The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-09-15
NOT so BIG as SEEMS.

Ntr. Prim.0Se says that Insurance Com"
panies do not GIndnly Absentee Money
from the STATE. but that Ciiirs are
upbuiided by them.
The figures given i'm the NFws AND
OBSERVER Of yesterdays issue i'm regard
to fire insurance in this State having been
commented upon, representative of
the paper called on Mr. W. 5. Primrose,
President of the North Carolina Home
Insurance Company for his views of the
matter
Mr.. Primrose said:
II think the bare and partial figures
given in your article are calculated TO
be misunderstood, and are undoubtedly
misleading although, | am sure not in
tentionally so.
II will assume that the figures repre-
senting gross premium receipts for
for the year ending July 1st 1895,
viz; $685., 37123 are correct, 1t was
stated that the losses incurred for
the year were about one half of this
amount. and that 1892, 600, (your
figures, the other part, drained from the
State, has gone away never to come
back again in the payment of losses or
in any form. The clear inference of
all this is that the companies are max
ing too much money But suppose some
other fact be given. The year named,
was one of the most favorable in point
of profit to the companies. Yet there
was not so much profit as stated, even
in this favorable year.
"Yau say that something more than
one balf IF the entire gross receipts has
been returned 10 the State in pay neut
Of losses That about 1892 600 (your fig
ure9 OF this money has gone away never
20 come back again
"You did not take into account that
agents Nho secure these premiums all
gross premiums, and that the State i'm
poses a per cent tax on gross receipts.
Nov count in addition to the 1858, 81
% Left for losses, this II per cent com
missions and tax, and $l18, 214 - also
remains, making $tS1, SOL % Thus
yon. figures were short by some Sl18,
0)0, which counts as a fairly respectable
item of itself.
Then thera other taxes, such as 500
for ANIMAL license, $21 for certifi"ation
aid publication of statements; also q fee
paid by the companies annually for Il
cense of each individual agent, expenses
of special agents aud adjusters, apprais
ers, &c, and another considerable sum
is left, the amount of which could only
be Appropriated now, hence | will not
give it as | wish to be exact. The above,
Owever, is the experience of favorable
year. The figures for ten years ending
list January. 1895, shows that including
loss ratio 66 6, agents commissions Is
per cent and State tax 2 per cent, not
counting the other items, that SO per
cent of gross premiums have been left in
North Carolina.
''It may De somewhat germa, e, as a
matter of information, to state that
another account must be charged against
these gross premium receipts which
lowers the margin of profit. That is the
rates of expenses, for salaries in the
home offices of the companies, for special
agents, for equipment and supplies, etc,
and this account, although not unreason-
able when added to the amount left in
North Carolina, has shown an unreason-
ably small profit in this field for the past
bCh NCsSAos
Nov, as to the last statement Of the
article, viz that for last years business
$3.50 600 'nas gone, never to come hack
in the payment Of losses or in any wav, ~
| viii simply ask a question. L the com
panles, ducing tho clrrent year, incIr,
say twenty per cent more losses than
premiums received, il 1t not APP 3r5ut
that some Of the money carried away last
ear mast com hack to pay these losses
As a matter Of f5cf. This Is D., and h4s
been so toe frequently in the p5sC
TIE question mign, be asked, il giaT
II & statements il vour article, II Il
drawing a grand balance, the -tai9
woul not be better eff without fire in
suranco AID this large drain stopped OF
course this woald be erroneous in the
extreme.
in existing conditions of business,