Show w A REPLY To Tot ic the A of Heber Heter J Granton Grant on tiTle the G Guardian ardian Fire Fire Insurance I Co Backed by tl the e Home e Fire 11 Insurance ce Co of oj Utah The Home Hom Fire Fire- FI o Incurance Company Compan of I Utah has made public Its opposition to toa toa a n. rival b by assaulting those undertaking to promote the Guardian Fire In Insurance urance company n To this end the Home Fire director discredit the earnings s of or their own company from tire premiums pr and ami seek seck to prevent competition II by stating that the fire insurance business Is not profitable profitable- and Is b becoming less profitable profitable profitable profit profit- able day clay by day The fhe excuse given cn for forthe the attack on the thc fire business 8 and anel on their own Inability to make the tho business s pay hay was the republication of an ad advertisement ad- ad which the Home Fire and Heber J. J Grant Company Compan had published pub Nil lI hed In the Deseret News This ad advertisement ad- ad admonished d citizens to buy huy their Insurance In the Home Fir FirO and so so keep mone money at home The Guardian Guar Guar- lien dian advertisement nd reproduced this be because because be- be cause cruise Heber leber J J. J Grant as president of ot both of the Hline Illine Fire Firo an and of J. J Grant Company had been secretly busying himself In n opposition to the formation for tor- mation matlon of oC the Guardian Fire Insurance company compan and had for a a. considerable time before the Guardian advertisement appeared made It his particular business bust busi ness flees to declare to Intending purchasers of the now new company's compans stock tock that the business was unsafe and unprofitable and that the promoters were not men after his own heart The natural reply to these secret utterances utterance was vas a reproduction of or his Home Fire advertisement Patriotic retiring and devoid old of self seeking as Mr Grant Is Js no one will vill credit him with advertising for Insurance so he can lose mane money for fOl himself and the Home Fire or Just so 50 he can keep monc money at home Is It to assume that somewhere there Is II a profit In the thc business for tor or Mr Ir Grant 1 Were It true truc that the Home Fire I I Is not making mono money then It I Is not unJust unjust un un- I just lust to presume that Mr Ir Grant Is keeping the tue Home Fire In a business that he says sas s 's s not profitable so o that Heber J. J Grant Company Compan can make Its handsome ome commissions as general agents for Cor the Home Fire Vcr Very nat- nat Ul Mr Grant does oes not want any tny rival In tho field 1011 which might reduce his commissions Evidently E it has not occurred to Mr Ir Grant that an increase In fire rates is possible but he has yet et to discuss this possibility with an any of the gentlemen he has endeavored ored to dissuade from participating participating participating par par- In the tho formation of another fire ire company compan as patriotic in its Us purpose p. p as ELS his own and which aIs also will strive to lo keep mone money at home homo Mr tr Grant makes the Home Borne Fire say a aVe We Ve can have no objection to the or or- of new local fire Insurance companies as as' we wc have alwa alway j stood for home homo Industry and the policy of keepIng keep keep- In lug Ing money at home Now Mr Grant has tAs visited practically ever every one of ot the gentlemen advertised as ns having consented con con- to become directors of the Guardian Guardian Guar Guar- dian llian Fire He has written letters to toman many man persons advising ad them against buying stock in the thc new company compan This work ork has been gratuitous on his part He has advIs d each person he has sc soon scon n I that tho they would lose their mone money He Helias has lias sot himself apart to protect the tho public from the machinations of those who are arc endeavoring to organize org th the new local tire fire company compan yet ct he lie says sas sasho ho can have no objection to such anuw a anew new nl local organization It will require more Ingenuity than Mr Grant has displayed dis dis- played In Iii this connection to reconcile his conduct with the tue statement In the Homo Home Fire advertisement ad If the insurance business Is unprofitable unprofitable unprofitable able and rates are not increased a presumption er very properly not considered considered considered consid consid- ered then time win will como come when all companies including the Home Fire will tall fall and those who ho have paid premiums pre pre- will not only lose their money but will also be unable to collect for lo losses ses sustained and for tor protection against which thc they paid their money moncy to the Home Homo Fire If the statement of want of ot profit In the business is true Mr Ir Grants Grant's attitude is similar to that of ot the bank banker r who takes deposits when he knows his bank Is going to fall fail On the other hand if It the payment of premiums means protection against lire fire losses lose and that Is what every person person per per- son Insuring In a reputable company compan knows kno Is true then the thc Insurance busIness business bus bus- iness mess must be profitable Mr Ir Grant may take either horn of the tho dilemma but