, 1876-05-07

sentatiyes.
FIRE-1NsuRANCE IN CHICAGO.
The recent Convention Of the National
Board of Underwriters brings up the general
question OF fre-insurance in this city, which,
ever since the conaagration of 1871, has
been one Of the most costly incidents Of do
ing business in Chicago. The most notable
circumstance brought ont by the late Con-
vention was the difficulty the National
Board (which seems really to dictate the
policy and rates throughout the entire coun-
ty) had in discipining the local agents Of
means simply that the rates which the COM
panies are trying to enforce arc too high;
and, Just as the agents of railroad companies
do not keep faith when pool is formed to
establish an exorbitant tariff, SO the insur-
ance-men will cut under and cheat one an
other. Many of the companies seem to
recognizes this general fact, for the statement
is made that, where their agents have been
fined, they have paid the fines, and thereby
given tacit approval Of the practice Of
cutting rites. At the same time this prac-
tee is sporadic mud partial, and the general
public is feeced. The fact seems to be that
the insurance companies controlled by the
National Board have refused to recognize the
fact that the general shrinkage in business
and contraction in prices have necessitated
reduction in the interest earned by capital,
and they have not yet accommodated them
selves to the new condition Of things,
So far as Chicago is concerned there is par
ticular cause for complaint The fact that
this city suffered from one disastrous conha-
grafton, followed three years after by anoth-
er which did not attain unusual dimensions,
but occasioned big scare, has been an ex-
cuse for the maintenance Of high rates, noto-
nous1y disproportionate to the actual risk,
and entirely ignoring the improved facilities
for extinguishing fires and the precautions
against their spreading. AL large cities have
had exceptionally large fires. London, New
York, Pittsburg, Cincinnati, San Francisco,
and more recently Boston, have suffered, each
once in its history, from fires OF such proper
tons as to arrest the attention Of the world,
ana seriously cripple their prosperity. But
Ill every S1AoC bANA AAGa A1kAFI 0HfEAACA ~
assure immunity from recurrence for long
time to come. This is not accidental, but
the natural result Of the increased precautions
taken by every community after costly ex-
perience. Thus Chicago within five years
has done more in the way Of preventing fires
than was ever done before by any community,
large or SMALL in the same length of time. The
water-supply is unequaled. With two large
fre-proof water-works, located some miles
apart, and constructed like fre-vaults, there
are engines with pumping capacity Of
eighty millions Of gallons in twenty-four hours.
It is hardly possible, in the nature Of things,
that both these separate works could be de-
atroyed at the same time, and just when
needed for fire purposes; but, if they were,
the present system provides large tunnel
running under the city, with q number OF
large reservoirs at intervals, from which, as
we'll as from the river, the dre-engines could
draw an ample supply. During the year
1875 there were nearly 40 miles of new
water-pipes laid in the city, and the total
amount of water-pipes, varying from 4
inches to "a inches in diameter, now meas
ures nearly 400 miles. There has been like
increase in the number Of hydrnnts and an
enlargement in their size, many of them be-
ing double hydrants. The paved streets Of
the city measure about 120 miles, afording
easy roads for the rapid moving of the
fre-machines from one part of the city
to the other, and facilitating their quick
concentration at any point where they are
needed The city limits have been also the
fire Limits, within which no house can be con-
structed except Of brick, stone, or iron, and
in compliance with building law which is
now as thorough as anyin the country, and as
efficiently administered
While the insurance companies are familiar
With all these facts, and must acknowledge
that it would have been impossible in the
same length Of time to accomplish more than
Chicago has accomplished, and while the
number Of fires and amount of property de-
stroyed have been less probably than any
other city in proportion to size and values,
there has been no disposition to reduce rates
in keeping with these facts. AL reductions
that have been made were simply from the
erorbitant rates established some years ago,
and not on basis Of the present contraction
of business, reduction in all profits, and i'm
proved condition Of the city. It is estimated
that the amount which Chicago pays for
insurance: annually is equal to the taxation
for all purposes, or more than five millions
every year; yet the losses have decreased to
less than half 8 million year. The compa-
MES cannot hope to keep Up their rates with
such odds in their faTor,-zunninQ ss thew do