The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1857-01-31
Insurance Companies.

Insurance E-[npanles.
The deficiency Of practical knowledge IN
our legislation is no where more strlkingly |
illustrated than in our statutes regulating the
business of insurance offices. IF it be wise for
an individual of moderate means to transfer
to richer man or company, share oil HIS
risks from fire and storm, it IS equally wise
and prudent for community OF moderate
means. whose business is larger than their
capital, to have q richer community assume
for them portion Of the risks resulting from
the inevitable accidents of life. Rich men and
rich communities can afford to be their own
insurers; men and communities who have no
more means than their business requires can
not afford to take these risks. We, as a State
are in the condition Of young man, starting
in life with an abundance Of energy and enter
prise, inclined to incur hazards, but i'll able to
bear loss. The greatest bcnefactor to US is
the man who will take the risks Of our I'M
avoidable accidents and give us free scope
for our labor and enterprise uncramped by the
fear Of the consequences of an unforeseen
misfortune.
Buff we were rich, ours is an agricultural
population, sparsely scattered over large
territory with no commercial centre to draw
the business of the State to any one point
The condition and habits Of the people do not
lead them to insure generally. Our Insurance
Companies must therefore be local and their
risks limited in number. And it is q well
known principle of insurance, that a small
number of risks cannot be safely taken at as
low premiums as a large number, that shall
bring all of them within the calculation Of the
law of chances. The larger and more various
the risks of an Office are, the safer is the bust
ness, and the lower the risks can be taken
Small offices of limited business, seldom sur
viVe but few years, unless they coniine them
selves to the least hazardous business, and that
which least needs protection and adopt sys-
TEN that excludes that which, for the prosperi-
ty of community most requires insurance, such
as mills and workshops, classed usually as
extra hazardous, while larger Offices embra-
cling greater range Of these risks can bring
them under the law Of chances and safely
take them at moderate premiums. AS the
area Of country, and number of risks are in
creased, the greater the safety. Large com
panies survive for generations and grow rich,
while smaller Offices taking smaller numbers
Of the same risks are liable to be broken up
yearly.
We are not in position to DO our own in
surance advantageously to ourselves. Our In
gurance Companies from our want Of capital,
must be limited in means and credit, and
confined to local business and to risks Of the
safest character, because they are limited in
number. Enterprise, skill, and capacity in
manufactures, the arts, and many branches
Of trade cannot command capital, because it
cannot be protected by insurance. Instead OF
encouraging DISQUALIFICATION Of foreign capital
to give this necessary protection to our own
enterprise and labor-which is one Of the cheI
means Of modern days to indudco capital to
unto with industry--we have made series
of enactments that have driven nearly every
foreign Insurance Company from the State,
unless one or two remain here under the sane
ton Of the good sense and necessities Of the
people, and in spite OF the law.