Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1882-09-29
THE QUESTION OF FIRE INSURANCE.

THE QUESTION OF FIRE INSURANCE.
The question of fire insurance is one of
ever-present interest TO all property holders
1t was not long ago that the FREE Press
made some investigation of the question
locally considered, and found that the an
nual amount paid in Burlington for iusur-
ancc against fire was not less than thirty
thousand dollars, while the average annual
losses by fire for the last ten years had been
less than n third of that sum IN other
words, during the last ten years our people
have paid uut something like two hundred
thousand dollars on which there was abso-
lutcly no return aud large part of which
was from every point of view dead loss
to our citizens, since there is no doubt that
Are insurance rates here are much higher
than they should be. But the question
has another side, and one of great impor-
lance and that is, the vast number Of
unnecessary and destructive fires with which
the country is cursed. At the recent meet.
lug at Cincinnati of the National association
of fire engineers IL valuable and instructive
paper on this subject was read by one of the
members, Mr.. Covington. In it he referred
to statistics to show that, taking the duration
of fires occurring in the United States and
apporlioning them 10 time, there is not a
single moment in the year in which there is
Er., hot ia of
siderable destruction" lie said TINT it has
been estimated by those who have given the
subject careful investigation that 'lhc value
of the property annually destroyed by fire in
the United States exceeds one hundred nil
lion dollars" Mr.. Covington added this i'm
pressive comparison
"Thc value of the potato crop of the Uni
| ted States in 1880 was SSl ,0G2 Pa Of to-
bacco. $50, 900, 900; of barley, $50, 1890, 725 +;
of rye, S1S, 500, $500 and of buckwheat, S.
Csc, 4SS. BY this it will be seen that the fire
waste exceeds the total value of our potato
and rye crops combined, and also Of the ag-
grega.cd values of tobacco, barley and rye.
The total production of the precious metals
in all the States and Territories for the year
ending June 30, 1881, was; Gold, $780,
500, 900; silver sac, 10O, OOO total, $751;
600, 000- barely three.fourhs our annual fire
waste"
As to the causes which lead to this enorn-
ous National loss-a loss which can better be
estimated by the startling comparison just
quoted than by any array of naked figures
Mr.. Covngton believes and his belief is
based upon the experience and observation
of, 81 thnt
cent of the property destroyed by fire in Gin
cinnati during that period might be attri-
buted to carelessness but little, if any
short of criminality." There can he very
little doubt that the ease with which iusur-
ance is effected has good deal TO do with
this 1t has been remarked, moreover, by
underwriters that when business is dull fires
are more prevalent than when it is active,
although it would naturally be supposed that
the danger would be greatest in the latter
case. And, too, the multiplication of insur-
ance companies and the reckless way in
which policies are issued have made under
writing in the aggregate losing business.
Taking for illustration the returns reported
by one hundred and fifty-one companies to
| the New York insurance department, Mr..
Covington pointed out that they showed II
loss for the first half of the present year of
SO, SAT, S54. He went on to say:
comparing TINS with the first half of 1881,
VIC find that the total income of the one hum
bred and flfty-one companies this year en-
ceeded that of one hundred and iifiy-seven
| laat lx, q l,,,tt ln
expenditures were 1901 $50 more than for
the first half Of last year The aggregate
percentage Of expenditures of the New York
State companies was S10SS0 paid out for
every 800 received, and that Of other State
companies Sill, 10 for every 300 received.
| The aggregate gain Of eleven foreign COM
panies was $233, $50, and the aggregate loss
of the other fourteen companies was 81 ,21O,-
0Sl, showing n net loss to the foreign COM
panies of S01G,43l."
As TO the remedy for this untowsrd state
of affairs, Mr.. Covington recommends more
stringent laws in regard to fires and the
establishment of regulations governing the
issue of policies, to which all the insurance
companies should be required to conform.
He would also authorize the municipal au-
thorites TO dictate the character, style and
material of all buildings erected in cities,
not only as to permanency of structure and
stability, but as to the preventing or control.
ing the spread Of fire. He speaks approx.
ingy of that provision of the French code
which makes any person who, through neg
ligence, causes a fire, liable to the entire ex.
tent of the damage resulting. The French
underwriters moreover have an understand
ing among themselves that any party who is
unable to give a satisfactory explanation OF
the cause of the fire shall not only forfeit
his claim but be declared from getting in
surancc afterwards The stringency of the
French law and of the regulations adopted
by the underwriters has so reduced the
number of fires that Gen. Noyes is quoted as
saying that during his four years residence
ut Paris as minister of the United States
There was in that city but single fire OF
any considerable magnitude, and that, as u
consequence of this comparative exemption
from losses by fire, the rate of insurance in
Paris is so low us to appear ridiculous, That
il is high time something should be DONE