of Publiu Accounts, Lincoln.
Feb. 1st, 1)7. It Is hereby certified, that
the Sun Insurance Ofllce of Jondim, In the
State of England, has compiled with the
Innurnnco Law of this Stato applicable to
such Companies and la therefore authorised
to continue the business of Klre and Light
ning Insurance In this State for tho cur
rent year ending1 January 31st, I. Wit
ness my hand and the seal of tho Auditor
of Public Accounts the day and year tlrst
above written.
. E. M. SEARLE, JR..
(Seal) Auditor of Publlo Accounts.
JUllN L. FIERCE, Deputy.
CERTIFICATE OF PUBLICATION.
STATE OF NEBRASKA, OFFICE OF
Auditor of Public Accounts, Lincoln,
Feb. 1st, 1SW7. It Is hereby certified, that
. the Slate lusurnnce Company of Nebraska,
of Omaha, In the State of Nebraska, has
compiled with the Insurance Law of this
State applicable to such Companies and Is
therefore authorised to continue the busi
ness of Fire and Lightning Insurance In
this Stata for the current year ending Jan
uary 31st. l!i. Witness my hand and tha
seal of the Auditor of Public Accounts th
day and year first above written.
E. M. SEARLE, JR.,
(Seal) Auditor of Publlo Accounts.
JOHN I PIERCE, Deputy.
CERTIFICATE OF PUBLICATION.
STATE OF NEBRASKA, OFFICE OF
Auditor of Public Accounts, Lincoln,
Feb. 1st, liu7. It Is horeby certified, that
the Shawnee Fire Insurance Company of
Topeka, In the State of Kansas, has com
piled with the Insurance Law of this Slate
applicable to slich Companies and Is there
fnre authorised to continue the business of
Fir and Lightning Insurance In this Stats
for the current year ending January 31st,
V&. Witness my hand and the seal of the
Auditor of Public -Acoounts the day and
year first above written.
E. M. SEARLE, JR..
(Seal) 1 Auditor of Publlo Accounts.
JOHN L. PIERCE, Deputy.
CERTIFICATE OF PUBLICATION.
STATE OF NEBRASKA, OFFICE OF
Auditor of Public Accounts, Lincoln,
Feb. 1st, J9U7. It Is hereby certified, that
the Calumet Insurance Company of Chi
cago, in the State of Illinois, has compiled
with the Insurance Law of this State ap
plicable to such Comjwmlwa. atxl la Uwreforo
authorised to continue the business of Fire
and Lightning Insurance In this State for
the current year ending January 81st, 1W8.
Witness my hand and the seal of the Aud-
iter of Public Accounts the day and year '
first above written.
(Seal) ,' Auditor of Publlo Accounts.
E. M. SEARLE, JR.,
JOHN U PIERCE, Deputy.
99
LESSONS FROM EXPERIENCE
bat fan Fratcisoo and 0thr Dliatters
Hare Taueht fntaTatico Van,
FIRE WASTE DUE TO CARELESSNESS
Watchfulness Would Redac Danger
al llrlos Belter Htatiri f
afrty'to Owners of Build
lajs la, Cities.
OMAHA. March 30.-To the Edltos of The
tVe: I thnnlt you for the compliment of
your request that I write an article for
your valued paper '-On San Francisco
Hazard and the General Deductions That
May Be Drawn from that Great Disaster as
Applying to the Fire Insurance Kuslness."
f.,.il v uig lAcil UIHT jrail U7VULWJ
my time aa postmaster to the service of our
"Uncle Samuel." answering conundrums
and questions innumerable on ail kinds of
subjects from the dear people, kicks for
delayed letters, etc., I am not in quite as
rood trim to discuss the subject assigned
to ' f as when more actively engaged In
Insurance. My thirty-seven years of hard
ork In' fire insurance (eighteen years as
an adjuster for the Home of New Tork)
settling losses in thirteen states and three
territories, ought to equip me for this task,
but truly my mind has not of late been
trained to consider the story of the San
Francisco disaster along the line of your
request. It was an appalling catastrophe
and without a parallel. I have tried to
forget it as on would a bad dream.
However, I have Just read an interesting
article In your issue pf February 15 en
titled! "Havoc Wrought by Fits Flimsy
Construction of Buildings ' Extracts the
TJaual Penalty; Insurance Companies Oet
the Benefit Notable Examples of Wealth
Wasted in Cheap Material; Permanency
and Profit in Fireproof Construction," from
the pen of F. W. Fitir-atrlck. a noted ad
vocate of fireproof construction. H writes
Of how Nero destroyed Rome to amuse
himself, how the French burned cities, the
Russians fired Moscow, all evidencing the
fact that there was rtry little fireproof
Construction In those halcyon days.
