The New York herald., 1869-03-22
nfal .SlIa.S AIS


The subsequent results OF 1896, as shown by the
table, gives additional force, the unprecedented
percentage OF 1905 TO the inhu ences that de-
manded q reform, and tue percentage OF 1867 VITA
all the advantages Of one full year OF board, Is
four per cent above the average Of the years in
elusive; thus demonstrating, beyond cavil the
necessity OF an increase Of rates. and the further fact
that such increase has not been oppressive ad
vance OF what was demanded by the AVERAGE Of
previous years. To all this may be added the large
Increase IN expenses, caused by the imitation Of the
currency and most nnwise competition. The
expenses amounted to about thirty-four per
cent in 1865 on the net cash premiums Of
that year. The insured may find matter for grave
at risk, had for its protection capital and
OF 1865 81, 1853, sos, ,507 had $40, 5,360,SS7
The percentage Of protecLon IN 1859 was 3.G5 per
cent in 1855 23S per cent, and at the end OF 1866
2o2 per cent showing decrease OF le3 per cent OF
protection to the lnsured-an alarming decrease
when applied to sum nearly as large as our
tlonal debt.
The aggregate results Of all the fire Insurance
companies in the United States, II they could be
accurately obtained, would doubtless show similar
results to those above cited, embracing only coRloa-
mics chartered VA the STATE or Ne,C York.
Under circumstances like these the good sense OF
fire underwriters IN all parts OF the country called
loudly for reform and union OF action for preserva-
ton from impending and certain ruin to these great
interests.
our organization has been called spasmodic
effort at REFORM caused by the great lire at Portland
the 4th OF July, 1886, but such Ii not the case.
Action was taken on the 3oth OF April previous, by
the New YORK board, and preliminary circulars
issued TO companies the 9th Of June calling for
expressions OF opinions, which resulted In the or
There had been since 1853 steady downward
tendency In rates, with steadily increasing ratio OF
losses until there was no alternative lett the bus-
ness q whole, but o uniform and decided advance
In rates OF premium. To stand, was financial rum
to advance. our only hope. The result has Justified
the conclusions OF that time, and, unsatisfactory as
they necessarily been, they have come none too
ior the permanent safety OF the public und the
welfare OF the capital invested.
IL was to be expected that an organization OF
this kind should nave worked perfectly at first. The
great wonder is that it has worked SO well. At tho
very outset the want OF reliable data was severely
felt In adjusting the advance or rates Impera-
lively dernanded and we are fully aware that inc.
qualities may have arisen and, perhaps Injustice
has been done in adjusting the rates upon certain
risks ct certain points; but In every case where
reasonable cause has existed for reduction OF rates
complained Of as being too high, the proper reduc.
tion has cheerfully been made, until OF late such
complaints have become comparatively rare and un-
fhe great work now before TINS board ia careful
and thorough re-examination OF risks and adapta-
AFFORD impartial justice 70 all TO Ak rates too nigh
shortslgnted policy, as unwise II is unjust;
and the public need no surer pledge OF fair and
liberal treatment in this respect tnan Is to be found
IN the universal willingness, on the part OF MEN,
bers OF this board to correct errors whenever made
and the inevitable influence Of competition In pre-.
venting Too great an advance on the larger class OF
risks. NotninR be further from the purposes Of
this board than the formation and maintenance OF
monopoly. In the nature Of the case such a result
is impossible. An advance that would yield enor-
nous profits would stimulate the formation OF new
pose. even II 10 were practicable to bind body OF
men, as honorable and experienced as the under
writer's or this country are acknOwled3ed to be- 10
scheme so unpopular and unDusinesslIke. Men en-
gagged In other pursuits OF life associate In guilds OF
trade cnamocrs OF commerce and kindred or.
ganizatlOnB Tor the collection and prcserva
tIon OF the statistics OF their various trades and
no cry OF monopoly IL raised against them
for their foresight How. then, should an organlxa-
tion OF this Kind with all Its proceedings and actions
public, be obnoxious to this charge. rhe evidence
cited from official documents has demonstrated both
the necessity and wisdom OF the course adopted and
those who seek reliable protection for their properly
should be the last TO complain OF union. the nrst
object OF which n to protect that which gives them
the protection they seek. The true interests OF the
insured and insurer lie In the same direction, and
that which impalrs the capital Of the latter dimn
ishes the security OF the former The interests OF
both are identical. Capital, II unproductive, win
cease 10 be employed In q business 30 hazardous,
and VIII be Withdrawn atogetner leaving its place
or no real security 10 the insured. II It's earnings
high the well known laws OF trade Will soon
reduce Its profits to o reasonable standard.
Our true course Is that OF moderation In the ad-
should be exercised In bringing that advance up To
Q reasonably profitable point and no higher, and In
so doing. 70 adjust the rates Of premium TO the
different classes OF risks the history OF each class
may demand. TO do this We have need OF The com.
bined experience OF individual companies aud tho
practical skill and Judgment Of those engaged the
daily administration Oh the business
Whatever Injustice may have have peen pc done IN the ix.
otatIstical Information.
We may safely say. that we have no data rom
which We can determine the actual cost OF single
approximate 10 Q rate on some OF the safer classes
but - . whole, the business u absolutely with.
out that chart Of experience furnished only By
combined results carefully noted and preserved In.
essds whsnsvW peaaaassas hsys been obtained they