The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1902-05-13
INCREASE IN INSURANCE RATES.

The people of North Carolina we 1t to themselves not TO ac4NeSce IN the IN
creased fire insurance ate imposed BY the Southeastern Tariff Association but
I" make such protest against the arbitrary increase a ill be effective The
Official figures for 19oD, paid tut in premiums for fire insurance sa5o771o1o
During those three years al aggregate o p19182 was paid ot for losses,
leaving a cool W million dollars less expenses of profit to thu fire swance
companies The l@sb BY fire during 1901 was less than in my 0ne year since the
establishment of the Insurance department The ratio of loss went IS low as
40 whereas three years g it was 60 Last year for every dollar received by
ago in this State for every dollar paid IN 90 cents va pad out IN losses. md
yet in the face of this excellent record, Tho insurance rate N everything except
residences, churches n schoo houses,h has been arbitrarily increased BY the in
surance companies Is therein 10 remedy for this imposition?
When the arbitrary increase in raes was promulgated, the southern Stock Mu-
uala d Underwriters Of Greensboro wned by North Carolina business men,
statedt that they would not follow the increase being contented with tn very
comfortable profit which the North Carolina business is yielding. If reports are
rue the Southern Tarin Association virtually threatens the Southern Stock NJ
twl with a sweeping reduction the rate on preferred uSme ueS'eh0eS
schools NJ ch"nches) unless it follows the other companies in emandn the
disc, etc. the demand is that this distinctly North Carolina company increase its
rate or North caroline business men and manufacturer because they wish to
make NORTH Carolina pay in part the loses hey have sustained in New Jersey ND
other States. And there seems to be a purpose to enforce thisd demand by such
reduction on tn preferred business IS will injure the home company. There re-
centya appeared in the Nw FORK Journal Of commerce this.s Statement:
"A new "n schedule anune.f for dm wei Hns churches schools zom and public fo buildings buildings r is likely
a 1efef e'S Tea m5 s0h f is nnae o o% SH nt the, har rerise aa aehed hloe ~nb be a prep par%h
About one week later iaenieally the same statement appeared as a news item
in the Insurance GELD of louisville, KY, without my reference to the Journal Of
Commerce 1t would seen clear tht the information vas furnished the two pa
pes by the same party or parties. A careful examination o the wording of this
statement would indicate that it contains a covert threat. It is in keeping with
the strong pressure that has been brought to bear on the Southern Stock NJ
tual to r~eds from the position it has aiken with reference to the % per cent
advance in rTez- rha company is not domg business for fun. It is conducted
on business principles, am it would readily agree to increase. the rate if the North
"rohna business did not pa goodp profits at the I'D rate It's position is hat it
is unwilling to increase the rate on North Carolina people because companies do
assess North Carolina people to "a New Jersey losses We are greatly surprised
in the temper of the people of North Carolina if hey d not stand by the North
Carolina companie in thiss sensible position.
There are a few acts that ought to be understood with reference to te con
templahd fight on he Southern Stock Mutual:
First: That the rates IN preferred business in Nonhc Carolina are thirty
per cent rover IMAM IN any o'her southern state ua' the southern STOCK "-
tual was instrumental in bringing about this reduction m THAT my further re
and wouh be recognized as a hostile movement directed at the Southern Stock
Mutual OF account o. their refusal to charge the twenty-five per cent advance on
Second: This their refusal to exact he twenty five per cnt advance in North
Carolina has been in recogmtio OF North Cardinals magnificent fire record for
the last three years. No section of the entire country, n 10 State in the entire
Union, has yielded such satisfactory underwriting results as North Carolina dur
ig the last three years h loss ratio to the eompane having dropped during
that period from about sixty per cent to about forty per cent; that he Southern
Stock Mutual desno lot wan the Increase INC dos not need it, md hat they can
North Caroline he losses they have sustained in other States
nmpte1 by The souh- Eastern TaIr Assaaat "a f ro t - >1 1nm vn ~ nr - c at
increase as it is entitled to be, the rates OF erchandn ad special hazards
would then be twenty five per cent lower in North carolina than in any other
Southern State. and that mder such conditions foreign insurance omranie
might xpcct. and would get, at the hands of the North carolna public and
legislature the same liberal treatment which la characterized or insurance
legislation for years. nut that if hey step without TIL bounds Of estimate com
petition, and inaugurate a policy of oppression to our W people, and persist
in a course manifesty Inconsistent ad unwarranted ad unjust, the public
Carolina
In November. 1899, after North Carolina ORGANIZED an Insurance Department
risks in NorthC Carolina from 25 to 334 per cent, because THE State laws
provide for thu protection of companies ? "The sad " provide for official
INVESTIGATION Of III losses by fire; and sd. Their seems to be some abate-
met of fires What has occurre since November, 1899, to warrant al in
1919 "e ,y a"'"e de'"os showed the loss ruo TO De % per cent whereas
the records no show 40 per cent Northc Carolina hs the best record of any
ton expect the people of North Caoina to support heir mwarrantabe in
crease of rates. or to be silent when they make war OF home companies tina
refuse to exact eNordtant fire insur ance rates?
The people Of North Carolina will uphold the Southern Stock Mutual and the
Underwriters of Greensboro, both North Carolina ompanie in refusing to allow
organizato Of other State comnanies in North caronna 70 haa i'm ta eht
against al unreasonable, excessive n burdensome advance IN Ere insurance
rates. Every city in the State ought to organize a strong home company to carry
prto of it's insurance. Such action woul &c far towards preventing such ant
hary advance in the rates as has been recently imposed in North Carolina, as
well as to keep thousands of dollars at ONE that 10Y goes out of the State.
THE FRANCHISE A X
Judge Earle, referee to hom vas referred III matter Of the consttutionalty
Of the New York State franchise aw, has. rendered his decision, holding that the
uon s, an assessment of Of s12sssslsl '" S aaaea a to r pme farnns ap "'oner CORPORA nf fn
Estate The most valuable property that q street railway in a large city w