Penalty of Careless Conatrnctloa.
H speaks of th "penalty exacted,"
th tribute levied upon by fire. that has
reached an appalling figure." H says the
people of the United States have Invested
tlUS.0u0.000 in 11I0.C00 buildings, of which
the nation boasts. That Russia has It, 000
mors buildings than we, but the total value
of all Its structures is but tS.&OU.OOO.OOO, $10.
TV lees than we have expended, al
though they have X,0C0 more buildings than
ourselves. He maks comparisons with
the United Kingdom, France and Germany,
all lending to prove that we Americana are
th greatest builders in the world.
Hi deplores the fart that "of all these
miUlous of our buildings there are barely
4,000 that can Uiy any claim to being mod
ern, up-to-date, and firs resisting, to the
extent that their steel frame and structural
parts cannot be over much damaged by
fire." I doubt very much If there are 1,000
buildings In America that could havs with
stood the Saj) Francisco firs without seri
ous damage, and agree with the writer that
"in all this great country of ours there are
probably not twenty that can rightfully be
Called moderately fireproof bulhiins."
Ma, aitavatnck says, further, "Of th
Some of the Leading Men of Rapidly Growing Omaha Insurance Colony
iv
: V j
V I
HENRY E. PALMER-
mlllloi of homes throughout the land,
palaces or cottages, where- we .house
those who are' dearest to our hearts and
our most valued possessions, there are
but three hundred that would stand for
even a little while against even a mod
erately hot fire, and there are certainly
not over ten that are fireproof."
Sacrlflred to Folly.
Of the "tolly of flimsy construction,"
he says, "Nearly 7.000 lives are annually
Sacrificed to tha rod of Ore; and we have
offered up over $1,000,000,000 In property
value on ths same pyre In six years'
time." Our annual offering, under nor
mal conditions, has reached ths 1200,000,
000 mark. The total fire loss for90tS,
however, will reach tha enormous sum of
1600,000,000. Think of It! Measure this
wealth, In brain work, and toll and sweat
of the laborer's brow all reduced to
ashes and ths ashes of no commercial
value; all gone, lost forever. This fright
ful drain upon our wealth must have a
visible, effect on the business of this
country. It Is an Important figure In tha
total wealth of this great republic. o
wonder ths thoughtful statistician and
philosopher should cry out ag&inBt to
great a waste of tangible wealth.
To replace this great loss In buildings
(not to mention contents) there must be
great activity in new construction, to ac
complish which our forests must be de
pleted, and our iron mines and mlllj
worked to their utmost capacity. "In
New York alone there will be over J250.
000. 000 worth of construction and In the
entire country probably I7&0.000.000 will
be spent in buildings during the year
10." " .
Water the Blame Rests.
Mr. ritxpatrlck says this awful de
struction of property and lives Is "all i-n
account, of poor buildings." Jle Is wronjf
In his conclusion. How about ths wig
wams sod teepees of the Indians? I have
lived with them and near them for fifty
years and never heard of an accidental
Are; how about the straw thtch-d roofs
of the homes of ths oiany millions In
' H. T. NEELET.
Europe no use of illustrating further. I
Th causa is not so much poor build
ings as lack of , Inspection; lack of rigid
and strict fir laws honestly and vigor
ously enforced. It Is largely tha fault of
laws on our statute books misnamed "val
ued policy laws" first conceive by an
evil-minded genius and voted for by hon
est but misguided legislators, tha effect
of which has been to encourage and re
ward incendiarism, which today standi
charged by th intelligent, experienced
underwriter with 60 per cent of all this
great fir loss.
An effective remedy for all this Is to
stop ths Incendiary enact laws that will
compel the poilce or town constable to in
spect at regular Intervals every building on
his beat or in his district. A firs coroner
for every fire, and a thorough earnest
prosecution of every person who fires his
property for gain in many instances de
stroying his neighbor" property, as In
Atchison, Kan., yean ,o, when a man
to secure $2,000 profit -a an over-Insured
stock, destroyed 3,000 worth of property
(surrendering his policy to me for fl).- The
building In which he was a tenant cost the
owner $12,000, on which there was no In
surance; or as at Lincoln, Neb., several
years ago when a photographer burned a
$40,000 block for $300 Insurance.
