Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-02-09
INSURANCE.
BtEi OF Egr. Williams, of the kentucky
Legislature. Regulating Tariffs
Facts Against Ii.


From the Louisville Courier-Jeurnal.l
LOUISVILLE. February 2, lS74.-In your issue
OF the twenty ultino there appeared
the following item IN your Franklin letter,
viz:
leave 70 bring in bill 10 prohibit fire 1nsur-
ance companies from combining 10 increase
the rates charged for fire risks. In some sec
tiOns, particularly in Louisville, there are
"Unions of fire-companies, called boards
of underwriters which fix the rates with
Thrifty view 10 their own compensation; un-
fortunately the other party IN luterest-Jhe
Observation-Disclosures no voice and no chance
TO be heard against such arbitrary execuons.
These " boards" are composed of nearly all
the companies, and hence the victim must
respond 10 their demands or brave the per1ls
and ravages of fire. 1 hope General Williams
viii promptly press his Dlll 10 Vole, as II is
a remedial measure of great Importance TO the
T6e public hss not been favored with the
provisions Of bill by which IL is proposed 70
regulate the price OF the commercial COM
modify known as insurance, and II Is not
easy TO conjecture how the unsuccessful eX-
agent Of the "Life Association of America"
contemplates reaching the end at which he
aims The absurdily OF the proposal, how
ever, wilt suggest itself to any man VINO mas
given any consideration to this impOrta Mt
subject, aud it will be gratifying to read the
wise provisions by which II is INTENDED 10
prescribe AT what prices the owners OF more
than one hundred million dollars OF 1nsur-
ance stocks shall be compelled TO sell their
merchandise.
IL asfIl O De ulLlG-A4b lhAttA " BAtoNAlDg n
legal guide by which companies should De
governed in their charges on fire risks, and
Tor the reason that in the range OF nre lnSur-
ance acceptances there are many hundreus OF
elements ofdanger arising from q great variety
OF causes, and varying the premium rate un-
der an equitable tarih IN proportion as Ihe
risk may warrant And it win be no less dif-
ficult than il is absurd and inexpedient and
unjust 10 attempt 10 provide by legaI enact
mcnt that insurance companieS-no mater
whether they be ire, or cargo, OF huIl or % aScl-
dent. or life-shal, not be guided Dy q taTlu OF
rates which is framed from The result OF their
experience; ank NJ matter whether the en-,
forcement of such tariff be through local
boards or whether il be without local boards.
50 far as concerns the application OF such a
tariff 30 Kentucky. IL may not be amlss 70
state that the same D2sis-rate IN iorce IN tnls
state isin force also in the states OF missouri, !,
kansas aud Nebraska, and for the reason Jnat
the combined experience OF All tne IesPonsl- Plas
bic couup4uies doing business in those states
has shown hat in each OF them Inc result
OF business IS acOut the same.
In Indiana and Ohio experience has been
more favorable, and this is no doubt Que
chiefly TO better constructed towns and better
water-suppy- ana better fire deaartments,
and the premium rate Is consequently Iess,
aud rightly less And i IL be asked why nre-
risk is worth ninety cents IN kentucky, ana
only eighty cents in Ohio or Indiana, the au-
syyer is IoUnd in the result OF business IN the
respective state. Ard II you VIII examine
the fire tariff II force in other districts or
STATES, you will ind everywhere the same
equitable principle acted oH, and eVeryWhere
the controlling reason TO experience.
This ascertallment Of the result OF business
running through long series OF years, and
The formation OF tariffs OF rates based ON that
result, has been essential 10 the preservation
OF American ere iusui ance companies, and IL
IS necessary to the protection OF both the
stCckhJlder and the pOliCy-holder. And il is
furthermore a fact that there is not a respon-
slbie Lre insurance company IN TINS country
which IS not controlled Dy these tariffs.
Although there be a number OF small con-
Germs which aver that 1t is nothing to them if
former Inadequate rates have caused to be
shaken 10 their very foundations Eucl great
institutions as the ftna, the Home of New
Yors the Hartford, and others, and compelled
repeated assessments TO keep these proud old
companies on firm footing, while made
ouate rates have rendered insolvent more
fhau q hundred others.
n is a TACT that the results OF FIRE businef
Indicate as certainly the cost ofvarious classes
of IRE risks as the mortality experience o.
life conn anies indicates the cost OF life risks
and fbe bremium rates Of the former may be
almost as accurately adjusted upon the basil
~ ascertained cost as in the case OF the Litter
and m is equally true thaL the company whici
1t-C - - - III IL oIlided bv the light OF past ex
S,sTfance can not offer reliable indemnify Il
~ VV5I1ianns may have learned sGfhcient o
lite Insurance, while agent OF the Lie asso
ciation OF Anne lea, TO appreciate tne neces
sty of that branch OF insurance cohioiill
strictly to a uniform term OF raies mace II
accorGauce with mortality experience. AM
he is no doubt aware that few months az
an insurance warfare, most acflluonlous-i ~ A.
character, arose frOm the proposu % ", "a
Mutual life Insurance company OF New Iorl
10 reduce its premiuul-rate twenty per cent ~,
because its Individual experience usllneu "
opinion that il could do so with safety. ID
may be also aware that the Mutual lie re
ceded from its position in deierenee to tn
unanimous adverse judgment OF other com
panies and Of leading men OF the profession
and under pressure, too, from It's own policy
holders.
This uniform life tariff is graduated 10 sui
the risk according TO age and occupation
and so the fire tariff is varied 10 suit th
hazard; whether it be OF occupancy, con
stfuction or exposure. IL an applicant OBJ
1ects To the price IN either case II IS his op
lion 20 decline the protectiou, bat ii canno
be made his ght @ re guiste the price a
which the company shall sci its p0 icies. Tn
bill which your correspondent hopes ma