The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-07-04
uNPREcsoENTGo S. ccEss.

Semi -Anrual 10 Per Gem. E1iddeod--A
Fine Showing by Strong Company.
Next to public taxation that heay-
lest charge upon the property of the
country is the cost of insurance a.
gainst fire, and, the protection OF fire
insurance having become a public nee
essity, any successful effort for the
lessening of this burden upon property
is in the nature of public benefaction.
Experience has shown that legisla-
tive interference with insurance com
panies and combinations has resulted
in advancing rather than reducing
insurance rates, and that the cost of
insurance can be reduced only by those
methods which tend to diminish loss
es by fire. We have in North Caro-
lima an insurance company which has
been working upon this idea, and it's
phenomenal success during the wear
and half it has been in operation
would indicate that this plan is the
right one. We have reference to the
Southern Stock Mutual Insurance
Company of Greensboro.
This company was organized in
January, 1895. and by rigidly adhcring
to its plan OF accepting none but the
hest class of insurance risks. and in
that way separating good risks from
the bad, has reduced its losses for the
whole period TO aboue seven per cent.
Of the premium receipts. and eonse-
quently has been enabled to reduce
the cost of insurance to its policy hold
ers to one-fifth less than the usual
cost. This company began business
with S10o,000.o0 capital has increased
its assets to $114,000.00. has paid its
losses as promptly as any company,
has paid one annual dividend of 20 per
cent to its policy holders, and has Just
declared
A SECOND DIVIDEND,
which is semi-annual, of 10 per cent to
it's policy holders This participation
in the profits of the company by poll
cy holders is its essential feature and
one which has brought it into much
disfayor with other insurance compa-
MES.
The showing which this company
made January I, 1896, was very re-
markable one and was thought by
some insurance people to be acciden-
tai rather than logical; but the results
of the company's work for the six
months since Jan. I, 1896, have been
far more remarkable. We are inform
ed that the business of the company
for 1896 to July 1st has been about
100 per cent. more than it was for
1895 to July list, while the losses have
been over 60 per cent. less. With the
increase of premium receipts, the loss
es have decreased almost
IN INVERSE RATIO.
These are remarkable figures but
more Striking sttiii Is the fact thai one
years interest on the company's sur
plus and reinsurance reserve more
than pays the losses for the last six
months. The probabilities that rne
company will return to it policy
holders on this years ',,usiness the
same 20 per cent dirrdend which it did
on last years business are 100 per cent
stron" ~ than they were at this time
asst year, and the policy holders May
count upon this with something like
absolute certainty.
We are advised that the dividend
has been declared at this time instead
OF at the end Of this year as
A PRACTICAL AND EFFECTCAL
ANSWER
to the company's many nnfriendly
competitors who have gone out OF
their way 10 criticise the 20 per cent.
dividend which was declared for 1895,
and who have claimed publicly and
eersistently that it would never be
done again.
TO return for moment to the point
alluded to above that fire insurance is
a grievous charge upon the States re-
sources and is next in importance to
public taxation. we desire to direct at
tention to the Southern Mutual Insur-
ance Co, of Athens, Ga, after whose
plan the Southern Stock Mutual In
surance Co. has been to some extent
modelled. This Georgia company has
had a successful experience of fifty
years, and in the last ten years has
saved to the property holders of that
State by dividends to policy holders
nearly $4,000, 100000 There is no such
public benefactor any where as an in