bth March.
Tur Consular Body have given notice that after the forthcoming meeting of ratepayers a special meeting will be held, for the consideration and approval for subsequent transmission to the Constiar and Diplomatic Bodies, of ditional Bye-Law to be atts the Land Regulations, under which all firms or persons doing 2 Fire Insurance business in any form in Shanghai are to be licensed; and "in respect of such licence the Council may impose such conditions and charge such fees by way of percentage or otherwise," etcetera, and heavy penalties are provided to ensure the new Bye-Law being observed. The Fire Insurance Association, as has already been recorded in our columns, has held a meeting at which it was decided that if the obnoxious Bye-Law is adopted and enforced, the taxa it shall be eh meeting thirty-nine Fire Insurance Offices were represented.
We understand that the Munic Council are not originally responsible for the introduction of this very injudicious Bye-Law; it has been introduced in consequence of a recommendation from a Committee which sat recently to consider the question of the Fire Bi lo here, the Council thinking it their duty to give effect to this recommendation. At first sight it seems reasonable enough that Fire Insurance Companies which profit directly by the activity of the Fire Brigade should be made to bear directly a portion of the expenses of maintaining the Brigade and this is the view adopted by "A Law whose lett appeared in our This in very three letters in our columns this morning.
It is astonishing to find "A Lawyer" arguing that Fire Insurance is a very 'e business from the fact that sot certain old-established companies sta: high premium. These e ade large profits and put. big reserve there was much less competi premia were much higher A high authori the subject whos letter app Post M-guzine of the 20th of,: "I believe, if reference we to the accounts of all the ass would be found that their combined experience over a period say from fifteen to twenty years would show on an average a bare profit of five per cent on the working." Several Fire Offices started within the last thirty rs have disappeared because the wt Fire Insurance 's" statement who hold it to b special taxation on persons who are stipposed to be wealthy above the average.
Mr. Weleh's letter is a very comswer to those who propose a is a decided mistake fur the Council to impose any aN ich give a great deal of trouble to and produce a very stall i at this argument may be used against the proposed licensing of dogs, but in that ease the real object of the tax is to discourage the keeping of dogs in the Settlement, whereas the Council can have no wish to discourage the establishment of Fire Insurance Agencies in the Settlement. We do not know if our Council have persuaded the French Council to impose a similar tas new tax would obviously be to divert the business from the north the south side of the Yangkingpang, where many very good Offices are already represented. How the seal of licence fees is to be framed so as not be unfair to those doing only a small business, or how the income of the agencies is tobe estimated if the proposed contribution is to take the form of an income tax, is not suggested. Under any circumstances this will, as Mr. Welch says, be very difficult both to fix and to enforce.
There is much that is of value in the letter of "A Merchant," but we presume no one really questions the advisability of increasing to a i extent the efficiency of the Fire Brigade. "A Merchant" makes, however, a good answer to the com-int of "A Lawyer" that the preminms now charged are, unduly heavy. Insurers are very thowighly protected here against the imposition of unduly heavy rates by the fact that, 1) there is a good deal of competition between th+ English and German Offices, and 2) the majority of the representatives of the Fire Insurance Companies are themselves merchants and large insurers.
The great objection to the proposed tax is that it hits the wrong people. It is obvious that every charge on Insurance Office must be paid dir yor indirectly by the customers of the office insured, The t thers on the prudent pope who insure their property, and it would be just ire ble to put a special rate on insured property, charging those who unsured their houses and' goods one per cent more than those who trusted entirely to luck and the Fire Brigade. Such a proposal would be laughed down at once, but it is no more absurd in reality. than' what the Council propose. "Or the might be justified if the Hire Brigade on the oceurre of a fire confined its attention insured property. to Which is absurd, as Buclid ays. The preservation of property from fire is now properly regarded as the duty of every municipality irrespective of what arrangements individuals y make as to Indemnifying them-for any losses they may suffer and a Bill has been recently brought into the House of Commons in London compelling provincial municipal authorities to provide efficient protection against fire for the benefit of all concerned, just as they provide protection against robberies, street accidents, etcetera.
The extension of scientific sanitation has increased the average length of human life, and this is on the face of it direct benefit to Life Assurance Offices. Will the Council propose to exact licens fees from the Life Insurance Ofiives for the benefit of the
Text read from the printed page and cleaned; old type leaves the occasional error.