Smyrna times. [volume] (Smyrna, Del.) 1854-1987, 1880-02-18

FIRE INSURANCE SEcUMrY.-The qucs-
ton of insurance is one that does or
ought to interest every property holder.
But few people can afford to run the risks
of casualties Icy this destructive element,
and the question is not whether it shall be
done, but how to do it the most econom-
ically and at the same time safely. The
competition between the various companies
has been close. There is'a point below
which, however, they cannot descend
without danger to the insured as well as
themselves. They are now discussing
that question which causes the Philadcl-
phia Inquirer to say:
"Thc fire underwriters Of New York
are making an effort to secure from the
entire body Of their associates through
| out the country a uniform schedule of
rates, and, as this combination is as likely
to benefit the public as much rs the com
panies, it is to be hoped that the effort
will be successful. Chcapness in fire in
surance, unless it can be accompanied by
| absolute security, is a mere secondary
matter. If insurance does not assure it
is of the least consequence that it is mex
| pensiye, and it affords no comfort what
ever to a man whose property is i'll ruins,
and who holds policies in companies that
his loss have reduced to insolvency, to re-
fleet that his premiums were light. Every
man who holds policy should be able to
feel that it is equivalent to its face value
in case the property which it covers
should be swept away by the flames the
one essential element in insurance being
its assured solvency.
But insurance cannot always be as
surance if the late and present system of
competitive cutting-under of rates and
the exhaustive practice Of high commits.
sions is to be continued. The companies
have maintained such an eager rivalry in
order to get or keep customers that rates
were never lower, nor commissions higher.
The last report of the New York Insur-
ance Superintendent shows that the year
1879 was not good one for the com
panies, and that, while their profits were
largely diminished and their dividends
decreased, their expense account was i'll
creased. This is the result of excessive
competition, which, in accepting low rates
and paying high commissions upon them
leave the companies without the abund-
ancc of earnings which is necessary as
surplus, and which should always be kept
in hand to meet an emergency like the
sweeping CONGREGATIONS of Chicago Of
Boston. A company that scarcely pays 3
fair dividend, or that pays even gener.
GUS one, and no more, is scarcely safe
one to trust in, for it should, apart from
earning dividends, earn a reserve funG
: against the occurrence of extraordinary
losses. Every man who pays a premium
for insurance should not only believe, bu
should have the absolute knowledge thai
he has paid it for thing of unquestion
, able value
: Competition is an excellent thing fol
. the public generally, but not always so
, 1t is not good thing if carried to til,
extent that the fire underwriters hay,
carried it to during the last few years
A very large number Of companies hav,
e been forced to succumb before it, many col
s lapsing before large losses, and other
q quietly retiring after paying. all obliga
: tons. 1t is true that while some of tn
j suspended and retired companies did
e large business the greater number o
# them were small concerns, doing a smaI
5, business but SO long as their capital wa
g in proportion to the number of risks the,
assumed they were as safe and useful a
o their larger rivals, for it is most desiraSl
p that there shall be more companies, as til
re more numerous they are the more will tn
10 risks be divided and scattered. TIL
J whole tendency of the recent suicidi
- system of excessive competition has bee
oi to drive the smaller companies out {
ly business, to limit the number of tn