Babson Discusses
Insurance Stocks
By ROGER W. BABSON
BABSON PARK, Mass., June 1
_i like most insurance stocks, es
pecially thws-e of the good fire com
panies. I am often asked, however,
why I invest my personal money
in the re-insurance industry (in ad
dition to my investments in mer
chandise stocks). There are ten
reasons:
1. Re-insurance is an absolute
ly essential industry. The safety of
both all insurance companies and
all the policyholders of these com
panies necessarily depends thereon
The more that risks are divided
and spread, the better for all con
cerned.
2. It is a form of insurance
which must be used by all kinds
of companies — large and small,
foreign and domestic, stock and
mutual, "board” and “non-board,”
“union” and “non-union”, “partici
pating” and “non-participating”,
and so on ad infinitum.
3. Too much so-called “re-in
surance” today consists of swap
ping policies between large insur
ance companies and their subsidi
aries or between other friendly
companies. Some day it may be
found that this practice is like a
man endorsing his own note. Then
there will be a stampede to get
bona fide professional re-insurance
protection.
4. The re-insurance industry
started in Eurpoe; but moved to
the United States Hollowing World
War 1. It has been again upset by
World War 11. After peace comes,
the professional U. S re-insurance
companies will not only have an
opportunity to hold their present
business, but should be able to take
on much profitable business from
direct-writing, fire-insurance com
panies in Europe, South America
and the Far East
5. Today the stocks of profes
sional fire re-insurance companies
are depressed due to present ex
traordinary high national fire los
ses. Of the total of 25 such compa
nies, operating in the U. S., only
one showed an underwriting profit
last year The entire industry, last
year, lost $4,666,000; that is, in
curred losses and expenses were
$50,820,000 compared with premi
ums earned of only $46,154,000 As
losses have always gone in cycles,
the time to buy any kind of insur
ance stocks is when the losses are
greatet and the industry looks
darkest.
6. me professional re-inur
surance conpanies are not involved
I with agents or dependet thereo.
No one appreciates more than I do
what all branches of the insurance
industry owe to the agents. Yet,
too many direct-writing companies
are today so dependent upon their
agents that the company officials
are not free to do what they think
would be best for their company.
Re-insurance company officials are
wholly free from such entangle
ments.
7. Our nation is on the verge
of great progress in preventing
fire, marine, casualty and life los
ses. After World War 11 better liv
ing conditions, new building codes,
increased use of non-combustible
materials, extended water supplies
with more efficient fire and police
departments, combined with
sprinkler systems or fire alarm
boxes in every building, should ma
terially reduce losses of all kinds.
As re-insurance suffers most as the
loss ratio increased, so these pro
fessional re-insurance companies
should profit most as these loss
ratios dre reduced.
8. The professional re-insur
ance industry today is disorganiz
ed and has an inferiority complex.
It is existing upon “crmmbs”
thrown out by the big companies
when it should be the leader of the
entire insurance field. In Europe,
these re-insurance companies have
led and dictated to direct-writing
companies the basic policies of fire
protection. Some day our U. S. re
insurance companies will enjoy a
much more important place in fire,
marine, casualty, life and other
branches of the insurance indus
try Furthermore, the social and
political hurdles facing the direct
writing companies should re-act
beneficially to the professioanl re
insurance companies.
9. It is true that this industry
is now under a cloud; but I believe
it is fundamentally sound. With the
co-operation of the National Board
of Fire Underwriters, the National
Fire Protection Association, the
Association of Casualty and Insur
ance Executives and the Mutual
and other associations* the indus
try can perform a great service
to all insurance companies and to
the nation as a whole. It needs only
organization and better co-opera
tion among its own group and fair
er treatament by the direct-writing
companies which' it is now efficient
ly serving.
10. Finally, and very important
aa an inflation hedge, the itocks
of most professional re-insurance
companies are seling for consid
erably less than their liquidating
value.
Without doubt the fire losses for
1944 will be the largest, excepting
1932, in the history of the United
States, namely about $400,000,000.
This compares with an average of
$317,615,500 for the past 12 year*.
But patriotic people will soon wake
up and realize that insurance does
not replace losses; it merely dis
tributes them over a large number
of people. When a building burns
in America, it hurts America just
as much as if it were burned by
our enemies;. People are now about
ready to recognize this and be
careful, first by preventing fires,
and secondly by immediately going
to the nearest fire alarm box and
calling the fire department. “There
never was a fire which could not
have been put out with a pail of
sand or water when it first start
ed.”
