National Republican. (Washington City (D.C.)) 1872-1888, 1874-10-08

lndh bAdt Vi d4ulOst any OtAASA SA'J - NS
country.
While we are all cognizant of these facts,
we are also well aware, or may be made so
by consulting the records, that the IRE
insurance companies in the country gen.
orally are losing concerns. A writer in the
New York Tribune recently, pending the
discussion by the underwriters as to the
expediency of declining risks in Chicago
until some better arrangements are per-
fected there for the quenching of fires,
quotes some interesting facts from
a circular issued by Mr.. George
T. Hope, the president of one OF
the New York insurance companies,
regarding the experience Of fire insurance
companies during period of twenty years,
as follows: "Analyzing the business Of
"thirty-eight companies during the period
"named, and including an average of thir-
''teen years apiece, it is found that, aside
"from all dividends and compensation to
stockholders, these institutions have paid
s.for losses and expenses 1888, 90S, 653.73,
"and have earned on premiums received
"$271, 299, 368. SO, showing loss the bust
"ness of more than $12, 600, 900. These are
"the companies regarded as the most ably
managed and having an extended eKpe-
"rience, and they are those that have sur
"vived when many smaller or less fortu-
"nate concerns have Withdrawn from bust
"ness or sunk into bankruptcy. This es-
climate takes no account of the losses of
1.-THE one hundred insurance companies
that were wrecked in the great fires of
Chicago and Boston, and does not at all
furnish measure of the total loss Of in
"surance capital during the two decades.
But it shows very clearly that the bust
mess has been Improbable on the aver
1" age, eEcn to the more fortunate and more
"ably managed concerns. Those that
"have paid dividends during this period
"have in many instances made their profits
from iudicious investments of their CAPT
"tal and reservC-pTincipally in Govern
"ment securities since 1861. In consider
ling facts like these, it is very natural
"to attribute them mainly to the
devastation at Chicago and Boston, and
"to regard the fires there as unparalleled
land exceptional. But we have no guide
O. for the future in these matters except in
"the history OF the past and in reviewing
"the record since 1885 we find at least ten
"tires of such magnitude as to lead to the
"annihilation of insurance companies-an
"average OF one confagration every four
I '.years, and including some that were ex-
Ce'':.'iugly destructive, such as those OF
inns Cl's N 1885 and 1915, or Pittsburg in
inc latter year, '-d Albany in the year
following, of Brooklyn IN ie4s, ST. Louis
Gin 1S49, Troy in 1862, Portland in 1866,
land the frequent experiences of Califor-
mia cities. There are, in addition to the
probability of an average experience, the
new dangers to be anticipated that spring
"from the manufacture and general use of
petroleum products and friction matches,
"the greater height of modern buildings,
and the larger Accommodations of stocks of
combustible materials. For q while it
twas hoped that new inventions and i'm
"provements ii the art of extinguishing
"a fire had kept pace with these increasing
"perils but Chicago and Boston demon
strated that great fires are as much as
lever beyond human control"
These facts show that those large con-
fagrations serve to eat up all the profits
acCruing from the high rates eXacted in
cities like Washington, whose authorities
have provided the necessary means for pro-
lection against disastrous fires. We are
aware that slight determinations are made
in the rates of underwriters generally in
favor of such cities, but they are not at all
commensurate with their exemption from
losses. The only way in which insurers
can secure the drawback to which they are
really entitled in this respect is to encour-
age home companies with their business.
If there are not enough of them here to
take all the risks offering, more can easily
be organized, and the competition will serve
TO bring down the rates to the lowest pay
ing level. But these companies should re-
strict their business to their own immediate
vicinity, and not wander away into strange
cities TO seek the cast-of risks of resident
companies. Companies are very seldom
broken by home losses, unless it be in cases
of general confagratiOn.
By pursuing the course we have indi-
Gated our insurers here would simply CO.
operate to assist each other in case of loss.
And we believe they will all agree with
US that they would have been largely ben
Gifted during tie last ten years if they had
modified all their premiums for that period
as fund upon which to draw against their
losses. Another advantage which would
accrue from this course would be not only
the greater care and scrutiny exercised in
the taking of risks, but also the increased
observation and vigilance in behalf means
OF general prevention. Every insurer
would feel personal interest in the eff
cheney of the fre-alarm telegraph, in the
condition Of the various engines, hose-car-
riages and hOok-and- ladder trucks and their
teams. Any combustible material left in
dangerous place would attract their atten-
ton and be pointed out to the proper au-
thorities for removal. An increased sense
Of individual responsibility would be the
result, which would materially lessen the
chances of tie risks taken.