The Wairarapa Daily. FRIDAY, JUNE 26, 1885. THE INSURANCE COMPANY'S BILL.

Wairarapa Daily Times, Volume VII, Issue 2026, 26 June 1885, Page 2

The Wairarapa Daily. FRIDAY, JUNE 26, 1885. THE INSURANCE COMPANY'S BILL.

Attempts have from time to time been made to compel English and foreign Insurance Companies to deposit a certain sum of money with the Government, as a proof of their banaJules, Tn other words, they were to be asked to pay what is tantamount to a heavy protection duty. A bill to effect this is again before Parliament, and this time it is fathered by the Colonial Treasurer, who was, no doubt, very glad to take charge of it, because its passage would assist in the sale of more than half a million worth of debentures. If the measure were the outcome of joint action on the part of insurers, the reasons advanced in its favor would at least look unselfish, but as it has been prepared at the instance of the colonial companies, the inference that it originated in trade jealousy is at least excusable. An attempt of the kind was made in California about six years ago, but the figures brought to bear showed unmistakably thai the local companies would he unable to cope with the business, and that, if they were to take over one half the business of the foreign companies, the lot of them might ■ he absolutely ruined by a single conflagration, or by one disastrous gale. The same thing would undoubtedly apply to New Zealand, though the marine risks would not be of so serious a natiwe as those against fire, because the system of insuring at Flome, which is pursued by some exporters, would be considerably extended, In return for the i back-handed compliment, other colonies and countries would retaliate, • and this colony would thus earn for itself the reputation of having initiated a system compelling Insurance Companies to keep within the country in which its head office is situated. There is only only one argument that can be advanced in favor of the proposal, and that is, that companies may open a branch, and then, when they meet with a heavy loss, withdraw without paying it. We believe one instance of the kind did occur in Wellington, though, at a deputation to the Colonial Treasurer on the subject, Mr G. S. Graham denied.it. At that deputation, Mr E. Pearce, put the results that would follow the passing of the Bill very clearly when he said: —"lf every colony and every country

I adopted similinr measures, tlite funds ot Insurance Companies, instead of being .available to meet any great disaster, would be held by the various govern.mentis, and,so locked up, aiid'the result would follow that an Insurance Oompnny, instead ot being a strong association, would be formed into a number of: disjointed and weak agencies," Sir Juuus Vogel appeared to bo taken aback with ■ the various arguments advanced, and he promised to give them every consideration. If a persons who isabout to insure, does not inquire'into tbe ! standing of the company to whose agent he applies, he has in reality only himself to blame, 1 for he does a thin? that is probably i altogether foreign to his business habits. i Men do. not lend monpy without security, nor do they intrust property 1 to others without seeing themselves safe. Why then,, should they make an exception in the matter of insurance 1 We think there is a very simple remedy for the supposed evil. Let Parliament pass an Act compelling insurance companies to furnish a quarterly statement,, similar to that ]' made by the banks, showing their : assets and liabilities, the securities held) the cash at their bankers, and i the average rate of loss to the amount ; insured. No company doing business . on a sound basis could have the least objection to this, while insurers could be enabled to judge for themselves which of them should be entrusted > with their perishable property,