The daily morning journal and courier., 1902-06-09
PROSPERITY FIRES.
HEAVY LOSSES FROM MILLS
 WORKING OVERTIME.

Loss-Eighty Per Cent. Insurance |
 Proper Limit.
 Prosperity fires" have become so nu
 merous as to attract the attention o
 wholesalers, jobbers and others who eX
 tend heavy credit lines to merchants ir
 the United States. This hazard results
 from operating plants beyond norma
 production and the tendency of business men to take more orders than they car reasonably handle. ShreWd underwri'
 ters have long been familiar with this
 class of fires, and in busy seasons feaI
 the "prosperity hazard" as entailing heavy loss The danger is so acute that insurance men have come to look for an increase in the loss ratio with the ad- vent of what are known as "uncommon- ly good times" While not always qually destructive, this strange hazard often touches great insurabIe values, for the plants thus taxed are apt to rep resent large capital, which is generally protected by heavy insurance.
 Steel mills and other branches of the iron industry are just now peculiarly exposed to the dangers of running overtime, for, notwithstanding the use of improved protective appliances, no manufacturing risk can be rendered safe without constant vigilance on the part of those charsed with it's supervi- sion. Touching the dangers of prosper ity fires, Charles Grinnell of Grand Rapids, Michigan, in a bulletin just 1s- sued by the National Association of Credit Men, says Hardly day pass es in which the public papers are not filled with accounts of losses, which it would seem would make a lasting inn pression upon the mind of any reflect ing individual in the community Without making any mention of small fires, the aggregate loss in the United States during the month of February was over twenty million dollars. It is true that we have better fire-extin- guishing facilities in many localities than were ever known before and in many respects fires are more quickly reached and better handled; but on the other hand, the causes of fires have been enormously increased, The very large use which is now made of electric ity for lighting and heating, and gaso- line. has been in itself the cause of an enormous increase in loss ratio.
 Another hazard which the companies have at present is what they call pros perity fires, caused by too much busi- ness. Factories crowded, and working overtime, so that they do not have the time to properly look after the cleanli- ness of their factories and stores The energy and rapidity and pell-mel man. ner of doing business in the United States is another fruitful source of fire waste. The losses actually paid by all of the fire insurance companies doing business in the United States during the year 1875 amounted in round figures to thirty-five million dollars, while in 1901 they amounted to one hundred mil lion, or, say, sixty per cent. of the en- tire fire premiums received. Even where an active business man has good, sound insurance to the amount of, say, eighty per cent. of the actual cash valu of the property insured, there still re- mains a wide margin for loss, and all that any active and intelligent business man ought to assume, for there is an indirect loss in the interruption of bus mess undertakings in the delays, loss of patronage and time consumed in re- plaClIG DuIlulilSS, HldCHlI0Fy ana stocks, and getting back the position occupied before the fire none of which is covered by insurance
 What is regarded as an exorbitant rate sometimes curtails insurance but | it has been my observation that in such | cases the hazard usually justifies the rate and thus renders the requirements | all the more essential To evade fire in- | surance evinces a lack of business fore | sight and conservatism, and places credit upon a speculative basis thereby | destroying confidence, which is the of all crtdit. Any business which cannot stand insurance had bet ter be wound up. Some enterprises are spread over much territory, hence carry their own risks, but these are very wealthy and seek no credit. It is often by business men, if the com panies can afford to carry my risk for 3 certain premium, why cannot I?' For the reason, the companies are carrying of the same class all over the and thereby secure an average, and average is the foundation of the business.
 If I were considering the extension 1f a credit to a merchant, and there was q question as to the feature of in- surance, I should feel free to ask for an explanation, and not only would I want 70 know the amount of his insurance, put the character of it. the form of pol cy, and the standing of the companies. There could not be q serious objestion f the request was made in the proper spirit. It is usually the case that the 'etail merchant has had less experi- ,nce than the jobber or manufacturers md might be glad to receive advice | the details of insurance. This matter is certainly vital to the 1arty asking for credit, and the seller annot afford to take any more chances han if he were considering the insur- ng of his own property bank will lot loan money on real estate unless it S amply protected by insurance, and I believe the time wilA come when it will ,e more generally appreciated that a business man does not materially differ l n any particular from the banker in egard to the extension of credits. "- Jew York Evening Post.
 
 SHE CORNERED HIM. The query editor was troubled, not to l