jut he can protect his character for honesty only at the expense of hi his Intelligence in intelligence intelligence in- in or his Intelligence at the expense of ot his honest honesty The intimation that the Home Fire Is IB not making mone money on Its fire business business bustness busi bust ness fit lis disputed ted by the tho sworn state state- statements sta te- te ments ments' of ot that company compari for the past ten years These statements show that the the- Home Homo I Fire lre during the ten years ears ending December 31 1912 paid out for tor fire losses only onh of ot the money mone it received as fire premiums These sworn Statements also show how that It cost the cost the Home Fire tharin during the same period expenses expense The Tho paid out for losses and the paid out for tor a a. total I and expense outlay of ot on every overy dollar received for fire ire premiums and left what i IH is call called d an underwriting I profit of ot Now the Home Fire has over a a. million dollars In assets It costs coats money moncy to Invest invent these assets and protect them Loans have to be made commissions paid rents and Interests co collected tuxes taxes paid clerks clerk hired office of office ot- ot fice flee rent met these met these with lights heat telephone printing postage and every other Item of labor are all charged against the tho premium Income and these Items are part of or the expense Hence all tho the company's compans Inv invested sted million million million mil mil- lion dollars and Its Income from every source including losses from bad loans and arid investments In are e cared for tor and paid for out of the mane money collected colleted In for tor fire ire premiums No o bank has such an advantage Is IB it an any wonder therefore thore- thore fore tore that Insurance investments are I profitable Or that the tho Horne Homo Fire makes so much mane money out of ot its In Investments investments In- In vestments when whon the cost of caring for them is m met t out of the insurance premiums premiums pre pro I It is a a. safe ate figure that It will cost easily 2000 a n. year car to take care care of ot a million dollars Invested The Home Fire wrote In net fire premiums In the ten years e ending December 31 1012 1912 56 16 6 10 per pel cent profit on that sum flum Is ConsiderIng Consider Consider- ing that the Home Fire Is twenty seven years old and that Its average net not premium premium pre pro Income for forthe the ten years In question question question ques ques- tion has boon been only the showIng showIng show- show Ing tag tends to Indicate that It has had hookworm management After seventeen seventeen seven seven- teen years cars existence persistent and Intelligent nt operations should hould have produced produced pro pro- for the Home Fire as much premium pro pro- Income each cach year as ns It has had I In itt l the tho whole hole last ten years This claim do 18 modest If It the Home Iome Fire has haB done po o poorly It is clearly not b because of ot Its It lOlls loas ratio nor its is exper expense ie ratio which Is unreasonably high but because bo- bo cause of f Its ItH Inactivity Another point to be considered Is wh why the tha Home Fire the bulk of whose fire tire premiums comes from tram Utah and which certainly has or should have havo the most moat desirable oln class 6 of or fi fire e business should have a n fire tire lo loas s ratio to premium Income of for the pa past pant t five years year can while that of ot the thc average of all othor other companies nies do doIng doing do- do Ing s In the State of ot Utah Is IH less legs than 27 per cent It II la is true truo tho Home Firo Is writing business outside of Utah but It is not less leas true that the Iosso S of or the Homo Home Fire would be less leas were Mr Grant R as active In holding up hl his own company as 08 he ho is II In his hla efforts to prevent ent the of or I companies not fostered by br himself Nor KII or I would he feel moved mo to belittle his hlll own own offspring and try to pO prove h by nason reason rea na son of or the Inefficiency of or its management manage ment that all persons are aro equally as al volatile and uncertain of or action und and nn In Incapable Incapable In- In capable of making mone money out o of a bust bush ness Of or course I if M Mr II Grant II is the tho thelast thelast last word on Insurance matters matters- th there Tl Is IR no argument hut but It should not b be looked upon as sacrilege to question I the high hl h opinion ho holds of hll himself I and anti other Insurance many subjects respecting It IL I Is re regrettable his years cars of or i association In the bu business should have hae done so 80 little for him that ho he h. h can cOn discuss Ils- Ils dis Us- I ly h cuss CUlf nor the th intelligently su subject jet neither authoritatively authoritative authoritative- I In ancient times a gentleman genteman built hull what was I known as the dome the admiration of all and the en envy of man many One of the envious admitting his Inability to create s so wonderful athing n u thing and desirous of or having his name as enduringly en written on the scroll of or fame nine as that of the author of oC the tho dome set fire to lo it That gentleman Is evidently evi iwi- vi- vi dent dently fre not without