In accordance with th popular cry.
echoed by people who never read their
J policies their contracts with Insurance
j ccmpanles until after th fir, the insur
ance companies are held responsible by
Mr. Fltxpatrlck for much of this frightful
firs loss, and they ar touched on th raw
for first writing th risk or even for on
moment questioning th amount of th loss
or daring to Investigate the origin of the
fir. Speaking of Insurance companies, he
says, "They Indemnify us for our losses to
a certain extent." The companies who do
not, "quibble or Iltlgat,"
ar sf IsisrssM Company.
I answer that during my eighteen years
work adjusting losses for th Horn of
New York, I settled many thousand loss
claims throughout the thirteen states and
thr territories In which, I was working
HARRY i BYRNE.
paid on th same mor than $2,000,000, with
only two contested cases la the courts one
for $1,000 on a dwelling In Atchison, Kan.,
where I found th owner In jail, charged
by the chief of pqllc with burning the
property. He was undoubtedly guilty, but
ths jury said "no," and I paid, with costs;
on in Louisiana, Mo., fVr $1,600 on a stock
of goods Insured for double value; the in
cendiary cost th company $1,800, face of
policy and costs. Two cases and only two
out of thousands of losses settled and $2,600
out of millions paid. Pretty good record
for fair dealing. I assert that there Is less
litigation on firs insurance losses propor
tionately thaa In any other business in
th world.
Bntlders Ar Borrowers.
Now for ths "tolly of flimsy construc
tion." Tha men who make our cities are
not th millionaires; our builders are from
th poorer classes from the toilers ma
terial from which our great men. and some
of our millionaires ar mad. Th builders
ar th borrowers. To then men fire proof
risks are prohibitive. Our commercial
basis is founded on credit. Our most en
terprising, pushing, progressive and pros
perous merchants do not own their stocks,
only a part. They are borrowers, and must
insure to protect their credit, their capital
Invested, their business existence. So our
great cities, in this comparatively new
country, of a necessity ars of "flimsy con
struction," for" shelter and partial protec
tion while growing to something better.
Rapidly peopled by th best brain and
brawn of Europe heterogenous at Die
start, now a composite of th best of
human civilisation1 they have pushed o
to success doing the best they could with
their attainable mean.
In providing shelter and buslnsss facilities
for ths 0,0). Ou) people In the United States
In a life of say VM years growth, with pro
portionate wealth. Compare th United
States with th record of England, with
only one-third as many people, and the
growth of l.OuO years of its recorded his
tory; of all Europ with a little mora than
four times our population and wealth
populated and powerful at th birth of th
JOSEPH CULLEN ROOT.
Christian era, comprising all th territories
and Alaska. Starting as ws did with the
Pilgrims armed with axess to subdue th
forests powder and lead for the Indians
they built log huts, then of frame and bet
ter material afterward, accyrmiodatlng
themselves to th conditions then existing.
Expanding trade and commerce evolved,
first th bark canoe, then ths wooden ship
and so on to ths great Iron and steel mon
sters that plough ths seas today. So from
th log hut to tha fireproof palace, from
th wigwam trading house to the monster
fireproof store and warehouse building,
which fifty years ago, would have been
large enough to car for th trade of a
dosen of our Tranamlssisslppl states. W
hav given evidence of our mighty capacity
for expansion and Improvement, give us
time and th best improvements will come
In due season, keeping pace with the nat
ural growth of tha country. Ideas of con
struction are fast ripening into indestruct
ible buildings, although, I must say, mighty
few exist ody. v
Not surprising that nine-tenths of San
Francisco's structures war of frame; this
city was a wilderness within th life of
some of our pioneers. For years and years
th experience of owners of California red
wood" buildings, of which San Francisco
was mostly constructed, was that red wood
lumber was slow burning, not nearly as in
flammable as pine, and when long rows of
frame structures were attacked by fire the
percentage of salvage was equal to that of
ordinary brick bulldlns. Until the great
and overwhelmlnj conflagration of April,
1j6, there had been no lesson to teach them
better.
Companies and Risks.
Insurance companies with limited experi
ence facing the clamor for reduction of
rates and equally damaging demands from
their stockholders, who ar not In ths busi
ness for their health, but for dividends,
wer by competition induced to writ at
rates which proved disastrous. It Is th
same old story, "nothing risked, nothing
gained." They took th risk at unequal
compensation and lost. Our merchants take
risks; w all do, and th Insura'av cooi-l
BASCOM II. ROBISON.
panles are not the only gamblers.
Th sprinkler risk is a move in th right
direction and has mads a wonderful reduc
tion In the cost of insurance. Sufficient
time has not elapsed since the Introduction
of this automatlo fire extinguisher to fully
demonstrate what the rate on sprinkler
risks should be. It has been discovered,
however, that Insurance against water Is
quite as necessary as insurance against flra.
