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

pIONiucHuly ASiid itoeil w eoo oPPOoieioA 49,
of the State insurance scheme. 1t has |
boon earnest, both in season and out of sea-
son, in its advocacy Of the funding bill
measure of 1871, and this proposed insu-
rance scheme offers the only practical solu-
ton to the funding bill measure which has
yet been suggested. We do not propose to
give our reasons for supporting the meas
ure in advance Of its consideration by the
General Assembly, or at least in advance
of its maturity and presentation to that |
body; but we do propose to give them at
the proper time, and to urge them with all
the earnestness and ability we can COM
mand.
1t is safe to say that from three to five
millions of dollars are annually paid by
the people of Virginia in insurance premi-
ums upon life and property, and the great
bulk of this sum goes out of the State to re-
turn in loans upon real estate at ten and
twelve per cent. interest, and in such paid
losses as are finally adjusted after fires. 1t
is equally safe to say that the amount paid
upon losses by fire and upon determined
life policies in the State does not exceed.
and is not likely to exceed in any one
year, one million and half of dollars.
There is then profit, made by the col
lective insurance interest doing business
in this State, of not less than two millions
of dollars a year--a sum equal to the en-
tire tax levy put upon our people.
Why, then, should not the State seek to
divert this profit from the hands Of the for
eign insurance companies into its own
depleted treasury? The Enquirer gives
ten reasons why it should not, which we
will consider in their order:
l. The State has neither means nor credit as
guarantee to The insured.
But if the surplus earnings of the insu-
rance companies can be turned into the
treasury of the State, it will give the means
to establish our credit at once; and. once
established, the State will need no further
guarantee.
Q. Insurance in q series of years has been q
loss to the companies. The business is regarded
as extra hazardous-the stock as fancy.
This objection is entirely too meretri-
cious and begs the question before it is
fairly put into legislative shape. If the
business has proved extra hazardous and
the stock "fancy" in the hands of the in
surance companies, the fault has not been
in the system, but in it's reckless manage
ment by the insurance companies. Sub
stantial and well-managed companies, like
the Hartford Etna, have met all their
losses out of their surplus earnings, and
are doing to-day more profitable business
than ever. The objection, as urged by our
contemporary, goes altogether too far, and
becomes an argument against all insurance,
whether by the State or private companies.
8. The business as conducted by the State
would necessarily be affected by politics-the
employees named by politicians. They would,
therefore, be necessarily not as well qualified or
as careful as those in private companies, who
have personal interest in their success.
This objection is also more meretricious
than real. Politics need not have, neces-
sarily, anything to do with it, and aooald
not have with Governor and Senate to
properly look after our financial interests.
The same objection might be urged against
the partisan machinery by which two mill
lions year is brought in taxes into our
State treasury. The argument is too broad
and general, and proves altogether too much
in the little it attempts to prove for, il
politicians are not to be trusted in selecting
officers for the management Of one depart.
ment Of the State government, they do moi
deserve to be trusted in selecting those for
another, and the wheels of government
would have to stop for want Of integrity TO
run them. The same argument lies against
our judiciary system that is urged against
this financial scheme.
4. The property insured would be more haz-
ardous than that now insured-the rules and
policy that now govern officers could mt ope
rate as they do now.
This proposition and the one which fol-
lows it are made up of mere naked asser.
ton, and in the teeth, we think, of well
ascertained and thoroughly established
facts. Not only has the State been the
insurer of tobacco in warehouse for the
last two hundred and fifty years, but the
policy which has governed the officers O
the State has operated SO successfully tina
the revenue derived has amounted to mil
lions upon millions, while the losses BY
fire have been merely nominal, not exceed
ing seventy.fye thousand dollars in the
whole time. And then system of State
insurance that works so admirably in the
Republic of Switzerland as to relieve q
whole people from taxation, ought to b.
made practical in Virginia.
8. The extra hazard of a State insurance com
pany would be due to the fact that so large
farm-houses &c.
Here our contemporary shows its saltato
~ abilities in stepping to conclusion, pc
saltiSm, from an entirely erroneous premise
What it calls extra hazardous" is wha
all insurance companies in the country
consider the lightest possible hazard
"larm,houses, barns, &C." These risks
are like the divided risks in cities, and arr
regarded as better class since they arr
uniformly detached from others. SO that thu
loss Of one does not involve the loss o
another. Besides, in this class of risks
49, . 80 Gu, &c o,,xy To,.coI aa1ao 10 "a, a,,,,