A PROMISING EXPERIMENT.

Star (Christchurch), Issue 8375, 22 July 1905, Page 4

A PROMISING EXPERIMENT.

The Government's latest announcement regarding the State Fire Insurance Department is eminently satisfactory. Mr Seddon states that the Department is making good and safe progress, and has had the effect for which it was created. The latter part of the statement is not news. Tho immediate effect of the Government's departure was to reduce the insurance [rates charged by the proprietary cbm.panies. The reduction was substantial, and there is good reason, to believe that will be permanent. But it is news, and particularly good news, that the operations of the Department are proving successful in other It is clear now that in embarking in the fire insurance business the Government made no mistake, and that its step is being appreciated by the public. The Government's action in establishing the Department has 'been, keenly criticised, but not more .bo than its decision calling upon State borrowers to insure in the Department. This decision has been condemned with 'all the virulence and vigour that the Conservative journals can summon. It has been held up as another example of the Government's utter obliviousness of the rights of private enterprise, and of its cruel determination to ruin both t-ne private money-lender and the private underwriter. In reality, the Government is following the example of most private mortgagees. The latter, perhaps, do not always insist openly on the borrower placing his insurances according to their wishes', but they generally contrive that the business shall go to the company to which they want it to go. There ia nothing immoral in this proceeding. There is, however, something supremely ridiculous in the contention of the Conservatives that it should be confined to private firms.