The age-herald., 1899-11-05
THE MATTER OF
 INSURANCE RATES
Some Practical Suggestions Upon
 the Situation.
SHOULD BECOME INSURERS
By Taking Out Policies in the South ern Mutual and Share in the Dividends-A Home h.
 Stitution


 The insurance disturbance which obtained in Birmingham for a very brief period, and which came to an abrupt end a few weeks ago, places the insurance public in about the same attitude as previous to the fight. It is said that the few risks which were taken at less than tariff rates have about all been cancelled.
 The Tariff association maintains an ob- stinate front to the proposition of a better rating for Birmingham until tine East and West End hose reels and the aerial truck are reinstated, and afire department is es- tablished on the South Highlands. The as eociation lays down this proposition as an iron-clad proviso for cheaper insurance in Birmingham. The board of trade fought hard fight, but is just where it was when it started out, and the merchants will con- tinue to pay the increased rate on mercan- tile stocks assessed by the Tariff association as the result of its inspection last spring.
 The question now asked by the merchants and property owners of Birmingham is this:
 How can a man obtain good insurance a't-less cost than Tariff association rates?"
 
 buying property and putting up buildings. They make the handling of goods cheaper by simplifying the process They have done away with a multitude of cash boys by the trolley cash system. They have de- creased the number of clerks necessary to transact the same amount of business by the more delft arrangement of the different departments in their stores. They can save money by ingenuity and by investment in permanencies which minimize daily ex- penses. They have learned how to take short cuts to the required end in every ave- nue of their business except insurance. Here there stands a big brick wall which stumps them.
 Discussing the matter with an Age-Herald representative yesterday, prominent bus mess man said:
 q have a remedy for high insurance rates. There is but one, but 1t is a good one. h. vest in some good home insurance company and become sharer in its dividends This is the only process I know of by which to get back some of the enormous sums we merchants pay yearly for insurance"
 The gentleman went on to say: You re- member when the Southern Mutual 1nsur- ance company, of Birmingham, secured it's charter from the state legislature several years ago? Yes; well you remember also that the old line agents, representing tar if association companies were Immediately heard in a lugubrious chorus stating that State mutual could not SuCceeQ! VI COui SC you remember this. You remember also that this company has continued to prosper and that it has on its directorate and fnacialy interested in it twenty-five of the leading merchants and industrial factors in the community. You know that these gen. tlemen are careful business men, and you know that they each carry insurance In this company You know that the company has been well managed and that its risks have been judiciously placed and circum- specify scattered on the best properties Tn the city, You know that the company mas paid it's losses as promptly and as fully as any Tariff association company in the city. This being the case, what have you to say against investing in the same manner and becoming yourself your own insurance fac- tor?
 'sThe Southern Mutual Is simply type of home insurance companies which nave proven profitable and l allude to 1t mere ly because it is home example. This com pany like others of the same type, is conn pelled to charge regular insurance tarin, but it's profits go to the stockholders atter safe reserves have been set aside, ana these stockholdrs are the policy-holders. This Is the one way the money comes back and in- surance is gotten at cheaper rates than or dinary."
 Other merchants express themselves dn similar fashion, and it begins to look as 1T this large and prosperous city Is going to make some provision to carry Its own ln- surance It has an excellent example in the Southern Mutual and the next general assembly will probably be requested to charter few more companies on the same lines.
 The Southern Mutual is home institu- tion and while 1t is entitled to the sup port of home people, it does not appeal for patronage solely on that ground. It Is solid institution, Is operated. by men or unouestionable integrity and unsurpassed business judgment, and is conducted on strictly business principles. The company states it's case clearly and truthfully in circular letters which have been mailed to members of the board of trade and the Commercial club. The reporter, on his rounds yesterday, obtained copies of these letters. extracts from which are given be- low. To members of the board or trade the company says, among other things:
 Birmingham. Ala, November l, 1899.
 Dear sir; Having watched with interest the proposition of the board of trade with reference to insurance, we take the liberty of writing you. to say that II our people would literally patronize our home com pany, they could in a great measure over come the situation.
 The home company, in order, first of all things. to give you a safe policy must col- feet the full premium, and then at the end of each year, after putting aside sate re- serve, return to the annual policynolder the balance as a dividend. During the five years that we have been in business we nave re- turned three 10 per cent. dividends.
 We feel that this company, without ap- bearing unreasonable has right to ex- pect every citizen of this town or county to place a policy with 1t on every piece or property that he insures.
 This company is almost entirely without expense.
 The Georgia company, upon the same plan, last year wrote one-eighth of the en- tire businessGf that state.
 The following is copy Of the letter sent to members of the Commercial club:
 "Dear sir: This letter is addressed to you as a member of the Commercial club, believ- ing that as such you will feel more than an ordinary interest in our effort to build up a strong and reliable home insurance conn pany. You know, without argument, that