St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-07-24
And Makes Some Pertinent
Observations in Regard
to Fire Insurance.
The Park Commission Urge
Immediate Action With
Como Boulevard.
100000 Required by State
Managers Of the Worlds
Fair.

he lMcnll6lu dllludl lCpOll VI lllO
insurance commissioner has JUS been
published. 1t shows that eight joint
stock, fire and fire and marine Insurance
companies have been admitted TO do
business in the state during the year
ending Feb. 2S, 1891. The total amount
of the capital of these companies is
S1.S1O,0O0. Three mutual fire companies
have been admitted during the same
period. and eight joint stock. fire and
marine companies withdrawn from the
state since March /, 1890. The capital
of the companies withdrawn is $780,
900. The commissioner has this to say
of mutual fire insurance:
The past year has proved 4 most disastrous
one for the mutual fire companies, majority
of the above list having passed into the hands
of a receiver. The Mlllers, OF Milwaukee.
Wis. is 4 notable exception, ii having paid
the tax due the state upon its past years bus
mess al time of withdrawal While directly,
the cause Of the numerous failures among
the mutuals may be attributable to excessive
losses sustained. still indirectly The cause Is,
without doubt due 10 The dangerous practice
followed by Il majority Of the companies. in
issuing policies on the 'al CASH plan IN
connection with their mutual business
II these companies had confined their bust
plan-that Of insuring mills. manufactures,
elevators and the contents and products
thereof, and not entered the field in cOmpe-
tition with the ioint-stOck companies for all
classes of risks until such lime as they
should have acquired actual cash assets TO
the amount Of 100000, this excessive num-
Der Of failures would not have occurred. 1t
requires an able safe and conservative man.
agement for a mutual company, under the
present provisions of the laws 10 successful
" write business upon the cash plan. which
allows them TO issue policies upon all classes
of risks. The failure of the Minneapolis Mu-
tual Fire, which was placed in The hands of
receiver December Is $50. was due 10 bad
management and the indiscriminate writing
of business upon all classes Of risks. \ mu-
tual company should only be allowed. under
the law, 10 transact mutual business until
such time as ii shall be possessed of actual
cash assets 10 an amount equal TO the mini
mum amount of capital stock required of
joint stock companies, and / would recon-
mend that legislation De enacted TO that
end
The past year has been a prosperous
one for the various joint stock fire COM
panies. The ratio Of losses incurred to
premiums received is 90 per cent.
With deduction of about % per cent.
for expenses, the net income is about
5000, 900. The report on insurance is
especially interesting. The commits
SiOner says:
Minnesota now ranks among the most i'm
pOrtant insurance fields of the United States
as is evidenced by the large list Of companies
that are at the present time authorized TO
transact business in the state. The increase
IN amount of risks written in 1880 over 1889
was o26,3)l 339. while the excess Of losses in
CURED over 1889, was only SIS, -. The
continued rapid development OF The state,
yearly adds 10 the large amount Of insurable
property, and by the stringent building laws
enacted in nearly all the large cities, which
provide that every possible safeguard be
made against the occurrence OF fire IN the
erection of buildings. tends TO decrease the
annual fire waste in no small degree. in pIO-
portion to the increased amount of
lnSurable property. The proportion
of CONGREGATIONS that are OF SUD-
posed ineendiary origin. is alarming, and
how this mOnstrOus evil can be abated is a
matter of vital Importance not only to the
insurance companies but TO The financial
interests of the state as we'll 1t is clear 10
my mind that the proper steps TO be taken
III this direction are for the legislature TO
enact law providing for a thorough and
systematic investigation as to the origin or
cause OF all fires. and provide that report,
giving detailed statement of the findings of
such investigation, be published, which
wOnld not only tend to secure a more general
and vigorous enforcement Of the criminal
law against incendiarsm. but would also
advise the public 10 the many and varied
causes of fires, thereby aiding, in q great
measure, TO guard against their occurrence in
the future.
The report of Supt Prince, of New
York, embraced in GOV. Hills message
of Jan. I, 1880, is quoted and COM
mended:
The prevention Of the enormous annihila-
lion of property by fires is 4 subject worthy
the attention of the legislature. Already a
movement tending TO the compulsory inves-
ugatiOn of the cause of every fire has been
iinaugurated in some Of the states. and am
led to believe that results beneficial to our
state would follow if such a system were es-
tabliShed here by law. 1t is not proposed
that any new Office should be created,
but that existing cOroners in towns
and villages should be required to investi-
gate and have power to do such things as are
necessary 10 ascertain. if possible, the cause
of every fire. In cities the fire marshals or
like officers would be authority 10 make the
inquiry Comparatively few OF our citizens
are aware of the immense annual loss by
fire Ia the United States for each of the
past five years. this loss IS estimated to have
reached the astounding annual average of
over Sl00.09Q0o0.