, 1874-08-18
INSURANCE IN nHIQAGn

Tho letter from the President OF Gu insurance
company IN Now York to tho oditor Of this paper,
published this morning. Ia OF iutorest In the con-
eideration Of tho rclatiyo duties of the City Gov
ern1nont and OF insurance companies.
INSURANCE ia o matter OF husinesa,- much 40
| US Keeping q hotel or selling dry gooaa. When
it coaHeB to e profitable, 1t will stops when it bo-
comes profitable again, It will resume, When
tne bnsiness, at on avorago ratio Of ono-half per
cont' coaaos to ba profitable, the ratos aro atl-
Val'cod, but with oach advance In rates beyond q
ceftatn point tho aggregate business doclinos
until at laas tho company underwriters no more,
Illo ouslnesa OF each city must depcnd for its
continuance on it's own profits, because no WE'LL
managed company will take risks when loas ia
cortain, for tbs moro sake OF tak1nu snch
risks. Insurance ia profitable or losing because
Of many things vol known mud understood in
tho business. Leayip, ;orto. consideration rcck-
losa insurance, oxtravagnocs in commissions to
solicitors, otc., tho princ.pn circumstance to
govern tho buHiuoHs il whether Tho roneral 1oca-
ton. matorials, construction Of buildings. arc
such as to justify the risks against tiro and
whether tho mems and appliances provided by
Tue community against fro are such TINT ell
gines water-supply, aud Fro Department will
bo likely to arrest fire when opoe under wav
aud prevent its becoming an extended corfla-
grafton. Wien these things aro wanting, then
insurance ut any rate il extra hazardous, ard
must necessarily be very Releot. Tho fact is, the
creator the projections against fire, tie lowor the
rate Of insurance and tho creator tho profit
to tho companies, because Of tho Increased
aggregate Of property insured. As 81, ,GU0. 900
insurance, at tho rate Of ono-haf per cent il moro
profitable than S10o, 600 insurance at per cent,
10 it Is to the interest of honest insurance to
havo rates at tho lowest figure coI,sistent with
ordinary safety. Whe4ever there is q defective
Fire Department. machinery, bose, wator-sup-
ply, superintondonco, or general management
"hon the executive control OF tho Fire Depart
ment Ia incompetent or irresponsible, these
things directly Affect insurance risks insurance
rates. and gcnorai confidence, and tho public
are blod severely for pauio prices for insurance.
or else havo to 60 without it because
~ tA4o httuuIAHAl or the companies.
Tho insurance companies do not build
our houses, select tho material, p,,r-
chsso tho onginos and hose, employ and off,
Ger tue trcmen, nor supply the water. They tako
these things as they find them, and they charge
rates for, insurance, or refuge insurance alto
Hether, according to the condition of these hings
Iho City Government owes 1t to tho poople to
protect thom against fro by tho employment Of
Ill tho moa1ls tint science and akill can furnish.
lMs must be done wholly independent OF all
aoa Of Insurance. Every man Las right to tho
best possible protection against fro, and such
protection should be furnished ut tho goperal
'ost. This protection this city must afford be-
lore it eau have substantial, Responsible and
insurance: aud il tho city will not
urntsh such protection, thon Chicago must do
Without insurance, aud accept all the couso-
luences Of such withdrawal Of conhdeuco and
,rrnriv