The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-11-26

w
fire sufferers, whether insured or not,
it is plain that the tax imposed on the
companies is misplaced. The tax
should be a general one, for the serv
ice, given as it to the general public.
is itself a factor in lowering the rate
Of insurance in the city. However, the
insurance companies are we'll satisfied
that it's cost is worth to them all that
is paid
The automatic sprinkler system Of
fire protection is a device that has be-
come popular within the past quarter
century. This system will under GER
tain conditions cut so per cent off the
fire insurance rate. This device con-
sists Of a system of open piping with
! numerous small vents that low de-
gree Of heat will open over an entire
room, causing the piping to spray the
room and contents, thus greatly retard-
| ing the action of the flames. This
system has, on the other hand its own
1 risk; for, being automatic, 1t some
times works out Of season. This risk
has led to a new line Of insurance
! known as automatic sprinkler insur-
ance which UNDERWRITERS water damage
/ from this fire protection.
This is but one Of the side lines of
! fire insurance, developed here in re-
cent years. There are others. One
! Of these is rent insurance. This in
sures against loss to a landlord Of rent
! between the date of the fire and the
! time when the building shall again be
! put into rentable form. This loss is
determined by arbitrator, usually con-
| tractors, who estimate the time that
must necessarily elapse between these
two dates On their decision the loss
is adjusted. Profit and occupancy in
surance are similar lines. These in
sure tenant or owner, the one against
loss by being driven out by fire, the
other against loss Of profit that he
might have made on goods that were
burned. ALI these side lines are car
ried by insurance men in this city,
and nearly all are of less than
quarter-century's growth.
While the rate Of fire insurance have
the past quarter-century, they have
on the whole decreased. The tendency
of competition has ever been to de-
crease the rates gradually till such
time as the companies wake UP to find
their losses too near the profit fig
ures for safety. Hard times are times
of danger to fire insurance companies
This is because the average mora
constitution will not stand the strain
of heavy insurance on weak property
It is a matter of universal experience
that fires are more destructive in hard
times than in good. In the year 1883;
fire insurance rates were raised about
20 per cent in this city, but from 1897
and following they declined under the
stimulus of good times come again
During the past four years, however
the losses have been so heavy as te
;. demand another advance Of 20 pei
cent, and with this an increased care
as to risks, and general cutting
;. down of business. This voluntary re-
duction Of business has at the presen
about ceased, and a tendency toward
an increase is now noticeable.
The large growth of business con
Germs within the past decade ha
) brought about a congestion of bus
! mess buildings to certain degree
an increase in the size of mercantile
and manufacturing houses, and a ten
dency to house much valuable mer
chandise under one roof. This ha
! had the effect of making 1t Difficult
for merchants and manufacturers t
get sufficient insurance to cover thel
property. This has necessitated goint
out of the state for insurance on thu
surplus risks. This difficulty in get
ting adequate insurance has led to tn
!, scattering of merchandise about tn
changes are only necessary movement
in the growth from a town to me
: tropolis.
In no one line Of insurance has ther
been so radical a change as in tina
: on grain in terminal elevators in thi
! city. 1t is the matter of fire insur
ance, primarily, and almost wholly
that has brought about the building o
: the tank elevator, built Of steel, con
crete, tile or brick. Five years ag
: there were no elevators in this cit
-].not hill. of wood, To-day, of tn
: more than 35,OO0,00O bushels of grail
; Continued on Page Five, Real Els
: | 4ofoa,,d Ipc11,.anoa Sacfion.