The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-09-16

Thlbnt Tue 4AOhNANG NEho sdkEpoeS1 VIA
the law requiring an insurance company
doing business in this state to deposit with
the state S25, 900 be repealed so as to open
insurance business TO competition. The
MORNING NEws took the ground that the
insurance rates in this city we're as high as
they ought to be, and that it would be IN
just to the business men and property
holders OF the city to raise them.
The Standard, an insurance newspaper
published in Boston, comments on the
MORNING NEWS article as follows: "Tbe
Savannah News is advocating ythe repeal
Of the deposit law which it believes will at
once cause such competition among com
panies expected to rush In that rates will be
quickly reduced. There are about fifty-two
companies doing business in Georgia at this
! time and only few Of the leading agency
companies are not represented. We venture
to say that the repeal Of the law would
make no difference in the state OF affatrs ex-
! cept, perhaps, to bring in few more small
competitors. which, in all probability,
! would adopt the present rates as being the
only sensible figures to write at Under
writers would welcome the repeal
| of this law. however, and the
legislature of Georgia need not hesi-
tate on that account. What would be more
interesting at this time is for the Savannah
paper to explain why 1t is that the COM
panies do not make money In Georgia even
at the present figures charged and when, as
they seem to intimate, competition is being
stiHed. The same criticize seems to voice the
belief that irresponsible agents are among
the prime causes of the losses. This is I'M
doubtedly true, and the further suggestion
that the honest man is made TO pay the
losses Of the dishonest one is equally vera
cious, yet this sage adviser does not offer
any remedy. II they would only show
companies how to avoid both the dishonest
agent and the rascally assured, then their
advice would be valuable. AS 1t is, the
great unsolved problem underwriters have
had for half century has been how to dis
cover and discriminate with the moral
hazard. Our laws do not help the COM
panies, and II VIGOROUSLY dirty loss oc-
ours either in Savannah or elsewhere the
NEWS is never found exposing it. 1t may
not be its business, but it might help things
II it exercised itself In that direction the
next time a loss CT this character occurs"
There are several points in the foregoing
article THAT deserve to be noticed. Ono is
that the.insurance companies would welcome
the repeal of the deposit law. They have
never shown any anxiety to have it repealed
If we are not mistaken they have always OPP
posed its repeal. On what authority does
the Standard assert that they would well
come Its repeall The assertion seems to be
made without any knowledge with regard
to the matter. An effort will be made, in all
probability, to have II repealed at the ses-
sion Of the legislature that will convene in
November, and then we shall see whether
or not the Standard is right in asserting
that the insurance companies want it re-
pealed.
The Standard admits that there are ire
sponsible insurance agents, and that they
are among the prime causes OF the losses. II
thinks 1t strange that the MORNING NEWS
offers no remedy for the employment of
such agents. The Standards position ia
remarkable one. 1t virtually admits that
| one OF the principal causes of losses is the
negligence Of insurance companies in plac-
ing their business In the hands of
| - ANSSSASAOAS oboAAhst huu LQbb GQ6
companies want the business commu-
nifty to pay them higher rates
to make good such losses. If an insurance
company can't get responsible agents it
ought to go out Of business But, as a
matter OF fact, the agents are not wholly to
blame. The companies are we'll informed,
| or ought to be, with respect to every risk
they take, and it is pretty safe to say that
they do not insist upon the degree Of care
that is essential to q safe business. Does it
not often happen that an agent writes a
policy on stock of goods for $4,000 when
ne Is morally certain that it is not worth
that amount ? Does the agent make a
thorough examination of the stock If he
does not tell his company the exact condi-
ton OF affairs it is probably because he be-
heves the company wouldn't thank him for
doing SO. The aim Of both the agent and
the company is to get as much business as
possible, and hence they sometimes take
chances that they should not.
But a company soon finds out whether or
not an agent is irresponsible or not. A few
suspicious fires reveal that fact. Does the
company take its business from him if he
turns In large amount Of busnessa 1t is
pretty safe to say it does not. 1t continues
to accept the risks he sends it.
Yes, there are ''rascally assured :" as the
Standard calls them, but it ia not the place
Of the MORNING News or other newspapers
to say, when there is q suspicious fire. that
the person whose building or stock has
been destroyed is rascal. The insurance
companies that wrote the policies on the de-
stroyed property should say that if there are
ample reasons for saying 1t. The MORNING
News is quick to publish anything that
shows dishonesty or oriminality in oonnec-
ton with a fire. The insurance COM
panies, however. appear to be exceedingly
slow In following up suspicious clews.
They seem to think that if they raise a cues
ton as to whether fire was of incendiary
origin they will lose business The sueges-
ton which the Standard makes that the
MORNING NEWS publish suspicious relative
to the origins of fires and make charges
against suspected persons while the insur-
ance companies do nothing to protect their
own interests is simply childish. 1t is the
-