FIRE INSURANCE.

Mount Ida Chronicle, Volume 26, Issue 1369, 17 January 1896, Page 2

FIRE INSURANCE.

The meeting called by MrGuffie, Mayor of Naaeby, of persons interested in fire insurance was held in the Town Hall on Friday evening, 10th inst., and was somewhat poorly attended. The Chairman explained rhat the object of the meeting, which had been called at the request of a considerable number of those interested iu the subject, was to take into consideration the existing charges for fire insurance, and, if thought necessary, to devise some means whereby rates should be taken at a lower scale. As they were all aware, there was a combination amongfire insurance companies to raise the tariff, which was so high in many cases as to be almost prohibitive. The rates in this locality had always been on a higher scale than in other parts, and he had not the least doubt in his mind but what some scheme would haie to he started for their protection. Some suggested a local company -md others a municipal company, but it was for the meeting'to say what form the scheme should take. After one or two of those present had expressed the opinion that something could be done locally, Mr Dawson moved—That this meeting is of opinion that the time has come when a Mutual Guarantee Insurance Society should be formed iu Naseby. and •hat His Worship the Mayor, Messrs Lundon, Wiisou, Jas. Mitcheil, J. R. Smith,, and the mover (with po.ver to add to their number) be a committee to draw up rules to this end.—Seconded by Mr Jones: Mr Wilson whs quite in accord with the proposition, but did not think it was possible for Naseby and district to support a company, as they would not have sufficient funds. He would like to support such a company it they were able, to carry it through He thought the meeting .:ught to express its feelings so far as the present combination went. The luvetoargill scheme was a very good one, and if it succeeded, as he hoped it wot'ld, they could joiu in it. He would move as an. amendment—That this meeting pledges itself to support any fire insurance company outside of the existing combination either local, colonial, or foreign—provided the rates be reasonable. Mr Mitche'l seconded the amendmeut. A lengthy discussion then ensued.

Mr \V. F. Iniler was of opinion that in a 'own like Nasehy where there was a plentiful water supply anil mi efficient lire brigade, they ought easily t«i form such a society, and in a very short time have sufficient funds. To show that this-was not a wild cat scheme he nee.) only mention that some of the large companies—the Union S.S. Co. for Instance—hud an insurance fund of their own, and had large sums standing to its credit. ■ It would have to be a condition that thos- who did not keep up the payments would forfeit ny benefits that might accrue. Mr (J lent) endorsed the iviikiiks of the last speaker, and also cited instances of large companies at Home which never insured, but made provision for losses by putting aside a fund. This question had been mooted more than 20 years ago, and if it had been carried out they would h*ve had a 1 t of niooey now. To hiti mind it would be the most valuable thing ever started in Naseby. The companies had hound them down for over 30 years, and though they paid large sums of money away, they hardly ever got anything back. Some of the companies paid as much as £BOO per year to some of their men, and their up-coantry clients were fleeced for it.

Mr Wilson said he would like to support a local scheme if he thought it practicable, but as there would be a considerable am unt of labour attached to formulating a scheme that would take in the district, and as he had moved an amendment, he would ask the the mover of tlio motion to withdraw his name and insert that of Mr Glenn, who apparently had no doubt of its success.

Mr -Mitchell would like to know it he wore insured for, say £7OO, ami his place got burnt down in a couple of u celts how was he U> replace his stock. He uonld be glad to support any scheme which guaraauteed the insurers, but that was where thu trouble came in. It would be right enough if there were no fires for three or four years and their funds got a chance to accumulate. Mr W. F. Inder ex laiucd that in that event each man would be responsible in proportion to the amount of his insurance. He also gave some details of the way in which fire insurance companies conducted their business, and undertook to say that every company doing business in this district had i credit balance to its local account.

Mr Hobi. F. Inder agn-ed that if they could get a sntlkietit number to juiu and once get things going, a local society would pay with careful management, but there were a good many dangers, especially for I he tirst few veins. He had received no instructions from 1 is company to be present, so that his remarks could be taken as coming from him in his privute capacity. In some cases the new lariff raised the premiums, and in nthC'S lowered them. The changes would eliect tiie goldtields m comparison to the tou-ns very slightly. In the towns the rales had been cut i idfculou.-ly low, and many of tin- eomimeips would have had to come down if they had not made an alteration. There were certainly some dangerous buildings in Naseby, but they wi.tild ihul that if a 'man had a decent house his premiums would not be very heavy. Mr Glenn said they wanted to benefit themselves instead of othi r.i.

Mr Wilson pointed „ui that the amendment was not -intagonihtic t > the motion, as ugreed to support a local, colonial, or foroicu otlice. 6

Gil the chairman taking the opinion of the meeting, the amendment was carried and the motion IoM. He thereupon f*id hj«

would have to arrive at the conclusion that the meeting pledged itself to support any company outside of the existing combination which would carry on the insurance business lit the same tariff <is existed at the present time.

As a number of those present did not seem f-atisSed with the decision arrived atj Mr Mitchell said that it was quite on the cards, idaeeordance with the resolution just passed, that a local company would- be supported if started, and Mr James Dawson .commenced a desultory conversation on the possibilities of formulating a practicable scheme by remarking that he did not see why their money should not put up a little palace in Naseby instead of helping to put up large buildings in the big towns. Mr Beeth promised to support auy local company that was started. He had intended to insure his stock-in-trade, but owing to the advance iu rates would not now do so.

Mr \V. F. Inder pointed out that if they formed a Mutual Guarau'.ee Scociety the process was very simple, merely requiriug a document, and to see what support those present were likely to afford such a scheme, moved—That a Local Fire Insurance Company be formed in Naseby. —Seconded by Mr Glenn.

. Mr Ginsberg thought the rates were excessive, but if the members of a lo'ial company had to guarantee each other it might turn out another Nenthorn.

Nothing definite was arrived at, and the meeting concluded with the usual vote to the ch^ir.