Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-12-11
INSURANCE.
High Rates-The Reason Why-SOme
Facts for Insurers to Consider.

High Rates-,The Reason why-SOme
Facts for Insurers to Consider.
To the Union and American;
Since the Chicago fire the Insurance
Companies, composing what is known as
the National Board, have advanced their
rates from time to time in order to make
good their loss by that great cOntiagration.
The combination is formidable one, and
has been quietly forming throughout the
country an almost irresistible insurance
ilnperilaIl. 1t is a natural product OF COM
mercial despotism, and already controls in
surance rates throughout the United States.
The plan they have adopted for raising
rates is a most unfair one, and it is mat
ter of surprise that it has been so quietly
submitted to, and especially by the citizens
Of the Southern States. 1t is notorious
fact that the rates of insurance in the Slave
States always were higher than in the
Free States, being usually from 80 to 100
per cent higher in the former Now, the
people of Nashville have always paid
nearly double the rates of insurance
that were demanded in similarly situated
places in the North. The National Board
has not attempted to equalize rates through
out the United States, but has taken the
local rates, and arbitrarily raised them from
so to 100 per cent. For instance, Nash
vile rate is l per cent.-the same risk is
taken north of Mason and DiXOn's Line
for per cent; 80 per cent. is put on the
Nashville risk, making it Il per cent. 80
per cent. added to the Northern rate of ]
per cent. makes the premiums 80 per cent.
more than one-half the Nashville rate.
This is the way we are fleeced by the Ma
tiOnal Ring. The rates of insurance IN
Baltimore are lower thar in most other cit
les in the Union. This city, last summer,
met with a $4,000 loss. Immediately
thereupon the National Board companies
ordered their agencies to advance 80 per
cent. But the BaltimOreans did not think
one moment of submitting. On eXamina-
tion it was found that at the extreme low
prices in Baltimore, the gross insurance re-
ceipts were, for 1872, Sl,200,QO0; losses
100000. Nett profit 100000, or 90 per
cent. Baltimore naturally enough con-
cluded the $4,000 loss ought to be paid
ont of the 100000 earned the previous
wear, Ga year said not to have been an eX=
ceptional One).
The National Board Companies doing
business in Nashville have been for some
time past increasing rates and demanding
their agents to obtain it or cease to write.
Agents, in consequence, have been compel
led to extort from their patrons and GUS
TONERS. If there existed a necessity for
these advancings, it might reasonably be
urged and tolerated, but no such necessity
exists. The business under the former and
lower rates has yielded large profits, which
ought to satisfy reasonable men, and it
would be hard to name city in which the
insurance business yielded larger per
centage of profit than Nashville for some
years has done. If the people to whom
this outcry against cheaper insurance is adj
dressed, have the independence to act for
themselves and consider while the actual
state of affairs, they may come to the con-
clusion that it is not best to submit to die
tation and may finally, perhaps, lull the
Nashville Board of Underwriters quietly to
rest, No BOARD.