The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1913-08-19
HOWFIRE ]NSURANCERATESMAY
BE REDUCED IN NORTH
BY NLEX. j.. FIELD.

investigated by an Impartial lFlpundi
with time and power 70 secure cyl
dence necessary to establish the truth.
They may say that the rates and con-
ditions imposed on this state are nee
essary. That is always Tyrant plea,
and all trusts take II.
The Remedy.
In considering the remedy the pecu-
liar conditions and advantages IN
North Carolina must be taken into
account. In the business of fire in
surance things are possible here.
which might not be in other States.
There are three ways to reduce the
cost OF insurance, but each requires
legislative action.
First, by State which ls
entirely feasible and favored by some.
But it is hardly necessary to discuss
this remedy. because the people are
not yet sufficiently informed to con
slider it seriously. 1t may come in
the future. but hardly yet.
Second. by State control of rates,
which should include the power to fix
fair and just rates. This is thorough
ly practical md is being resOrted to
by some States By ali means this
remedy should be resorted to as soon
as possible. The fixing Of insurance
is an easy problem compared with the
fixing of railroad rates, and yet we
- 49,
intrastate railroad rates.
Third, the rate may be reduced by
the creation of a healthy competition
under proper State control. A great
many States have passed laws against
the insurance trust to the end that
competition may be restored. and this
State should. as soon as possible, make
it unlawful for companies doing bust
ness here to cOnSpire to fix or in
crease the cost Of insurance.
Mutual Fire Insurance.
But probably the best and most eff
fectve competition is furnished by
mutual companies, which furnish in
surance at cost.
When our cotton mills discovered
that their New England competitors
were getting their insurance in mu-
tual companies at An extremely low
rate, n that IL laws were so franz
ed hat the mutuals could not afford
to do business here, a number OF the
leading manufacturers went to Raj
eigh for the purpose of laying the
matter before the legislature and de-
handing relief. This so frightened
the stock companies that they came to
terms and granted the mills and fac
|, tories Of this State satisfactory rates.
What the mill men did for the cot
: ton mills and other factories. you, by
a determined and concerted effort
through your association. can do fol
the cities and towns Of the State. And
it is we'll worth your while to un-
dertake it.
I The extent to which mutual insur.
ance is being resorted to will be g
S surprise to many. The associated
factory mutuals of New England are
: now carrying s2,51O.oo0,O 900 of thi!
S insurance. One company alone, thu
n Boston Manufacturers Mutual, is car
rying over 1876, 600, 900, or NOR.
n than the entire insurance business O
Q North Carolina; and it has gotten tn,
cost down as low as i6.1 cents on tn,
l.. $1,000. The rate on the Governor
e Mansion in Raleigh is over 500 pc
cent higher than that. If a cotto,
mill with all its machinery. laborers
IS grease and lint can be insured for 4
e cents. is it not time for somebody t
II find a way to insure the Governor
" Mansion for less than $500?
&c But they will tell you tina tn
is mills have to be properly fixed to &c
IS these low rates. Suppose they do
q Are we not properly fixing our cite
and towns as fast as we can? An
le when we do get them properly fixeC
20 do We get a corresponding reductio
'r in rates? By no means. Some Q
l. gu gentlemen represent cities an
re towns which have spent large sum
a to reduce the danger Of fire. HO'
III HluCu rover are the rates tnan the
n were before these expenditure wei
Of made? The city Of Raleigh has RI
Gently spent 100000 in improved fir
equipment and increased the cost {
r its fire department about $4,000
OF year. and yet the Governors Mar
A sion is still 500 uper cent higher tina
We a cotton mill in a mutual company
to and instead OF reducing rates the
IS. have been advanced some times Z
'ir much as so per cent. The Different
We is that those in charge OF mutual il
re surance try to make the cost as 10
he as possible, while those in charge
ed stock insurance try to make it
to high as possible. The insurance tru
fears nothing SO much as mutual il
ce s~uraance.
4 Solution Of the ROLLER
,st You can go before the legisiatu,
O. and secure the passage OF q We,
20. simple law which will provide amp
or mutual competition and absolute
solve this problem for North Car,
ne lima Won will no fnld that tho Ia