The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-06-02
FIRE INSURANCE ARGUMENTS.
Reasons why Rates in Savannah
should He Lowered.

Reasons why Rates in Savannah
should He Lowered.
Editor Morning News: Anent the
discussion now agitating the public
mind concerning excessive fire insur-
ance premiums, the argument may be
enlivened by putting some of these
fire underwriters in the witness box.
A state law requires insurance COM
panies doing business in Georgia to
submit sworn statements sent annual
ly to the controller.
1 hand you copies of some of these
and condense their operations as below
for the six months ending Dec. 81, 1902:
Phoenix Fire Insurance Company
Capital stock ................$2,0 900 900 90
Total income months. 1920 4S7 80
Total expenditures months 1,52O 1896 SIS
Net income ................. 400 091 "A
Agricultural Fire Insurance Com
pany-
Capital stock ..................$5 $500, 900 90
Total income months ...... $50 9S9 81
Total expenditures months. ASS, 1913 IS
Net income ACKNOWLEDGEMENTS. 162205 As
London and Liverpool Globe Insur-
ance Company
Capital stock ................$ 5000 900 90
Total income 6 months. ...... 100510 so
Total expenditures 6 months. 81 ,653 56
Net income months ...... 42S56 "a
National Fire Insurance Company
Capital stock ................s1,0 900 900 90
Total inSome months zee. 1888 1874 II
Total expenditures 6 months !, 791, S43 81
Net income months. .... 791, $40 "a
Commercial Union Assurance Com
pany, Limited
Amount capital stock paid
in ACKNOWLEDGEMENTS. 81 $50 900 90
Total income months. 400. !, 498, 1928 OF
Total expenditures months
..-..,...-... ................ 1,255,064 80
Net income months .. 243, 500 10
These five companies give the capt.
tai stock, gross earnings and total
gross expenditures for the six months
ending Dec. 81, 1902.
The first on the list shows a clear
profit of over 20 per cent. for six
months, the second 32.45 per cent. for
like period, the third 21.42h per cent for
the same length of time, the fourth
nearly so per cent. (79.134 per cent?
and the fifth 10 5-10 per cent. for that
time. These are fair samples of the
work of the average fire insurance
companies, and it seems very evident
they are riding on the crest of the
wave of prosperity. If these figures
show the work and profits of the lat
ter six months of the year 1902, it is
reasonable to conjecture that they
were as fortunate or prosperous the
preceding six months of the same
year.
About a year ago the leading papers
of the state protested the advance in
rates ordered by the Southeastern Tar
if Association, and condemned the act
as unw'aFranted. At that time your
correspondent made synopsis of the
sworn statement of some six COM
panies, and showed the rates to be UNI
reasonable, in a communication to the
Macon Telegraph. The article was
copied and the unreasonableness of
the advance was SO plainly manifest
ed that it stirred up the insurance
agencies to try to offset their own
figures.
An agency in Savannah challenged
the accuracy of the exhibit made in the
Telegraph and demanded the proofs
These were readily forthcoming in the
sworn statements made to the con-
troller, and irrefutable, consequently
the agency did not care to discuss
the subject any further.
The suggestion advanced at that
time is again placed before the public
Are not fire insurance companies pub
lie utilities? Are they not as much so
as transportation companies? Both are
for the public good, and both are Gre
ated to earn dividends on the capital
invested Now, if the one must be
and is held in check by the strong arm
of the law and not allowed to exer-
else its greed upon the public, should
not the other be as we'll controlled into
reasonable rates, as the other?
If the state can create and consti-
tutionally maintain a Railroad Com
mission whose powers regulate trans
portation rates in the interest of the
people, has not the state the same au-
4EnV ~ RI ell 70 for hn lion
of its citizens in the protection of their
property against inordinate and extor-
tionate rates of insurance corporations?
While the state law requires these
insurance companies to make sworn
exhibits TO the controller, it does not
give him or any officer or commits
sion the authority to regulate their
rates. The state requires monthly and
annual sworn statements of the rail
lines doing business within its limits,
and confers upon the Railroad Commits
sion the power to make and enforce
reasonable and just rates, thus secur-
ing the citizens against unjust or ex-
tortionate rates by the transportation
lines, and it seems a reasonable analo-
gy that the state could exercise its
authority in that protection of its citi-
Zens from rates as usuriouS or eXtor-
tionate as shown by the profits earned
by the exhibits made by the fire in
surance companies cited. The Mayor
has made a forcible protest against
present rates, Now, let him have the
city attorney carefully examine into
the power of the state to control the
fire insurance rates; then if that au-
thority lay with the state, urge the
Chatham delegates to press such Paw
through the coming session, and re-
lieve the citizens of these excessive
burdens.
The Standard Oil Company set per-
nicious standard in their excessive div !
idends and it looks as though the in
surance companies, envious of the greed
of the great oil monopoly, are trying
10 match them in their extravaeant |