Omaha daily bee., 1894-03-04
WHAT THE TABLE SHOWS.

iiOii lltSe uBuleS IL VIII De seen IudJ
most of the companies came out even, many
OF them being little ahead. The Sun Fire
once OF London got it pretty hard its
losses being almost double the amount of
its premiums 1t is hardly probable that the
managers in London attribute this state of
affairs wholly to the low rate charged, for
the losses amount to a little more than 20
per cent on the total risks written, or $500
per 500, rate that is very seldom thought
OF in connection with an acceptable risk.
The st. Paul Fire and Marine almost
quadrupled its business in 1898, and its
losses increased from $lS1 to $6,99S. But
It's premiums had increased from S3,T26 to
$l2,3O6. This still leaves it $530S to the
good from which to pay it's agents, though
when the company contrasts it's net profits
of $1,203 in 1898 against $2,3G4 cleared in
1892 one-fourth OF the business in Ne
braska it very likely thinks that rates are
too low. To add the profits of the two
years together and be content with saying
its average net profits from Nebraska bus
ness is $1,7S3 never occurred to its man
ayers.
In the case of the Phoenix of Hartford the
figures appear quite different. This com
pany let some Nebraska business go in 1893,
collected $4,000 less in premiums, paid $4,000
more in losses, and yet found itself with
$21,53 to carry to the profit side of the
ledger gained in Nebraska during bad
year at "low rates" It's neghbor COM
pany, the Hartford of Hartford, found mat
ters different. 1t also let some Nebraska
business go. 1t collected about 81 100 less
in premiums and paid nearly $13 900 more in
losses, it's profits dwindling from $39 304 in
1892 to $25, ,S39 in 1893 Deduct 80 1-3 per
cent from these figures for expenses, and 1t
must be admitted the remainder will show a
fairly satisfactory condition of affairs.
There is a most decided contrast in the
perence of the companies whose reports
for the two years are placed side by side in
the table. 1t will well repay careful pc
rusal and a few moments spent with pencil
and tablet may convince you that the valued
policy law and the low rates are not what is
at the bottom of the insurance companies
trouble in Nebraska.
ILLINOIS AND CHICAGO BUSINESS.
One hundred and forty-two insurance COM
panies did business in the state of Illinois in
1898. Their reports now on file with the
insurance commissioner of the state show
the following:
Premiums collected in 1S9s.......' $l2 5Gz 23S 23S
Losses incurred in 1898. I1I47O
Excess of premiums ms..................s4,7 789, 1872
Per cent of premiums collected returned in
Cost Of Collection testimated) per cent SS SO
Net profit to the companies ................. AIS
This small prohc Of lbs per con- net in a
business of 12507, ,232 is not satisfactory to
the companies. They have ordered a raise
in rates in Chicago of 20 per cent. Just how
this will pan out is not yet determined.
There is a great protest against the increase
from Chicago business men. In addition
Sweenie on one side and the agents on the
other. Sweenie says the gross premiums
written amount to Sc 600, whereas the
insurance men claim they did not reach last
year more than S4,S00000 Again the chief
says that it cost but Sl,0)0,U00 ID secure The
business. The agents say it cost nearly $2,-
/ 100000 to write $6,000,000 insurance. On
| basis of Sweenie's figures the companies
| want to increase the cost of protection to
| Chicago merchants from Sc, 900 900 to ST.
n IN
| crease remains the same. This would Gin
| sure an additional profit to the companies
| OF $1,500,0O0, a little more than $10500
| each for the 142 companies doing business
| In the state. 1t is extremely doubtful if
| Chicago will stand the drain. Chicago was
| especially unfortunate in the way of fires last
| year, one at South Chicago burning over
| several acres in a single afternoon, destroy
| ing millions of dollars worth of property
entaiing probably more than half the total
losses suffered by the companies in the state
| during the entire year.
YOU MAY WONDER AT THIS.
1t Is not the intention of The Bee to dis
| cuss in this article the methods Of insurance
companies in transacting their business,
| further than to point out the results of the
methods as shown by the figures. These, it
| would seem, have been pretty clearly estab-
lshed. The good years and the bad years
have been placed side by side, and the
| reader may draw his own conclusions 1t
| premiums is a trile steep. He may wonder
why 1t should cost s1,00000O or 1000 900
| to collect $4,000, 600 in district so compact
| as Chicago. He may even wonder why some
! effort is not made to reduce the cost of in
| surance In this respect. He may wonder
| why net profit OF 4,9S per cent of the whole
! business done in one state is not sufficient
He may wonder IL any of those companies
| now complaining recall the wonderful pros
! perity of 1890, 1891 and 1899, during which
! time their capital stock of (estimated) $3.50 :
| 100000 was almost returned to them allow
| ing the extreme estimate of 80 per cent for
the cost of collection. He may also wonder
| why agents will plaster policies on buildings
against the erection of which they have pro-
| tested, and which they know to be unsafe,
| and then point to the destruction of that
| building as an evidence of Omaha's lack of
| fire protection. 1t might also occur to him
| that there is hardly a fire trap in Omaha
that is not well insured, and he might won
der why the owners of we'll erected. prop
| erly protected buildings should be made to
pear the burden cast on the companies by
the man who moves into an unsafe building
| and let's his policy in some well established
| company protect him. An insurance policy
Is rarely lost when everything else in plrnnd.
And finally, he may wonder what, when the
city Is so protected Il at total loss by fire
1 Is no longer possible, will be the need of in
| surance. III fire is wiped out the insurance
| companies VIII soon follow.