The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1895-03-29
TIMBER, FIRE and MONEY.


should demand that all apparently sus-
p1oious fires be quickly, rigidly and i'm
partially investigated, and the destroyer,
if discovered, be made to feel the law.
Fire Marshal, as in Massachusetts, will
greatly decrease incendiarism. They
will not disturb the innocent; they may
deter and restrain the vicious.
It too often happens that in smaller
communities men and women fear and
refuse to make known their well ground
ed suspicious, and their knowledge even,
of the origin of incendiary fires, lest per-
haps the incendiary lose his insurance
and vent his wrath on them, and SO the
insurance companies are compelled to
pay very many losses which they believe
TO be dishonest either in cause or amount
Init which they cannot prove TO be so,
because they can get no reliable Gestl-
mony or freedom OF speech until after the
losses are paid. And SO incendlarlsm Is
encouraged taxable property continues
to go out of sight, taxes increase and
insurance rates increase.
/ assure you, gentlemen, that when
honest men are Drawer than lncendlar1es,
when communities insist upon and help
in the investigation of every suspicious
fire loss, that the innocent may be vim
Dictated and the guilty punished, incen-
ldIarism will cease and taxable property
will not be uselessly wasted.
I urge upon you, as the representatives
of many communities in this State,
the Importance of correct opinions and
practice Oh this point. trusting that you
may encourage them where you live, as
practical method of preventing loss
by fire." as well as of reducing cost of
insurance"
AS with liberty SO with the prevent
ing of and freedom from fires, the price"
is jealous, constant, vigilance" on the
part of all who own, occupy or control
buildings and property within buildings.
Mr.. President, presume the second
branch of my topic has very much more
interest for property owners and insurers
than the first. 1t sometimes appears as
if the immense losses of property, caused
by fire, are accounted as OF little conse-
quence by the great body OF the people
as compared with the disaster Of any
great or small advance in insurance
rates, made necessary thereby.
1t is perfectly esta blished that the
measure of fire losses determines insur-
ance rates. A small per centage OF loss
brings low rates of insurance, while ex-
cessive losses, repeated year after year,
force increased rates. 1t cannot be other
wise The enoromus drain upon insur-
ance capital by serious CONGREGATIONS all
over the country would long since have
wrecked every fire underwriting corpora
ton and brought general disaster upon
our manufacturing, commercial and
financial interests had not the imperative
requirements of advanced rates been met
and supported by the people.
1t will he seen, then, that SO far AS |
have answered correctly the inquiry,
"What are practical Methods for Pre-
venting Losses by Fire?" l have an
swered rightly the question, what are
Practical Methods for Reducing Cost of
- - %l,a
first inquiry is the correct answer to the
second.
I am warranted in stating that the
prevalence of high insurance rates at any
time does not indicate prosperity or
profit on the part of the companies, but
rather the reverse.
The insurance of farm buildings and
their contents is interesting in this con-
nection. Formerly they were insured at
the rate of one per cent. for four years.
and in some cases for one per cent. for
five years, and they were generally
approved and desired by nearly all COM
panies, and found to be fairly prof table
at those rates, but some twelve or more
years since they seemed to become very
Improbable class, and rates were adj
vanced to one per cent. for three years.
As losses continued, rates were sui se-
quently advanced to one and half per
cent. for three year, but even then many
companies lost money on them every
year, and refused to insure them longer.
Then, some three years since the losses
on this class became SO frequent and
heavy That the rate was advanced to two
per cent. for three years. as 1T is now, and
yet this increased rate has Lad no effect
with the companies, most of which have
placed farm property on their Prohibit
ed List" so that now it is one Of the
most difficult classes to place insurance
upon. And yet, the rates on dwellings
in cities, having fire departments. water
works, etc., were never lower than now,
and no class of risks is SO much sought
after by the companies or proves SO
profita BILE, even at existing low rates, as
this.
1t is well established fact that the
only successful force in bringing insur
ance companies to united and practically
unan imous action in the matter of in
creasing rates in recent years has been
that of diminishing assets under the
pressure of unprecedented great cDnfa-
grations or the wasting cravings of
smaller but continuous fires. Only when
thus reused have they cast aside the
petty jeslousies o. fierce competition and
stood together, not to burden the people,
not to hastily accumulate great profits,
but rather to maintain their integrity,
to be able to meet the demands made
the pressure of the excessive fire waste
of these last few years which has made
every responsible company loyal adj
herent to such methods and requirements
AS would secure adequate rates. Never
in the past has there been such unanim-
ity and loyalty in this direction, and
some of us know from experience that
any considerable diminution of fire loses
would tend to an early and correspond
ing dimin ution of rates. But while the
fire waste continues on the basis oil $780,
600, 900 annually the public clearly means
that the insurance companies require
such rates as will sustain them in their
obligations to their policy holders.
Those, however, who desire reduction
in their rates of insurance row can, in
many cases obtain it Immediately upon
their compliance with requirements as
to improvements in the condition of their
property, particularly if it be under the
projection of water works and fire de-
partment.
This is being done almost daily, and I
am entirely correct when 1 state that
the companies are much more eager for
the improved risk at the reduced rate
than they were for it under the former
conditions at much higher rate.
Allow me to illustrate: A firm in