The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-08-24

sidered is why the Home Fire, the bulk
of whose fire premiums comes from
Utah, and which certainly has or should
have the most desirable class Of fire
business. should have fire loss ratio
to premium income Of 40.a per cent for
the past five years, while that OF the
average Of all other companies doing
business in the state of Utah is less
than 81 per cent. 1t is true the Home
Fire is writing business outside Of Utah,
but it is not less true that the losses OF
the Home Fire would be less were Mr.
Grant as active in holding up his own
company as he is in his efforts to pre-
vent the organization of companies not
fostered by himself. Nor would he feel
moved to belittle his own offspring and
try to prove by reason of the ineffl-
cheney of its management that all per
sons are equally as volatile and uncer-
tain of action and incapable of making
money out of a business OF course, If
Mr.. Grant is the last word on insur-
ance matters, there is no argument; but
it should not be looked upon as sucri-
lege TO question the high opinion he
holds Of himself respecting insurance e
and many other subjects. 1t is regret.
table his years OF association in the
business should have done so little for
him that he can discuss the subject
neither authoritatively nor intelli'
gently.
In ancient times a gentleman built
what was known as the Ephision dome
the admiration of all and the envy
Of many One of the cnvious, admit
ting his ability to create so wonder
full thing, and desirous of having his
hame as enduringly written on the
scroll Of fame as that Of the author
of the dome, set fire to it, That gem
flaruap is ayiIanfl,y NOT ifhouf do
scendants in this age.
Insurance is based upon the mex
orable law Of averages. Being founded
on the law of averages, it follows there
are years when losses are heavy, sue
ceeded by years when they are low.
The result of a cycle Of years are what
count, and it is no moro just to cite
1906, when the San Francisco fire
occurred, as an exhibit of permanent
the losses are abnormally low as final
evidence of what can be relied on in
the insurance business. The records
demonstrate that failures of insurance
companies do not come from losses,
but from incompetent and indifferent
management which results in an ex~
cesslve expense ratio. Even in the
year of the unparalleled San Francisco
fire cataclysm the insurance companies
pdlu ulfluSHus. ne IldTlIOTQ, W
which Mr.. Grant directs special atten
tion as having been represented in his
office for thirty years, paid in divi-
dends in 1006-the year of the fire in
question-$437, 500, or over 90 por cent
on its capital, Mr.. Grant admits that
company lost over $5,000,000 that year,
yet it was able to pay dividend and
it sold $750,000 Of stock for $3.50, 900
or five for one. OF course, the peo
Pile who bought that stock did so be-
cause the business was recognized as
unpofitable. Of course Many per
sons would rejoice if they could sell
even at par their stock in a bank whose
surplus was wiped out by one loss,
without asking any premium thereon,
much less five for one.
Referring to the Guardian Fire ad-
vertisement, Mr.. Grant declares 1t con-
tains misleading statement wherein
it says that in 1910, 1911 and 1912 1t
paid $2.200,000 On an investment of
81, 100000. The Spectator company is
our authority for the statement that
the original capital was $150,000 We
quote from its statement directly to
the Agency company: "In the years
1858 to 1876 increases in capital were
made as follows: