The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-03-13
THE CITY MIGHT TRY IT.
A Plan to Meet the Insurance Situa-
ton.

a
ton.
The recent edict of the Southeastern
Tariff Association, considered by many
an insurance trust, that the business
men Of Savannah must pay higher rates
.of insurance hereafter, unless certain IN
5afned conditions are coupled with, has
..iren rise to novel suggesJio by
..8iing business man.
In word what he proposes is munich
nal insurance. Why said he. should
not the city insure its citizens against
MSS by fire. | do not propose 20 urge any
Wild [-topian idea but merely to make a
main business suggestion. The city now
andeavOrs. at considerable expense an
--.9lly to protect its citizens against
loss by ire. Why should it not
20 a step further and guarantee them
agaiust such losses The thing is
very simple The city would only have
ID tax that class of property which it
The regular tax rate in return for which
i- would guarantee to ell coming under
this tax to restore to them the value of
their property should it be destroyed by
fire during the year. The prevailing
rates of insurance could be adopted for
the first year or two or until experience
showed the necessity of increasing or re-
ducing the rate.
The scheme is not impracticable by
any means Look at the vast amounts of
rfo1ev which has been taken out of Sa-
eaunah by the insurance companies
within the past few years. Mr. Wilson,
in his communication in Sundays Morn
ING News. shows it to have been 81, ISL, -
452 in the last five years. 1t is true that
he shows that in that time the net losses
of the companies in Savannah were
over 100000 greater in the same
time besides the expenses of
conducting the business. 1t should be
taken into consideration, however. that
this period includes the great fire ofApril.
1889. besides several other very large
fires. If the record of the previous five
wears were taken it might be shown that
the companies enjoyed a very prosperous
business in Savannah for that period.
Chief Puder's annual report shows that
the fire losses in Savannah last year were
only a small percentage of the amount
insured and that the net revenue of the
companies for the year must have been
considerably over 100000. The fire
record for 1892 was also good one, and
the business as shown by the record of
fire losses was profitable to the companies.
There is no reason why the next period of
five years should show as large a per-
Centage of fire losses in Savannah as the
last period.
The last period was undoubtedly the
most disastrous that the companies have
ever experienced in Savannah, and they
will not fail to harp upon it until they have
recovered their losses several times over.
The first thing that municipal in
surance would affect, would be the
agents commissions. The agents now
get l5 per cent. on all premiums
q addition there are large expenses for
conducting the business of the companies.
including general agents, special agents,
high salared officials, rents. profits to
stockholders, and many other incidentals,
all of which must come out of the pre-
miums collected, the residue goes
back to the insured If the city were
To conduct its own insurance very
little addition to the present force would
be required and the expense could by no
means equal that under the present sys-
TEN, providing, of course, that it be hon
estly conducted. The advantages of such
a system would be numerous. In
taxation would be largely in
creased. Under a municipal system
Of insurance it would of course be impos-
sible to recover a larger amount for a
loss than had been returned for taxation.
This would prompt full property
returns. The next benefit would be
that the city would secure the
bSoy liL6 ScENIC6 10 US udQ
for the simple reason that it would be to
its interest to do so, and thereby prevent
loss as far as possible. For the same
reason there would ~~e stringent laws reg
ulatiug the construction of buildings in
order to diminish the fire risk as far as
possible
Another benefit, said the gentlemen,
would be the dimunition of the number
of iucendiary fires. A rigid nyestiga ton
nd ,.if
would be in much better position to re
fuse to pay a shady loss than an insur-
ance company is now. Everyone at all
acquainted with the insurance business
knows that the insurance companies
pay out annually large sums Tor fires
which they are well satisfied are incendi-
airy, but which they are afraid to investi-
gate. Realizing the difficulty of proving
the fact, they know that they would be-
come liable for large damages should they
fail to prove their charges Another
reason is the unpOpularity and loss
OF business that would result TO
the company With the city as the
insurer however, it would be to every
hody's interest that the amount paid out
Tor losses should be as small as possible
and there would be a general demand
Tor an investigation should the least
reason be given for it. No such
interest to prevent fraud exists now,
because the general public does not feel
that it is any of its business to pro-
tect the insurance companies and would
regret rather than otherwise that the in
surance money should be kept out of the
community, no matter how the fire oc-
Cured. The city fathers will hardly
Jump at this suggestion. Nevertheless it
would be big advance in public economy.
10 would mean cheaper insurance, fewer
tres, better constructed buildings, better
fire service and larger returns for taxa
ton"
CAN THE COUNSEL oBJEoTP