Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-12-17
Chairman of the Board of Con.
troll Opposes Insurance OF
State Property
FIREPRooF BUILDINGS FAVORED
Paper on the Subject Read Before the
Quarterly Meeting Today-cownie
Believes the State AbundantIy Able
to Carry It's Own Insurance as Mat
ter of Economy.

Des Moines, Dec 17.-Chairfnan John
Cownie, of the state board of control,
is opposed to insurance of the state
property and insists that the state is
abundantly able to carry it's own insur-
ance. Mr.. Cownie has given this mat
ter much thought, especially in view OF
the agitation in favor Of insurance of
state property last winter and the large
number of fees at state institutions. Mr..
Cownie would have the state bear it's
own burdens, as matter of economy If
nothing more, and if necessary that 1t
employ competent inspector to go
about the state and make regular in
view to preventing fires and establish
a sinking fund for immediate use in
case of fires to replace burned buildings.
Before the quarterly conference OF the
executive heads Of the state institutions
today Mr.. Cownie gave free expression
to his views on this subject.
The serious losses by fire during the
last few years at number of our state
institutions, he said, have caused an in
creased interest in regard to insurance
OF state property and likewise called
attention to the inf1ammable condition
of many of our public buildings. Fortu-
nately these fires have not resulted In
the loss of a single human life, and con-
sequently the loss of property alone has
not appealed to the general public, In
the manner it would have done If ac-'
companied bv the sacrifice of fellow be-
ings, with the excruciating pain and
torture of death in a burning building.
It is also fortunate that much OF the
property destroyed, while answering the
purpose for which 1t was erected, was
old, of antiquated construction and Ill
adapted to present needs. This condf-
ton is so evident that prominent
member of the last general assembly.
who is well acquainted with the char
acter OF our state buildings, remarked
on hearing of los by fire at one of our
institutions: as it not strange that
when one of our state buildings be-
comes old, is unsightly, proves incon-
yenient and new building Is desired.
an accidental fire, the cause of which
is unknown, quickly destroys the old
building and the legislature is called
upon for an appropriation to erect a
larger, better and more commod1ous
building?"
Were it not for the fact that there
never has been the slightest cause for
believing that any of our destructive
fires had been Intentionally started,
there might be good deal of force in
the foregoing, for it is undoubtedly true
that with scarcely an exception the
buildings destroyed were not a credit to
the state, and on account of their age
and construction were menace to the
lives of those domiciled within their
walls. And while n aw and better build
ings will take the place of those de-
stroyed, still we must not close our eyes
to the fact that the state has sustained
serious loss in property as result or
these disastrous fires. A prudent busi-
man invariably carries heavy insurance
on his property, whether buildings, ma
chinery or merchandise, and 1t may ap-
near somewhat strange that the state
legislature has never made any provis-
ion for the insurance of state property.
On the other hand 1t might be said that
the position of the state is entirely diff
ferent from the individual, that while
the destruction of the property o. the.
latter by fire might bring financial
ruin, and the loss of the savings OF
life time, to the former 1t would be but
a small matter as the loss would be dl-
yided among all the taxpayers of the
state. whose financial condition and
ability to pay any losses would GER
tainly be equal to all the insurance
companies doing business in Iowa.
But it may be said that the state
would be the gamer by carrying lnsur-
ance on its property, and in case of loss
from fire would receive more in return
than it had paid for insurance. II this
be true, then the insurance companies
would be the losers, and the question:
arises, how long would these insurance
companies exist If the losses exceeded
the premiums paid?
Fire insurance is a business, perfect
ly legitimate and filling an important
position in the business world, but the
officers and agents of these companies
are not fools, doing business for noth-
ing. neither are they philanthropists
who nave unDOuIueua Cdplldi a. eiiSii
command, who promptly pay all losses,
but never ask for a premium.
1t costs a great deal of money 10
carry on the business of Insurance. IN
a proper manner, rent of offices must
be paid, officers must have salaries, ana
agents commissions, and taxes must
be Forthcoming. And in addition to the
payment of losses, the premiums re-
ceived must be sufficient to cover all
expenses and still leave a surplus, for
policy in an insurance company
whose officers allowed the expenses
to exceed the income would be of little
value to the insured in case of loss.
Who would think of asking a manu-
facturer to sell his output at the cost
of the raw material, with nothing for
labor, or the merchant his goods at ac-
tual cost, and II they did so, how long
would they continue in business!
No claim is made by insurance COM
panies that all the money received In
premiums is returned to their patrons,
the only legitimate claim thnt can be
made. being that in case Of loss 1t VIII