The Somerset reporter. [volume] (Skowhegan, Me.) 1868-1909, 1906-07-12
For County Treasusr:
E. P. DYER of Hartland.
Is the Burden Ours.


1t seems that the New England In
surance Exchange has advanced the In
surance rate on property in the thickly
built up portion of Skowhegan and that
this underwriting merger and its asso
ciates have already raised or will soon
advance the rates in most communities
throughout the United States. The
reason given is, in brief, that the big
losses of recent years have threatened
the security of the companies and that
they have made far less than would
satisfy them to continue the business.
We do not understand them to claim
that the losses in the smaller cities and
towns have been such as to lead, of
themselves, 10 the present undesirable
condition of the fire insurance business,
or that the risks in places the size of
Skowhegan, taken apart from the big
seems that the millions that have gone
up in smoke in the four great conf n
grations of Boston, Chicago, Baltimore
and San Francisco have wiped out sur
plus and profits accumulated from bust
ness in these cities and in the smaller
places as well. Now there is no
question but what premiums collected
by the companies must be large enough
to pay losses, cost of business, profits
etc, and to maintain surplus, but we
fail to see the justice of taxing Skowhe
gan and similar communities, pay for
losses in the big cities or to provide
surplus for an emergency which never
has arisen and never can arise from
losses in the smaller cities and towns of
the country.
There is about as much logic in
assessing an extra 20 cents per hundred
for insurance on the citizens of Skowhe.
gan, for the purpose of paying the ex-
traorinary losses which have occurred in
the big cities mentioned and to provide
for other similar emergencies, as there
would be for levying an extra Tax in Pat
agonia for the benefit of these same fire
swept and fire threatened communities.
Ne have no doubt the New England
Insurance Exchange would willingly
assess the Patagonians to pay up for the
big city CONGREGATIONS, were they able to
DO 3d. but their power does not extend
that far, while Skowhegan, unhappi-
", c IN do little but protest. 1t is dis
heartening enough in any event to oon-
hder that, of the total amount paid to
the companies in premiums, only about
half is available for paying losses. and
when we also feel that we are being
assessed to provide against the hazard
incident to only few of the great cities
OF the country. we certainly rebel.
The hope held out that by following
recommendations which will soon be
submitted we may secure the old rates
oners very little consolation. We have
added waterworks, built a new engine
house and improved our fire department
and all the while have witnessed a per.
sstant advance In rates of insurance.
IL such projected improvements are
ever submitted we feel almost sure we
shsll lind them out of the question for
town of this size or in some manner
imperative so far as any reductions In
rates is concerned.
II may be remarked that steam rail-
way property is not reached by this ad-
vance and that for the most part electric
railway, electric lighting and manu-
'acturing property is exempt from the
additional burden. A local insurance