The San Francisco call., 1908-03-09
INSURANCE RATES
BURDEN BUSINESS
Companies Seem Intent to Re-
coup in Rapid Manner
Losses in Great Fire
Stands as Obstacle in RehabiIi.
tation of City's Building and
Commercial Life

Fire insurance companies are found,
In the final roundup and summary of
statistics reported by the underwriters
10 the insurance commissioner of Cali
fornia, to have taken in net premiums
in California last year the enormous sum
of $16.500, 900. The amount is greater
than that but the round figures give
a sufficient idea of the severe tax which
has been laid on all enterprises. all
building improvements and stocks of
goods by the seeming attempt of the
underwriters to recoup out of Califor-
MIA business for the San Francisco
losses of 1906 in the least possible
time.
Since the preceding exclusive sum
mary of this matter in The Call sew
eral large companies and a number
of small ones have made the reports
required by law of the business of
the fiscal year ending December |,
1907. Among the larger of the COM
panies in the matter of California busi-
ness for the year 1907, not previously
reported, are the Palatine, Scottish
Union and National, Commercial Union
Assurance of London and the North
British. These four companies took in
as net premiums more than 100000.
BY net premiums is meant the amount
that remained after deductions for
premiums returned had been made
The total figures are so much larger
than were expected by the public that
great interest is inevitably attached
10 the showing. It amounts at once to
an object lesson and a basis for COM
pretending the ma aguitude OF one of
the obstacles that stands in the way of
the rapid reha of San Fran
cisco's building and business. 1t has
been shown previously in this paper
that San Francisco's payment for fire
insurance last year amounted to be-
tween s5,o0o,00o and $4,000, 900, and very
much nearer the larger than the
smaller sum mentioned This city paid
more than 40 per cent of all the fire
insurance premiums in 1907 that were
collected in California, and that fact
shows the Importance to San Fran
cisco of a clear apprehension of all the
facts relating TO vital matter.
FACTS ARE SIGNIFICANT
The practically complete returns that
have been submitted to Insurance Com
missioner Wolf by less than 100 foreign
and American fire insurance companies
relating to their business in California
in 1907 furnish data for bringing out
a number of facts of extreme signif-
cance which were not available earlier.
According to a published report of
Commissioner Wolf the fire insurance
companies in California in the 20 years
fire losses in California 01,470,s393 SO
and received in premiums in the same
period the sum of S139.16635436. At
the end of the conflagraton OF 1906
California was thus to be credited with
the payment of within $63.000,0JU in
premiums of the entire losses paid for
the 20 years up to the end of 1906. The
exact difference. accepting the figures
of the insurance commissioner as cor
" Ior,c
it take the insurance companies at the
rate of payments 'exacted for insurance
last year TO make up the sum of $62,-
30i 1926?
Unoficially the losses actually in
CURED in California for 907 We're S3,-
27?,S1I. There are a few losses not re-
ported. but if these were added the
proportionate increase would not bring
the aggregate much above $4,000 IL
any. Therefore at the end of 1907, on
account of California fire losses, the
companies would not make up a show
ing of more than so, ,0O0, 900 behind on
the simple comparison of losses with
premiums received. emitting the pre-
miums received in 1907. When the
1907 premiums are considered, count
ing them at si6.500.0oo, it will be seen
that five years would make the pre-
miums received from California alone
equal to this outstanding fire loss above
receipts from the insured, and more.
TWO YEARS PREMIUMS
Taking in the premiums paid in the
year of San Francisco's great conf1a-
grafton, these premiums being net, 1t
will be seen that in two years Cali
fornians have been assessed for fire
insurance more than S30.000.000. This is
within a little more than 100000 of
the total losses paid by the companies
in this state in the 10 years beginning
in 1896 and ending with 1905.
Lest this statement, astonishing as
il is, should be disputed, the California
losses reported by the companies
and sworn to by their officers for the
10 years in question are given by to-
tails as follows:
1905 s3,s7s. OPS: 1904 SO. .ss6, 1874; 1903.
81. 49,. $50: 1902. 81, ,7s9. .633 1901. 81 6e4:
1900 81 455 343; 1899 81 933 $40; 1898, So, 554,-
RE; 1897 80, ,e37 .To4 1896. s2.645. 500.
In those 10 years-1S96-1905
losses of the entire coast amounted to
$50 0S095S so that those of California