STATE FIRE INSURANCE.

New Zealand Times, Volume XXVII, Issue 5603, 1 June 1905, Page 2

STATE FIRE INSURANCE.

(To the Editor “N.Z. Times.**) Sir,—l read with great interest your extract from the. "Sydney Morning Hoiv aid’* concerning State fire insurance and would like to aay a few words in defeno* of same. Mr Gates says" Supposing tfio State fire insurance was in existence today, to the exclusion of the and a huge fire broke out, what would be the consequences ?’* Now, 1 hold thatl this is a ridiculous suggestion, and thu attitude taken up by the companies show* mat, instead of going out of the New; Zealand business, they intend to useovery means to oust the State Fire Insurance Department. Suroly it must be profitable, or why do they want to keep it and oust the State concern?. They make no secret of their intention. X will give two instances of.their tactics* Firstly, they have reduced ail W, risks by 83$ per cent; secondly, I understand that they.have raised, or propose to raise, the rates on warehouses by something like 10 per cent. X believe that the State will not take these largo risks, as the other companies will not co-insure with them. I should imagine that the 10 per cent, increase on warehouses would more than counterbalance the 33& per' cent, reduction on W risks. To my mind thii action proves two facts; firstly, that the insurance business is profitable enough U, cause the principal manager* to rush to Wellington to devise a plan, whereby they may oust the State FireDepartment; secondly, that the Government is running this business bn sound business principles and is not going to do as . Norway did, namely, insure "aa libitum/* To my mind they have nofc got the slightest intention of doing ali the fire insurance business of the colony* and, moreover, the companies will take care that such an event does not' happen. Why do they continually harp on thia Norway business. I contend that the two cases are not parallel, but it is simply being used to scare people, and make them afraid to insure with, the StateWhat about the Government Life Insurance—has it failed? No; it is one of the soundest institutions in colony at the present time, and was not failure, predicted when it started? It has proved, that a State business can be conducted as cheaply and successfully as any private concern, if a capable man is at th« head of affairs; and I contend that we have a capable man at the head of affairs, as time will show. To sum the wholo matter up, it appear® to mo that the companies are trying to create a panic, by instancing the failure! of Norway, while at the same time they are taking advantage of the fact thala the Government will not do business on the same lines as Norway—to raise th* rates on warehouses by 10 per cent. If it is going to bo a fight between tho com/panics and the Stare, for mercy's sake let us hope that it will be fair one. Dufiiness men as a rule don't run down their opposition. Let them make their own case as good as they can, b.ut not by throwing mud at their neighbour. However, 1 feel confident that the public will see the matter in the right light, and support tho oflicA that has reduced tho rates, namely, the State Fire Depart" ment. If there are any profits, the insurers will get their share. Can tho companies say the same ?—I am, otc., A LOVER OF FAIR PLAY. May,24th.