20   BEST'S INSURANCE REPORTS - FIRE AND MARINE.

AMERICAN MERCHANT MARINE scribed at $400 per share, so that $600,000 was added to surplus account.

l p to January 1, 1919. the company confined its operations to marine and automobile insurance, but at that time it opened a separate fire insurance branch.

As of January 1, 1919, the company reinsured the out-standing fire business of the United States Branch of the Prussian National Insurance Company, of Stettin. Germany, by contract executed February 5, 1919. The unearned premiums involved in this transaction were approximately $350,000 and the commission paid was 15%.

Management and Reputation.—The company is under experienced and reputable management.

The company's loss paying reputation is excellent.

Mr. C. 1'. Stewart, president of this company, is also president of the New Jersey Insurance Company, of Newark, N. J., and of C. P. Stewart & "Company, Inc.. which acts as United States manager for the United British Insurance Company, Ltd , England. and for the Western Alliance Reinsurance Company, Ltd.. of London, England. which has applied for admission to the United States.

The company writes a very large volume of business, which, however, is now being curtailed considerably as compared with the business written in 1919 and the previous year. Its general practice is to write very heavy marine lines reinsuring all but a small percentage of the

risks so assumed. It is primarily responsible for the entire line whether the reinsurance proves collectible or not. This practice of the company is reflected in its statement printed above.

During the four years that it has been in ousiness the gross premiums written were $19,573,966 and the return premiums $2.262,529, leaving the net gross premiums (disregarding all reinsurance) $17,311,437 as against net premiums (after deducting reinsurance) of only $3.822,404. The gross losses paid, less salvage (disregarding reinsurance), aggregated $9,565,369. or 55.2% of the net gross premiums of $17,311.437. Adding the gross estimated unpaid claims (less salvage, but without deducting any re-insurance, admitted or unadmitted), of $4,247,065, the indicated losses incurred were $13,812,434, which is 79.8% of the net gross premiums written. The net premiums written during the four years, deducting all return premiums and all reinsurance, were, as stated above, $3,822,-404, and the net earned premiums $2,831,218.

The expenses have been moderate, namely, 22.2% of the premiums written and but 28.8% of the premiums earned.

The business of the fire branch was of moderate volume in 1919 and was profitable. The ratio of fire losses incurred to nre premiums earned was 53.3% and of expenses incurred to premiums earned 43.2%. leaving an underwriting profit of 3.5% of the earned fire premiums.

The company plans to develop the fire business on a broader scale hereafter.

In the statement printed above the company takes credit for certain reinsurance in responsible companies not licensed in New York State. On the New York Insurance Department basis, which does not recognize reinsurance in non-admitted companies, the item of unpaid losses is in-creased to $3,386,808.03 and the unearned premium reserve to $1,667,951.92, showing an impairment of $125,968.96 and an apparent underwriting loss for 1919 of $1.448.987.54. instead of a loss from underwriting of $390,054.81 as shown below.

The bonds and stocks owned are high grade. The security valuations in this statement are those fixed by the Convention of Insurance Commissioners.

INSURANCE COMPANY —Continued.

On December 31, 1919, the directors owned $341,000, par value, of the company's capital stock then outstanding. Territory.— The company is licensed in Alaska, Cal., Del., Idaho, Ill, Ind., Iowa, Ky., La., Mich., Mont., Neb., N. J., N. Y., Ore., Pa.. R. I., Tex., Utah, Wash. and W. Va.

Dividends.— Cash, $50,000; stock, $100,000, in January, 1919.

Officers.— President, Cecil P. Stewart; vice-president, Harold \V-. Letton; secretary, Charles H. Gardner; treasurer, John R. Van Horne; chairman of hoard. George A. Gaston.

Directors.--

Austin, Jr.. J. B., general manager The Globe Line, 39 Broadway, N. Y. C.

Beatty, Lawrence R., director C. P. Stewart & Company, Inc., 56 Beaver street, N. Y. C.

Benfii bl, Edw. S., director Frank B. IIall & Co., Inc., 56 Beaver street. N. Y. C.

Boulton, Frank F., president Federal Steamship Co., 78 Broad street, N. Y. C.

Carver, Amos D., baker, Carver & Morrell. 39 A\ ater street, N. Y. C.

Forbes, Julio L., vice-president Ocean Transp. Co., 25 Beaver street, N. Y. C.

Gardner, Charles H., secretary of this company, 56 Beaver street, N. Y. C.

Gaston, George A., president Gaston, Williams & Wig-more, Inc , 39 Broadway, N. Y. C.

Goodridge, Wm. E , Wm. E. Goodridge & Son, 56 Beaver street, N. Y. C.

Hall, Harry T., vice-president Merchants National Bank, 42 Wall street, N. Y. C.

Hoyt, Arthur, president Frank B. Hall & Co., Inc., 56 Beaver street, N. Y. C.

Keeson, Wilfrid D., Gaston, Williams & Wigmore, Inc.. Broadway, N. Y. C.

Letton, Harold \V., vice-president of this company, 56 Beaver street, N. Y. C.

Martin. R. H. Lee, secretary Merchants Marine House. Inc., 56 Beaver street, N. Y. C.

Pessano, Antonio C., chairman Great Lakes Engineering Works, 5 Nassau street, N. Y. C.

Robinson, Wade.

Stewart, C. P., president of this company, 56 Beaver street. N. Y. C.

Van Horne, John R., treasurer of this company. 56 Beaver street, N. Y. C.

Webb, Frederic R., director Sedgwick, Collins & Co., Ltd., London, Eng.

Stockholders' Annual Meeting.— Third Wednesday in January.

INCOME, 1919.   Marine

   Fire, etc.   and Inland.

Gross premiums written..   $781,751 37   $9,912,783 52,

Less reinsurance    486,100 43   6.850,173 13

Less return premiums..   54, 329 30   1.550, 426 17

Total net premiums..   $241, 321 64   $1,512.184 22

Interest, etc.   177, 223 45

Surplus paid in    600,000 00

Reinsurance companies on unpaid losses   950,817 30
Reinsurance companies excess tax on pre-

miums   :   137,482 93

Refund commission    134, 453 93

Profit on sale of bonds and stocks    122,463 85

Other income    453 00

TOTAL INCOME    $3,876,400 32