descendants In this a age g. g as' as In Insurance Is based UI upon on the thc Inexorable inexorable able law of averages I Being founded on oti the law of of or a averages it 11 follows there are arc years ears when losses are arc hel heavy hear V succeeded succeeded suc suc- h by years when the they are lowThe low Th The result resul of ot a cycle cole of years arc are what count and It I Is no more just to otto 1906 1006 when the big San Francisco fire occurred as ns an exhibit of permanent results than it Is rs to tal take e a year Cal when th the e losses are arc abnormally abnormal low as final evidence of what can cnn be relied on In Inthe Inthe inthe the Insurance 0 business The records demonstrate that failures of oC Insurance companies do not come from losses but from incompetent and Indifferent management management man man- which results In un an excessive e expense ratto ratio Even in the tho year eal of or the 11 unparalleled fl paral I e led Sn San a Fm Francisco n c i I ire fire fre cataclysm the insurance companies companies com com- panics paid l dl dividends The Hartford Hart Hart- ford Cord to which Mr Ir Grant di directs directs di- di recta special attention as having been represented In his office for tor 30 years paid In dividends In 1 tho 06 the 06 the year of or orthe the fire In Question question OO or over o 20 per cent on Its capital capital Mr lr Grant admits that company compan lost over o that year ear yet et It Il was able to pa pay paya a dividend an and It sold i OOOO of stock for or five for one Of 01 cour course e the people who bOl bought ht that stock did so because the business was WIS recognized recognised as unprofitable Of course Many Marty any persons would rejoice If It the they could sell sel even at par their stock In a bank whose whoso surplus was wiped out h by one lo loss los s without asking an any premium thereon much less five for tor one Referring e C to the Guardian Fire ad adI advertisement ad- ad I Mr Grant declares it contains contains contains con con- a misleading statement wherein It says that In 1910 1911 and 1912 It I pard alil on on an Investment of 1 Tho The Spectator company is our authority for tor the statement that the original capital was We quote from Its Is statement direct directly to the thc thE company In the years 1853 i to 1876 i Increases In capital were were made as follows 1853 1857 1864 1861 1876 Of Ot these sums was by br cash t-nuli antI and by stock dividends In 1906 it Increased its Is capital b by making its is capital ot of ol which was wa stock dividends an and cash That Is what the Guardian advertisement said The advertisement ad all- t d distinctly s states to tes that tha t 3 premiums was pal paid nor for or the stock Block sold Out of ot nine companies companies com cool panics cited Mr Grant makes maltes no reference ret ref re- re but to one and does docs not question question question ques ques- tion the statement of their profits Perhaps the whole of offense tense to Mr r. r Grant respecting the organization of the Guardian Fire Is contained in the voluntary puff pur Mr Ir Grant permits the te Home Hore Fire The to pay for regarding himself himself him him- self sel as the organizer of the Home Hore Fire In this connection he says sas It Sit might be interesting to note that not a single dollar has been paid by the stockholders ers of the Home Fire Insurance company com corn pany pan of Utah Uth as promotion fees It I might be bc as interesting to inquire why in the past ten years cars It has cost the Home Homo Fire of its Is premium Income to disburse for or fire tro losses of ot Its premium receipts It I ml might ht also be In Interesting interesting in- in to know why the Home Fire Firo loss ratio rato is so high lg-h lg while that of ot other companies doing business in this state Is so low In this connection It I might also be well to note that the expense ratio rato of ot foreign companies for the pa past t ten years ears Is a n little litte over 37 per cent The expense ratio of ot all al companies dolog doIng do- do o- o lug log fire tire business In Ill the United States Is under 39 per cent of the premiums paid paW for fire Insurance while It I costs the Home Fire Firo under tinder the tile management of ot Heber J. J Grant and company compan per cent It I is also worthy of ot note that tat the Agency company has hns offered to make a contract with wih the Guardian Guar lan Fire Insurance InI Insurance In In- I company to handle all al Its Is business busi busi- nose ness ond and pa pay every expense of ot the new company for ten years for tor 40 per cent of ot Its IR premium Income it Is also worthy worth of ot noto that the Agency company company com corn pany party will wll undertake to put on the now new company's compans books booles of ot acceptable premiums premiums the first twelve months or practically as much as Heber Hebar J. J Grant has been h-en h able to give Ive the Home Fire I after twenty seven years of ot assiduous labor And It is also Interesting to I I note that while Mr Grant Interesting advises nd the I people of this section to keep keel mono money at home b by buying insurance in the Home Fire that all but about 45 of the premiums w written iten last year ear b by b- that company compan was sent out for tor |