Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-12-24
FIRE INSURANCE AND TIE M TIONAL

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Ne,c York Times, 2ist.
FIRE INSURANCE. AND TIE Ma TIOEAL
BOARD OF FIRE UNDERWRI7ERS-
BOARD AND NON-BOARD COMPANIES.
To the Editor Of the Journal;
In view of the complaints in many if not all To-
calities of the present rates Of fire insurance, we
are prompted to say few words concerning the
relations of the National Board to such rates, and
also to the beard and non-board companies. 1t is
well known fact that there has been established
in New York city for the last eight years, at least,
board of fire underwriters. The object OF the
board was and is to establish and maintain proper
and adequate rates throughout the country Dur
ing this period the success Of this institution has
been variable, but Immediately upon the occur
renee of the Chicago fire, renewed interest in this
organization seized all the leading underwriters
throughout the land. The National Board was
their refuge and salvation. Rates were advanced,
for it was evident that many companies had been
doing business at rates threatening their existence
The National Board is composed Of more than one
hundred members, including all our leading Amer
ican, and nearly if not all the branches of the
foreign companies. As soon as possible, these
companies after the Chicago fire, compelled their
agents throughout the country to form local
boards, such boards being required to advance and
fix rates on manufacturing and mercantile proper
ty, churches, school houses, and in fact nearly all
property except dwellings. Such rates to be ex-
amined and approved at the proper time, by the
proper officer of the National Board, or some one
designated by it. Therefore, in Maine, we find,
that every city, large town and village has under
gone the rating of the board. Tariffs have been
made and printed by the local boards, giving the
owners name and rate fixed. Then the different
companies forming the board, and the main Office
of it, are supplied with the tariffs for the various
local boards. Consequently the officers of the
board ut N. Y, can sit in their Office and easily
learn the rate on any piece of property rated by
it. You will rarely find the remotest villages and
country trading posts, exempt from the ratings OF
the proper local board. After rates are once fixed
no agents of any company belonging to the board,
is allowed to vary from those rates, under penal
ties of losing his agency undergoing some other
penalty more severe.
Does the fire insurance business require an ad-
vance to the present rate : We have every evil
dence that it does. The commissioner of insur-
ance Of Mass. in his comments upon fire insurance
| in 1872, says: "The value of property consumed
in 1872 though less than in the previous year,
reached an enormous figure, the average for the
entire United States computed from statistics care
| fully collected week by week, exceeds Sf93 600
per day, or nearly Slso,0oo,0Oo for the year"
OF this heavy loss only about 500 900 900 can be
reckoned Is covered by available insurance, the
remaining $50, 100000 being uninsured or lost
through the failure of companies to meet their
obligations Certainly such experience is freight
ed with significant lessons, both to the insured and
to the insuring. In consideration of the enormous
hazards of the business it is wonder that under
writers should demand remunerative rates as an
equitable guaranty Of prote cotton to themselves,
as well as to theirpatrons. Butte cover the whole
ground and to avoid the necessity of being
arraigned for citing some particular period of
great calamity, we have only to refer to one ofthe
great insurance experts of the country, President
Hope of the Continental Fire of New York. We
are compelled, says he, to know that the aggre-
gate insurance business of the country, since it
became a country, has been done at a loss of from
fifty to one hundred millions Of dollars"
Is this enough, or shall we mention the great
fires that have occurred during the last three
months in the NORTH south, east and west, destroy
ing villages, large manufacturing establishments
hotels ETC. No. 1t is needless, and the task is not
a pleasant one. 1t is sckening to enumerate the
number of devastating fires, to say nothing Of the
lives that are violently and brutally TAKEN and the
daring robberies and desperate burglsries.
But to the subject in hand. 1t has been said
and by many accredited that the system of the
National Board is to prosecute and crush the
smaller and weaker companies, to support extrav-
agant officers and to abuse the property owner.
The man who watching its workings from time to
time, advocates such IDEAS speaks falsely or unn-
diligently. When we are obliged to patronize
foreign capital, to carry great amount of our in
surable interests, it looks as though we desired to
expel from the insurance field our own domestic
corporations.
The object of the National Board is not to per.
secute but to elevate, not to mpoverish but to i'm
prove not to poison but to purify. The aim Of the
board is not to jeopardize the small companies nor
any company. The aim Of the board is to make
honest companies of all the companies, TO render
the policies of all companies, large and small as
near uniform value as possible. Its aim is not to
abuse any one of its members, nor any one of its
patrons but on the contrary, to render this one of
the greatest businesses ofthc country, so important
to our security, remunerativc 10 It's managers and
all policy holders.
The object of the non-board companies, is to
thwart these plans and since)the more recent rev.
oluton in the matter ofrates have they succeeded
As soon as the more recent steps were taken in
the matter of advancing rates the board companies
said TO the non-board companies, snow if yon
in these fiery times recuperae by rates of our own
fixing, the field is open. Go ahead" They did
90 ahead and what is the result. Forty Of these
cheap or non board institutions, have gone into
bankruptcy, retired or have been declared by in
surance commissioners to be in an unsound condi-
ton since January 1873.
The small companies receive as much benefit
by joining the board as the large ones. In fact.
they derive more benefit Because the leading
companies have already srepulation, their security
is beyond question, they can get all the business
they can carry, board or no board. But the small
corporations have everything to gain, and the first
requisite 70 excellence is to become associated
with the board. 1t is the great essential to public
favor. The company which carries the brand of
this organization, although small will be picked