The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-01-10
GOV. GAMBLERS IDEA OF ECONOMY
As Evidenced by the Placing of the
state Insurance.
From the Athens Banner.


pears from the following extracts from
an Atlanta dispatch.
Thinking 10 save the state money on
the insurance bill the legislature appro-
priated enough 10 pay two years prem
iums at once thus taking advantage of
regulations of the insurance companies,
which permits them to sell a three-year
term policy for the price of two years
insurance, payable in advance, This ef-
fects a saving of one years premium less
the interest chargeable to the advance
payment
1T was found that the state had been
placing considerable insurance with the
Southern Mutual Company at Athens.
This company does not issue term policies
like the stock companies and as the ac-
ton of the legislature made il incumbent
upon the Governor to get three years in
surance for the price of two there was
nothing to do but cut off the Southern
Mutual policies.
Gov Gambler was 10th to do this, how
ever and wrote the manager of that com
pany asking if a special policy could rot
be issued to the state that would permit
the placing of the usual proportion of the
states business with that company"
The following extract is from another
Atlanta dispatch following the foregoing
one:
After all the dickering. the Southern
Mutual, which made a big kick at the pas
sage of theQew law got its share of bust
ness owing to the Governors desire to see
no discrimination against a home institu-
ton"
Now for the facts of the case. which
show that Gov Gambler has not only dis
eliminated against the Southern Mutual
Georgia institution, carrying over S25. -
100000 dollars risks in Georgia, but also
has lost the ate a considerable sum of
money by the transaction
In che first place, the Southern Mutual
never fought the passage of the new law
In fact, the new law has no bearing
aga INST that company, for al it requires
is chat the state shall get three years in
surance for the price of two years prem
iums, and the Southern Mutual can beat
that arrangement to-day by a comforta
Bile sum of money.
The Southern Mutual solicits no bust
ness. 1t is purely mutual and voluntary
affair. Whenever a member thinks he
can do better elsewhere, he is at liberty to
set out. Gov. Gambler has taken the state
ont of the list of members, but he has
sadly failed to do better, and he knows
it as wei! as any person in Georgia.
Gov Gambler knows it is cheaper to in
sure in the Southern Mutual than in the
other companies, even when three Years
insurance is obtained for the price of two
years premiums. AS an evidence of this
fact we are informed that he insures all
of his own property in the Southern Mu-
tual and is fully cognizant of all the facts
of the case.
Gov Gambler knows that the average
dividends of the Southern Mutual for the
past twenty years have been about 6S per
cent. and a little figuring will suffice to
show that the Southern Mutual Is so per
cent. below the other companies, even on
the plan of three years insurance for two
years premiums In other words the ar
rangement of the state under Gov Cand-
ler's recent action costs 50 per cent more
than The same insurance Would cost in the
Southern Mutual under its regular rates.
Again, the action of the legislature did
not make it incumbent upon Gov. Gambler
to bar out the Southern Mutual, because
that company would not write a three
year term policy All the iegsla tive act
required was to get three years insurance
for the price of two years premiums, and
the Southern Mutual under Its regular
rules, can do better than that by the
state This is evidenced by the fact that
Gov. Gambler was willing to waive that
point if the Southern Mutual would waive
its three-quarter value clause in its poll
cies The Southern Mutual cannot waive
that clause and has no desire to do so.
Gov. Gambler knows that the state insures
its property for not more than half its
value in fact, carries $500 coo insurance on
property worth over 100000. If the state
insures it's property for one half in fact,
less than half its value what figures can
a three-quarter value clause cut in the
proceedings? The Southern Mutual policy
limits it's liability to three-fourths the
value of the accepted risk. What effect
would that have on a risk insured for
only half its value! Thus this little sub
terfuge is swept away by cold facts.
The Governor was 10th 10 take the bust
ness away from the Southern Mutual. IN
deed! Then why did he send out an ON
nbus proposition containing provisions he
knew the Southern Mutual could not OBJ
serve under its charter? 1t looks very
much as if this omnibus proposition was
framed with the deliberate purpose Of
shutting out the Southern Mutual. and
that Gov. Gambler didn't examine it closely
enough to see its real meaning. This
great proposition was very business-like,
in that il contained a request for insur-
ance on one more building than actually
exists at Rock College. II has its ele-
ment of righteousness in that it asks for
insurance on the wearing apparel of the
girls at the Normal School at Milledge-
Vile How can the state insure property
II does not own? If 1t insures the wear
ing apparel of the girls at the Normal
School at Milledgeville, why not do the
same at the State Normal School at
Athens, and at other state institutions?
If Gov. Gambler really wanted to save
the state money, he would have placed
over one hundred thousand dollars of risk
with the Southern Mutual al net cost of
so per cent less than the same amount Of
insurance will cost under the arrangement
he has made. The remaining insurance
could have been placed with the other
companies.
This is a sample of the economical and
business like administration of Gov. Can
der Even if the Southern MutuaPs net
rates had been the same as those of other
companies, the preference should have
been shown her, as a Georgia institution.
But when it is shown that 80 per cent.
could have been saved by giving the insur-
ance to the Southern Mutual, the people
of Georgia will begin to get a clear idea
of the business Governor they have
chosen. The people of this state know
the Southern Mutual, and will readily
comprehend the situation. All this talk
about the law forcing the Governor to take
this action is the rnerest pOppy cock, and