The Greenville times. [volume] (Greenville, Miss.) 1868-1917, 1888-02-25

Ahe impression mas Deen created
that by reason of the small number of
companies doing business in NIississip-
pi, combination has been formed and
oppressive rates charged. 1t is true
the representatives of companies have
an organization for regulating rates,
reducing expenses, and also for reduc-
ing the fire loss by suggesting inn
proycments to property-holders and
to the authorities of cities and towns.
Organization is necessary for the
protection of the public, as that alone
insures the safety of the company.
Companies should make a profit in
years of ordinary losses and add to
their surplus fund so as to be able to
meet extraordinary losses. Many COM
panies paid in the Chicago fire more
than their entire capital, while seventy
companies without a sufficient reserve
were wrecked. When you purchase
bankrupt stocks at a reduced price
you know what you get, but would
you pay your money TO a bankrupt
for goods to be delivered year in the
future? When you pay premium in
advance you must risk the company
for future indemnity in case of loss.
Reckless competition in fire insurance
is against public policy, as it increases
the fire loss and decreases the ability
of companies to pay. Organization is
not confined to this State. 1t exists
over the whole Northwest.
The Southeastern Tariff Association,
more thorough and systematic or
ganization, covers Virginia, tine Caro-
linas, Georgia, Florida and Alabama.
Rates are made and rigidly enforced,
and are made on the same basis for
congresses, cotton warehouses, brick
or frame stores and stocks, manufac-
turing establishments, as the rates in
this State. This is done in the face Of
the fact that larger proportion of in
sured property burns in this State than
in any of those mentioned, with the ex-
ception of Florida. A cotton ware
house and contents in Mississippi Is
rated the same as one in Georgia or
Alabama similarly constructed and
protected, and no more.
Cotton rates in Texas are the same
as in this and the States named, but
mercantile risks are much higher and
the organization TO maintain rates is
superior to that in this State, although
forty eight companies do business
there. The reason more companies do
not come into this State is because of
The small business and the absence of
large cities. Georgia has a deposit
law, and has forty-four companies.
Alabama has no such law and has only
thirty-nine. | submit the following
comparison of receipts in Georgia,
Mississippi and Texas:
a companies In Georgia receive, al. an. .lh5
" companies In Texas receive 2,256, $50
ID companies In Mississippi receive. ~, 800
Average for each company in Georgia. 52,e62
Average for each company in Texas. 3s.I3
Average for each company In Miss. 32;is7
When II is remembered that over
100000 of the receipts in Mississippi
come from ginhouses, on which very
few companies write, and ON which
none make money, it viii be seen why
SO few companies are here. With
their millions of surplus seeking safe
investments at a low rate of interest,
nothing but prospect for reasonable
profit is necessary TO induce others to
enter the fields. Is not deposit in
the treasury as safe as railroad stocks
or bonds Since the enactment of the
deposit law, no citizen has lost by any
company having deposit, notwith-
standing some have failed and retired
from business.
There are only seven points in the
State where all the companies now
licensed are represented. They could !
go into the other sixty-seven counties
without the payment of any additional
tax and would do so if a profit was
probable. In thirty three counties
there is not single agency, the busi-
ness not justifying it.
The largest single risk in the State,
Wesson Mills, can procure all the in
surance wanted with reduction of
rate each year on account of improve
ments made at the suggestion of the
insurance combination.
Natchez has as low rates as any city
or town in Georgia, ALBANIA or the
Calolinas, possessing only equal facil-
tiles for extinguishing fires, while
Yazoo City has much lower rate on
cotton than Natchez, because of better
arranged warehouses. The difficulty
of obtaining sufficient insurance on
cotton has not been confined to this
State, but since the large cotton fires in
Memphis and other points have suf-
fered in the same way, and much cot
ton has been without insurance.
Some cities have contracted for
waterworks, which will, when in sue
cessful operation, materially reduce
rates. Companies have sustained heavy
losses at Greenville, much more than
their receipts, but even that would not
be reckoned against them in the read
iustment of rates if proper facilities for
and extinguishing fires are
secured.
In conclusion. | assert that rates are
not higher by reason Of the deposit
law and are less in proportion to losses
than the average in the
United States by per cent. Rates
have been advanced over the country
generally in order to meet the in
creased losses.
There is no more monopoly of
the business here than elsewhere. The
privileges exercised by the companies
in the State are free to all good com
panies. Only those unable to guaran-
tee indemnity are necessarily excluded.