Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-05-28
WITHOUT INSURANCE
DISTRICT LEFT WITHOUT FUND
FOR THE PURPOSE.
Policy Adopted, It is Stated, Because
Losses by Fire Have
Been Small.
INSURANCE

On and after the coming 1st of July there
will not be one dollar of fire insurance on
any building owned by the District of Co
lumbia. Congress has decreed that the Dis
trict shall be its own insurance company.
The matter was thoroughly discussed in the
hearings before the House subcommittee
when the appropriation bill for the next
fiscal year was under consideration The
Commissioners found 1t necessary in their
estimates to ask for large increase in the
appropriation for insurance premiums, as
their old agreement with the insurance
companies, at a very low rate, expires June
30 next, and higher rate for the coming
year was quoted by the underwriters.
In framing the appropriation act the pro-
vision in the contingent fund for insurance
was omitted. 1t was intimated during the
hearings that Congress might take this ac-
ton, as statement submitted at the re-
quest of the subcommittee showed that
within the last twenty years only about
81 600 had been received In fire damages,
whereas the premiums paid out had
amounted to nearly. $40, 600 Had the COM
mttee gone one year further into the past,
however, 1t would have been found that the
District has profited by its insurance ar
rangements. the loss of the Jefferson
school building in February, 1850, entailed a
loss of S4S u, all of which was repaid
to the District by the insurance companies
having the risk
A table prepared by Mr.. ]. T. Petty. the
auditor for the District showing the insur-
ance transactions of the District from the
year 1879 to the time of the hearings before
the subcommittee this spring, shows that
the District has paid out for insurance the
sum of $50, ,056.25 and has received in dam
ages the sum of $51 1896. To the damage
account may be added 81 600, which will be
paid to the District for the fire loss the
Garrison School building last Sunday morn
Inc &c xx-in ri he tntn of a rec
up to $55,3S
The loss of the Jefferson school building
was not taken into consideration by the
House subcommittee in discussing the in
surance problem, as appears from the pub
nShed report in which the total paid out
for premiums is constantly referred to as
$50, 600, whereas the fire loss is referred to
as s., ,OCO. 1t is interesting that practically
at the beginning of the Districts transac-
tionS with the insurance companies heavy
fire loss occurred through the destruction
of the Jefferson school, while now at the
close of its dealings with the companies a
serious loss occurred at the Garrison
school.
The School Buildings.
The payment of the loss on the Garrison
school has had the effect of attracting
the attention of the underwriters TO the
fact that no provision is made for con-
tinuing in effect next year the many policies
Preparations are therefore being made by
the agents affected to cancel all their risks.
These amount to more than 5000 900. in
Guiding the 40 school buildings, the police
stations the workhouse and Washington
asylum buildings, smallpox hospital, etc.
From the standpoint of the insurance
man, it is stated. the new arrangement is
not regarded seriously, the premiums
paid by the District amounted to but a
little over 50 900 a year.
From the District standpoint the risk
which will this year amount to nearly
S3,0OO,0O0 through the addition of the two
manual training schools and other build
ings. is to be borne entirely by the District
taxpayers This is said to be no new con-
dition among the municipalities of the
country, many of them carry their own
insurance.
This is also the policy with the holders
of the great real estate interests. Rather
than pay the heavy premiums demanded
by the insurance companies the owners
have credited the amount of the premiums
to themselves and balance accounts in
cases where a loss by fire may occur.
| The new conditions in the District were
brought about primarily, it is stated. bv
the dema nds of the insurance agents I'm re-
gard to the risks on the Mckinley and
Armstrong manual training schools. They
claimed that these schools We're different
in character from the ordinary public
school. and called for heavier premiums.
MT. felty says the companies diSO dI
ranged the rate so as to require the Com
missioners to carry almost a full Insurance
on the structure, the rate on $4,000 being
practically the same as on $4,000.
The Increases Demanded.
Increases were quoted on all classes Of
District insurance so as to bring the total
of premiums up from little more than
$4,000 to practically three times that
amount. 1t thus became necessary for the
local authorities to ask Congress for an
increase and with this request came the
usual thorough cross-questfoning from the
subcommittee which invariably follows es-
Inmates for increases in any of the items in
the District bill. The inquiry thus begun
by the subcommittee resulted in its de-
termination to appropriate no more money
for insurance.
The Commissioners put the matter square
ly before the subcommittee, saying they
were unwilling to recommend the canceling
of insurance policies. If such action was to
be taken they suggested that Congress
should take the whole responsibility. Con-
greSs has done SO.
The fire engine houses of the District have
never been insured, although in the cases
Of those surrounded by other buildings the
danger of loss is almost equal to any other
structure.
The danger of serious lose was forcibly
brought to mind few days ago when
disastrous fire. occurred next door to No.
IA engine house, on Sth street between d
and E streets In this engine house the
entire fire alarm, police signal and District
telephone apparatus is located. The instru-
ments represent value of about $50 COO
Had the fire reached this building, which
Is in the heart of the dry goods and stor-
age house district. the loss would have
been irreparable. AS there is no insurance
on any of the instruments. the District
would have been without fire alarm or
police signal system until Congress could
ov.1 ,rr4 ;-Xz~
the same. The work of manufacture and
installation would require several addition
al months
GOING TO NEW QUARTERS.