The Montgomery advertiser., 1903-01-16

were 54 1-2 per cent of the premiums. The cost Of conducting the business IS 10 per cent; To agSnIs. I0 Der cenL; to 0ouIne4 n maLageLs, speciaIs, e.c., lU per cent; taxes and licenses ana per cent home once expenses, leaving oniy aDouI I-z per cent pI oft to the companies. Statistics snow that in New Yorh, AIdssacnuseI.s B., Conhecucut ana IulnCIs, Tn wnlcn the average late ls y4 een.s Der hunured ool- lais, IneIr aVe.age JOSS IS ol per cent, while in Tennessee, GeoI gia, MIssisslp ppI ana klorioa tne aVeIage la.e Is S4.uO per SIUO, and the loss ratio o9 o-1U per cent. | has IS Tn great measure due 10 the uIf- ference in the construction or the pui4d- ings in the two secuons named.
 The spectator. an oncIaI insurance Journal, shows that Tor lSvl out of to,ai of ll9 fife insurance coInpanAes, only IL showed a pIotit from unuerwrl.ing, and that the total net loss 10 the llo com panies from fire was anout SlJOv0,UJO. The same companies, however, earned in in- terest, ren.s, etc., s9,0OUUOu, leaving a net JOSS of about Sl,uVO.0J0.
 You may ask, lh the face of the facts given, how some of the companies man age to build up laI ge amounts of surplus. The premiums are paid Tn advance. The capital as well as the premiums is loan
 
 in our large cities. The system of loan ing money on call enables the company or companies to keep their assets out at interest and at the same time enables them in case of necessity to get theIr money back within twenty-four hours.
 Some may ask, why not have home companies and keep the money paid for premiums at home? The experience of most companies in this State and espe- cially of our home companies answers this question.
 You frequently read of fire occurring and the loss being covered fully by in- surance. but is this not a'misnomer? Any commodity, however destroyed. reduces effects the people of eve:y section of our country.
 Reduce the hazard and the rates will be correspondingly reduced
 Ttere is in our opinion several reme- dies. The first and foremost, is to have a thoroughly competent person to in- spect all buildings and to allow no re- rairs or Improvements made without a thororgh investigation.
 The second would be the reduction of the license of $i00 now charged by our city to each company transacting business here. This charge is out of proportion to the puSilleSS IOne. The average income of companies here is not over s4.O00. hence the license is 10 per cent on the gross receipts, which is put of all relson.
 We do not think that the City Coun- ell would reduce the license, but they, or the Mayor. could se,ect one of the employees of the city who should fully post himself with the requirements of the Southeastern Cariff Association, and whose duty it shall be to inspect all DOT ttons of the city, but more especially the business portion. building by building. and block by block. with the view of ascer- tatning what chang-s can be made in order to get a lower rate; said official to make his report and notify the owner as well as the tenant that his report is on file. It is frequently the case that an expenditure of a small amount will SD improve the risk that the cost of insur- a@ce will be materially reduced Many owners would make changes as recom- mended vixen clearly shown to them that 1t is to their own as well as their tenants interest.
 . We would suggest that these recom- mendations be b. ought by the prop committee of this Association to the att tention of our Mayor and City Council, with the request that they take action upon same.
 Respectfully submitted,
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