The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1897-06-24
FIRE INSURANCE.

against trusts and corporations OF all
kinds which seems to have spread
over the whole country. 1t is not the
purpose of this article to defend COM
binations and trusts, which are avow-
edly injurious to the public interests,
but to direct attention to the injustice
of CHASING them with Fire Insurance
Companies, the aim Of which is to
benefit the people.
AS starting point in our investiga-
ton, the question should be asked,
"What is the Fire Insurance Com
pany ?"
1t is an aggregation of individuals
who subscribe their money and unite
for the two-fold purpose of protecting
the community from undue loss by
fire, and securing for themselves a
fair return for their investment. If
the objects be truly stated, it would
seem mere justice to inquire to what
extent these companies have fulfilled
their two-fold purpose.
As to the protection of the people,
we need only refer to the great fires of
1866 in Portland, 1871 in Chicago,
and 1872 in Boston, on account Of
which the insurance companies paid
sroo, 900, 900, which, practically, saw
ed the inhabitants from bankruptcy,
and in the additional fact that in the
twenty years which have elapsed since
that time the enormous sum Of
SI,37o,ooo.ooo has been disbursed
by these much-abused corporations
for the protection Of their fellow
citizens.
In an indirect way, they have en-
couraged and urged the improvement
of building laws, as may be seen by a
comparison of the cities and towns of
twenty-five years ago with those now
existing. They have encouraged the
formation Of paid fire departments,
and have urged the improvement of
the water facilities. They have cheer
fully borne the grievous burdens laid
on them through onerous and unjust
laws. They have paid the heavy taxes
required OF them by the States of the
Union as good citizens. They have
made their bricks without straw, but
still the opposition continues without
abatement.
Reasonable and thinking men
would say that if such be the purpose
Of these corporations, and such their
record, every encouragement should
be extended to them to unite together
for the purposes OF establishing and
maintaining proper and reasonable
rates of premium, and that in place of
obnoxious laws there should be gener-
Gus support extended to them in their
business, which is, at best, an uncer-
tain one.
To the question, Have they sue
ceeded in securing fair return for
the capital invested ?" the answer is,
undoubtedly, "No." The companies
which have failed or retired since
1860 number Sal, with assets of
SI9a, 900, 900, which is large sum
to be withdrawn from the business.
The average profit to the surviving
companies has been 81 per cent. for
a very long period, or 81 cents on
every dollar, and if It were possible to
obtain the statistics OF the S27 COM
panies which have gone out OF bust
ness, instead Of the paltry 81 per cent.
gain there would undoubtedly have
been large percentage of loss.
We cannot do better than quot :
from the very able report of Mr..
James R. Waddill, late sup erintend-
ent OF the insurance department OF
the State OF Missouri. He writes as
follows =
The early months OF my admins
tration were unfolding revelations of
the magnitude, the vastness, OF the
interests involved in what is common
ly termed Insurance business l am
OF the opinion that there is no bust
ness or science of such large and vital
moment to all the people about which
so little is known or understood, even
by the intelligent and educated. Out
side Of insurance circles, insurance
as a science or business-is a terra
Neognita. Many business men do
not even read their policies many
legislators-intelGgent men and in
formed men in the general affairs OF
life-come to the State Capital to dis
charge their legislative duties with the
idea that an insurance company is
simply corporation, and, therefore,
an enemy to the people, to be fought
and legislated against. They seem
totally oblivious to the fact that hun
dreds OF their constituents are looking
to these corporations for indemnity in
case OF loss by fre-in fact, are de.
pendent upon them in such an emer-
gency to replace the shelter and
homes for their families that many
/ of their merchant and husinesc ron