The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-12-23


report of the Insurance committee, pre-
scented to the Chamber of Commerce by
Robert G. Strong, Esq, chairman of
that committee. Mr.. Strong has devot-
ed considerable time to the collection OF
statistics bearing upon the cost of insur-
ance in Raleigh which is presented in
his report, which we print below:
MIR. STRONG'S REPORT.
''In considering whether or not Il lower
rate of fire insurance should be charged
for Raleigh, than that now in force,
your committee have, to this time, gath
cred the following facts:
That the highest average of losses
paid by fire insurance companies in this
city for 5 years, the record being that
kept by the fire department of the City
of Raleigh, is $6,072.72. That though
the city of Raleigh is not what they
call a STANDARD city, yet the probability
of loss has been demonstrated to be OK
tremely light; in fact, falling much with
in the average just given of the losses
paid here.
According to the Universal Mercantile
of cities. the rate for Raleigh would he
40 cents for mercantile houses. This.
of course. is basis rate. The basis
rate now observed is about 70 cents for
business places.
Experience, and the actual observation
of any citizen vii demonstrate the fact
Of the efficiency of our Fire Depart
ment. No fire may occur here of any
magnitude, unless the fire department
soon has it under control, before any
great amount of damage can be done.
In the class of merchandise which is
easily removable in case of fire, there
has been no material losses.
The Fire Department consists of three
two horse hose wagons. one two horse
hook and ladder, four thousand feet Of
cotton rubber lined hose, eight horses,
four paid drivers, four paid night
watchmen, and 90 volunteer members
The Gamewel is the fire alarm system
used here 1t has % street boxes, 20
call bells. attached to alarm system)
in members houses, 40 hydrants, with
water pressure always from the tower
so TO IS pounds, according to the Local
ton Of the hydrant: and with direct pres
sure from 81 to 115 pounds. The wa
ter company has a supply Of water that
would be equal to any emergency that
could happen here.
The above are facts from figures. most
" Oh record; aud should be taken into
consideration in making rate for the
city Of Raleigh.
The committee believes that losses oc-
curing In the country surrounding Rail
eigh. and the payments for which are
made through the banks here, are
charged against Raleigh, which is un-
fair.
In competing the amounts paid to fire
insurance companies, &c, we have to
gather such facts in such manner as we
can, unaided by any fire insurance COM
pany We gave the estimate that about
$4,000 a year is annually paid in fire
insurance premiums. We have received
two letters from the South Eastern Tar
iff Association in which they do not deny
this. We have had private information
that this is about correct, it having
been estimated some years ago, that $780,
600 were received in premiums.
The South Eastern Tariff Associa-
ton adopted resolution, upon letter
that | wrote them, declining to grant
any reduction in rates at Raleigh; say
ing that an examination and comparison
had shown that the lowest rates in the
state prevailed in that city. The ques-
ton occurs to your committee, does this
comparison include Greensboro?
The argument is advanced by some
local insurance agents, here, which we
presume to be the argument of the As
ISOLATION, that in estimating a rate of
insurance, no less territory than a whole
State should be considered; and that in
North Carolina, barely per cent was
made upon the capital invested. This
your committee has not had the time
TO carefully investigate. TO the extent 1t
would wish. At this time, it gives you
the benefit of hasty estimate, made
from the business in this State, for the
year ending Dec. 31st 1896, taken from
the sworn statement of the insurance
companies, to the Secretary of State,
relative thereto.
The Insurance business written, a.
mounted to about 45 millions of dollars.
OF this, the premiums paid to Insurance
! companies would be about ~ per cent.
or S7S7, 800 The losses paid by the in
surance companies amount to about
1913 900. This makes n gross profit in
North Carolina of S47450O. The COM
TO do business in this State They are
also taxed 2 per cent gross premiums.
They pay about Is per cent to the agents
who catch the business. Putting the
costs of doing business At s145.4T5,
would leave profit Of s32o025: which
would be 105 per cent profit they would
make in this State.
However this may be, the committee
thinks that if Raleigh is place of good
| moral tone; and above ALL, a place In
| which it is improbable that fires to any
/, extent may occur, it should be given adj
vantage of such conditions, and that it
should not have to pay its proportion
ate part of losses that occur in other
| places. This fact should be taken into
consideration by the people of Raleigh.
| however. that there are a great num-
Der Of fire insurance companies doing
l R,z~S H., k1zA ~