Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-02-27


number of earnest workers in the cause
The activity and success Of temperance
men and women in other States are en-
couraging to efforts here.
The report that the letter of Theirs in
which he stated that republic is the only
government possible for France was re-
ceiyed with enthusiastic cheers by the AS
sembly, indicates that Bourbon ideas are
not vet in the ascendant among the Freneh
people.
STATE AND MUNICIPAL INSURANCE.
The Insurance Commissioner OF Massa-
chusetts having been directed by the leg
islature of 1873 of that State to investigate
the subject of the feasibility of any system
of State or municipal insurance, and the
necessity of any change in the existing
system, has just submitted his report to
the present legislature. The matter Of
his report is interesting to citizens OF
other States, and especially to those in
Maine, where the subjects which it dis
cusses have been agitated considerably.
1t appears that Mr.. Clarke has conducted
his investigations diligently, seeking the
opinions of those whose acquaintance
with insurance business is valuable, and
drawing from the information thus OBJ
tanned the conclusions at which he has
arrived.
He believes that in point of economy
the business of insurance can be better
managed under individual or corporate
management than by the government,
either State OF town. He says it is urged
by those most competent to judge, that
the sharp competition of fire underwriters
in this country has already reduced the
cost of insurance TO the lowest possible
point consistent with the soundness of COM
panies and the safety Of policy holders.
To be sure, the premium rates have been
recently advanced, but it is still claimed
by those who ought to know best, that the
. advance is not in proportion to the in
creased hazard of risks and the frequency
of sweeping CONGREGATIONS. The synop-
sis of his report in the Boston Journal
adds
The fire insurance statistics of the best man
aged and most successful companies in the
country, during the last ten or twelve years,
show conclusively that their premium receipts
after deducting their necessary business ex-
penses, have but little more than sufficed to
cover their actual losses for that period.
Hence they have been obliged to rely mainly
for their net earnings and accumulations upon
judicious investments aud thrifty handling Of
their capital. He thus concludes that it is
fair to assume that insurance capital would be
comparatively unproductive in the hands of
the State or municipality, yielding but little
addition to its premium receipts, and nothing
to its general revenue Gas at presently in the
shape of taxes. Hence it is difficult to see
how FIRE insurance by the government could
possibly be made cheaper to the property
owner than under the present System; but the
chances are that it would be much dearer,
provided the system is to be self sustaining in
the hands of the Government.
If, however, fire insurance is to be dis
pensed by the State as gratuity, without re-
gard to cost; if the public treasury is 10 be
converted into charity fund, for making
good every loss from fire sustained by its cit
liens, then it is a proposition which only
needs to be submitted to the taxpayers of
Massachusetts,, in their elective capacity, in
order to be overw hclmingly rejected. Let it
be once fairly understood that the State guar
antees payment of all losses by fire and it re-
quires no stretch of Imagination to apprehend
that unde. the Unprecedented temptation thus
created, the torch of the incendiary would be
kindled with holder defiance in every hamlet
and city throughout the length and breadth Of
the Commonwealth.
Besides these reasons lie urges that sys-
tenn of State or municipal insurance is con-
trary to the spirit of our government and in
situations, which is to give the largest posi-
BILE stimulus to individual enterprise. The
proper system of a republic he urges ia to
do for the people only what they cannot con-
veniently do for themselves, collectively or
individually. The recognized principle is,
that while the government may regulate trade
and commerce for the benefit of all concerned
it may not engage in these branches of bust
ness on its own account. Even the postal
telegraph in Europe, under conditions far
more favorable to success than exist in this
country, has turned out to be practical fail
ure 30 far as economy is concerned. While
it is operated at an actual loss by the British
and most of the Continental governments,
the cost of messages 10, on the average, con-
siderably greater than in the United Safes.
Mr.. Clarke further urges that the inevita.
BILE tendency of governmental interference
with business matters in the way proposed
tends to the popular degradation and poverty
90 common in monarchial despotisms. If it
10 expedient that the Government should fur.
nish Insurance against loss by fire to proper
ty-holders at prime cost, pn'ting up all its
taxable resources as capital To blck the I'M
dertaking, why, he asks, may it not, with the
same propriety, furnish the people at large
with life insurance, bank accomod ltions,
freight and passenger transportation, .atels,
warehouses, tenements, clothing. fuel, gro
ceries, provisions, breadstuf and ali .ac nee.
essaries of life at cost? Why may not the
State, with equal propriety and justice, be
called upon by their creditors to guaranty the
solvency Of its banking, manufacturing and
railroad corporations, and. in fact, TO indorse
the outstanding paper of every mercantile
firm doing business within its limits, whose
cash capital is liable TO be impaired by unfore-
seen commercial or financial emergencies!
He finds another objection to the system
in the centralizing Of power in the govern
ment, which must be one of its results, and in
the unftness of partisan officials for the bust.
ness of insurance. The Insurance depart.
ment Of the State would degenerate into a