The Globe. WEDNESDAY, MAY 28, 1879.

Globe, Volume XX, Issue 1644, 28 May 1879, Page 2

The Globe. WEDNESDAY, MAY 28, 1879.

When tho query is made —How is it that there are so many firos just now ? it is not unfrequently answered by a significant shrug, accompanied by the words, " Hard times and over-insurance, of course." And wo aro not quite sure that, uncharitable as it may at first sight appear, tho suggestion may not unfortunately bo warranted by facts, although, as far as legal convictions for cases of arson aro concernod, there has not been much ground whoroupon to base tho assertion. Yet the public mind cannot explain away tho gonoral impression loft behind by tho unpleasantly frequent firos that have lately occurred, in any other way. Throughout tho colony, and in Canterbury especially, severe losses have been sustained from visitations of the devouring element, and in a largo number of cases no satisfactory explanation of the origin of the fire has been given. One of the most extraordinary instances on record of over-insurance is connected with an event that happened in Southland a short time ago, and the peculiarites of which are being much commented upon there. It is called the McMonamin case, as two brothers of that name aro now before the Court charged with having defrauded the New Zealand Insurance Company by having wilfully burnt to death a horse, their property. Clearly this case will form one of the many causes celehres of the colonial calendar, as it possesses very unusual features of interest as applicable to the law of Coroners' Inquests, as well as showing how careless insurance companies will at times be in. selecting their securities. From the evidence it appears that these McMenamins owned a horse which they employed in drawing logs on a road contract in the country, This animal —a stallion —they had succeeded in insuring for no less a sum than £275. Tho remains of an old hut had been hastily patched up, and its walls built up with sticks and tussocks for tho purpose of stabling the horse. The hut was suddenly burnt down, and with it the unfortunate quadruped, the bones of which were found, one log securely fastened to a stake in the ground by a chain. At the coroner's inquest—whether u P on tlie hut or tte re " mains of the deceased, does not appear very clear —several witnesses, among whom was a veterinary surgeon, gavo evidence that tho horso was very aged, and at tho most worth but " a more trifle" The Coroner's jury returned a verdict of arson against one of the McMenamins, setting out that he had feloniously and maliciously set fire to tho hut with intent to defraud tho insurance company, and they added the following highly suggestive rider:—" The jury is of opinion " that the insurance of£ces are oncour- " aging incendiarism by insuring above " tho value of properties." Doubtless, general though it may be, this charge against insurance companies is a sorious one, yet wo feel that it is not one undeserved or unwarranted by the extraordinary disclosures mado at tho inquest.. Never porhaps was there an instance more palpable of a company taking a risk which could be termed ogrcgiously absurd and totally opposed to the very tonots which, on tho very faco of tho published prospectuses, are supposed to guide their proceedings, and clothe tho latter with prudence and wisdom. This total disregard of tho veriest elements of caution in their business dealings lias, unfortunately, boen mado patent in moro cases than that of this unfortunate "ioqueated" horso, valued at a "mere trifle," and insured at ;£270. And, as is tho rulo with other kinds of pi-oportios, wo fancy that there is no possible reconstructing clauso iu " bargains" of the kind. We are very much afraid, that in their eagerness to push business in theso days of koon competition, Insurance Companies are given at timos to much rock-

loss trading; that tliey not unfroquontly accept almost any kind of risks, investigating thorn only when a fire occurs, in order, if possible, to prove that the insurer had not the value of property which ho had paid thorn for insuring. Extravagant premiums are thus secured, and yet the extra risk is not accepted. The insurer's money is taken, but the bargain is tacitly ono-sidod, as all tho tiino the company may or may not intend to accept tho risk in its entirety. Lot alono tho fact that this custom of carelessly over-insuring holds out a premium to dishonest people, who by their crime may entail loss and misory on their innocent neighbours, another very sorious effect may also result —an innocent man, whoso property is fully or over-insured, may be looked upon and treated as a swindler should his proporty become destroyed by fire without any cause for the accident being discovered or understood. To assure a more healthy tone in their trading with tho public, tho latter should insist that Insurance companies bo made to adhere strictly to the rules which thoy proclaim as being those guiding them in thoir agreements. Insurance, conducted on a sound basis, is a blessing; when speculative recklessness is introduced into it, it not unfroquontly proves a curse to commercial interests and antagonistic to public morality.