INCREASE OF INSURANCE RATES.

Gisborne Times, Volume V, Issue 77, 6 April 1901, Page 3

INCREASE OF INSURANCE RATES.

DISCUSSED BY CHAMBER OF COMMERCE.

COMMITTEE APPOINTED TO COL

DECT INFORMATION,

A meeting of the Chamber of Commerce

was held on Thursday evening last to consider the question of the increase of insurance rates. Mr W. Morgan presided, and amongst those present were the following : Messrs J. Whinray A. F. Matthew, Little, James Rosie, Muir, Webb, Lunn, Townley, Robinson, Hennessey, W. Pettie, John Rosie, Ambridge. The President explained the object for which the meeting was called, which was chiefly the consideration of the proposed increase in the rates charged for insurance.

Mr Townlcy said that there was nothing definite before the meeting as to the intention of the Insurance Companies to increase the rates and what the increase would be. He was one of the agents for Gisborne, and so far he had received no information. The President said that he was not in a position to give any information on the question. Ido had seen several references to the subject in the papers. Mr Whinray considered that it was time steps were'taken to protest against the proposed increase, as there was not the slightest doubt it was coming. They should not sit quiet and tamely submit to it, but make a most emphatic protest. He considered that there was sufficient before the meeting to warrant them into the matter. "-''-4^:'’ MrPcttio thought they could fairly take it for granted that there was something in

Mr Wliinray said that the proposed increase was much more serious than when the matter was previously considered, as it was not intended upon the present occasion to make the increase universal. It was only to apply to the smaller towns throughout the colony. This he considered manifestly unfair. It was a back hand tap, and they should resent it with all the means in their power. Mr Matthews agreed with Mr Wliinray. He thought they should at once sot up a committee that would get all the information required, with a view of protesting against the proposed increase. The President said that ho was afraid hat there was not much interest taken in io movement—that was to judge by the

attendance at the mooting that ovoning. Mr Matthews moved : “ That tho President and .Messrs Whin ray and Townlcy bo a committee to collect information to lay before a meeting to bo hold that day week”

Tliis was seconded by Mr Hennessy. In speaking to the motion Mr Whim-ay made a forcible speech in opposition to the proposed increase in the rates. lie quoted lengthy extracts from the report of an interview tiiat a deputation had with Mr Ward some years back oil the question, and contended that if the insurance companies insisted on the increased rates the public would have to look round for other means of insuring their properties. lie thought that the proposed increase was iniquitous because it was only to apply to the smaller towns. They had been very free from fires in Gisborne since the

Borough Council had brought in the byelaw re buildings. If the insurance companies were going to bleed property holders in the way they were doing the latter would have to fall back upon the mutual fire insurance process. It was

quite within their power to form an association of this kind. He urged those present to take a very determined stand with regard to the matter of insurance, for if they did not they would bo bled more and

more. lie felt quite satisfied that a mutual municipal fire association could be easily arranged, and would moot the caso. They would have much less to pay, and the bonuses came to themselves instead of into the hands of the capitalists, lie thought that it would bo a great boon to the smaller towns if the municipal authorities had a good man appointed to see that people did not ovor-insurc. The principal cause of five was over insurance. If people carried a bigger risk themselves, there would be fewer fires. Ho was satisfied that it would, at any rate, tend largely to reduce the number of fires.

Mr Lunn said lie understood there had only been six or seven fires in Gisborne during the last four years, and the insurance losses had been very small. He quoted figures showing the profits which had been made by the insurance companies, and the prices that the shares stood at in the market. South British shares, LI paid up, wero at 775, the interest on investment being L 5 8s lOd ; last dividend paid 20 per cent.; last amount placed to reserve. L 13.934 ; total undivided profits, L 223,614. National of New Zealand : Paid up per share, 10s ; market price, 19s Od ; interest on investment,LG Bs2d; last dividend, 12-$-per cent; last amount placed to reserve, L 13,133 ; total undivided profits, L 128.814. New Zealand ; Paid up per share, 38s ; market price, GSs ; interest on investment, L 7 7s; last dividend paid,l24 per cent; last amount placed to reserve, L 40.422 ; total undivided profits, L 277.290. Standard : Paid up per share, 15s ; market price, 17s Gd ; interest 'on investment, LG 8s 7d ; last dividend paid, 74porcent; last amount placed to reserve, .£10,396 ; total undivided profits, L4G.698. Mr Whim-ay also cited cases of the tremendous profits the companies wero making. lie suggested that the names of Messrs Pottie and Ambridge should be added to the Committee. The President said that lie had intended getting information as to the number of fires in Gisborne during the last seven

years. Mr Lunn; I think Mr Townlcy’s fire was the largest. Mr Townloy: Perhaps the highest flame, but not the biggest fire. Mr Matthews : When we get *a water supply there will be still fewer fires. Mr Ambridge saw trouble with regard to getting the whole of the businesspeople unanimous on the question. They must necessarily tread on some one’s corns, as many of the business 'people were agents and made a good thing out of the companies they represented. He feared that it would be a difficult task to get the majority with them. He would be verypleased to do all lie could in assisting the committee in getting information dealing with the matter.

Mr Pcttio said that their groat object should bo to try and prevent a division of the different towns. The rates in Gisborne should be no more than in other places. They should endeavour to get other towus to join with them in protesting against the increase. If an increase was made it should be a general and failadjustment.

Referring to the small attendance at the meeting, Mr Whim-ay said that his experience of public affairs in Gisborne was that all these things wero left to a few. If anything was achieved the public were prepared to take advantage of it, and if nothing was obtained they were not inconvenienced.

Mr Matthews motion was carried, the members appointed to the committee being the President and Messrs Townley, Whinray, Pcttie and Ambridge.