The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-01-27

We are requested to republish, for the inlor-
nation Of the public. the following address to
the City Council of Charleston" which first
appeared IN TIE News about year ago:
To the City Council Of Charleston:
The city finances have long engaged the at
tcntion of the most practical business men of
Charleston. and various plans have been sug-
gested whereby the taxpayers can be 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 considera-
tion than the scheme now proposed, which has
for its object, in addition to the reduction OF
the city debt, the establishment Of a system Of
home insurance, the benefits of which will be
enjoyed by every resident of Charleston, and
particularly by owners of real estate.
No one will deny the general proposition
that an 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 s20,340,225. Deduct from this
slim the vacant lands in the burnt district and
elsewhere, say sl,0O0,000, and we have sl9,--
340,a25. There is also certain amount OF
property not taxable, such as churches, glebe
lands and railroad property, which 1t Is un-
necessary to cnumcratc.
with the Mayor in his report that the above
class of property should be taxed.
The proportion of the real estate which the
city would be called upon to insure Is probably
not less than SS,000,0O0. The present cost OF
insuring brick building is say three-fourths
per centum, while the premium upon wooden
buildings is never less than from one to one
and a half per cent. Upon furniture and other
personal property, the premium various from
one and half to one and three-quarters per
cent, while stocks of goods are taken at from
half to threc-quartcrs per cent.
The present plan proposes TO couer 'otth IN
suvance only d,oellings, stores and personal
property. The reasons are obvious. In seven even
fires out of ten the greater loss results rom
the destruction of the stocks of goods. Ex-
cept in the conf1agrations of 1887 and 1861, not
more than twenty private residences have
been burned in Charleston in thirty years,
showing conclusvely that this class OF proper
" is by far the safest and most profitable to
insure, and IL Is this we'll known fact which
has caused the board Of underwriters to charge
the highest premium where the risk Is least
tate pay for the loss upon stock, the difference
being as between say half per cent and one
and a half per cent. To illustrate: A src IN
one store often involves the damage or de-
structiOn not only its own contents, but the
merchandise ofthe two adjoining stores. The
highest risk above named may have been
charged upon the premises which were least
injured, and the smallest risk charged upon
the collection of merchandise entirely de-
stroyed. The advantage to the board OF un-
dcrwritcrs, therefore, 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 inslring real estate and personal prop
erty, and derive large benefits by charging
small premiums thereon, leaving 1t to the IN
surance agencies to insure stocks Of goods as
usual. What would be theresult? EsLimat
ing So O00 900 out OF sl9, ,000 900 of real estate
and personal property TO be insured by tht
| city at say ono per cent, anil we nave SoO,O0O
deduct for incidental expenses say $4,000, and
there remains an income of $4,000; subtract
supposed loss per annum of s24,0 900 from
| fires, and we have net profit or $50, ,OOO. Ihls
amount, invested as sinking fund for ten year!
at six per cent. interest, would make $3.50, ,O0t
after the first years business. We believe the
entire expense of the Fire Department coult
| be paid from the earnings, while the large
amount of money which is every month sem
| to the North from insurance agents-actua
capital subtracted from the resources OF the
city without commensurate return-would be
detained here, applied to the payment of obli
cations and the diminution Of the public debt
| Thus tho taxpayer will reap the benefit OF the
enterprise and the property holder insure more
chcaply than at present, feeling, at the same
time, that he was contributing to given OBJ
ject which would eventuate In a great reduc
| ton of the burden of taxation now necessar.
to carry on the machinery of. the city govern
ment.
1t may be urged rs an objection that large
conhagration similar to that of 1861 woult
bankrupt the Insurance fund of the city, bu
the answer to that is in the fact that, with the
present efficient organization of the Ere De.
partment of Charleston, no fire can get foot
hold and result in such widespread dcstruc
| ton.
An offset to this objection, far more cogent,
| Is that public statistics in oil the principal
cities In the United States prove that In seven
| fires out of ten, the greatest loss from fires
arises from damage to stocks of goods.
Further proof may be cited to show that the
largest profits Of Insurance companies come
from real estate; and that II the City of Charles
ton will undertake this task, these profits will
be diverted to her own people. These view:
are respectfully submitted to the Council II
the hope that they may lead to the solution
the present financial problem in which ever!
citizen is deeply Interested, and their earnes
and thoughtful consideration Is warmly in
voked. A. CITIZEN.