The San Francisco call., 1898-02-19

underwriting and any other kind or business, nor between fire insurance corporations and corporations Whlcn are granted franchises, rights or way or any special privileges. Fire under- writers may combine as they may see fit, but they cannot create any apso lute or virtual monopoly. It IS not difficult for capitalists to engage III fire insurance; the only restrictions are those designed to insure solvency. Un- der such conditions, fire insurance can never be a monopoly nor can rates ever be unreasonably high. In the ab- sence of any monopoly and of any spe- cial privilege granted fire insurance companies, there can be no just ground for special taxes or restrictions as to rates.
 underwriting in this one vitally import ant particular; they know substantially the cost of their goods, and can safely and independently fix prices based on the known cost and expenses, while fire underwriters can only guess at the price of their goods. Fire underwriters must combine and compare experiences as to classes of risks, and fix rates ac- cordingly Without comparison of re- suits to use as a basis their rates are only guesses, which subsequent individ-
 
 to be sadly wrong and wholly made uuate Even the smaller few com panies which are not members of boards are obliged to depend on boards for their rates. They dare not make their own rates independently, for in dividual experience is never a safe guide.
 Underwriters boards and the fixing of minimum rates according to the av- ok ,to1,y i,NIi ic pensable to sound indemnity, for the self-evident reason that the cost of the goods (fire insurance for the time con- tracted for) is unknown. When there were no underwriters associations there was no real indemnity, except at much higher rates of premium than those of to-day, in a mere handful of ultra conservative companies. Wildcat companies abounded, and loss claims were sealed outrageously or repudiated outright.
 Business men understand this matter, and do not sympathiZe with the preju- dices of the ignorant nor defend the in- solent Commissioner abuse of author ity Business men want sound indem- nity, and their own experience teaches them that it cannot be supplied except at adequate rates which will leave some profit.
 Meantime, p6uQlIlS lHt OcSloiOii OA Judge Morrow, the business of fire un- derwritiug is being conducted as usual in San Francisco and throughout the State by both American and foreign companies. Policies are being written without hindrance or fear, notwith- standing MT. Clunies foolish action re- garding nominal bonds for fees, signed by miIlionaires. There can be no fear as to the outcome of the present itiga- tion, nor as to the possible injuries which our gallery-playing Commits sioner may be disposed but is powerless to infiict The United States courts in Kansas have ruled that a solvent com- pany able and ready to comply with the laws cannot be prevented from do- ing so by an arbitrary act of superin- tendent of an insurance department Here in California the companies are solvent and have complied with the laws, and must be allowed to supply the public with indemnity, even though the political ambition of Andrew Jack son Clunie should thereby suffer tota 1 ecliDSe