348 RESOURCES OF CALIFORNIA. 
the long run. The occasional losses are more than covered by 
the regular collection of the premiums. The amount of the 
premium is determined by the risk, and the risk is known from 
long observation to within a very small percentage. 
We have only two small assurance companies in California, 
and nearly all our assurance business is done by companies of 
the Eastern states and Europe, represented by agents here. 
These agents do a very large and profitable business, a busi- 
ness which ought to be done by companies organized in our 
own state. Not less than $600,000 are annually sent from 
this state for assurance premiums, and the total losses do not 
exceed $200,000, leaving a clear profit of $400,000, or sixty- 
six per cent. to the assurers. These figures are not extrava- 
gant estimates, made without a knowledge of the subject; if 
there be any error, they represent the profits less than they 
really are. Nearly all the policies, for which these $600,000 
of premium are obtained, are issued on property in San Fran- 
cisco, and the losses by fire in 1860 were $162,000, an unusually 
large amount, the average during the previous five years hay- 
ing been $105,000, or thereabouts. 
The average premium paid is about one and one-half per 
cent., the lowest being three-quarters of one per cent., and the 
highest three, or even four per cent., whereas one-quarter of 
one per cent. on an average would pay the losses. 
