The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-05-29

estimated / st;ios.os IT s2i,S36 900. TO meet
Which they have a net surplus oL ssvV y,
wv, mt, In addition thereto s ,:,nr,s
sou9lrees OF S57,oo0,No. IN o'1 IL .,n,,inr.
Only about one-sxth of their ioss.pa y, liz liz
resources : Will be needed to lio'i'a''
S1,tssoNs in FIRE RISK h,
X Aside from ihe financial cxigehcles Q.
tliia confiagsation, interest Is cehlere s
upon the lessons which It Affords rf y IT,
ing fire risks First and forenose3 - NJ
strlK,ng demonstration that ese,. ,,i u
l ny r. scientific methods OIL pu'u @.,e
anu IRE protection and preveh NV, ,,s
loonflagratfon hazard Is sun W., tY..,sn
u - possible for any city IN tne , vm,ern
mas g, been. Therefore, the neeu ., i.'.n
ciallY strong companies to 'hae'n a,..s.
mercantile interests against tn's cVcr
impending catastrophe is brousnt nome
With great emphasis,
Inc advocates of municlpal insuiansc
for private property must for LIE r oo ni nne
their diminished heads. rho s32,ooo,oW
borne by tho country and VIII repre-
sent the backbone of the city recon
situation fund. Without this wide con-
trlbution Bnltimore's ruin would nave
been almost complete. and It's rise from
me ashes rendered difficult IL NOT ,npo s,,
s s1 The Insurance money. whloh VII
be paid almost to d dollar, has made ~
unnecessary for Baltimore commercial
interests to call upon or accept financial
ald. The business interests OF inc coun-
Try, through tho premiums which they
nave been paying into fire insurance
companies, have been preparing the fund
l, tliis emergency, and have saved
themselves the necessity for contributions
IN large Jumps to aid their stricken EEL
y. 4 ~ II, a Of pt'
EFFECT ON INSURANCE SITUATION.
Tho Baltimore fire must inevitably
check tho downward tendency OF fire
insurance rates prevailing before the
event Indeed, there Is likely to be n
swing IN the other direction, and a gem
er9l Increase In tariffs throughout the
country. There will be tendency on
the part of companies to restrict their
lines. SO that there Ia likely to be a
scarcity In the Insurance supply nccen-
tuatcd by the rctircments from business.
Against this there will undoubtedly be
an Increase in demand for insurance,
interests throughout the coun-
try desiring to be more heavily protected,
IN View OF the possibilities to which they
realize they are exposed since the Balt-
moro disaster.
There will also be a tendency to thrust
aside many rate reforms, toward which
insurance interests were working. which
1t Is hoped will not be the result on
the contrary. tho responsible Insurance
interests OF the country should take adj
vantage of the opportunity to promote
q further equalization of rates, In favor
OF which there exists such n strong pub
lie opinion. The opportunity Is now at
hand for companies to get the higher
rates on mercantile risks which their
classified experience shows that they
should have At the same time, they
should not neglect the preferred rate
problem. 1t Is the same now as before,
an ever-present source of trouble
1t Is good time to face the diff
culties, bad time to neglect them The
companies will want higher rates In view
81 the Baltimore conflasration. They
should have them, and doubtless will
get them. At the same time let them
take look into the future and consider
whether it Is really wise to give this
question Of rate equalization even tenn
porary rest.
Fire Underwriting Profits and
Losses.
Tho operations Of sixty millionaire fire
insurance companies. that Is to say,
companies whiting an annual volume OF
premium of s1.0000Oo or moro In the
United States, in the ten years from
January !. 1893, to January l. 1903, nc
cording to detailed table published in the
Spectator, Of New York. last year. show
profit from underwriting In the ten year
period of l90Sl.125, or 1.69 per cent. on
the total premiums written, or in other
words. out OF each sloi OF premiums re-
ceved. there remained. after payment OF
the Losses incurred and the expenses OF
conducting tho business, only Sl.69 Of
profit. The insurance loss in the Balti-
more conflagration alone was an amount
nearly twice tho aggregate net underwrit-
ing Profit for ten years OF the sixty
greatest fire insurance companies doing
business In the United States. The Spec
tato: remarks that ALREADY this year
the profit Of many average years for the
fire insurance companies have been
wiped out. Fire insurance is peculiar in
that the best results for both buyer
and TELLER may be obtained by the closest
cooperation between them, 1t being to
the interest of both parties to reduce
fire losses to the minimum. the insured.
in consequence. being granted lower
premium rates and other concessions,
WhI'e the underwriters, evon though their
receipts are cut down, are placed upon
II fir.ner and more remunerative basis. 1t
Is time that business mon should realize
that he fire insurance system Is merely
q distributor of the blightng effect Of
fire losses. relieving the Immediate suf-
ferers and dividing the loss among all
who carry insurance.; but that all prop
erty destroyed is an actual loss to the
country at large, and cannot be re-
placed by insurance. 7 Is, therefore, in
their part toward combining the country's
annual fire waste within reasonable
bounds"
&