The times. [volume] (Richmond, Va.) 1890-1903, 1893-08-08
..u =. the importance Of checking

u,.u a. the importance Of checking
~. enormous waste by fire, that grows
| more and more each year. Inc IN
| surance companies are merely the me-
! dtu,os through which those who suuer
/ no loss by nre help those VINO 90. Inc
| s,ockholders In these companies have
| furnished a certain capital 10 guarantee
| the faithful performance or the trust
| thus assumed, and this capltal IL en-
| titled to such a return as should pay lor
| the risk assumed, which, owing TO the
| uncertain character OF the business,
| should be larger than that paid by banks,
hut the contrary seems to be the case.
| Az the amount earned by the companies
| ON the capital and assets held by them
for last year was less than one-half or
| / per cent, we find that this proht has
| been getting smaller each year. In the
I've years from 1860 to 1865 the losses
and expenses OF the companies aggre-
gated 81 per cent. OF the premium re-
ceipts, while In 1892 they consumed 1913
per cent. From 1850 TO 1892 there has
been a constant increase in losses. We note
that our own fair State has contributed
her share. as In 1892 the premiums paid
we're Sl,7S7. ISL. while the losses were
81. 400, O29, or 1873 per cent. Of the pre-
miums. To this add the average ex-
pense OF conducting the business OF 36.0o
per cent, and 1t does not take long to
calculate that the insurance companies
did not take much money out Of Virginia.
The records for 1893 are still worse. We
find that the month Of June consumed
Sl6,0O0,000 of good money, and that the
first six months OF this year contributed
over ssG.0oo.000. The same period Of
1891 was $4,000. 900. and 1892 $4,000, coo.
so that 1893 exceeds 1892 by s21.OO0,O0O.
With such a record as this 1t must be
seen that capital will not continue TO
risk itself in a business that not only
pays no interest. but is liable at any
time to be entirely consumed.
At one time Richmond had twelve or
fourteen companies with cash capitals
of from 100000 10 $4,000 each-the
Virginia Home Old Dominion, Fire AS
ISOLATION, Merchants and Mechanics,
Granite, City Fire, Commercial and
others, all Of which became impaired
and retired with loss to their stockhold-
ers-while in other cities Of the state
and other States the same record is true,
at least $50 companies in the last two
years having failed and retired from the
business. 1t would seem. therefore, that
efforts should be made to decrease the
fire loss, while at the same time 1t Is
necessary TO Collect HOft VI
the insurance companies must give up the
fight, and the public be left without that
protection, without which business could
not be carried on at all The PROPOSE
ton of the companies 90 the public is
simply this: Help us to reduce the fire
loss by making such improvements in
your property as will either prevent the
fire, or If IL occurs. Will enable you TO
extinguish IL without n total loss; or,
in case you cannot or will not make the
improvements, we shall have TO charge
for such defects and DEFICIENCIES as our
experience proves has cost us and you
so much money in the past. In many
instances the improvements. II made,
will reduce the cost Of insurance below
the rate that has been charged in the
past, and the property put In a condi-
ton that makes a fire less probable.
There Is. or should be, no antago-
nism between the insurance companies
and the public. They should unite in
fighting a common foe; their interests
are identical; they should realize this
and work together: each is dependent
on the other. j. Il. MOORE.