The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1892-02-13
TOO WARM.
Fire Insurance Companies Going
Out of Business.
Fro Lossea During the Year 1891 We're
Twenty Million Dollars Greater Than
In 1S0O-Grand Total of 100000
900 i'm tho United states.

COLUMBUS, Feb 5.-Insurance Com
missioner Kinder states that estimates
made by authorities on the subject are
that the total losses by fire during the
gear 1901 were 800, 900, 900 greater than
in 1890 The total loss in 1890 was $780,
900, 600, making the total last year reach
thc enormous sum of Sl40, 900, 900 in the
United States.
IL is not surprising, therefore, to be
told by Commissioner Kinder that sew
en- fire companies organized in this
state went out of business during the
year by reinsuring their risks with
other companies, The companies were
these. The Farmers, Amazon, Aurora
Fire and Marine and the Enterprise
Nire and Marine, of Cincinnati; the
Franklin, Of Columbus; the Fircmen's,
of Dayton. and the Mercantile. of Cleve-
land. And no new companies were
formed during the year
''Thcrc is" said Mr. Kinder mo iu-
centive to capitalists to form new COM
panies The chances of profit are too
few and the chances of loss too numer-
ous Last year was an exceptionally
hard one on the fire companies, but
there is no accounting for it. 1t is the
history of fire insurance business that
every once in while there will be a
disastrous year, and there will be no
accounting for it,"
Is there fault to he found with our
fire lepartmcnts?'
No" was the RESPONSE; "the losses
have been distributed all over the
country 1t has just happened that an
unusually8large number of large fires
occurred. 1t was Il mere matter OF
chance"
MIR. Kinder was asked If the deduc-
Gion of $50, coo, 600 would not about wipe
out all the profits of fire insurance bus
mess. lie replied that he did not think
that there would be net loss, taking
the aggregate OF the premiums paid
and balancing them against the aggre.
gate of the losses
Very few people" said he, "have
any idea of the magnitude of the fire
insurance business You may form
some conception of it when you know
the amount of taxes that are collected
from them in this state. Under our
laws the agent of each company re-
ports to the auditor of the county in
which he does business the total
amount received as premiums upon
policies issued on property within the
county and he pays to the county treas
ury two and onc-half per cent of the
gross amount of such premiums Now
during last year, there wa:
paid into the county treasury as such
tax the sum of $500, 900. Then, if the
amount so paid to the county treasur
les does not aggregate two and one
half per cent. of the total amount o
business done in the state, as shown by
the reports, assess each company ;
sum sufficient to make up the deficiency
and place that in the state treasury
I put into the state treasury in tina
way last year about S25 900 Now, yo'
can figure out in n minute what the to
tai amount of money paid in as pre-
miums yearly amounts to, taking $325,
900 at two and one-half per cent of it
THE troubles of fire insurance com
panies have been brought on by them
selves by continued reduction of th
premiums. When ] was doing loca
business used to get $l50 premium
for the same risk that companies nov
take for sixty cents. 1t is competition
that has done the thing. Competition
is often said to be the life of trade, AM
so it may be to some kinds Of trade.
has been almost the death of the fir
insurance companies, however