No. 2. 



Fire Insurance. 



71 



Fire Insurance. 



This very important subject is beginninfr 

 to excite considerable attention. In a previ- 

 ous number we published an essay from one 

 of our valued correspondents, settinjj forth 

 the objects of associations making' tjood to 

 those concerned, the loss sustained by fire, 

 the cost of insurance, and urging; it upon those 

 who had nesjlocted this cheap precautionary 

 means, to avail themselves forthwith of the 

 privilege afforded them. We were not aware 

 until after the publication of that article that 

 60 many dwellin<;s and farm buildings, always 

 exposed to destruction by fire, were uninsured 

 in this region. We had the satisfaction, how- 

 ever, of knowing that the minds of some were 

 "stirred up," and that as a consequence a 

 number of buildings previously exposed are 

 now covered by insurance. 



Our present number contains two articles 

 on this subject, both of them from worthy and 

 highly intelligent correspondents. We think 

 the proposition to indemnify for loss by fire 

 by means of a county tax, liable to serious ob- 

 jections. It would render it imperative, and 

 not leave it where it now stands, optional with 

 property holders. It would deny the privilege 

 to those who saw fit to become their own in- 

 surers — and there are many such in this coun- 

 try. The plan of " Observer" is, perhaps, less 

 objectionable, as it is voluntary on the part 

 of tiiose constituting the neighborhood associ- 

 ation. We are of the opinion that insurance 

 effected according to the proposal of our cor- 

 respondent, (see second volume of Farmers' 

 Cabinet, pages 259-60,) is safe for both the 

 insured and the insurer. It certainly is 

 cheap enough ; and after the expenditure in 

 the outset for survey, &c., the only cost to 

 the insured is the annual interest of the amount 

 deposited, which deposit is simply the amount 

 of interest for one year on the sum insured. 

 Accordingly we find that any person, when 

 he retires from the association, may withdraw 

 his deposit, subject to a reduction of three per 

 cent, on the amount. A large portion of the 

 fire insurance companies of this country are 

 mutual, from which no dividends are made, 

 while those that make dividends make them 

 on the stock which has been subscribed and 

 paid in to constitute a fund to secure the in- 

 sured against loss under any circumstances, 

 and we are not apprized of any cases where 

 the dividends have exceeded a fair remune- 

 ration for the capital put in jeopardy. In New 

 York millions of capital have been sunk, and 

 60 in Charleston. In this city the first com- 

 pany instituted lost all. 



We think tliat " Observer" is rather severe 

 on the insurance companies. We dissent en- 

 tirely from his classification. We are as 

 much opposed as our esteemed correspondent 



to speculation and its attendant contaminat- 

 ing influences. We regard insurance com- 

 panies, when properly managed, and espe- 

 cially mutual associations, ns of great public 

 utility. They afl^ord to those who liave not 

 the ability to underwrite themselves, the op- 

 portunity of saving from loss at a small ex- 

 pense. There is, in our judgment, a great 

 and essential difference between these a-sso- 

 ciations and lotteries, and consequently be- 

 tween those who embark in each. The one 

 pays a fair equivalent to guard against loss — 

 the other mnkes his investment for the pur- 

 poses of gain. The one who insures his pro- 

 perty lias something to lose, while the man 

 who purchases a lottery ticket has, generally, 

 nothing, and takes that to which his wife, his 

 suffering children, or his creditors are enti- 

 tled. AH good men are for putting down lot- 

 teries as public nuisances, by which many are 

 led on 'to ruin — and yot we find the same 

 men, men of unimpeachable character and 

 purity of motive, uniting in sustaining in- 

 surance offices. 



Our correspondents do not differ, it will be 

 seen, as to the necessity of insurance, only as 

 to the detail. One contends that it is very 

 cheap, while the other insists that the rate 

 is too high. Now both are no doubt influ- 

 enced by a desire to promote the public good. 

 The correspondent, whose remarks elicited 

 the reply of" Observer," is not a stockholder 

 in any insurance company making a dividend 

 — he is not a speculator. On the contrary, 

 speculation is as repugnant to his sense of 

 moral propriety as it is to " Observer." Thus 

 much fjr our correspondents, and now one 

 word to farmers on the subject Get your 

 houses and barns forthwith insured. Your 

 minds will be more at rest from the mere 

 circumstance of having your property cover- 

 ed against loss. If you live in the neighbor- 

 hood of an association lose not a day in at- 

 tending to tliis matter — it is of great import- 

 ance. If there is no institution within your 

 reach, bestir yourselves, organize one forth- 

 with, either on the plan proposed by " Obser- 

 ver," or on that adopted by those mutual as- 

 sociations now existing. 



One individual who is methodical in his 

 business can, with ease, perform the work of 

 four men who set order and regularity at 

 defiance. 



Let no temptation of gain on the one hand, 

 or any embarrassment on the other, ever lead 

 you to swerve from the path of strict honesty 

 and integrity. 



The consideration which many purchase 

 by living beyond their income, and of course 

 living upon others, is not worth the trouble 

 it costs. 



