THE PROPOSED COMPULSORY STATE INSURANCE.

New Zealand Herald, Volume XXXVIII, Issue 11713, 24 July 1901, Page 7

THE PROPOSED COMPULSORY STATE INSURANCE.

TO THE EDITOR. . Sir,— people " are only beginning to • awake to the very serious character or too • State Fire Insurance Bill. Such a bold ad--3 vance towards State socialism has never b 't : for©' been < attempted -in ; this : colony, where more socialistic experiments have been tried ' than in any other part of the British Empire. It introduces , novelties in legislation ana - social life of a dangerous and revolutionary J charaoter, by striking at legitimate vested ini terests and useful spheres of commerce. Witn- - out insurance against fire risks there would be a intense mental unrest, and great insecurity 1 against loss by fire. This measure 'is not fc the mere setting up of another rival company 1 like the Government Life Office, but it is a 3 direct and iniquitous design to supplant existing companies. People will be simply comc polled to insure in the State office, and the f other companies policies will be _ cancelled - within a few months of the inception of the J now office. Suoh a law, if passed, would probably . throw about 2000 insurance employees upon - the labour market, throttle private companies, J intimidate capitalists, check enterprise, and J expose property-owners and mortgagees to 1 risk and inconvenience. The Bill, moreover, carries the seeds of i death on its very face, because it violates the ) fundamental principle of average, on which ■ firo insurance is based. It is safe only over , a wide area on a very broad basis, and this , Bill contemplates only a small area and nar- . row base. To confine its operations to' a little ! place'like New Zealand, where most of « the I buildings are of wood of a highly-inflammable . nature, will bo disastrous; to extend its , operations beyond the colony will be imposi sible, because it would then have to compete > with other companies, who could , drive .it I back home to New Zealand, where alone it i could tax the people to pay its losses. ■ lam surprised that otherwise sensible men ' are gloating over this blow at private capital i and enterprise, simply because the companies , , have increased ' the premiums.. Let . them I' mind that another and yet another private i enterprise be not attacked, and that their . own capital be not next confiscated'without ; compensation. * Those who maliciously rei joico over this Bill surely cannot bo aware i of its disastrous provisions. The second part ' is positively alarming. <" ».'• , ' - At present we can insure where we like, ; and if one .office will not satisfy us another : may, but that freedom is to be taken from us.' Wo shall be deemed insured on a : . particular date if the- manager chooses to '. insure us at all. If he will not insuro us, wo must bear the anxiety and subsequent loss, if any. If ho does insure us' it must be for such an amount and at such a rate as he may dictate, and we shall have to pay it as wo pay rates. Insurers share the profits, if - any, and the colony bears the loss, if any.: To , extinguish private insurance companies,: which ovon friends of the Government publicly say this Bill aims at, would prove such - a blow to the trade and labour of this colony i as but very few can realise. If the Government really have the welfare of tho people at heart, could they not, with . much greater benefit to thom, and certainly with as much reason and justice, introduce a measure to cheapen sugar? For one person who insures property 10 persons use sugar, 1 and the sugar company is tho : only one in this colony I know of which > really enjoys a monopoly. Why should the State try to cheapen insurance and not try to cheapen sugar—a . necessary of life? Although I havo no insurance shares, and no more interest in one company than another, I, as a citizen, cannot allow my fellow colonists to rush over what I believe to be a terrible precipice without raising a note of warning. If the people do not make their voices board in Wellington, this Bill will become law, and then will begin an exodus from New Zealand such as will injurs it for many years.—l am, etc., , F. G. Ewington. — V. ' " - f TO TUB EDITOR. Sir,ln reference to a remark made at the Chamber of Commerce meeting, let me say that fire _insurance companies are just as much legitimate traders as is the Colonial Sugar Company or the soft goods warehousemen. The fire insurance companies have just as much right as Mr., Philson's sugar company or Air. Caldwell's firm to fix tiie minimum price they will take for the particular article they sell. Can Messrs. Philson and , Caldwell not see that, given a State Firo Insurance Department, then it will quickly follow that all other trailer will bo taken over by the Government?—l am, etc., . Commerce. _ TO THE EDITOR. " : Sir,l find from statements mr.de to mo to-day that my remarks at yesterday's meeting ot the Chamber of Commerce havo been misunderstood. There was no discussion on ; the State Insurance Bill, as a resolution' had just been passed that consideration of ilio Bill in question bo left over until the. oommitteo bring down their report. A few members present made some remarks, and I stated that as I was going South on Wednesday I would not be present when the subject was brought up, but that I thought it- would be better to call a general' meeting of the Chamber on such an important subject, as , members might wish to express their opinions for or against. My principal object was to get this Bill and any other Bills of importance discussed by a larger body than the' Council, many of whom are directly interested in insurance companies, so that any resolution passed by a limited council of such a composition would rather defeat than assist the object aimed at. When the insurance companies held a conference to raise the rate® I was requested, as president of the Chamber, by several members not belonging to the Council, to call a meeting to protest against any increase in rates. The Council mooting was called, and of the eight I think present six were directly connected with insurance companies, so that the discussion was necessarily a futile one.; I mention this to . show that in some instances the chairman of a , large body like the Chamber of Commerce has a somewhat difficult position' to hold, and subjects of very serious import would be on occasions better discussed by tho general body. I might just say briefly that while I, with; many others, think the raising of, the rates: unnecessary for reasons which I have already previously stated, I most emphatically object to this Bill as a direct.interference with . legitimate business, and.one likely to cause ' not only serious loss to those, who have bought shares for investment, but also con-, siderable alarm amongst all engaged in mercantile and manufacturing - pursuits, as the question may naturally be asked, Where will this class of legislation stop? Though condemning tho Bill, I still think the insurance companies have themselves to blame to | some extent bj increasing the rates, and I { have no doubt that if a statement came from • them that unless any unforeseen circumstance arose the rates would most likely be reduced as far as the North Island was concerned, we should probably hear no more of this Bill. Time will not permit of any further remarks.— I am, etc., - D. R. Caldwell. • >. -