The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-12-25
This Country's Fire Waste Has
Reached an Average of
S15O,0OO,000 Per Annum.
There Should Be Tariff Association
Formed for the Protection
of All the Underwriters.
Written for THE CALL
BY ROELA V. WATT.

any good encyclopedia, therefore need
not be repeated here.
Every body seems to DE more or less in
terested in the fire insurance business.
This statement | make after many years
experience in meeting thousands of people,
mot in our line, " who at once upon learn
ing my business begin to ask what proper
ton OF orr losses are of incendiary origin,
how we treat fraudulent claims, why rates
are so high or combinations necessary, or
latterly why so-called underwriters are so
unbusinesslike as 70 practically give away
their policies with Autograph or chrome
(calendar) thrown in, whether nationality
affects the hazard, and other kindred ques-
TONS Then will follow volumes of good
advice as to how insurance companies
should conduct their business. Yes, con-
clude all men are interested in the fire in
surance business, from the man who has
property to insure and complains of or
laughs at the rate to the man who knows
nothing about rates, but complains that he
has no property to insure.
That fire insurance directly results in
the burning OF considerable property there
can be no doubt, for over-insurance and
therefore loss TO the wealth of the coun-
try; moreover, the burning OF property no
longer wanted by the owner for the pur-
pose OF collecting the insurance money
often results in the destruction Iof the
property OF innocent people. To this ex-
tent, therefore fire insurance may be said
to be detrimental to the material inter-
ests OF the country, for, be it remembered,
that even though fully insured the de-
struction OF property is al actual loss of
Just so much of the wealth of the Nation.
If insured, that loss does not fall heavily,
if at all, on the individual, the insurance
companies being the Intermediates
through which the loss of the few is
partially, at least, made good by the small
contributions of the many. The fire waste
in this country has reached the enormous
average per amman of $3.50, 000, 900. 1t will
be conceded that this is frightful drain
upon our resources, for as stated above
no matter if the property is insured, its
destruction is an absolute loss to the COM
munity. Think of the thousands of wo-
men and children who could have been
warmly and stylishly clad with the fab
RIGS which were destroyed in the O'Connor
& Moffatt fire, and of the sumptuous re-
pasts which might have been enjoyed by
rich and poor could they have taken the
place OF the flames in devouring Goldberg,
Bowen & Co.'s stock, and remember how
many OF US could have had fine libraries
could we have replenished them from the
shelves of A. L. Bancroft & Co. before the
fire. These parties were all more or less
insured, but the property was none the
less destroyed.
On the other hand the commerce of the
age is made possible by insurance; such
immense values as are contained in build
ings warehouses, stores and manufac-
tories would be impracticable but for in
surance capitalists would not risk their
wealth in such large sums subject to de-
struction by single fire; credit would be
impaired, manufacturers would not dare
sell in large quantities to the jobber nor
the latter to the retailer except for cash
were it not for fire insurance; more than
half the buildings erected are partially
built by means of borrowed money, but
this could not be secured but for fire in
suTance, for every mortgage contains a
clause guaranteeing that a certain amount
of insurance shall be carried by the bor-
rover, the policy to be made payable in
case of loss to the mortgage. Large loans
ale OF everyday occurrence. receipts for
grain or merchandise in warehouses being
given as security, but each warehouse re-
ceipt, to be negotiable, must have an in
surance policy attached to or back Of it or
provided for. The farmer requires money
to harvest his grain; to get it he must
mortgage his growing crops and cover his
mortgage with an insurance policy before
the coin is forthcoming; the millionaire's
palace and the poor mans hut must be in
suTed to give the owner peace of mind.
The capitalist is courageous who invests
his money in the stock of a fire insurance
company. There is probably no business
fraught with such desperate chances; the
ever present danger of general confiagra-
ton; the possibility of a great city like
San Francisco burning up as did Chicago,
Boston, Spokane and Seattle; the con-
stantly changing hazards resulting from
new discoveries or inventions in heating
or lighting materials or contrivances; the
moral Tor immoraD hazard born of
avarice, covetousness or cussedness, and
fostered by changing conditions and pros
pcCtS, Tic CI1Luliidl CdISlcSsUSSS, us
honesty or ignorance Of architects, con-
tractors and builders, or the parsimony of
property-owners the menace OF poorly
constructed high or large-area buildings;
the concentration of hazards; inadequate
water supplies; inefficient fire depart
ments; the failure of an employe to turn
on the water promptly; the breaking of
a water main at a critical time; sometimes
a fight between two fire companies; the
improper installation of electric wires, and
a thousand and one other difficulties and
dangers conspire to make the business
dangerous one subject to extraordinary
loss.
The Pacific Coast has been usually re-
garded as a favorable field for insurance
companies, but during the past year fol-
lowing the dissolution of the Tariff Asso-
citation every company has been a law
unto itself. This has resulted in the most
complete Generalization OF the business
perhaps ever witnessed over so large
territory.
To this Generalization add the heavy
losses incurred through the general bust
ness depression, especially in the North
west. and the underwriters cup of woe is
found to be full to oyerf1oWing