The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1892-01-08


surance," so the insurance companies
say, which statement would seem TO be
confirmed by the fact that the managers
of several companies in Boston and New
York have concluded to sell out their
business and retire from the field. Ac-
cording to the Boston Herald, the losses
of the fire companies in the United
States, during the year now closing, have
been the largest in the history of the
business, with the exception of the
years 1871 and 1872, the years when the
great fires occurred which swept Chicago
and Boston. The same authority gives
the estimated average of annual fire
losses in the United States at 500, 0O0,-
600, approximately, but this year it is be-
lieved they will run up to $125.000, 900, if
not to S19O, 10000 and this, too, in spite
of the fact that no sweeping confagra-
tions have been experienced. But the
smaller fires, and those involving losses
which have run up into the hundreds of
thousands of dollars, have been constant,
calling for indemnities which have prac-
tically consumed the incomes of the
companies, thus leaving little or nothing
with which to pay expenses, and nothing
at all to be carried over to the ledger
side of profits. The experience of fire
underwriting has been such, of late
years, that few new companies have been
organized to keep pace with the growth
of the country, and fewer still have con-
tinued in business. The older compan-
les, sustained by a surplus earned in for
mer years, have been enabled to stem
the tide, but if the ratio of lesses shall
go on increasing, the time will come
when they, too, must give up business.
The surplus of a company may withstand
the extraordinary shock of year. but
the institution cannot expect to hold out
against constant invasion of its reserve
to recuperate from the effects of severe
blows, and if this is not to be had the
end will be bankruptcy. According to
insurance experience, excessive fire
of financial depression, but no such
claim can be made against the condition
of the country during the year 1891.
Hence it is that fire insurance companies
are seriously considering the problem of
the future of their business. If the con-
ditions of this year are to be taken as
the average of future years, and the
losses are to be increased from 25 to 80
per cent. over the standard of past expec-
fancy, then it is altogether probable that
the rates of insurance are to be increased
in the same ratio. And some companies
in the West have already increased their
premiums in this proportion, or more.
What is wanted is good, substantial in
surance, and this cannot be obtained be-
low the actual cost. With the great
rivalry there has been, and which there
is likely to be, in this branch of bust
ness, there is no reason to expect that
the rates can be maintained at exorbitant
figures. We are only speaking in gen.
eral way of the fire insurance problem as
it relates to the whole country, and not
at all of communities. 1t may be true,
and doubtless is, that some towns are
paying all that they should for their in
demnity and perhaps more. So far as
st. Adams is concerned, with it's excel
lent water protection and better super
vision entered upon, it would seem that
the present rates of insurance are suffic-
iently high. Large sums of money have
gone out from the town for years to pro-
vide for the losses which occurred in
November and it may be years before
such a disaster may occur again, and
perhaps never. But that insurance rates.
generally, are to be raised, seems to be
in accordance with the logic of events
ST. Adams Messenger.