THE GLOBE. SATURDAY, JULY 1882. THE FIRE INSURANCE PREMIUMS.

Globe, Volume XXIV, Issue 2575, 8 July 1882, Page 2

THE GLOBE. SATURDAY, JULY THE FIRE INSURANCE PREMIUMS.

We are rejoicpd to notice that after a very long time, during which nearly every section of the organa of public opinion has had something to say on the subject, the citizens of Christchurch are at last bestirring themselves in the matter of reduction of fire insurance premiums. They have taken the course now which should have been taken months ago, and which, if then taken, would have resulted in a very appreciable reduction of premiums. Already recognising the necessity of trimming their sails to the breeze of popular opinion, the associated insurance companies announce their intention of making redactions. To what extent this concession will go we are unable to say, but it does seem very peculiar to ns that the first public announcement of a reduction should be made at the same meeting with an ad misericordiam appeal to the public as to the unprofitable nature of insurance business. If, as the Hon. J. T. Peacock wishes us to believe, these needy companies, barely existing under the pressure of small premiums and largo risks, can now only paj the most infinitesimal dividends, what will be their position when the revised rates are in force P Then beggary financially speaking, must stare them in the face. But we are not so foolish as to believe that gentlemen like the Hon. J. T. Peacock and others, keen business men, put,their money into a venture out of pure patriotism. That is what bur American cousins call a “little too thin,” and it would Lave been far better for the associated companies to have said to the citizens—“ Gentlemen, we have for years received from you under pressure premiums far higher than anywhere else. We have not paid large dividends, because that would hardly look well, but we have reserve funds largely disproportionate to the actual risk incurred. You have stood it like lambs for some time, but your eyes are now open. We make a virtue of necessity, and reduce our rates to what will give us a fair margin of profit.” That would have been the truth, and not like the statement of the Hon. Mr. Peacock, an attempt to throw dust in the eyes of the public. We feel sura that the citizens as a whole are quite prepared to pay a fair rate. They have no wish to hare offices J taking risks at prices which will not pay. But there is a great difference between this and the exorbitant rates demanded and received by the various offices in Christchurch. As to the total losses during the three years mentioned by Mr. Peaoocb, they do not count, because, as ha ingenuously tells us, they have all been recouped during the past year; thus at once, in another respect, disposing of the flimsy fallacy put forward as to the small profits of insurance business. We trust that the public will attend in great force at the public meeting on Tuesday next, and that the result will be the placing of fire insurance on a more equitable basis as regards the insured.