The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-11-14
AFFECTS TOWN PROPERTY
WILL SAVE MANY THOUSANDS
IN THIS STATE.
1T IS DUE TO FAVORABLE LEGISLATION
Vice President Webb of the North Carolina
Home Company, Talks Interestingly of the
Causes Leading Up to the Re-
duction in the Rate.

At last the South Eastern Tariff AS
ISOLATION has decided to reduce insurance
rates in North Carolina.
This reduction, which is about p per
cent. below the old rate, is made in recog-
milton of the new insurance laws of
North Carolina, which have been very
beneficial to the companies doing bust
ness in the State.
At recent meeting of the executive
committee of the Association, in
Atlanta, resolution was adopted
promulgasing 10 all insurance agents
in this State a new basis rate on
dwellings,, barns, churches and school
houses, as follows:
Whereas, the present insurance
laws of the State of North Caro-
lima provide for the payment of
per cent. TAX on the gross premiums
in said State, which is in full of
all State and municipal taxation, and
Whereas, the laws of said State
provide for the protection of com
panies that comply with its laws
against irresponsible outside compe-
tition, and
Whereas, said laws provide for off
cial investigation of all losses by fire,
with a view to detection and punish
ment of crime and prevention Of fires
by negligence and unnecessary
causes, thereby reducing the fire
waste, and
Whereas, since the enactment of said
law there seems to be some abate-
ment of fires, and it is believed that
the effect of said fire laws may tend
to decrease the waste of the COM
monwealth, thus preserving the
source of the States revenues and
increasing the chance of legitimate
profit to intelligent underwriting,
therefore be it
Resolved. That in addition to the
reduction heretofore made of 80 1-3
per cent. from the basis rates on farm
dwellings and barns. reduction of
% per cent to 80 1-3 pc rcent. from
the basis rates on dwellings and con-
tents in cities and towns, and SINH
lar reduction on churches, schools
and public buildings and contents
throughout said State be, and is
hereby, authorized as per revised
basis rates for such risks in North
Carolina attached hereto. This re-
duction not to affect existing policies
This reduction will save thousands of
dollars to the property owners of North
Carolina" writes the chairman of the
executive committee in a personal letter,
land should destroy the chances of politi-
CLANS to use insurance companies, and
especially the Tariff Association as a
tool to gain favor with their constituents.
The executive eommitte is very anxious
to have their action understood by the
people of North Carolina, and especially
those that were instrumental in the pas
sage of the Willard Bill, and more espe-
cially by Commissioner Young, who has
looked after the interests of all con-
cerned."
The new rate has been much discussed
by local insurance men, all of whom ex-
pressed great qualification that the rate
had been lowered.
This reduction shows that insurance
companies believe in giving rates as low
as possible" said Vice-President Webb,
of the North Carolina Home Insurance
Company of this city. TOO many peo-
pie have an idea that insurance men in
combining to maintain rates have thereby
formed great trust. This is not true.
II fire insurance were so profitable as
people believe, there would be more conn
panies doing business in the State.
There are over three hundred and fifty
fire companies in the United States and
only about seventy of them are licensed
to do business in North Carolina.
THE underwriting profit for North
Carolina during the past seventeen years
has averaged only 3 per cent. 1t is a
common thing to point to the large
amount of money going out of the State
in the form OF premiums, but in doing so
it would be we'll to remember that it is
rot all profits; not less than SO 1-3 per
cent. of it is expenses and of this amount
- per cent. is expended in the State i'll
which it is collected, leaving less than
10 per cent to go. out of the State for
home office expenses.
'sThe only way to get low fire insur-
ance," continued Mr.. Webb, lis to de-
crease the fire loss. Realizing this, |
along with other local insurance agents,
started a movement a few years ago to
better educate the public along insurance
lines. At the same time we took steps
to try to prevent the enactment Of an
tagonistic laws-4that is such as would
not only increase expenses but increase
the fire waste also. TO this end [
called ii meeting of the local fire insur-
ance agents of the State in Raleigh dur
ing the month of October, 1898. Being
elected president Of this meeting it fell
TO my lot to deliver an address explain
ing the object of the meeting. In doing
so ! urged upon the agents the necessity
for organization directed and intel
ligent cooperation. | pointed out that
it was proper, and in fact necessary, for
them to form closer alliance among
themselves; to proclaim, enlarge and pre-
serve the fundamental principles under