St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1897-07-23
Fire Insurance.


and Others too numerous to mention, a
popular outcry has arisen 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 combinations and
trusts, which are avowedly 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 a starting point in our investigation
the question should be asked, What
is fire insurance company"
1t is an aggregation OF individuals who
subscribe their money and unite for the
two.fold purpose Of protecting the COM
munity from undue loss by fire, and Sc
curing for themselves fair return for
their investment. If the objects be truly
stated, it would seem mere justice to
inquire to what extent these compa-
nies 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 insur-
ance companies paid 100000 900, which
practically saved the inhabitants from
bankruptcy, and in the additional fact
that in the twenty years which have
elapsed siuce that time the enormous
sum of 81 $40, 100000 has been disbursed
by these much-abused corporations for
the protection of their fellow-citizens.
In an indirect way, they have encour-
aged and urged the improvement Of
building laws, as may be seen by COM
parison ofthe 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 cheeriully borne the griev-
Gus burdens laid on them through oner-
Gus 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 sach 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 generous
support extended to them in their busi-
ness, which is, at best, an uncertain one.
To the question, Have they succeeded
in securing fair return for the capital
invested ?" the answer is, undoubtedly,
NO" The companies which have failed
or retired since 1860 number S27, with
assets of $4,000, 900, which is large
sum to be withdrawn from the business.
The average profit to the surviving COM
panies has been 31a per cent for very
long period, or 31a cents on every dollar,
and If it were possible to obtain the sta
tistics Of the S27 companies which have
gone out of business instead of the pal.
try 31a per cent gain there would
undoubtedly have been large percentage
of loss.
We cannot do better than quote from
the very able report o James X. Waddill,
late superintendent OF the insurance de-
partment of the state of Missouri. He
writes as follows:
THE early months of my administra-
ton were unfolding revelations OF the
magnitude, the vastness Of the inter-
ests involved in what is commonly
termed Insurance business. / am of the
opinion that there is no business or
science of such large and vital moment
to all the people about which so little is
known or understood, even by the intel
ligent and educated. Outside OF insur-
ance circles, insurance-as a science or
busness-is a terra incognita. Many
business men do not even read their pol
icies; many Observation-Disclosures men
and informed men in the general affairs
OF lite-come to the state capital to dis
charge their legislative duties with the
idea that an insurance company is sim
ply corporation, and, therefore, an
enemy to the people, to be fought and
legislated against.
They seem totally oblivious to the fact
that hundreds OF their constituents ar,
looking to these corporations for in
demnity in case oil loss by fire-in fact
are dependent upon them in such al
emergency to replace the shelter ant
homes for their families; that many o
their merchant and business constituent
have indemnity on their merchandise an,
other properlyin these corporations, AM
in many cases are saved by them fror
bankruptcy in the event OF fire loss; tha
hundreds oil Others OF their constituent
have their hope and stay in this class {
corporate, MS, and have made provisio
in them, as the breadwinners OF the
families, to feed and clothe and shelf,
their dear ones after they themselves al
! dead aud gone. and that therefo