Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1912-08-12


lights, and when buildings were Of
a much inferior class?
AS property values are based by
t. inves.h, largely from the incur
ance and tax rate of a city, the in
surance rates of Brownsville are of
vital Importance to every proper y
holder.
If the State Mutual can do a gem
eral insurance business in Texas
/ with an average loss rate of p per
cent, why should the people Of Tex
as be concerned over the so-called
Losses of the Foreign Sock Compan-
les doing business in Texas, moro
especially when the sworn state
ments of some of them show nearly
$50 per cen put to reserve and paid
out in dividends to stock holders in
their 1911 statement.
The following is an extract from
a circular letter sent from Wa hing
ton, d. c., by the First National
Firse Insurance Company of Wash
ington, d. c.: THE twenty-w o
American Fire Insurance Compan-
les, capitalized at one million dol
lars, or more, increased their assets
$64,7O3,64O.OO in three years-from
1907 to 191O-and, during the same
period, also paid their stockholders
S19,333,060.00 in cash dividends.
Their average net earnings 10 stock
holders, in 1910 were 40 and $40
per cent, and in 1911, Al and 2-10
per cent"
1t will be readily seen that the
above twenty-five companies in
creased their assets and paid out in
C,.vidends, in the three years, $S4,-
l%O36.74O.00. Does this sound like
losing money? What line of bust
ness pays better?
Many people ask my opinion as TO
the remedy of the present unsatis-
factory fire insurance conditions eX-
listing in Texas. First would pro-
hibit all unincorporated, so-called
reciprocals; commonly known as
Wild Cats, from doing usiness in the
state. Second-I would give open
and free competition to all duly in
corporated companies, Mutual or
stock, and third, would pass laws
preventing any company from TAX
ing over-insurance rates-When
rates would soon adjust themselves
lin ,eeping with other states.
AS for what it is possible to &C
complish can be best understood by
studying what the Lumbermen's As
ISOLATION Of Houston, has done for
the lumber business, with the
Mutual Insurance company formed
among themselves. They cut the
rate of the Stock Companies in two.
some thirteen years ago, have main
tanned the same rate every since, ac-
cumulated a large surplus. and have
r. tuned to their policy holders an
.erage dividend of about 81 per
cen.
~ those who shy from Mutual
.~..-ance compare the lumber rate
IN rour own town with rates on
ether property.
Rates are controlled and dictated
IN u Middle States by their State
Mutual Conpanies and NOT by the
Forei.- stock Companies as is gen.
erall -u~nosed.
1t IS a well Known fact that insur-
ance and banking are closely allied
one to the other and are under the
same department of the state. Who
would support a bank organized in
London to run banks in Texas, con-
~ltrolled and operated by the same
chain of agents as are the Foreign
Stock Companies-and what would
the interest rate, of necessity, have
to be?
will be pleased to meet any one
interested, while in the city, and
may be seen at the Miller hotel.
| wish also to state that ". l..
Hollingsworth is our duly appointed
agent for Brownsville and vicinity.
He will have Office in the Stegman
building. or will call and see you if
you will address him Box 269 this
city.
The State Mutual did not defe2d
the suit mentioned in the Sentinel
article, because it was not interested
Had it been it would have surely de-
Tended its rights under its charter.
Does any one really think our state
would charter a company to do I'M
lawful business?
Very truly yours.
P. F. POORBAUGH.
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