Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1891-01-03
FIRE INSURANCE PROFITS.
Like snakes In Ireland. There Are None
Now, But They Used To BE Large.
Hartford poef

like snakes In Ireland, There Are None
Now. But They Used to BE Large.
Hartford Post.
We have il on the authority of a
Hartford expert that there is to-day not
single hre Insurance company In the
country earning any money out OF its
business. This is rather an aStoniSh-
ing assertion, but the assertion is made
that il is based on facts. II il were not
for the surplus. consisting OF invested
funds, there Is not company in Amer
lea that could probably pay its stock
holders dollar to-day.
Ten years ago 10 was considered per
iectly legitimate 10 make a profit OF
from p TO 80 per cent. on the whole
business. To-day the most successful
companies are doing business on 10 TO
l2 per cent, and taking into account
the contingencies none is making
money.
Since ISIS, POO Insurance companies
have failed. gone out Of business or re-
insured their risks ia other compaR les.
This is an appalling record for only
twelve years. To be sure, some OF these
were honorable retirements from a bust
ness in which they saw no money, and
the several companies paid back hand
Somely; but many were bad failures.
Nor were they petty corporations
either.
The fact of the matter is, the DAY for
large profits 10 the Insurance business
has gone by. Competition is so great
that existing companies must content
themselves with very small margin Of
profit The present state OF affairs is
that tae profits being made ara not large
enough, considering the contingencies
OF the business. 10 add 10 the surplus.
Last year every company doing business
on the Pacific Coast lost money through
the five unprecedented CONGREGATIONS
that occurred there.
Hartford has vital interest IN the
outlook. Mauifestly these great losses
cannot be prevented, and apparently
the contingency can be met only by cut
ting down expenses. IL IS fact worth
noting that the difference in the ex-
penSe account Of some Of our big Hart
ford companies and certain Of their
New York rivals amounts 70 a very
handsome sum yearly.
OF course all this competition inures
10 the pecuniary advantage, within GER
tain limits. 10 the insured, giving him
much more favorable terms than were
conceded when insurance was young;
but. in the present article, the matter is
viewed from the standpoint Of the in
surauce and not Of the insured.
What has been said Of insurance is
also true OF nearly every other legiti-
mate undertaking. Old established
mercantile houses that did business OF
81, 900, 900 a year ten years ago now lind
they have TO do double that TO make
like amount Of money.
The same is true OF every kind OF Oc-
cupatiOn outside the realm Of Specula-
ton. Four or per cent. must satisfy
investors, who decade ago thought
nothing short OF per cent. worth hav-
ing. Even Western farm mortgages,
except in the far West, have felt this
leveling influence, and the 10 per cent.
loans OF yesterday are being rapidly re
placed to-day by those Of q per cent.
Much as investors may regret IL, rates
In this country are coming down TO the
English basis with its paltry and per
cent, and there seems to be no help for
il.