The Somerset reporter. [volume] (Skowhegan, Me.) 1868-1909, 1906-08-02
Insurance Graft.

days OF the IVil war, ethe local insur-
ance rates have been more than doubled
Instead of reducing tue amount Of the
premiums 10 be paid, the putting III OF
plenty of water aud high pressure have
nearly multiplied the rates by three
For tome years back the men who
carried insurance on their properties III
Bangor, in eastern Maine and in all
parts of NJ allie have Ielt they were
paying too much for the protection
" hich the policies afforded hen the
question Was taken before the local In
surance agents they admitted that the
rates were exorbtant and harmful 10
the business, but as they were CON-
PEELED 10 act in accordance with the
rules laid down by the underwriters
association, there was no remedy. ex
cept 10 apply for redress To the iusur-
ance trust, " hich WAS in absolute con-
troll of more than IS per cent of the
fire insurance of the nation. Naturally,
protests against usurIous rates made
to the offices of the big companies, or
to the association OF underwriters
either received no attention at all, or
the injured parties were dosed to un-
truthful opiates to show how much the
expense of conducting insurance COM
panies amounted TO in the run of de-
cade
The thoughtful citizens who had
paid enormous premiums for year after
year, who had eonformed 10 expensive
regulations only to see the rates adj
vanced with every new outlay, have
been growing angry TOR months over
the impositions, though the open re
volt against the insurance sharks did
not break out until short time ago,
when an unoaled for rise of 20 per
cent on tex trah risks was announced,
though these same risks had been &C
cepted heretofore at regular ratee. Not
contented with augmenting the pre-
miums on special risks by 20 per cent
and driving many policy holders into
the mutual companies, the trust forth
with proceeded to impose still further
advance upon another class of risks
which they think are even more haz-
ardons than special. In short the COM
panies are piling mes burdens upon the
policy holders 80 fast that the time has
come when the parting of the ways has
been reached. The point has been at
tanned when it 10 cheaper to sell property
to the insurance companies than it is 10
continue to pay premiums, which are
advanced with every change of the
moon
Ones first thought would suggest
that whenever the stock companies of
the insurance trust became 80 exacting
as to make the insurance risk heavier
than the fire risk without any insur-
ance whatever, a change from the stock
companies To the mutual companies
would cause resumption of decency
and bring about an era of better feel
ing. But the change from stock com
panies to mutual companies cannot lie
effected all at once. The policies in
stock companies. run for five years on
an average Whenever property own
er gets accustomed TO dong business
with one agent, there are many per
sonal reasons for not being hasty in
making change Then, again, it is
not impossible for the mutual companies
to exercise certain forms of graft to
the harm of the policy. holders, as was
demonstrated in the Investigations in
the life insurance scandals last winter.
In small places the new method is to
organize local insurance companies on
the mutual plan, every policy-holder
giving mortgage on the property he
insur,s as guarantee that full pay
panies are springing up like mush-
rooms all over the country, and most
of their business il gained from former
patrons of the stock companies, who
have become disguised with the insur
ance trust, and made has to get OUT.
Another form of safety is for every
holder of property TO insure himself.
Many large mills and manufacturing
I'll nd
find large profits from the chan Q. By
applying water under high pressure to
all parts of the buildings and by equip
ping the plant with approved chemicals
and other fire apparatus. the owners
are saving money enough to pay for
new facto les every ten years
Meanwhile, sense of justice de-
mands that the stock companies which
have preyed upon the public so long
and with SO much profit to themselves
should receive thorough overhauling
in public, aud that congress should
step in and check the rampant injus-
tice by careful and stern enactment.
They are sending the officials of the
ice trust in Ohio To jail today for
committing a smaller crime than the
insurance trust is inacting with i'm
punity and has been practicing for
years. These are the days of investi-
cations After years of public and
private graft and robbery. the people
are coming to their own For the
first time IN more than decade the
poor man and the honest man have
chance to secure fair bearing. No
matter how much s-fiSh members of
congress may hold back and protest,
the President holds the whip above
them and compels them to choose be-
tween doing what is right and having
their records shown up before their
home people. No man who has any
hope for the future can stand out
against public opinion for so long The
congress which has lately adjourned
has made a shining record No matter
if the President did compel the men,
bers to act. the good has been accom-
plished, and will not be undone The
second session, which opens In Decem-
Der, promises to be as full of energy
late. If the nation has a legal right
to prescribe maximum rates for rail
road frelghts. it certainly holds An un.
doubted right to fix maximum insur-
ance rates.
A thorough investigation into mat
tiers of such great Importance as insur.
ance upon property has been delayed
too long. The sooner the President
and Congress calls the insurance trust
to a strict accounting the better 1t will
be for all honest citizens - Bangor NelCs.