Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1886-06-02
RAPID INCREASE IN LOSSES.

The law by which the COM
panies are obliged to pay the face OF
the policy, passed the Legislature in
1874 1t will be seen that there was
in consequence q slight Jump in the
percentage of losses. The weaker
companies obeyed the law, but in gen.
eral it was a dead letter until the state
supreme court decided in the noted
Green Bay case in 1878 that the law
was operative. The result was
material increase the percentage OF
losses. The following year there was
a tall lump. The decision had been
pretty well advertised, and the popu
lar discussion of the matter doubtless
led to an unusual number Of incen-
diary fires. The percentage settled
down to a lower plane, but has been
on the increase ever since.
The insurance companies all agree,
and the official reports of insurance
commissioners corroborate the state
ment, that the aggregate expense to
the companies of conducting their
business is Just about 331a per cent. of
the premiums received. Therefore
when the losses reach 6623 per cent. of
the premiums, business Is conducted
without a profit; if they exceed that
figure, then there is direct loss. In
1885, the companies of other states
and foreign countries received in pre-
miums in Wisconsin S2,3S4, 034, and
paid in losses $1,974,377 allowing
one-third for expenses, this would
make a cash loss to the companies
in this state, within the year, of $685.
O21. No wonder the insurance official
said that it would pay the outside
companies to withdraw from WiscOn-
sin. In other words, the companies of
the other states paid rs per cent. OF
their premium receipts IN losses, a net
loss TO them of 81 per cent; while the
foreign companies paid out rs per
cent. anet loss to them of LIZ per cent.
The home companies, which do not
suffer so heavily, brought the general
percentage down to Is per cent, the
Wisconsin joint stock companies hav-
ing only paid out So per cent, and the
accident and guaranty companies bat
A per cent.
The insurance men say that the
value-policy law puts a
PREMIUM ON INCENDARISM.
Local agents are often careless or
credulous, and accept risks with but
little regard to the real value OF the
property. Owners frequently carry
policies in different companies, that
aggregate far morethan their buildings
originally cost. Then again old build
ings that were perhaps once worth
what they were insured for, are allow
ed to fast fall into ruin and depreciate
in value. When such old structures
are about to tumble down, they are
allowed to catch fire and the policy
holder gets the original cost of the
building from the company. A large
percentage of the fires that may rea-
sonably be deemed incendiary, occur
in the northern portion of the state,
where frame buildings were put up
hastily, when the country was
new, allowed to go without
paint or repairs and by the
time the prosperous owner gets ready
to erect q new one of approved pat
burns. Many of these time-worn
shanties have been deserted and stand
in close and unsightly proximity to
fine neW structures, and their loss
comes very timely. Occasionally an
incendiary epidemic SEXES an entire
neighborhood. Once in while, a
streak a fire goes along an entire coun-
try road, cleaning out all the old
rookeries In one season. Nothing is
so difficult to prove rs incendiarlsm.
Few crimes are so easy to commit.
Insurance men complain that the
moral tone of wealthy communities Is
not at a high pitch, in the matter of
incendiarism, where large insurance
companies belonging to other states
are alone involved. The same sort Of
moral laxness exists in regard to this
sort of thievery as is noticeable in
cases of bankruptcy. The merchant
who robs home creditors is dubbed a
rascal, but il he makes himself "solid"
with these and restricts his operations
to outsiders, his community will con-
tinue to deem him desirable neigh
Dor. For this reason, the home COM
panies are
NOT OFTEN FLEECED.
The man who plans incendiarism