The Wairarapa Daily. MONDAY SEPTEMBER 26, 1881.

Wairarapa Daily Times, Volume 3, Issue 883, 26 September 1881, Page 2

The Wairarapa Daily. MONDAY SEPTEMBER 26, 1881.

A year ago, owing to a little rivalry among insurance companies, the average rate of premiums full about 30 per cent., and insurers in Masterton saved about a thousand pounds by the reduction. In June last, however, the companies made a ring again and fell back on their former tariff Until some new company appears in tin; field, or one of the old ones breaks out of tlio "ring," high premiums are likely to prevail, and the money we saved last year will have this year, nolens volens, to be paid out. The scale of charges for Masterton has always been a high one, though, reduced by 30 per cent., it was one which might be borne. The question of how far we can help ourselves is worihyof consideration now that the maximum rates prevail. It is no use blinking the fact that the town of Masterton cannot very well bounce the insurance companies, because in a debtor ami creditor account will) tlicni for say tinlast five years the town has got the advantage. We believe that if a balance were struck for such a period the result would be as follows:--Masterton creditor by five years premiums, amounting say to £3OOO per annum, total ,£15.000; and JDsterton, debtor to insurance losses paid, at least £30,000. It does not, however, follow that because Masterton has gained on the companies up to the present date that it should for the future pay more than a reasonable rate of premium, We only draw attention to the state of the account in order to show the difficulty that faces us in dealing with the companies and the necessity of approaching them in a modest and conciliating manner. There are circumstances now in connection with fire risks at Masterton which tell considerably in favor of the town. In the first place, the building regulations are stricter than tliev formerly were; and in the second, we have an efficient Fire Brigade, which formerly did not exist. It would be well to submit these considerations in a business like way to the companies, and we do not see why the Borough Council as our representative liodv should not undertake the negotiation. In a small town like Masterton where no Chamber of Commerce exists, the Municipal Council may reasonably be expected to exercise its functions in a matter like the oik; under consideration. We have always been happy to recognise that the Borough Council lias never bound itself up in red tape in such a way that it could not discuss any public question, in which the interests of the burgesses are concerned. The Council might assist in bringing this particular question to some kind of an issue, and even if a public meeting on the subject were deemed necessary the prior ventilation of insurance rates round the Council table would be of great assistance, One remedy has be<?n suggested, viz., a Local Insurance Company, but we | believe that business men will agree with us, that the euro might be worse than the disease. The small capital that could bo raised locally might lie more than swamped by one large, fire, and the risk of such a contingency would be an unanswerable argument against such a project, The best course to pursue would be to open a negot ation with the Insurance Companies, and endeavor to show them that the rates now charged are in excess of the risks now incurred.