The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1894-02-17
serest and perhaps edifcation:
Sll,GiO.54l

Sll,tlU,54l SI.3l2 621
Ratio of loss to premiums for 10 years 62S per
cent.
l. will be seen that not taking into
consideration the disastrous record of
1893 (the report of which is as vet un-
published) fire insurance companies
have received premiums from Virginia
amounting to Sill ,64O,54 and have paid
to the citizens of Virginia losses agrre-
eating 81, ,625. In other words for
every dollar premium collected in Vir.
ginia during the period mentioned 90 8
cents have been actually returned to
property owners for losses; but this is
not all.
The correspondent INDUCES in the
following gross mis- statement OF facts:
1--WE will not forget that all this pro-
digious golden tide flows Northward,
and but modicum ever returns" This
OF actual conditions so patent that any
school boy may understand it if he
pleases.
1t is a very moderate estimate to say
that the expenses for the transaction of
business in the State of Virginia aggre-
gate SO per cent. of the premiums. OF
this 80 per cent. large amount is paid
directly TO the citizens of Virginia and
never reaches the Offices OF the com
panles. For instance, Is per cent. OF
the premiums are paid as commissions
to the local agents, citizens Of, and re-
siding in the State, and over per cent.
OF the premiums is paid to the State
and local authorities for taxes.
The expenses OF adjusting losses,
which aggregate a large SUM. is mainly
paid to the citizens OF Virginia in the
shape of payments to carpenters and
builders for estimates, 20 hotels for the
expenses OF adjusters and to railroads
for fares. In addition TO this consider
abe amounts are expended in the State
for salaries of experienced adiusters
residents therein, advertising in news
papers, printing supplies, renting
offices, etc.
1t is safe to assume that at verv low
calculation 50 per cent. of the premiums
paid by tho citizens OF Virginia never
leaves the State, SO that during the past
ten years the ''prodigous golden tide"
from the State of Virginia for Ire in.
surance has not at the outside exceeded
Sl7O, 600 year, mere bagatelle in the
great interest of that growing State and
certainly infiniteSim ii when compared
with the Immense advantages derived
from protection OF property against loss.
and this is regarded by your correspond
ent as one of the patent causes" that
Is ''wrecking the business of Roanoke
and other Virginia cities" and for
which it does not require the gift OF
prophecy to calculate the date of OK
tincton. AS well might the Northern
States complain that their profitable
purchase OF Virginia tobacco and other
products was the flow of 'prodigious
golden tide" carrying ruin in its wake.
AS to accumulated profits upon in.
vestments, it does not take an expert
1nancier to understand that SURPLUS
accumulations are a necessity as bust
ness increases, for if companies were
unable to increase their reserve as the
enlargemens Of their business increases
their liability they would soon fail and
uhoir policy holders would be leaning
on broken reed.
1t would simplify matters consider.
ably ii the correspondent would bear in
mind THESE cardinal facts:
First. That fire insurance for a long
period of time and up to the present
has been 80 unprofi table throughout
the country at largo that few, If anv.
companies have made money, and that
large portion of the companies form.
erly in the business have been forcod
to tho wall.
Secondly. That in particular the busi.
ness of Virginia has ever since 1878
been done without profit to companies
If your correspondent has any doubt as
to the correctness of these statements