The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-06-21
A Fact That Needs Explaining.

There is not much reason TO doubt that
the Southeastern Tariff Association would
have advanced the insurance rates in Sa-
vannah at its meeting in Washington last
week, had it not been for the representa-
tions of Mr. w. L. Wilson, one of the
prominent insurance agents of the city.
The association may yet advance rates at
its annual meeting this month.
The complaintof the insurance compa-
mics doing business in Savannah is that
they make no money out Of their Savan-
nah business, or, at least, have made none
in recent years. Some figures
were published recently to sub
stantiate this complaint. We
have no reason to, doubt the correctness
of the figures, but there are some things
which Justify these questions: Are all
the companies as careful in writing risks
as they should be- Is it not possible for
the insurance companies to lessen their
losses by the exerciseiof more discretion
and Judgment in taking risksl Do not
some of the companies in their anxiety
for business take more chances than
they should2 In other words, do they
latter their risks as much as they
should, and are they always careful that
the property insured is worth
more than the amount of the
insurance? These are questions which
the Southeastern Tariff Association
should consider carefully if it
desires to do entire justice to all inter
ests.
These questions are suggested by the
prosperity of the business of the South
ern Mutual Company. We are not pre-
pared to say how large a business this
company does in Savannah. Our i'm
preston is that its business is as large as
that of any other company. Indeed, there
are reasons for thinking it is larger than
that of any other company.
Has the Southern Mutual any reason to
complain of the profitableness of its bust
ness! We hardly think So Last year it
paid a dividend of $50 per cent, and this
year it paid dividend of II per cent If
other companies have not done as we'll as
that, Why Is there any reason why they
should not do as we'll? An insurance
company that pays II per cent ought not
TO complain of losses in any one city. The
losses in that city for number of years
may have been unusual. There may fol-
low series of years in which their profits
in that city will be unusually la rye.
But is it not fact that the Southern
Mutual's success is is due largely to the
wise rules it enforces in respect to tax
ing risks! Have the other companies
similar rules? If not, why? If all the
companies had such rules and enforced
them, is it or is it not probable that there
would be fewer mysterious firesl
While it is admitted that this city
should maintain a fire department in
keeping with its size and, business i'm
portance, is it just to put all the blame on
the fire department for greater fire losses
than there should be, if it be fact that
the insurance companies are not always
careful TO do business on strictly business
principles9 We are not in a position to
say that good judgment is not always ex-
ercised in taking risks. We simply say
that it is a justifiable inference that there
is carelessness of some kind if the South
eastern Association complains of unprof-
liable business while one of it's companies
shows net earnings of Il per cent year.