Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1900-02-24
STATE HOUSE.
Towns May Get Benefits from
Travelling Libraries.
Plans to Have Pictures of Maine States
men in the Rotundas.
Insurance Underwriters Point Gut How Faults
May Be Corrected.

| devoted To their business on the topic
| uf Negligence in Fire Risks" coming
as it does after a disastrous year il
| Maine. Commissioner Carr is glad t
see that ideas are advanced to over
come the great fire loss The article
| reads as follows:
| Combine negligence with faulty con
| Struction. ana fire insurance has risk
! that is extremely risky. Faults u
| construction may be removed or cor
rected in the course of time under mu-
nicipal ordinances and underwriters
| regulations, but negligence is a factor
Of the moral hazard that each indi-
| vidaul must correct, either through o
! realization Of his responsibility 0,
! through the underwriters limitations
that something may happen in the line
| Cf higher rates. In law. negligence is
"A violation of the obligation to eXer-
| Cisa care and caution in what one does
| tho omission to use that care which the
| law under the circumstances requires.
In fire insurance, negligence, beyond
| the negligence referred to in the stand
| ard policy, is a violation of the inSur-
/ eds obligation. largely moral. to eXer-
| else care in maintaining clean condi-
A. r.. rt-c-GT!ng rubbish, ashes ana in
..-l--.!a'is material and correcting
! faults Of management that tend t.
cause fires.
Underwriters have been obliged t.
take negligence into account in making
and maintaining rates Of premiums for
insurance. and in Philadelphia the
proposition has been advanced to have
risks inspected more carefully for IN
clean conditions, lack Of care and de-
fects due 70 poor management. If the
requirements of the underwriters in
Spection bureaus are not complied with
within a given time, the proposition is
that the rate be advanced % per cent.
ana held that for 4 year at least be
fore rerating can be obtained, unless
there is q change in the hazard or in
the occupancy necessitating a reTating
in the meantime.
An insurance company can cancel its
policy on a defective risk and thereby
reduce its chances Of meeting a loss.
but in ordinary cases of neglect it has
been deemed a wiser policy to induce
care ana attention in the management
of property and have risks improved
to the proper standard.
In its latest pamphlet the National
Board Of Fire Underwriters referred
to intelligent rating. with charges for
negligence ana faults of construction,
and said:
IF state Legislatures would let in
surance companies conduct their bust
ness without Interference. in the same
manner that they permit merchants to
conduct their callings without legisll-
tive restrictions. the business would
regulate itself; but if they undertake
cDnscicntiously to regulata insurance in
the real interest of the community
they should insist upon Intelligent
rating, which would carefully discrm-
mate by higher charges for faults of
construction, faults of management
ana negligence resulting in fires, and
upon careful inspection and a confer
cnce to secure comparison of expert
CnCe and the broadcast basis for fixing
prices.
1T should be borne in mind that the
payment for a fire by an insurance
company simply distributes the loss OF
the individual upon the entire com
munity; it does not restore anything.
Such drains upon the resources of the
country must be- felt in higher rates
for insurance, higher taxation. ana il
financial depression. They are to Il
large extent preventable, and intelli-
gent inspection and discriminating
rating by insurance companies would
secure this end.
Where buildings are rated by n syS-
TEN which charges for defects in con
struction and faults Of mana cement,
for negligence as to the care of ashes,
rubbish and other faults which tend
to cause fire, a charge being made for
each fault. the result will inevitably
be to correct such faults by the prop
erty-OWner who will naturally wish t.
save the annual charge which would
otherwise be burden for the entire
life Of the structure; and those who
erect rev buildings would be led to
Construct them properly with a view
to saving this expense 1t is in this
way that the business Of insurance
properly conducted by combination Of
companies to lessen the expense Of in
spection and to secure correction,
operates for the Improvement of cities
ard the reduction Of the fire waste
more potentially than building laws.
III companies. on the other hand, are
conpellcd to perform this task each
Tor tSCll, the expense Will - lllCIt tlfSi
to a point where they cannot prOfitabiy
conduct the business. Moreover, in the
case of a property requiring the poll
c:es OF 20 or more companies. n SlnSla
company could secure correction, for
it would require the cooperation ana
influence Of all interested.
1T may safely be asserted that the
enormous fire waste of the country,
costing at present at the rate of more
than S125 900, 900 per annum. or more
than SIC. 900. coo month, would be ma
terialN increased but for the inspections
and suggestions Of insurance cOmpan-
ias. enforced by higher rates charged
10 those property-oWner VINO are care
less or Indifferent as to fire; and would
he materially decreased if legislative
restrictions in various states did not
nrnhibit the cooperation of insurance
comDanies for 50 laudable purpose
directly in the interest of the commun-
itv. II certainly requires no argument
that the propeTty-OWner who IS IN
different to safety or who builds inse-
cureIv should have to pay more for his
insurance than one who observes every
rrecaution.
"Sweeping onflagrations in cities are
bayord the calculations Of fire insur-