GOVERMENT FIRE INSURANCE

Taranaki Herald, Volume LIII, Issue 12863, 23 May 1905, Page 3

GOVERMENT FIRE INSURANCE

To the Editor.

Sir, — It seems to jme that the Go- \ eminent Fire Insurance is taking rather an unfair position in regard to bringing 1 pressure to boar upon all local bodies', which receive subsidies from the Government, and somo of the public, under the mistaken idea that tho (Government have brought down rates,, thin,k it is rig%t to withdraw insurances which 'havejbleen held by public companies for years. As a matter of fact very few people Avith anj' experience think that the present rates will continue, and what vis happening now is a trial of strength such as took place some fow years agr> between tho Union S.S. Company and tlvoi Huddart Parker Company, when a new company entered into the conipetition. For some time the first-class fares to Sydney were £1 10s, and both companies ran at a loss. The public idid not <.';ain in tho long run, for rates very rfuickly wore arrang-ad, and it is more iluin possible that but for those losses tho rate might have boon gradually and permanently reduced. Wo have had a long cycle of prosp*u-ity, and no doubt a considerable profit has been in ado, but we know that large fires are constantly occurring over the whole of "Nerw Zealand, as is always tho caso when a wave of depression sots in. and dividends will most certainly diminish in consequence. Sharelioldei*s put their money into companion a^ a nxattor of business, and when tho State interferes it always tends to ore ate- uneasiness, and this, in its turn^ loads to scarcity of Employment and periods of 'depression lasting touch Tonner than thoy Would oth©rwiso (Jo. In this town there are a good many shareholders and sub-agents of insurance companies, who all help to keep the place going, and who are not in any way answerable for the actions of the- companies thoy hold shares in or represent, and it is certainly 'hard on th«m to withdraw insurances tine! so to deprive thorn of a certain portion of their living-. Besides this*, it loads to reprisals upon tradesmen and others, and it hardly need bo wondered at if KiifFerers come to the conclusion that those "who support the 'Government Department in an unfair way should bo put on a black list. It ma 3' be said that this only moans a transference of business and the whole community is no worse off, but those who say this do not realise what a small community wo arc, and that a great deal of bad foelDn<r is en-gendered in tho process and no compensating g-ood done. On oienoral principles I prefer private ontorpri.se, and there is something- in t'lie old saying ''that tho d^il that one knows is often better than the deil that one does not know." T aim also not a lover of "Seddonism," which I look upon as a serious and very costly evil, and think that Government influence does not lead to a 'healthy atmosphere rf— l ami, etc., COMPANY SHAREHOLDER.