| Show BIG HIe PROFITS IN IX INSURANCE CE Spokane Spokesman Review All au nu- nu substantiate tho the fact that the thc Insurance business ss of the United States State has lon long been heen Immensely profitable Just how profitable nothing short o oa of ofa a It thorough official Investigation would disclose Practically all available a data are arc based upon statements made b by bythe bythe the lire fire Insurance companies am and ever every business man I knows how many main devices de there are among amons lal largo lam Q corporations corpor allons for concealing their true condition condition con con- front from rom the public This is especially lall easy emy with close corporations as many of these Insurance companies are Ono One favored fa device Is to water the stock Thus a company starting with I originally may Increase Its capital stock from time to time and thus hold down doun its is apparent show of great greal profits Another plan Is to vote ote gigantic salaries to the officers and directors But Bu notwithstanding nil all al this It I Is shown by tho the companies' companies reports that they earned In the fhe United States a general average In 1903 of oC nearly 13 per cent on their capital stock and in 1 1901 0 t of nearly II li per cen cent t. t 0 Of f course courso all al the companies did not make profits alke alike Some made 50 60 CO GO and ant even per cent according to their own showInGs showings show show- ings lags while others made less les but tho the general average was around 13 per percent percent cent cent If I there Is another business beneath beneath beneath be be- neath the thc sun that can curt make such a showing of profits It i has yet to bo Lo dis covered While the lIre fire Insurance companies were distributing these rich dividends to their stockholders they were cre also amassing from fm the premiums paid by bythe bythe bythe the policy holders of the tire country a large huge surplus to lo stand as is a n safeguard against extraordinary y losses loses Now that these surpluses have been heavily healy Invaded invaded In- In b by the San Francisco losses they hey want tho the properly interests of the he country to roll up a new stew surplus To o that thal end they are ato advancing Insurance insurance in- in rates 25 per pei cent over the high rates they have long been col- col That demand demand If persisted In In wi vill vilI lead to a vigorous government inquiry in- in ulry into the fire insurance business of f the he countr country We re e shall then learn a n great deal more lore than Is now known about the salaries that arc are paid to high officials of f these companies their methods for watering their stocks as occasion re- re ires and about bout their heir profits and management |
