The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-03-04
WHAT ARE NOT INCLUDED
No Increase on Cotton Warehouses,
Congresses or Cotton in Bales.
PRESENT RATE NOT A PERMANENT ONE
Mercantile Ri.ks Are Carried at a Loss Of e
Per Cent. and They Constitute 20 Per
Cent of the Fire Insurance
Business.

Commissioner of Insurance, James z.
Young, yesterday when asked by a
News and Observer man about the re-
cent general advance of twenty five per
cent in rates by the fire insurance COM
panies, said that it must be remembered
that only about one-half of Nhe risks
were affected by the new movement.
The principal hazards to which the new
premium rate applies, said Mr.. Young,
are the following:
Stocks of merchandise, frame store
buildings, tobacco, manufacturing plants,
such as saw mills. furniture factories,
grst mills and the like.
The risks that are not affected by the
new rates are brick mercantile buildings,
dwelling houses and contents. private
harms. stables and contents, churches,
school houses and colleges of all kinds,
court houses, and all State, county or
municipal buildings used as such, cotton
in bales wherever stored, naval stores,
bank buildings, office buildings, and
hospitals.
Mr. Young said that one significant
companies that do not belong % the
Southwestern Tariff Association arc
just as anxious for the advance in rates
as those in the association.
1T is generally agreed among under
writer's" said Mr.. Young. shat mcr-
camille risks are carried at loss of 20
per cent, and that they constitute at
least 90 per cent of the fire insurance
business of the country"
The new rate, Mr. Young explained,
is not permanent one, but was adopt
ed to continue in force until the re-
rating of property takes place and a new
schedule is arranged.
- Within the six months prior to De-
cember 81, 1901, the following compan-
les retired from business: Tuetonia, of
Philadelphia; Armenia, Citizens, Peo-
pies, of Pittsburg: Security, of Connec-
ticut; American, Eastern, MagdeburS,
Manhattan, Pacific, of New York; Euf-
falo American; Thuringia- American
United Fire of Baltimore; Virginia;
Michigan; Helvetia Swiss, Lancashire.
Lion; Magdeburg and North German, of
Germany, and transatlantic.
Those retiring since that date were:
Citizers', Erie, Eagle. of New York. and
Raloise.
Seventeen companies show a net I'M
derwriting loss for 1901 of $4,f53, 56i.
There are over one hundred large COM
panies engaged il a general agency bust
ness, of which those seventeen compan-
les represent an average experience.
A prominent insurance journal of New
Orleans sums up the question as fol-
lows.
"The action of the fire insurance COM
panies, at meeting of the chief officers
held in New York on the 18th. in pro-
Viding for an increase in rates on certain
classes of hazards in all States and ter
ritories in the United States east of the
Rocky Mountains, New York city alone
excepted was not only the wise thing to
do but the only course under existing
conditions left open to the
underwriters. For months losses have
been excessive as compared to premium
income, and on the heels Of this period
of wreck and ruin, millions and millions
of dollars have been lost in the Water
bury, Paterson, New York and other
great CONGREGATIONS. For weeks before
January /, many company managers
looked with hope to the new year for a
turn of the tide of disaster, and breathed
easier when the day came. But there
was no respite; on the contrary several
great confiagrations in rapid succession
soon set at rest the hope that any of
last wears losses might be made up out
Of this years returns, and also disposed
of the question of profits for most of the
companies for 1902 as well. Thus it be-
m of af-
fectively. and that is what the under
writer's have done. The reason why the
Pacific coast territory was not taxed t.
aid in lettering the general situation i.
that conditions out there have long beer
good from an underwriting standpoint
There are companies nave not been ham
pered by hostile laws, rates have beer
maintained, and the loss ratio has beer
kept down: in other words, the Pacifi'
coast territory as a whole is profitable
insured and insurer work in harmony ant
peace. and neither has cause for com
plant New York city was not included
for the reason that conditions there wer
so bad that a short while ago rates wer'
advanced to a profit-paying basis. Witt
these two exceptions, the increase il
rates will apply to all sections of tn
THE text of the resolution adopted b.
the representatives of the companies i
as follows:
That after considering the presen
condition of the country as affected b,
the large and numerous fire.; which hav
occurred during the past three years
rendering the business improbable an,
forcing the withdrawal of many com
panies, the hardships of the situatio,
being emphasized by the con:,agraton
Of the last few weeks, with nc prospec
of relief, they are of the unanimou
opinion that not only the GOOD of tn
companies, but the safety of the pub