Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1857-05-04

The following views in regard to the rates Of
insurance recently appeared in the Baltimore
American. Its suggestions merit the considera-
ton of insurance companies generally, AS well
as of merchants aud others interested in their
proper management:
II n practical demonstration was needed to
prove the extreme folly persisted in by the local
Fire Insurance Companies of Baltimore for a
long series of years. in charging a lou rate pre-
MUM it was furnished by the recent disastrous
fire. The present rites, both on buildings. and
merchandise. is entirely inadequate to sustain
the companies against tho terrible and ruinous
conhagratons that have occurred in our city
the past three years. Unfortunately, the evil
Will continue to increase with every improve
ment that is made. We no longer erect build
ings two or three stories high but massive siruc-
tnros of five aud six stories towering TO the skies
with a corresponding depth of nearly two hun
dred feet. We have force in Baltimore 10
contend successfully against fire in such build.
lngs. Had our insurance companies charged
just and equitable rate Of premium in years past
bythey would have accumulated n fund on which
they could fall back in hour of need. The very
questionable policy which has obtained for years
IN Baltimore, of declaring large diridends, is
doubtless very acceptable to stockholders bat is
suicidal and ruinous to the insured, who on pay.
ing his premium has right to expect II prudent
and discreet Board of Directors would annuity
reserve fund sufficient to strengthen their po-
titlon,and protect the interest of policy holders
instead OF filling tho pockets of stockhoidelS.-
Some of the oldest and most reliable companies
of Philade phia have standing rule which pro-
hbts II dividend annually OF more than eight
per- cent
Let the merchants Of Baltimore. who have
large amounts Of insurance. reflect for moment
on what is here stated. Baltimore is suffering pro-
cisely AS her sister cities of Philadelphia and n.
York have suffered, but there is less excuse for
us, having bud warning example by their mis-
fortune, from which we should have prohted-
In the present condition of our Offices, it requi-
res u" prophet to predict the result. Should
repetition OF disastrous fires occur, (nnd occur
they willy and the Insurance Companies decline
to strengthen their positions by increase Of
rates, the result is aud certain. 1t is plan
common sense question, sufficiently practical
for any oneto answer. They must succomb 49,
II tsd mere question ofiime, and nothing but
entire change OF policy can avert so terrible and
overwhelming calamity. New York Philadcl-
pha, Boston, st. Ionis, Cincinnati and Louis
Vile hive all passed through the same ordeal and
all have been compelled to adopt the same rem
cdy-m increase ofthe rates Of insurance. No
reasonable man would or could object to such IA
course, for he provides security for himself by
placing the Companies in position to pay their
losses. Intelligent and far seeing merchants
have admitted, that the insurance rates OF Bal
tlmore was too low, and stated their willingness
TO contribute to any reasonable measure, which
would place tho Companies themselves beyond
hazard