1903-4.] THE PRINCIPLES OF INSURANCE. 75 
it useful to question their gifts of foresight nor have I ever known a case 
in which that good fortune has been really lasting. 
Insuring companies naturally claim that the rates of premium current 
are too low, but the government tables of statistics scarcely bear out this 
contention. The summary for 1903, page xvii, which refers to Canadian 
companies alone, does indeed show that on the average of the four years, 
1900-03, they spent 63 per cent. of their premiums in paying losses and 33 
per cent. for expenses, leaving no margin for profit, still less for what may 
be called a conflagration reserve. If we wish for a longer average, we must 
include all companies doing business in Canada, for at the beginning of the 
period 1875-1903, the proportion of the total due to Canadian companies 
was small. ‘The official statistics show that during that period, which in- 
cluded one conflagration, the companies paid 68 per cent. for losses and 33 
per cent. for expenses, so that they had practically neither a profit nor a loss, 
for the interest on premiums received would equal the apparent deficiency of 
one percent. But what any business man will at once single out for remark 
is the large expense account. To reduce this should be the companies’ 
aim, rather than to increase rates, and perhaps, now that mergers are in the 
air, they may be applied to fire insurance. Without a radical change in 
methods there can be but a small chance for a saving in this item. I did 
once reduce the expense account of my company below 30 per cent. but 
found the volume of business began to suffer. If you have agents, they must 
live, but perhaps it may some day be made the practice for those who desire 
insurance to go to the offices, as they do to banks, when the proper time 
atrives, so that the work of the agencies may be lessened, and the way opened 
for consolidation in fewer hands.* 
The premiums received by companies doing business in Canada now 
approach twelve millions of dollars, thus divided :— 
Nimes Canadian compaities 6.0.16 5. ae $2,282,497 
Nineteen British FOR aE Re Uk ee 7,334,432 
Eight American PU USAR Ae Sgt 1,767,831 
$11,384,760 
* This used to be done a hundred years ago and we may have to revert to the practice:—The 
following, from *‘The Times” of 1804 relates to the old custom:— 
Phoenix Fire Office, Sept. 14, 1804. 
Persons whose Insurance Payments fall due at Michaelmas, are requested to take notice, that 
Printed Receipts are now ready at the Office in Lombard-street, and at the newly-erected Office at 
Charing-Cross; and with the several Agents of the Company in the Country. 
GENERAL RATES OF INSURANCE. 
Common Insurances.—For Sums not exceeding £3000.:—2s. per Cent. per annum. 
Hazardous Insurances.—For sums not exceeding £3000.—3s. per Cent. per annum. 
Double Hazardous Insurances.—For sums not exceeding £3000.—5s. per Cent. per annum. 
The Rate of Premium upon the Warehouses and Merchandize in the Isle of Dogs is reduced to 3s. 
per Cent. per annum. 
Insurances in America, the West Indies, and on the Continent of Europe, are effected upon terms 
correspondent with their several risks.. 
By an Act of Parliament which passed in the last Sessions, an additional Duty of Sixpence per 
£100 per annum, will take place on the 11th of October next. 
THOMAS WORSLEY, Sec. 
N.B. No charge will be made by this Office for Policies of Insurance upon sums of £300 or upwards. 
