FIRE INSURANCE RATES.

Globe, Volume XXIV, Issue 2578, 12 July 1882, Page 3

FIRE INSURANCE RATES.

A public meeting convened by his Worship the Mayor, in answer to a requisition presented to him, was held last night at the Gaiety Theatre, to consider the present high rates of insurance. There was not a large attendance. His Worship the Mayor toot the chair, and briefly introduced the object of the meeting. He mentioned that it was stated that the rates were very much higher in Christchurch than elsewhere, but he thought that this was due to the fact that the other cities in the colony had an efficient water supply, whioh Christohurch had not. He then asked the meeting to hear all the speakers with fairness.

Mr T. O. Kelsey said that he was not a public speaker, but he was, as most of them were, a heavy payor of insurance rates. He therefore moved:—"That unless sub stantial guarantees be given by the associated companies that the rates now being charged for fire insurance will be at ocoe and permanently reduced, that insurers will bo placed upon an equal footing with the customers of these same companies in other places, this meeting pledges itself to give a hearty support to any well-considered scheme which may be|brought forward to place it Burarce business on a more satisfactory footing.” He had ascertained that the rates in Otago were not one-third as high as those in Christchurch. The requisition had been signed by persons representing over .£603,000 value of property. He wanted to call attention to the fact that he had been charged in Christchurch 32s 6i per cent , whilst in Dunedin the maximum rata was 12s per cent,, and in the same office. In Christchurch Messrs Sargood, Son and Bwen were paying in Chriitehuroh 17s 61 per cent., whilst in Dunedin the same firm paid Bs, whioh was the increased rate. In the ironmongery trade the store of Messrs Mason and Struthors paid 17s 61, and in Dunedin a similar risk cost only Ba. In the leather trade, Messrs Coombs, a brick building, paid 15s, and Messrs Heymanson, Low and Co, a similar business, 6s per cent. This was merely a glance at the differential rate between the two cities; While prepared to support colonial industry, be could not submit to those exorbitant charges. He was prepared to submit to a rate equal to 100 per cent, more than that paid in London on the same risk,'but not to pay 100 per cent, more than other portions of the oame colony. In Lyttelton and Timaru, where they had a water supply, the insurance companies had reduced the rate by 12J per cent., and they said that the reduction in Dunedin had been made because of the water supp ! y. Even allowing for the difference of a water supply, then even they should have a reduction on their rates by some 25 per cent., or one-third. All he wanted was what was fair and equitable. Mr Struchers seconded the resolution. He felt that the insurance rates were by far too high, but though the merchants had been battling for a long time with the insurance ring they had not succeeded. He might say that Mr Kelsey, in stating the cost of his insurance, had under valved it, as the majority of their insurances had been paid at 45 per cent,, whilst the warehouse of another firm in the same trade in Dunedin had paid 15s. The total coat of their insurances had been something like £3OO per annum, Tho build- . ing of his firm had been carried out under the special supervision <,f the insurance agents. He had been told by one of the insurance agents that if they got tho water supply a discount of from 12J to 15 per cent, would be given. Mr J. A. Morgan spoke to the resolution on tho subject of high rates on homeholds.

The resolution was then put by the Mayor, and carried unanimously.

His Worship read an apology from Mr S. Clarkson for non-attendance, and Biggeating a deputation to wait on the insurance offices and ask for a reduction of rates.

Mr Hobday, sen., proposed the nest resolution. He could not speak in public, but he would give them a few facts which would be a bitter pill for the insurance companies. He might say that the same amount of premium was charged in the country districts of Oiago, where no fire brigade existed, as in Christchurch, where they had an efficient fire brigade. Let him first compare the rates :—Dunedin, No. 1,14 r per cent.;

No. 2,37 s per cent.; No. 3,31 a per cent.; No. 4,42 s per cent. Canterbury, No. 1, 20« per cent.; No. 2,73 s per cent.; No. 3,55 s per cent. ; No. 4,80 s per cent. These figures showed that they in Christchurch were paying most excessive rates, and that the time had arrived when the public should put a stop to them, [Cheers.] Ho might aho point out that in Canterbury a firm, having a good risk, paid 20j, whilst in Auckland they paid, for a very much worse venture, 7s. The Theatre Eoyal, a well-built brisk structure, with every provision against fire, had to pay 120 s per cent. The losses for the year ended 31*t December, 1881, were, for Otago, £51,725; for Canterbury, £21,384, including the whole district and Timaru; whilst, for Auckland, the losses had been £40,852. Ho begged to move—“ That this meeting, representing as it does a very large amount ft 1 insured property in this city, protests against the action of the associated companies in having foi to long exacted rates of premium for

insurance against fire far in excess of those warranted bj the circumstances and charged by the same companies in other parts of New Zealand for corresponding risks.” [Oheers.J Mr B. Richardson seconded the resolution, and pointed out that the hotels were charged, as in the instance of Mr Ooker’e hotel, £1 per cent, more in Christchurch than in Dunedin. Mr O. Beatty mentioned that he had had to piy £4OO insurance per annum for two buildings, viz , the theatre and hotel. Mr O. Louisson thought they should not proceed to threats in their resolution, nor further the schemes of those who had made themselves prominent in this matter. Ho would move as an amendment—“ That a committee bo appointed to wait upon the agents of the insurance companies to confer with them on the subject of the rates of insurance, to report if necessary to the adjourned meeting. Such committee to consist of his Worship the Mayor, Messrs Kelsey, Richardson, Bishop, Pratt, Hobday, and Strutters.” [Cries of “No, no.”] Mr Pratt suggested that the amendment should be put as an independent resolution. Mr Hawkos seconded the amendment. Mr Kelsey thought that both resolution and amendment were such as could be put.

Mr MoVcy Baird said that all that was wanted was the insurance cotnpenies to treat them properly, and then there need be no new company. Mr H. B. Nathan supported the resolution. Mr Louisson said thot he would withdraw his amendment, and put it as a further resolution. MrH. E. Nathan then moved, as on amendment —“ That this meeting pledges itself to support any insurance company which will cot free of any ring, and have nothing to do with marine risks,” Mr J. Goodman seconded the amendment. The amendment was lost. Mr Hobday’s resolution was then put, and carried unanimously. Mr Louisson then moved hia resolution previously withdrawn, which was put and lost. The meeting closed with a thanks to the Mayor.