The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-01-07
HOME INSURANCE.
A. New Scheme-The City to Insure Real
and Personal L Estate-Operntion Of the
Plan and the Probable Rcsnits.

The following address to the City Council
upon subject of great importance to every
householder has been handed to us for publ
cation:
To the City Council of CAarls,ton:
Tho city finances have long engaged the at
tention of the most practical business men OF
Charleston, and various plans have been sug-
eested whereby the taxpayers can b5 relieved
Of their now oppressive burden, and the debt
OF the city be in whole or in part removed.
None of these are more worthy OF consdera-
tion than the scheme now proposed which has
the city debt, the establishment OF system OF
homo insurance, the benefits 81 which, will be
enjoyed by every resident Of Charleston, and
particularly by owners Of real cstnte.
No one will deny the general proposition that
m income sufficient to create sinking fund
will accomplish the end in view. Figures will
demonstrate how this can be done.
According to the most trustworthy esti-
mates. the amount of taxable real estate IN
Charleston is s20, $40, ,225. Deduct from this
sum the vacant lands in tho burnt district and
elsewhere, cay $1,000, 600, and We have sl9,-.
$40 225 There ia also certain amount OF
property not taxable, such as churches, globe
lands aud railroad property, which it is unne-
cessary to enumerate.
with the Mayor in his report that tho above
class of property should be taxed.
Tho proportion of the roal estate which the
city would bo called upon to insure is probably
not less than S. 100000. The present cost Of
insuring brick building is say three e-feurths
per centum, while the premium upon wooden
buildings is reyer less than from ono to one
and half per cent. Upon furniture and other other
personal property the premium varies from
one and half to one and three -quartors per
cent, while stocks OF goods arc taken ut from
half 10 thrce-quarter5 per cent.
The present plan proposes to cooel' totH sH.
surance only dtsetl,ngS, stores and personal
property. The reasons arc obvious. In seven
fires out OF ten, the greatest loss results from
the destruction OF stocks Of goods. Except IN
the confagratious OF 1887 and 1861, not more
than twenty private residences havs been
burned in Charleston in thirty years, showing
conclusiyely that this class OF property Is by
far the safest and most profitable to insure,
and 1t is this well-knowp tact which has caused
tile board If underwriters to charge the high
est premium where the risi is lea st--:n Other
words, to make the owner of real estate pay
for the loss upon stock, tho difference being as
between gay half per cent. and ono and half
per cent. To illustrate A fire in one store
often involves d,I damage or destruction not
only it's own contents, but the merchandise OF
the two adjoining stores. The highest risk
alb we namel may have been charged upon The
promises, which wer least injured, and the
smallest risk charged upon three collections of
merchandise entirely destroyed. The adran-
vantage to the board of underwriters, there
fore, was on the side OF the real estate, on
which the loss was least and the charge the
greatest.
Cannot the corporation OF the city, under
these favorable circumstances, undertake. the
WORK OF lnsuring redt estate and personal
,,so,,o,t, on6 Jorivo 1orn bonefita nv charuper
small premiums thereon, leaving it to the in
surauce agencies to insure stocks OF goods as
USUAL What would be the result Estimat-
ing s. 000,e ,eoo out of $4,000 OD of re u estate
and personal property to be insured by the
city at say one per Gen., and we have SS0 00O;
deduct for incidental expenses say $4,000, and
there remains an income OF $71.OO0; substract
n supposed loss per annuna OF S24 900 from
1ires, and we have q net profit OF $4,000. This
amount, invested as sinking fund for ten years
at six per cent. interest, would make $3.50 O00
after ;hc first years business. We believe tho
entire expense of the Fire Department could
be paid from the earnings, while the large
amount OF money which is every month sent
Ia tho North from insurance aGents-actua
capital sub.ractcd from tho resources OF the
city without commensurate retrlrn-woulu pc
letaiucd here, applied to the payment Of obl-
cations and the ;iimlnutiOa Of the public debt.
THUS tho taxpayer will reap the benefit OF the
enterprise and the property uoidor ll.slrc 'nHfe
cheapy than at present. feeling, at tho same
time, that lie was contributing to given OBJ
icct which would cvcntuate in great rcduc
ton of tho burden OF taxation now necessary
to carry on the machinery OF the city goYe1n-
mcnt.
It may be urged as al objection that large
contlagration similar to lhat Of 1861 would
bankrupt the insurance fund OF the city, but
the answer to that is III the fact that, with She
present. efficient organization OF the Fire De-
partment OF Charleston, no fire can get foot
hold and result in such widespread desiruc-
ton.
An offset to this objection, far more cogcnt, is
that public statistics in all the principal c,tlci
IN the United Statcs provo that il scvcn fires
out of ten, tho greatest loss fr,m fires ar'scs
from damage TO stocks OF ;ooda. Furth II
proof may be cited TO show that the largest
profits OF insurance couipaE;aJ come from rea!
estate; and that il the Ciiv OF charleston VIII
undertake this task. these profits will be
diverted to her own people. These views are
respectfully submitc. to the Council i'll the
| hope that tllcy may lead to tue solution OF the
present fnancill problem in which every
citizen is deeply interested, and their earnest
aud thoughtfu! consideration is warmly IN
yoked. A. CITIZEN.