The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1873-01-13

G. The money that now goes out of the State for
insurance would be saved; but no money would
come in 10 pay for property destroyed, properly |
destroyed would, of course, bs a clear loss anu
unless the state was very luclIy we would lose
more money by destruction than we would save
in premiums.
The first three propositions here stated
are manifestly self-evident, and it would be
idle to controvert them. But may net the
State be just as "lucky" as the insurance
companies, which now make from two to
three millions out of their annual premiums
in the State? With q judiciously-framed
law creating the proper bureau, and with
the right sort of men as officers to manage
it, we think the chances for . luck" would
be decidedly in favor of the State. Parties
restricted to insuring in the State office
could not very well orer insure, and if they
undertook to sell out to the State as to
private foreign companies, they would lind
an interested and ready witness in every
one of their neighbors to expose and lay
bare their rascalities. A swift detection
and punishment of party making one OF
these i" forced sales" would soon end that
sort of business, and result in an immense
saving to the State as compared with the
losses by private foreign companies.
7. Insurance is a business requiring great skill
and attention-and it would be an extremely
difficult thing to get 6rstrate officers for places
that, owing to political changes, wonld be OF I'M
| certain tenure
We admit the major premise in this
proposition, but deny that it would be more
difficult for the State to get frst.rate officers
than for private companies. On the con-
trary, we claim that it would be less ditfi-
cult. as there would be much less number
of them, and their services, once secured.
would be more permanent, since muta'
tions in stock result in mutations of man.
agement, as the history of all joint-stock
associations abundantly shows:
s. 1t has been of late very common thing fol-
| insurance companies TO break and the chances
are even, if not worxe, that the STATE would lose
q great deal of money.
This is really an argument in favor o
State insurance, because the State nevel
can break. Under the system proposed
| insurance partakes of the mutual principle
and if any citizen of the State insures, hi
annual premiums are in the nature of al
assessment to cover losses, and there cal
be no breakingn unless one-half of al
, the property in the State should be destroy
ed by single fire.
g. The foreign insurance companies TAX
money out of the State but many OF them briil
. | rrp into the Etatn and lend 1T out.
G Both Of these propositions are no doub
true. But these companies take money GU
!. of the State in unnecessarily large premi
0 ums, and bring it back into the State aga
: to loan out at excessive rates of interest
n We say in unnecessarily large prem
9 ums,n for the reason that one-half of a
q the premiums on insurance compa
MES go to pay for the establishment
$ and maintenance Of agencies in othe
States; for high office rents and cost
i furniture, for advertising and advertiser
. circulars, for travelling agents, and for
IS thousand and one other expenditures thu
e would not have to be incurred by til
# State. Hence, the State could insure :
less rates, and thereby save money to til
i people.
10. Insurance constitutes too large a bushes
!. and gives employment to 100 many people to
monopolzed by the State
IS Here is another argument in favor I
e State insurance. An insurance premiul
q is in the nature of tax upon the industr
L of State, and no private corporation, 70
n eign or domestic, should be Above
= to monopolze an interest from whc
J such source Ct revenue may be derived
e A tax should never be allowed upon pro-
If erty or industry, except for the support
ID government. Individual companies al
IS too rapacous in their greed to be intrustt
II with the laying Of burdens on the peop
ID for their own pecuniary profit and adva
e, tage. The very statement of the propos
S. ton by the Enquirer is in urgence of Il
ttee adoption of the measure by the State; f
d, if it constitutes so large business, and
y, 10 profitable withal, it is the very reason wi
the State should assume the trust, and M
is farm it out to private companies.
&. - - 1T
ID THE Washington correspondent of q
b Boston Advertiser thus refers to the Pies