Evening star., 1925-06-21
AUTO DEALERS HIT
ENFORCED EXPENSE
National Association Pro-
tests Compulsory Insurance
as Burden on Motorists.

Compulsory automobile insurance
which would place a burden Of $3.50.
oho,00o on the motorists OF the coun-
try in order TO award penalties OF
approximately s4O.OO0.OO0, the esti
mated total of uncompensated losses
from automobile accidents, is being
vigorously opposed by the National
Automobile Dealers Association.
No one deprecates the motor We
hicle toll more than we who are di-
rectly interested in their distribu
ton declared c. A. Nane, general
manager of the association, but
compulsory automobile insurance
presents no evidence to us that its
adoption would lessen this toll. On
the contrary. our opinion is stronger
than ever that it would increase the
recklessness and. in addition impose
an involuntary burden on millions OF
car owners, who are prudent and
careful for the sake of paving the
chances.
MAKE the Owner Pay"
There seems to be an inclination
on the part of some well meaning
persons to make the automobile
owner pay for everything, rightly or
wrongly, merely because he is an
automobile owner Because of that
attitude advocates of compulsory
automobile insurance have overlook
ed two important factors in their
recommendation that everybody be
required to take out liability in
Stlrance. These factors are embodied
in the query:
How many persons injured. or the
estates of those killed, are legally
entitled to damages" and
How many of those legally en-
titled 10 damages fail to recover be-
cause of financial irresponsibility of
the automobilist?'
by the insurance committee of the
Hoover conference on street :. and
highway safety. December 15-1e.
1924, disclosed the fact that only 33
per cent of the total accidents in
the country were due TO the sole
negligence of the motorists. In two
thirds of the cases, then, the injured
party would be barred from recovery
because of contributory negligence.
Further information was that
nearly half of the aforementioned
cases were due solely to the negli
gence of the injured party in which
no negligence at all attached to the
motorist. Sole actionable negligence
by the motorist does not exist eX-
cept in about one third of the cases.
How many of this number, who
are entitled to damages fail to re-
cover because of financial irresponsi-
bility of the motorist?"
Percentage of Recoyeries.
Information in our possession indi-
Gates that fully Is per cent of those
entitled to recover do so recover. In
other words, less than one. fourth of
those entitled to recover fail to get
damages. Based upon actuarial re-
ports as to the average amount of re-
covery, there will be about sc, ,0O0,-
900 of loss inflicted this year by motor
lists upon parties who are entitled to
recover damages. but who will not be-
cause of financial irresponsibility of
the motortst. With more than 1712- mil
lion motor vehicles in operation. com
pulsory automobile insurance would
impose a burden upon the motor-own-
ing public of nearly $3.50, ,000 900 at pres
ent rates. And 1t is not certain that
the business could be carried at pres
ent rates. Insurance companies are
seriously complaining because of the
inability to make a profit off the liza
bility department of their companies.
Total Excess of Insurance Burden.
With an insurance burden of $780,
900, 900 annually. a tax burden of an
additional $500, 200, 900 in licenses, ex-
cises, registration fees and gasoline
levies, the average motoriSt would be
paying in for something whose actual
existence he would not be conscious
of a sum equal to half the estimated
cost of gasoline and oil for the opera
ton of his car. The American public
cannot stand such a burden on its
transportati tion.
1T behooves every owner of mo-
tor vehicle and every member Of his
ia mily TO oppose vigorously the effort
TO saddle compulsory automobile in
surance upon him. And it behooves
every business man in any other line
of industry to oppose this conversion
of private capital which otherwise
might find its way into legitimate
trade cha annels."