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

/ risks. The inducement would be certain
! 70 he beneficial 1t the insurers were to
conclude to put the greater amount Oh
the insured property III certain speclhed
companies.
A lew letters were written to compa-
MES not operated under the South last
ern Iarim Association. One OF them
was forwarded to the Continental tIre
Insurance Company, which made an
swer saying that 1T mad lost S6, 4U3 Ia the
last i've years, and had only taken IN
4z,UvU in premiums.
While TINS company may be unfortun-
ate, yet the experience OF one such COM
pany is not Il fair reasoning for the
establishment of a basis rate in Raleigh.
AS the letter OF this committee to the
Continental Insurance Company, and
the reply thereto, by the president of the
said company, was published In the
Press Visitor, an evening paper of this
city, it might be well here to say that
Mr.. Moore estimates that only $4,000
a year in premiums are paid, which is
contrary to all the facts, and to the
estimates made by insurance companies,
doing business here. His idea that a
$4,000 fire might occur at any time,
and sweep away the profits of year IN
premiums, is very erroneous. AS has
been shown above, the estimated aver
age loss paid here, to-wit: $6072.12, was
predcated upon five years experience.
The Continental Insurance Company
says ii would be unsafe to predicate any
theory of insurance upon an experience
of less than 10 years. The Continental
Company acknowledges the reliability Of
the Universal Mercantile CompanycItes
the Universal Mercantile Schedule, men
toned above; and cites it as authority
on the question. The Universal Mer-
camille Schedule says that five years ex-
perience is a safe one upon which to-
base the estimate of loss.
1t makes no difference which is right,
the Continental, or the authority which
it cites: for the fact is certain within
the mnd of any intelligent citizen off
Raleigh, that the average named, of SOL
O7272 of losses paid here by the fire IN,
surance companies, is very high one
A letter similar to that written to the
Continental Insurance Company, was
written to the Williamsburg City Fire
Insurance Company, the Southern Mu-
tual Insurance Company, and the South
ern Stock Mutual Insurance Company.
The Williamsburg City Fire insurance.
Company referred us to Mr. A. w Nc
Alister, who said, in reply to my letter.
that the company would not give lower
rates here being governed by the rates
fixed by the South Eastern Tariff Asso-
citation.
The Southern Mutual Association
which is operated in Georgia. says that
the Company confines its operations to
the State of Georgia. and that it gets
as much business as it can prudently
carry, and has more offered all the
time.
We have letters and communications
from number of our best citizens. who
say that the high rates of insurance here
have caused them to carry their own
risks to great extent.
All who have paid the matter any at
tention. land among whom are those dis
posed to consider the insurance compa-
MES side of the question:. are of the
oninion that the rates are entirely too
high.
Insurance companies viii not loanI
their money in this State, as rule: butt
prefer as matter of security. invest
ments at n much lower rate than wei
can get money for here. Therefore. the
money made by fire insurance comnaniesE
in this State, goes altogether outside of
the State to be invested at a less rateI
of interest than we would pay for it.
Your committee is now in eommuniea-l
tion with reliable fire Insurance com-I
panv. which has done a safe and suc-I
cessful business. in regard to planI
Of business which the company has been
working on for some time: and which,
II believes, win meet the demands of curl
case"