The 1s t Hayden Bros, loss her in Omaha
illustrates this fact, locally, at least. A
$200 flra cost the Insurance companies $210,000
for water damage.
In ths heading of the Fltxpatrlck article
on sentence of his long drawn out preface
says: "Insurance companies get th bene
fit." If he uses these words -Ironcally, no
exceptions can be taken; If h means them,
I except. What benefit can there be to in
surance companies In a general conflagra
tion of $1,000,CU loss or more, as in San
Francisco, where the loss .aggregated
ri2O.0OO,0O0? Pretty expensive advertising,
that wipes out all capital and surplus and
causes stockholders to reach down into their
pockets for money made in other channels
than Insurance to make good policy con
tracts. We can write and talk of the millenlum,
of the beauties of ths New Jerusalem, with
its golden streets and fireproof risks, but
for 1,000 years to come we will continue to
buy experience and insurance, and the fir
loss will continue to Increase with 1n
creaaed population and wealth. When the
hazard is entirely eliminated, as It may be,
then listen for Gabriel's nrn.
H. E. PALM BR.
LIFE INSURANCE CAINS
Armitroce Laws WU1 Eanefit Business in
All Mat-rial Ways.
NEW DEAL BRINGS GOOD RESULTS
Inccompetent and Dishonest Aaenta
Will Be Driven Oat, Mnnasrement
WU1 Be Safer and Poller
holders Will profit.
Fln Sense of To neb.
Dr. II. W. Wiley was remlndod by the
pure food law of a story.
"A country grocer," he said, "was talk
ing to a throng of customers about the
wonderful sense of touch that th blind
hav. 'Her comes old blind Henry Per
kins now,' said the grocer. 'We'll test
him.' And he look a scuopful of sugar and
extended it to th old man. 'Fevl this,
Henry,' he said, 'and tell us what It is.'
"The blind man put his hand in th
scoop, puased Its contents through his
tinseis and said In a firm, ronlideut ton:
"Philadelphia .btulUUu.
OMAHA, March 12, 1307. To th Edltot
of Tuo But: In reply to your writwn re
quest fur my views of the Armstrong legis
lation enacted In Now York and going into
effect January 1, ltKj7, I give them to you
bore with biietly, as follows:
The Armstrong laws have completely
revolutionised the 111 insurance business la
America, uud we can truly say "old things
have parsed away." In other words, a new
era dawned January 1, 1907, and for tha fu
ture companies will be Judged aud their
business will Increase or decrease acoordlug
as results to policy holders are good, bad
or indifferent.
It is. Indeed, too soon to predicate Judg
ment upon th law In its entirety, but I
believe the majority of thoughtful under
writers will say that the laws. In th main,
4 re wine and Jut.
Limiting the new writings of th giant
companies to $160,000,000 annually Is good.
Tha mad race for supremacy In new busi
ness, without regard to quality or cost,
and at the expense of the old policy hold
ers, had long before this legislation bo
come a scandal and a stench in th nos
trils of all thoughtful men.
The contribution of sacred trust fund of
widows and orphans to political campaigi
managers was an unadulterated crlina
The same may be said of officers and trus
tees participating In the profits of syndl
cate and subsidiary companies, every penny
of which belongs to policy holder. These
and other evils the law has remedied, foi
all time.
Ths Armstrong law compels an annual
distribution of surplus, and upon this point
there will always bs honest difference oi
opinion. Th writer favers a deferred, divi
dend, with an annual accounting, but aftai
all this Is a matter of minor Importanca,
as the policy holder is permitted to leavi
his dividends with th company to aoou
mulat from year to year.
As It ABerts Arents.
As all the wnrld knows, the agents' com.
pensation has been, on th average, em
In half. This at first seemed to me unjust
but as time passes I have corns to th
conclusion that this, too. Is a blessing la
disguise, and th honest, faithful life an
suranca agent will make mor money thai
ever under the new regime. The Mg, sport
iff Insurance agent, who by hook an
crook worms himself Into social club and
mukrs himself a nuisance to the reputably
members, spends his time In hotel lobblef
and bar rooms, and who buys his huslnesi
by spending his commissions In entertain,
tng prospective clients by plying them wltl
llqur, and when in a maudlin condition In
duces them to sign a note; he who caret
not a whit whether the policy ever re
news; who is out to win a bonus, a trip or i
champagns supper ask this class of agent)
(Continued on Pag TwoJ
