The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1877-08-16
INSURANCE or PUBLIC PROP
.tLLL.N ERTY. IA I.


Mr., EpToR-Are not the people OF
Ohio in position TO themselves insure
their public property
Ifa man have one building worth 500
0O0 prudence requires that he induce
some insurance company, for a consider
alton, to carry, or at least divide with
him, the risk of loss by fire, If he owns
one hundred buildings, each worth $1,000,
all in one city, he should likewise have
the property insured. But if the one
hundred buildings are scattered through
one hundred towns, he is probably in
situation to safely insure himself The
yearly cost of insurance placed in fund
ready for use when needed, would likely
reimburse all losses on his property by
fire.
Whether the case put, presents prop
er instance for self insurance is not inn
portapt it is simply to illustrate the
fact, already we'll known, that the princi-
pie of self insurance may be proftably
applied where large amounts of destruct-
ible property are held in one ownership,
and the property is so distributed that
too large an amount is not involved in
one risk.
The writer has been informed that self
insurance is practiced by some of the
large real estate owners of this and other
countries, and by some railways compa-
MES, but not having heard any sngges-
ton that the same plan could be applied
to public property, the purpose of this
communication is to call attention to 1t,
as matter, possibly, of some Importance
to tax payers.
When the great value of public proper
ty in Ohio is Considered-that of the
State, proper in its capitol, penitentiary,
asylums-that of the counties, in their
court houses, jails, infrmaries, bridges,
&c,-the city and town halls, engine
houses, and other property of the munic-
ipalities, and also all the school property
of the State--the magnitude of the ques-
ton becomes more apparent. Common
prudence requires that all this property
be insured. Very much of it now is not
insured at all. The kind, use, and situa-
ton of many of the public buildings, in
volving but little lisk from fire, call for
low rates Of insurance, 1t may be doubt
ed whether public officers always obtain
insurance as cheap as might be. The
same question might be raised as to the
care used in selecting companies In
which to insure. However this may be,
the people should make it their business
to insure all public property; insure it
safely, and as cheaply as possible.
AS to the comparative security for the
people of the State, between self insul-
ance and the method now prevailing,
there is no room for argument. But few
companies, even in their advertisements,
claim greater assets than the taxable
property of the State. AS to cheapness,
the matter is quite as plain. Self insur-
ance by the State would require no addi-
tional officers. The State Treasury
would furnish safe place for the deposit
of the insurance fund; the insurance de-
partment could give the plan the general
supervision required; the county, town
ship, city and school officers could easily
look after the local details, and all with
no substantial increase of outlay. This
would give the people insurance at its
actual cost.
Under the present system of insuring
in the companies, every one pays, not
only his share of all the losses sustained
by his company, but also his proportion
of the profits and expenses of the COM
pany, usually supposed, in these days of
extravagant management, high salaries
and liberal commissions, to be very large.
This, or the most of this, would be saved
by self insurance.
The only question is, can the princi-
pie be prudently applied to public prop
erty in Ohio?
To draw out inquiry and comment that
may lead to the solution of this question,
the writer submits that there are two
general plans, by either of which the
principle can be carried out. One we
may call the plan of prepayment, the
other the post payment plan.
All the public property in the State Ii
able to loss by fire being first valued, let
it oe be graded according to probable
risk-material situation, surroundings,
and use-every element of danger, being
considered.
The prepayment plan would require
the State, forts property, and each coun-
ty, municipality, township and school
district, each for its own public property, |
to pay into the State Treasury its equita-
BILE share of an insurance fund, which,
invested in State bonds or other securi- |
ties, would stand to make good all losses
The post-payment plan, as the name
indicates, would call for no payment |
until loss occurred, when an assess
ment would be an equitable basis to make
it good.
Your space will not be further imposed |
upon to remark as to what may be re-
garded peculiar advantages or objections
to either of the general plans proposed,
or to suggest others at this time. What
ever may be said as to the plan to be ad-
opted, the application of the principle |
of self insurance to public property in
Ohio and other States, seems feasible,
Strictly, the plans proposed are not
purely self insurance.; so far as they cover
property not belonging to the State, prop.
er, they involve the principle of mutual
insurance.
tmay be remarked, as illustrating the
question of selfinsurance, that the prin-
Ciple is quite applicable to church prop
erty; at least of those denominations that
own many churches throughout the
country. The present cost of insuring
the buildings of any denomination, put
into common fund, would suffice to
make good all the losses of such denom-
nations by fire. ID, L.
Canton, o., Aug. IL, 1877.
Vermont is having a three days