St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1892-04-28
ADVANCE INRATES OF FIRE INSUI..
ANCE.

In view of possible advance in
rates of fire Insurance, it seems to US
that every one should be in posses
sion of the facts which have given
rise to this necessity The fire loss for
jan se1 1871 s2a ss las5soss
Feb. s,eie,ooo 11,aas,ooo 2,71e,ooo
$1,000, 900 s24,ao2, 900 se,512,ooo
Total fire loss U. S.
s1oe, 99s,s45 s1s7.719,15o
1t will be seen that the fire loss for
1891 was more than $50, 100000 in ex-
cess of that for 1890. AS the direct re-
suit of the experience of 1891
81 stock companies reinsured,
Stock Cos failed 1881, 253.oo
5 Mutual " retired g 719, 011.O0
10 - g reinsured 5000, $500
21 g failed LIZ, $4,000
80 Totals, $2o,1s4, e3s. 90
In other words, fiery 1891 took more
out of the market.
To contract the field to New England
we present to you statistics covering a
period of twelve years:
Premiums Losses ratio
Mass, 67.4oe,5se 4s,5oo.e74 SIS
N. H, 1855, 79s 3,557,160 473
Vermont. 4,575,s7e a,2s6,2os us
A conservative ratio for expense, taxes,
etc, is 331s per cent. of the premiums.
Take the record of Vermont for twelve
years.
k kssS a ss5i Expense ratio. 5 5s:s
1852
1t shows that during that period the
various companies, except State Mutuals,
have paid into the state of Vermont
$1O5.2O for every 500 they have
ceived.
The record in Vermont for 1891, is:
Domestic Companies Premiums.
1921, $4,000 Losses, 1881, $500
Foreign Companies Premiums,
$159,6s2.Oo Losses, 173,727.oo
Totals, S4s1. 521.oo s525, os4.oo
Add 1919 per cent. of premiums
for Expenses, Taxes, ETC.. 16o,5o7 90
$685. ,5e1 90
In other words the companies paid in
to Vermont SLAP. 80 for every 500 re-
ceived. Neither Vermont, nor New Eng
land is unique in the matter offire record,
but every portion of the country has
contributed to these disastrous results.
A problem is presented both to the
underwater and his patron. How can
we furnish sound indemnity? Where can
we get sound indemnity? 1t is the opi1l-
ion of the sound underwater that rates
of insurance must be advanced to such
| figure that the years business will yield
a profit, so as to preserve the integrity
of their surplus. 1t is the opinion of the
bogus mutual, and the wildcat stock
promoter that it only demands the for
| nation of a few more worthless COM
| panieS. There are numerous Instances
now where the assured cannot get all
the legitimate insurance he requires, and
is specializing on cheap insurance.
The Northwestern Union, the South
| Eastern Tariff Association and the New
England Exchange have been forced, by
| the stern logic of events, to advance
rates in their respective territories. Va
rious cities, through their local organiza-
tions, have advanced rates materially
Boston, 10 per cent. and IS per cent
Cincinnati, 20 per cent. and IS per cent.
Chicago, 10 per cent. and 20 per cent.
St. Louis, % per cent; Kansas City,
| TN per cent.
In brief an advance is necessary all
along the line to avert bankruptcy. After
mature elaboration by all the compan-
les doing business in Vermont, it has
seemed Just to themselves and fair to
their patrons to require an advance OF
10 per cent. upon all risks under protec
ton of fire department, and 25 per cent
on risks not under fire department pro
lection, with certain exceptions pending
a reformation in rates. This will seem g
great hardship to many, but we submit
that the price of sound indemnity is reg
ulated in the same manner as the price o
any commodity, the memorable relation
of profit and loss.
THE PEOPLES ENCYCLOPEDIA.