•This list includes! the National
Association of Insurance Commis
sioners, National Association of In
surance Agents, National Associa
tion of Insurance Brokers, Associa
ted Factory Mutual, National As
sociation of Fire Chiefs, National
Bureau for Industrial Protection,
Chmber of Commerce of the
United States, National Industrial
Information Committee, National
Industrial Conference Board, Amer
ican Institute tor Property and Li
ability Underwriters, Anti-Inflation
Campaign, and the Committee for
.Economic Development.
-V
It has been estimated that game
animals in U. S- national forests
have increased more than 40 per
cent since 1926.
Slow Going:
■ —
Cpl. Jim Boss, of Wilklnsburg,
Pa., probably could walk faster
than he can ride the bike he’s
pedaling above, only 1500 yards
from German lines in ItaJy. He
found child-size vehicle when Al*
lies took Sacuri.
Hall Appointed To Aid .
New Hanover Bond Drive
J. M. Hall of Wilmington was
appointed yesterday as New
Hanover county chaiman to direct
the all-out support by pharmacists,
drug stores and drug affiliates of
the Fifth War Loan drive, accord
ing to an announcement received
here from W. A. Gilliam of Win
ston-Salem, president of the North
Carolina Pharmaceutical associa
tion.
With the appointment of Hall and
other couhty chairmen, which was
released through the association’s
offices in Chapel Hill, plans will
get undeway immediately for the
formation of count commutes.
-V
BUT WAB BONDS AND STAMPS
Buy Eight O’clock, mild and mal
low or Red Circle, rich and full
bodied or Bokor, vigorous A winey
.. .at your friendly AAP Store.
1944
St. John’s
Lodge No. 1
V. F. & A. M.
The Degree of FELLOWCRAFT
will be conferred by this lodge
this Saturday evening June
10th, beginning at 6:15 o’clock;
supper at 7:15; labor resumed
at 8:15. All qualified brethren
are cordially invited to attend.
By Order of the Master.
Chas. B. Newcomb,
Secretary.
Pay Your Income Tax
The Easy Way!
Let our “Popular” Checking Account help you
with the preparation of your income tax report.
% With a “Popular” checking account at the Wil
% •
mington Savings & Trust Company your tax
return information will be no problem at all,
for you will have a complete record of your in
v come and also of all allowable deductions.
\ •
^ ,
Start your account today .. avoid long lines at *
:V the post of fice by simply mailing your personal
Check to the collector when your tax falls due. i
\ J
ANY AMOUNT OPENS AN ACCOUNT
NO MONTHLY SERVICE CHARGE
■ ')
The Wilmington Savings & Trust Co.
Established Since IMS .1
MEMBER THE FEDERAL RESERVE SYSTEM
MEMBER THE FEDERAL DEPOSIT INSURANCE CORP.
W. N. TODD
613 Castle St. Dial 5251
GRADE A MARKET
Small size
Genuine Spring oq
LAMB LEG lb. UP C
Small size
Genuine Spring | q
Lamb Shoulder lb. l«fC
Shoulder OA
LAMB CHOPS lb. LuC
Lamb | A
STEW .lb. iUC
Aged N. C. A A
HAMS.lb. TOC
CENTER CUTS
N. CAROLINA HAMS
North Carolina Q C
HAMS.lb. OJC
3 to 4-lb. pieces
Fresh O |
PORK BRAINS lb. LYZ
American Sandwich Afi
CHEESE, sliced lb. TOC
Craft’s American Q *7
Daisy CHEESE lb. OI C
Smoked
BACON.
4 to 6-lb pieces
PORK CHOPS
PORK LOIN ROAST
Roasting Size
CHICKENS
_Fully Dressed
Cuts of Native Fryers
Breasts — Giblets — Legs
Wings — Backs
CORNED MULLET, lb. 25c
Corned
MULLET ROE lb.
Native 1 A
CARROTS, lg. bnch. 1UC
Collard 1A
SPROUTS lb. 1UC
Native f £
SQUASH 2 lbs. 1DC
White (hard heads) £
CABBAGE .... lb. DC
Pure 171/oC
LARD, lb. li'*
LUNCHEON MEATS
12-oz. cans
KP
TREET
SNACK
PREM_CAN
Whole Grain
RICE .
• gee The Camp Davis Show At Thalian Hall I
Monday Night, June 12, I
At 8 P. M. I
Buy a Bond and get your ticket at the CAROLINA. |
Limited number only. ■
Three
Hie / Million Dollar
Carolina Building and Loan Assn.
"Member Federal Home Loan Bank"
C. M. BUTLER, W. A. FONYIELLE. W. D* JONES,
Pres. Sec.-Treas Asst. Sec.-Treas.
