The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1872-11-29
Insurance.

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a'as .amHau .u07 difW os -----
Greeley's loss. .-.as5-,9.4I 4, ,54e
Insurance. rs ts
It begins to be question. with
business men whether there is such
q thing. The Chicago fire awaken
ed the suspicion that there was very
little and the Boston fire has CON
irmed it; and now they begin to ask
the question whether, after all, there
is any use in paying out their money
for a promised security, which
proves unreliable just when most
wanted. There is toe, much of this
sort of thing, and the rights ofrin.
surers should be better secured.
State laws have done much towards
securing their protection, but events
have shown. they baye not done
enough, and that further legislation
| is necessary! sTheoinshrance scom
panies take advantage of these large
fires to advance theie rates ii order.
as they say, TO afford greater seeHTl-
ty, but theEei is MISUNDERSTANDING
fail to day their stoekhOldefs as high
asrSse OF dividehds as ever, and
when another sweeping condagra-
ton comes, the insured finds no
greater security than bbefore. A
company goes by tbedBosrd here,
another there, pays it 25, or so per
cent. on its losses, and the indiyiid-
uals whe, year after year have been.
paying their money for security have
to pocket the loss. dgThere should
be remedy for this, and there Can
be, but there win not be until some
such policy is ipaugHrated as that
which requires the, National Banks
to secure their circulation, SO that
holders Of the notes Of those banks
are protected against loss, An in
surance policy should be- secured in
like manner, and insurance companl
les, be required to deposit in each
State where doing business, enough
securities to at all times cover any
loss which may be incurred, in such
State. Our legislature should give
the matter special attention at its
next session.
The Boston people have had an
awakening upon this subject, and the
Times treats the matter thus earn
estly; .'l1
People are beginning to. look
about for themselves and demanding
that their, security shall be worth
something at the time they most rely
on it. They feel in the present
case that they have been paying
money for a long term of years
to sundry companies, the equivalent
being pledge Of protection against
fires, great and small. There comes
conhagration, and property and
companies go up together The uni
yersal inquiry is, what has become
Of all the money that has been paid
over to. the companies for policies
dnring these years? The assurance
consisted, certainly, in the supposi
ton that there was enough of it in
the aggregate to cover all outstand-
standing risks and divide fair prof
it among the stockholders besides.
But the result shows that it has not
been put aside for this primary eb-
ject of covering all possible losses,
but has been divided up among the
stockholders. What happened to be
lett over after paying these large an
nual dividends, is all that the qnfor-
tunate insured received in return for
the money they have been promptly
paying in, year after year, The mon
ey has gone into the left, instead of 1
the right pocket. - 80
The whole thing is in nutshell. 4
Insurance has been done for the |
public. 1t has become simply
money-making affair. The time has
come to change it, and we look to
this, or certainly the next leglsla-
ture, to change it. OF course no
company win be formed except upon
a basis Of prospective profits, but
all the risks added together will
leave that profit remaining. Com
panies ought to be made to lay away
& sum equal at all times to the ex:
tent of their outstanding risks, and |
then there is q good maigin for fair
dividends. If that were the condi-
ton of every charter granted, we do
not doubt that these heavy losses to
tie insured public would cease. 1t
Is TO be observed that the compan-
les are arranging for higher rates, as
if that were going to increase the
SO long as business is done
on its present footing, and chiefly
for the benefit of stockholders.
Higher rates with a continuance Of
the former system only aggravates
the matter for policy holders. They
are called on to pay more, while they
have no greater security. Unless
some thorough reform can be effect
ed in this whole business with legis-
lative aid and authority, it may be
advisable to propose that the State
shall take the insurance business en- =
5irely into its own hands, taxing all
property pro rata, and thus assuring 4
It's security to the owners,
The toast Of sthe ladies' given at . recent /
literary banquet thus: "WOmsn-the fairest \
Fotk in al creation. The edition is large, and /
70 nan should b without q copy S