JOURNAL OF INSURANCE.

INSURANCE COMPANIES IN NEW YORK STATE.

We have received from the New York Insurance Department advance sheets of the Department's Report, from which it appears that the amount of capital invested in joint stock insurance companies, has been increased over five million dollars during the year. The following table exhibits the increase in the number, capital, and premium income for a period of seventeen years:

TABLE.

Showing the progressive net increase in the Number of New York State Joint Stock Fire Insurance Companies, with their Aggregate Capital and Premium Income, from the year 1848 to 1864 inclusive:

It must be borne in mind, however, that the average rate of fire premium was not increased at all during the year. but actually declined, and that the aug. mented premiums consequently resulted entirely from an increased amount of business. The fire premiums of the New York joint stock companies increased, as stated above, from $10,181.030.52 in 1863, to $15,618,603.82 in 1864-the ratio being 53.4088, which is the highest ever known in the history of these corporations. The number of policies issued by New York life insurance companies increased from 20,757 in 1863, to 28,782 in 1864, and the amount insured from $140,628,427.10 to $194,819,324.45. The gross assets of all the New York companies, fire, marine, and life, increased during the year from $32,488,066.07 to $103,453,772.76.

The grand average per centage of losses to premiums in all the New York joint stock fire insurance companies has ranged. during the last five years, from 41.15 in 1863, to 60 44 in 1862. For every $100 of premium received in 1862, over $60 was paid for losses. When the individual companies are taken, and the losses to premiums averaged for the five years combined, the range of per centage oscillates from 18.64, in the case of the American, to 95.99, in the case

of the North-western, and when these five years are separated, the swing of the pendulum extends from 0.80 per cent, in the case of the Commerce Fire, in 1863, to 259 81 per cent, in the case of the Beekman, in 1862. Averaging all the companies, for the five years combined, 1860 to 1864 inclusive, fifty have lost less than fifty cent of premiums, and fifty-one more than fifty per cent of premiums; again, separating the years, the number of companies losing more and less than fifty per cent of premium was as follows:

No. of Co's losing less than 50 et.

IT

96

101

180

99.20

45

49

51

46

55

$1

21

80

63

46

47

52.20

It is thus demonstrated beyond any cavil and contradiction, by the experience of the last five years, that a very large number of companies actually lose heavily beyond the fifty per cent of premiums received on outstanding unexpired risks and that therefore this small reserve is, as a matter of fact, entirely inadequate to meet and provide for even the average oscillations of loss, much less for the annual variations which must be considered as certain to occur during a series of years. Shall these losses be paid out of capital, or from an accumulation of surplus profits and a reinsurance fund expressly provided for such contingencies? The Superintendent has but one opinion on this point. Capital should ordinarily remain intact, to be impaired only by such super-extraordinary fires as those in New York City in 1835 and 1845.

The Superintendent feels that it is his duty, as well to the companies as to the public, to reiterate the recommendation of last year on this subject, that a sum at least equal to the full amount of premiums received on unexpired risks should be reserved from division by dividends and maintained as a surplus fund for reinsurance and other contingencies, and that "all our companies should voluntarily adopt this principle as a golden rule in declaring dividends either with or without further compulsory or restrictive legislation on the subject." This reg ulating principle embodied in legislation would also operate beneficially in discouraging the organization of an unnecessary and embarrassing number of new corporations.

It is only simple justice to officers and directors to say that the tendencies of our companies in this direction have already been marked and decided during the last five years, and have not failed to attract the attention and commenda tion of European economists and statisticians.

The following average dividends only, have been paid for the last five years:

The dividends paid in 1864 only about equal the dividends of 1860, although

the amount of capital has increased over eight million dollars. The general impression prevailing that fire insurance stocks ordinarily pay excessive dividends, is thus shown by the above table to be a popular delusion. Whenever heavy dividends are paid, the foundations for such payment must be laid on many years of experience and accumulation, guided by superior qualifications and acquirements in the officers, managers, and agents.

TAXABLE PROPERTY IN BUFFALO.

The Buffalo Courier gives the following as the valuation of taxable property and the rate per cent of the general city tax for the years 1864 and 1865. It will be seen that the valuation of the present year has been increased some $270,000 over last year, notwithstanding the valuation of personal property as assessed is $10,000 less. Something over $700,000 has been withdrawn from taxation by the banks alone, and it is the opinion of those best qualified to judge that not less than $2,000.000 has been invested by citizens and corporations in United States securities, and thus placed beyond the reach of State or local taxation :

VALUATION OF TAXABLE PROPERTY IN THE CITY OF BUFFALO FOR 1865.

POSTAL INTELLIGENCE.

THE POSTAL MONEY-ORDER SYSTEM.

OFFICIAL LIST.

The postal money-order system, which went into operation on the 1st day of November, 1864, when one hundred and forty-one post offices in the loyal States were made money-order offices, has been extended so as to include four hundred and twenty offices, in nearly all the States.

The working of the system has so far given universal satisfaction. In the business of the New York offices with other offices, no losses, either to the senders or receivers, of orders have occurred. In a few cases of error or carelessness in the drawing or the use of orders, it was necessary to cancel or duplicate the drafts; but the familiarity of the public with the system renders such cases very

rare.

It will be remembered that orders may be drawn for any sum from one to thirty dollars, on payment of ten to twenty cents; and larger sums are trans mitted by using additional orders.

The business with the new offices began on Monday, the 3d of July. The following is the official list of all the designated post offices at which orders may be drawn or paid.

LIST OF MONEY-ORDER POST OFFICES, JULY 1, 1865.