ROGER MOORE. Y-Pres. J. O. CARR, Atty.
IHt*****************:-jtt^*
dependable
WATCH A,
repairing >
See
B. GURR
Jeweler /
264 N. Front St. i
MONEY TO LOAN I
ON ANYTHING OF VALUE 1
No Loan Too Larfe—None Too Small ■
Cape Fear Loan Office I
LUGGAGE HEADQUARTERS I
U S. Front St. Dial S-1S5S ■
CONCRETE I
DELIVERED TO TOUR JOB. MIXED IN TRANSIT
READV WHEN VOL ARE
DIAL 5562
SAG COMPANY
For Auto Painting and Body Repairs
CALL AT
B and B BOBY WORKS
218 N. Water St. Between Chestnut and Grace Phone- 2-2385
HE St
1 w., lOTFQjl JJjjl J$m *
* H^Btff^El^^RSOUTH PROMT ST^®' S
* ^•■■■•^VVILIVIINCTON.N.C.I/ *
NOTICE
DOG OWNERS
Dog badges are now due, all dogs must wear badges on
collar. Badges $2.00 per annum. Due June 1st, 1944. 1
C. R. MORSE, Tax Collector. j
Janitor Hep Wringer Pails
22 Quart Size, Wood $^.95
GARBAGE CANS
GREEN PAINTED WITH COVER
7-Gal.. $1.29
10-Gal...$1.45
FOR THE BALANCE OF THE SUMMER
WE WILL CLOSE AT
1 P. M. ON SATURDAYS
JACOBI HARDWARE CO.
“The House Your Father Dealt With”
111-113 South Front St. Dial 7022
—Read The Star-News Classified Ads—
' 1 ■■ —— . ■" ' .
» 1' —
FRUITS and I I
^ ^ VEGETABLES I I
Stop In today for your garden-fresh summer foods — vegetables and fruits that solve f'Si
your hot-day food problems • • • so simple to serve • • ■ so pleasing to the taste. 111
! Palmolive Soap Octagon i f
- Reg. Size 8c; Bath Size ToiIet Soap. II
----- HI
Complete Line of Groceries Meat Market Fresh Fruits Arriving Daily I I
*
Farrar
rRANSFER & STORAGE
WAREHOUSE
DIAL 5317
BATHING SUITS
for Men
Savings and The Grocerteria just naturally cn
quality and satisfaction . . . like variety and^n*ealt?£ th*,Mike
—and that’s why you’ll take to our daily low prices hi D easure
takes to water. SAVINGS . . . QUALITY . . VARIFtv a duck
a trio no thrift-wise shopper can resist, and'we offer rthat's
every day of every week. Fill your table with our /rL, three
ing, priced-for-savings foods and you’ll shed vour 0r'(lt’
lems like water off a duck’s hack. 5 menu fob
PILLSBURY’S BEST ———
FLOUR, 10-lb. hag
CRISCO, lb. jar 24c; 3 lb. iaTi
DROMEDARY —
GINGER BREAD MIX, Pktr. 19c
MAXWELL HOUSE ~~ 1
COFFEE, pound 31c
POST ~
TOASTIES, package Sc
GRAPE-NUTS
FLAKES, small Pkg. 10c; Lg. 13c
BORDEN'S SILVER COW "" |
(Vi) MILK, 3 tail cans 27c
^^———«»— - — n
PREMIER GRAPEFRUIT 11
JUICE, large can 35c
DEL MONTE PINEAPPLE
(15) JUICE, No. 2 can 15c
DEL MONTE \
(43) PEACHES, No. IVi can 27c
DEL MONTE Sj
(12) PLUMS No. IVi can lie
STAR KIST
TUNA, solid pack, can 31c
DUKE’S |
MAYONNAISE, pin! jar 23c
DUKE’S si
RELISH SPREAD, pint jar 23c
PREMIER CROSS CUT
DILLS, quart jar 32c
j SQPAB.each 79c j I
UNDERWOOD’S ]
DEVILED HAM, can 18c
ARMOUR |
TREET, can33c
LIBBY’S !
POTTED MEAT, can fc
ASPARAGUS, No 2 can 23c
VAN CAMP’S
(13) PORK and REARS, can He
GOOD TASTE j
TOMATOES, large can_lfc
IVORY SOAP
2 Personal size 9c; 3 med. 18c; 3 large 29c
CAMAY SOAP, 3 for j
Ivory Soap Flakes, large 23c
IVORY SHOW, large 23c
OXYDOL, large_
P and G SOAP, 3 for_Jf
CLOBOX, pints