The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1902-03-11


has issued an e6ict that % per cent.
a in insurance on all stocks of
goods shall be levied in this and other
southern states. and Immediately the
tax is laid upon US and no protest is
apparently made. Now why should
our merchants be thus impose upon-
for it is certainly in the nature OF an
imposition. IL there is no reason for il
n from statements made which we
submit below. it is apparently without
reason? Now what are the conditions
surrounding US? First, the legislature
Of this state passed q bill that was in
the interest of the insurance COM
panies, and was pleasing TO them, and
was gotten UP and put through by an
insurance agent.
1t was proclaimed as the best in
surance law in the country. and upon
its passage the companies voted a re-
duction OF rates. Our city has also in
augurated a paid fire department with
additional apparatus and machines TO
combat fire, and we were promised a
reduced rate for this compliance with
demands. According TO the statement
made by the Greensboro Fire Insur-
ance Companies, who refuse TO raise
rates, the insurance business in North
Carolina for the year 1S99-1900 has been
exceptionally good"-the loss ratio be-
ing only 421a per cent and the pre-
miums paid ON fire insurance policies
has been nearly two million dollars in
excess-or the exact amount is 81, $685.
1878. Now why should companies
who are realizing this handsome sum
from their business add to our burden
by an arbitrary increase Of twenty-five
per cent? True, the insurance COM
panies have lost heavily in recent fires
in the New England states. and it
would be manifestly proper to raise
the rates in that locality where they
have been lower, risk for risk, tina in
the south. But why should they milk
US in North Carolina to pay losses else
where when their business is this state
is profitable?
1 tai these figures from the state
ment made by the Greensboro COM
panies who. l suppose. obtain them
from the Insurance commission. AS 1
understand it. the present insurance
law prohibits our getting insurance
outside the state, and so. tied hand
and foot, must We sit quietly down and
sllmbit to a manifest Injustice? 1 ap-
pend some extracts from the statement
OF the Greensboro companies taken
from the News and Observer of 5th
instant.
Greensboro. N. c., March 6.-The
managers of the Greensboro fire insur-
ance companies have authorized the
following statement in reference to the
recent % per cent. advance in rates:
When the recent 25 per cent adj
vance in rates was ordered by the
Southeastern Tariff Association we
thought there would be nothing for us
to do but fall in line and exact the ad-
vanced rates. but after very careful
consideration. we have concluded to
adopt a different course.
1T will be membered that the pres
ent very efficient insurance law in
North Carolina was enacted in 1899,
and that during that year, in anticipa-
ton of the benefits which the insur-
ance companies expected to derive from
the investigation Of ~Incendiarv fires
ny Tie INSURANCE commissioner. as
provided for by law, a reduction in
rates on preferred risks was made in
North Carolina of about % per cent.
During the years 1899, 1900 and 1901
the fire record of North Carolina has
been exceptional, and the insurance
business in North Carolina has been
unusually profitable TO the insurance
companies. During the two years prior
to the enactment of our present insur-
ance laws, the companies received in
premiums from North Carolina 81. S46.-
1S9, and paid out in losses 81 0S. 419.
making an average loss ratio for the
two years of over 60 per cent. For the
of the office of insurance commission
er the companies received in premiums
81 500. 1874, and paid out in losses s1.071.-
S14, making a less ratio for the two
years of less than 43 per cent. or to he
more exact, the loss ratio for 1899 was
42h per cent, n for 1900 was
43 per cent The figures for the year
1901 have not been published as yet,
but all underwriters Will concede that.
while some companies have suffered
more than others. the rre record as a
whole for the lest year was, perhaps.
the most favorable in the history of
the business in North Carolina. and
will probably bring the ratio for the
three years down to less than 40 per
cent. Placing the average expense
EdllO DIT Do per CIT ~ OSddi ~
ance, the official records of North Car
olina show that the aggregate under
writing profit to he insurance cum
panIes from this state during the last
three years was 70 per cent. or Is per
cent. per annum We think We are
safe in saying that no section OF the
entire. country has shown a better fire
record than North Carolina in these
last three years under the new insur-
ance law, and hat not even the Pacific
Coast. which has been exempt from
the advance in rates on account OF its
low loss ratio. will show so good a
record.
such being the present status OF the
insurance business in North Carolina,
it seems TO US the height OF folly to
disturb it. II the state Of North Caro-
lima was entitled to a % per re-
ductfon in rates for having enacted a
wholesome insurance law, she Is en-
titled by every consideration Of right
and fairness TO be exempt from a %
per cent increase In rates, after the
great value of such legislation to the
insurance companies has been demon