The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-05-06

One Of the prominent fire insurance
agencies IN this city has sent to the
Post-Inselligencer ieafiet entitled
Profit % In Fire Underwriting" COM
piled and circulated by the IRE tnsur-
ance companies OF the United States to
convince their patrons that there . no
adequate remuneration in the business
In which they have invested their
money. In the note accompanying the
ieafiet our correspondents say: I'VE
sre sure you would not willingly give
q wrong impression regarding anything.
and have no wish to do the insurance
companies any injustice" This IL true.
and we VIII endeavor to review and
analyxe the figures presented In . spirit
Of fairness and candor
The table IL a compilation from the
sworn statements Of forty-seven Amsri-
can companies and twenty-five foreign
companies doing business In this coun-
try whose assets are more than q. 000.-
900 for the year 1898. The American COM
panies collected s7o.A2s.77s in premiums.
paid losses amounting to ~. 360. Isl, and
expenses TO the amount OF $27.754, 734.
the years business. The foreign COM
pan!es did better. netting 80 per cent.
proat for the year. The American COM
panies claim that 1t costs them 3s.4 per
cent Of gross premiums collected to do
business. while II costs the foreign COM
panies an outlay Of but 1874 per cent for
the same purpose. AS the Post-Intelli-
gencer has before remarked. IL does not
matter to the policy-holder whether the
premium he pays IL used TO provide tat
dividends for stockholders or pay fat
salaries to insurance officials so long az
either payment means excessive rates
to him.
The table proves exactly what we
have been charging; that the insurance
rates In this state are excessive. The
insurance companies claim that for the
year 1898 they made . profit Of hut 10
per cent. In 1897 their profits on busi-
sness in this state were SO per cent. over
and above their most extravagant esti-
mate of expenses. We have not the fg-
ures for 1888. but we know the COM
panies earned more that year than In
1897. It In poor consolation to the pco-
pie Of Washington TO he told that the
rates In New York or Pennsylvania are
so low that an excessive rate must be
charged In other places to make up the
deficiency, and that Washington hap
pens to be one Of the "other places"
Yet this Is practically what Is being
done.
Our correspondent says that: THE
panies In this state taken for a period
OF ten years. has been Improbable"
This includes the disastrous fires in Sc
attic and Spokane In 1889. Are the peo-
pie Of this state to be burdened with alb
normally high rates for all time to come
because Of a couple Of disastrous fires
ten years ago? The business Of the COM
panies in the state for a period Of Ave
years, or nine years. will show large
profits: yet whenever We ask for lower
rates we are told OF the amount lost I'm
the fire 81 1889
| The Post-Inteliigencer believes In all
fairness that the insurance rates In this
state. ana particularly In Seattle, are
higher than the conditions Justify. ana
hopes that the companies doing business
here win see IL To readjuss and modify
them as n measure OF Justice TO their
| patrons.