The Portland daily press., 1868-03-19


Mr.. EDIToR,-It may be satisfactory to
many of your readers to know some of the
reasons for the present advance in the rates of
Fire Insurance. There is no doubt that some
dissatisfaction, arising from a want of proper
information, exists on this subject among those
who insure, and in order that the matter NAV
be more clearly understood, give you some
extracts from well-written article in a late
number Of the New York Insurance Monitor:
We have devoted much time and taken
pains to gain information on the subject that
will be of great value to the public; we have
conversed freely with our best informed and
most intelligent underwriters, and can safely
state that we believe our views will be endors-
ed by all fair and impartial men, Itwoud be
useless for us to detail again the fearful losses
OF fire companies during the years 1866, 1866
and 1867. The facts are admitted by all. The
reason is an old one; when business relaxes.
fires ensue. Enough to say, that it became q
necessity to increase rates, in order to be able
to indemnify the policy holder to say nothing
of saving the capital OF the companies In an
increase of rates lay the only salvation. and
even under the advance, we believe the capt.
tals OF some weli-managed companies have BE-
come impaired during the the past year.
1t certainly cannot be claimed by any per-
son who knows anything of the insurance
business, that rates are now too high. We
question very much If they are high enough
unless proper means are taken to find the
cause of fires and prevent their occurrence
This is as much the duty and interest of the
public as the insurance companies. There is
no use in fighting over the tariff with your
underwater, for he can help it only ar far as
ms power and influence go; no use in giving
your business to irresponsible, cheap cOmpa-
MES, TO bring the other companies to YOUR
terms. BY doing this you are only throwing
your money away, and putting off the day for
lower rates; for good companies should not
write for less than they know will be secure
for them to pay their losses. 1t would be SELL
ing their wares for less than cost, and ali good
traders know that such course, persisted in
must prove ruinous No use in being indie-
nant and losing your temper about this mat
ter, for rates must be adequate to losses and
remunerate capital This fact cannot be gain
sayed. When real cash investments in insur-
ance stocks are found to be improbable, the
cash Will be Withdrawn, and the public NAV
pay rate lot policies in some insurance COM
pany ESQ called) not worth the paper they are
written upon.
That there are many such companies now
pushing for business in all parts of the coun-
try and in all our large cities and towns where
local boards and tariffs have been established
is well known, but the public may rely upon
it that all such companies will ere long las
heretofore) "come to grief" and those who go
in for "cheap Insurance." will find to their sor-
row, as many of onr citizens found, after the
sad fire of July A. 1866, that reliable Insurance
is one thing, and cheap Insurance quite anoth-
er, the latter, like cheap goods, toe often very
hard bargain. - sa L.