The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-03-14
ABOUT FIRE INSURANCE.

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ABOUT FIRE INSURANCE.
|
The effort which Attorney General Gran
is making 10 restrain the agents OF nre In
surance companies doins business in Tcxs
from entering into a general agreement Il
maintain a common rate and throttle a
fair business competition, will be sustained
BY public sentiment. everywhere In this
State.
The people OF Texas wan. no unfair ad-
| vantage over the insurance companies, nor
do they want the companies to take an I'M
fair advantage Of them. The public is
always entitled to the benefits OF leg.ti-
mate business competition. To deprive
patrons OF such advantages by common
agreement between persons In any part.cu-
| lar line of business. is TO virtually rob them
| through a practical monopoly or trust.
| Such agreements as the one against which
| the attorney general is moving are conspir-
acics In restraint o. the legitimate methods
Of business and both morally and legally
wrong.
Fire insurance is already too high In this
eountry--not alone In Texas, but in the
United States at large. 4 writer In one
OF the leading magazines. a month or two
since, gave an interesting table OF the COM
narrative cost OF insurance "a different coun-
tries. showing tho average rate to be in: !
France ................. S cents per 500
Germany ............... 10 cents per 500
England ................ 70 cents per slVV
Australia ................ SO cents per 500
Austria .................. 81 cents per SIVp
Russia ....,............. 81 cents per 300
United States ...........l0Q cents per 500
In Texas the cost is more than 100 cents
on the 500. The profits are enormous 10
the United States. The writer referred to
places the aggregate premiums al $780,
600 900 per annun. or double the losses paid.
The losses as a matter OF fact rarely reach
$50 100000. In normal years they range
from 500 600 900 to sl=5 ,ooo 900 per annum,
Assuming that the premiums are but $500,
600. 600 per annum, and they ran over that
last year according 10 recently published
reports. We find surplus Of premiums over
losses Of 5000 900, True the companies
80 not make that much money. The bulk
q this surplus over losses is paid TO Off
GERS and brokers and agents. The incomes
OF the insurance magnates and many of
the State and general agents. are princely-
running high into the thousands. The ex-
peuses over and above losses. rents and
taxes. designated as other expenses" are
from $50, 00o 600 to $50 600 600 year show
ing what the people are paying for the lux
ury Of the middle men and officials in the
insurance business. And 1t is these agents
who are seeking to combine to prevent
business competition. With anything like
elimination in fact OF half this interme-
diary force and a reduction OF the higher
salaries. the companies could not point TO
State in the Union in which their profits
would not be immense. Should the public
not object to this enormous burden and
take measures to protect itself?
In Houston last year the losses were
under $4,000 and tho premiums $3.50 900!
Here is profit OF nearly or quite quar-
ter OF million. In one town. in one year.
The agents say that they made money |
last year In Houston for the first time In !
some years, the fact being attributable 10
tho presence of the paid fire department.
But the excessive rates have not been re- |
duced as Promised, nor is any intimation
given as to the time when n reduction will |
be made. The city has gone to the assist |
nnce Of the companies. but the latter do |
not vet evince a disposition to come to the |
assistance OF the people.
There is no hostility towards capital In |
lightins for common Justice. or In claiming |
what Is our due. The State Is entitled to the |
advantages Of competition, II not a large
reduction In rates, and Houston is entitled
TO far lower rate than It is now paying. |
These are propositions that can not be |
successfully controyer,ed on fair business
PRINCIPLES.