The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-09-03
NEWMAN'S SALVAGE CORPS.

Rough Notes.

hOuSn NOTES.
Indianapolis agents and fire insurance
companies have been the subjects of some
rather uncomplimentary comments and in
situations, at least. of interpretation and
selfishness in their treatment of the mer-
chants salvage corps, which has been con-
Quoted in this city for several years by
Superintendent Herman Newman AS to
the efficiency of the corps and the abaility
and conscientious faithfulness of its cap
tain and manager, Mr.. Newman, there has
not been word of disparagement to be
offered on the part of the agents or the
companies. He has always done his work
well, and has doubtless saved much prop
erty, many times more than he has ever
received in the way of financial support.
There can be no question as to the value
of a salvage corps in general or as to the
ability of Superintendent Newman to
manage one. There are few men in the
country better equipped, either in expert
ence, knowledge, good judgment or phys
ical strength and courage. But there is
another side to be considered in the local
situation-that of the agents and the COM
panies.
AS for the agents, the establishment OF
an efficient salvage corps in whatever city
means eventually reduction in losses.
reuuctlOn IN losses Is always 1OlOWe0 Dy
a reduction In rates. Reduction in rates
means a reduction in premium receipts.
Since the income of local agents is based
on a commission percentage of gross premi-
UNI receipts, a reduction therein results in
a reduction in their incomes. 1t can hardly
be wondered at criticised, then, if they
have not in the present case given hearty
and substantial support for the perpetual
ton of a salvage corps in Indianapolis.
AS for the companies. they have the
perience with salvage corps in many cities
to govern their views as to the advantage
of such institutions. In the majority of
cases salvage corps are maintained at the
expense. in whole or in part, of the in
surance companies, and it works out with
them as with the agents. They invest in a
plant from which they are not allowed TO
profit, but because of which they must ac-
cept a reduced income.
1t is also a fact, which has been further
demonstrated in Indianapolis that in cities
where there is a good salvage corps the
insuring public is inclined to take out less
insurance on property. relying on the sal
wage corps to keep the loss from being
large. In such cases a small fire in pro-
portion to the value of the property be-
comes large one in proportion to the in
surance carried, and Increases the num-
Der of total losses which companies must
pay. The effect of such condition upon
the companies profits is apparent. 1T is
not strange, therefore, that the insurance
companies have not lent enthusiastic sup
port to the salvage corps venture in In
dianapolis, but they should be given credit
Tor many voluntary lnQlNlQual CONTRIBUTORS
which they granted where the salvage
corps worked a saving for them.
A salvage corps can do much more good
than some other more costly pieces of fire
apparatus, and, always maintained by
Rough Notes. we believe il should be a
part of the regular city fire department as
much should any other of the COM
monty accepted fire fighting companies and
machines. The argument that, in the hands
of the insurance companies, and free from
politics, more efficient service is assured
applies no more specifically to a salvage
corps than it does to a water tower COM
pany.
Superintendent Newman came to Indian
apolis unsolicited by the insurance inter-
ests He undertook the establishment of a
salvage corps merely as a business ven
tureA hoping to educate the city to its use
fulness and thus secure it's permanent SUD-
port. AS far as the insurance interests
were concerned, the usefulness of such an
institution conceded before the les
son began. The merchants and property
owners have now had a capable demon
stration of its practical value. All concede
Its good thing. The trouble lies in the
difficulty 10 persuade some one to furnish
the backing to keep it alive. Superintend-
give up the struggle and he has discon-
tinued his service. He closes honorably.
paying back to subscribers their unearned
subscriptions. 1t is always deplorable to
see a man fail who makes an honest eff
fort. and Rough Notes expresses the
general sentiment of insurance interests
when il states that ii is with sincere re-
gret that we learn that the salvage corps
is TO be discontinued.