Daily press. [volume] (Newport News, Va.) 1896-current, 1910-05-26

tens3ges in the insurance business, III
lsuring thousands of houses In man!
Idinefent places. the nature OF the rlsi
lis changed and, by past experience
The individual or company is abe C
les,ima,e fairly accurately what his OF
Its losses during given period VII
be. The losses will vary to some ex
tent from year to year. but the aver
age can be calculated, in spite OF such
disasters rs the Chicago, Baltimore
ard san Francisco fires, upon when
the Insurance men delight in dwelling
With the calculation of probable
losses reduced 10 a science, the III
surance company is IN a position 10
fix its sates so thai its loading" fhe
amount collected in excess of the
probable Losses, will cover operating
expenses, pay substantial dividends
10 the stockholders and leave some
thing besides to be added to the sur
plus for protection against extraor-
binary losses.
by eliminating competition in the
matter OF rates, the companies have
been able to make this loading
what they chose, and 1t has grown
to tremendous proportions. With Tow
rates no longer factor i'll the secur-
ing of business. the companies can
put the burden OF extrayagant man
agement upon the public, so these
exists practically no incentive to
economy. And, us there is no COM
petition as to rates. the companies
have to rely upon the enterprise Of
their agents for business, and this
Is given as the excuse for the exces-
sive commissions paid to the com
panies' representatives Newport
News agents are said to be the poor
est paid of any set of insurance writ
ers in the country.
During the year ending Jan&ary /,
1909, 596 insurance companies 1924
stock and 272 mutuall doing business
in the United States. collected in cash
premiums S312,906, 129, and had totii
cash income of s339,077. 557 These
paid in losses during the
year sl67.24O,l46 They paid in divi-
dends. on sS4,7o4.959 in capital stock,
s2S,6l2,S7O. Expenses other than
losses and dividends reached the
sum of 1,524,sS9, or
more than one-third Of
the total amount collected in pre-
mirms, bringing the total disburse-
ments up to s307. ,705.
Thus 1t ID. appears that these COM
panies doing all the insurance busi-
ness of the country. except what is
done by some small mutuals OF local
character, paid something over SO per
cent In dividends upon their capital
stock: used more than onethird of
their gross receipts in operating ex-
penses, and still bad $3l.699.S72 to
add to the aggregate surplus. OF the
1912. 90e,129 collected from the insur-
ing public. only 1867 ,240,146 was paid
back in losses.
These figures tell a story of oxtor-
ton and extravaganza. and 1908 no
doubt is fair sample insurance busl-
ness year.
In~rance companies can be COM
PEELED to fix equitable rates by en-
forcing the law against conspiracies.
Then. IL competitions threatens 10
put rates below the point of safety,
the companies can go to the leyksla-
lures with an appeal for State reguia'
ton Of rates.
Newport News. burdened beyond
the limit always and finally dubbed
with ten percent addition to rates
already excessive because the Trust
resented the action Of the city coun
Gil in imposing a license tax upon
1 percentage basis, has rebclled. Com
mcBwcslth's Attorney Berkeley Is
prosecuting the officers of the South
eastern Underwriters Association
which controls FIRE insurance rates II
; the States. with ore OF two excep
tons. south Of the Potomac and cas-
iof the Mississippi. on the charge o.
unlawfully conspiring to control in
L. a. L. Il IL. n.