The Montgomery advertiser., 1908-01-15
Insurance Companies Re
 trench in Suburbs.
CANCEL POLICIES ON BARS
Movement of Withdrawal Due to Prohibition.
Action of AnnuIIing Tnsurance- is In- dividuaI But GenerAl. Though Some Companies stiIi In-
 sure Liauor Houses.

Without concerted effort by under writers of fire risks, insurance com- panies. 1t is now recognized are be- ginning to withdraw their policies for saloons. It is known that the move ment is by agents of individual com panies, and In several cases where risks have been cancelled new policies have been taken out from other un- derwriters.
 But the general result is diminu- tion of the number and the sum of the policies. Some companies have order ed cancellations of the risks. others have forbidden renewal of expiring poll icies. It is said that one agency has within. few day cancelled more than fifty policies on suburban saloon risks.
 The cause of the retrenchment is said to be duplex; first. the passage of a law prohibiting the sale of H. quors In the State has enhanced what is known as a want of moral hazard; and, second, the physical hazard has been increased by the enforcement of the o'clock closing law which some insurance men believe will be- come seductive of drinkers to commit crime In order. to obtain liquid satis- faction.
 Recent fires in the suburbs are re- garded as a factor in the determina- ton of the insurance compaMes to withdraw their protection from liquor houses without the fire districts of the city. and more than one company has determined no longer to underwrite risk on any house in which stock of 1iquors is offered for sald
 The rumor that the insurance com- panies might withdraw their business has been rife for the last two days. At first 1t was so general. and so lack ing of substantial basis. that the ver- bal fabric was regarded as sort of unpleasant and uninhabitabie castle in the air. But a confirmation of the re- port was given to The Advertiser yes- terday.
 "The companies are not suspicious of individuals" said approminent agent yesterday. "and the policy of the with drawal of the insurance on suburban saloon risks is altogether a general business method Many companies have always looked with-disfavor upon suburban store risks of any kind, and at present the feeling Is intensined. Our agency has a great many risks. and had a great many more; in not sin- gle instance did we lack confidence m the holder. of the policy. The orders are general and will ahect other cities than Montgomery.
 ssYet from the business point or view the retrenchment Is deemed expedi- ent. Proprietors of saloons sn the sue burbs are supposed by some companies to he more liable to temptation to nal Yeasance because of the fact that the values of their properties have been lessened by the general prohibition law, In addition, the early closing of the saloons, with the effect that persons who are practically dependent from stimulants for comfort. if not for exist ance, are more apt to commit burglary and thus. whether by intention or neg feet. increase the frequency of fires.
 Recent fires in suburban saloons have tended to increase the aversion of the companies from taking care of the risks, Tn the fire limits few policies have been cancelled. and in practically every instance the risk has been rein s,trad. But 1t ia Q commercial policy and must in no way be regarded as an 1,fnbraRe of the honor of the persons from whom the insurance has been withdrawn"
 StIIl another prominent insurance man stressed the individuality of the makers of the movement. He said it was altogether an unconcerted com duet, and that the companies were not acting upon previous agreement, but merely in accordance with their opinion of expediency.
 In some cases where insurance has been cancelled, new policies have been made by companies other than those withdrawing from the specific field.
 Insurance men yesterday seemed to be pleased thoroughly with the beha- vior of the State Insurance Department k in the investigation of fires which it was suspected might have been caused