Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1904-01-09
Loss.

1901-Mt. Pleasant, Industrial
building 10000
1901-Ames, barn ............ 10000
| 1901-Iowa City, medical build
| ing, School for Deaf ........ $1,000
| 1902-Mt. Pleasant, laundry of
| state hospital =. ...... $4,000
1902-Ames remainder of main
building state college $500. $4,000
Minor losses various institu-
| lions =. 10000
Total $3.50 200
In addition to the foregoing there has
been severe damage to state insti-
/ buttons by tornadoes, the worst be-
ing that inflicted upon, the School for
the Deaf at Council Bluffs last year.
This institution also suffered fire
loss of $66,00O in 1877 and the pris-
on at Fort Madison, $4,000 by four
| fires, occurring in the years 1858,
1 1859, 1868, 1870.
Des Moines, Jan 7.-Notwithstand.
ing the criticism that is being heard
in many quarters concerning the policy
of the state in carrying no insurance
on state buildings, the Hon. John Cow
ME, president of the state board Of con-
troll, stoutly maintains that the state
would be foolish to invest in fire in
surance. He admits that it would
have been heavy gamer thereby
within the past ten or twelve years,
but says that if the state had pursued
this policy during the entire fifty-eight
years that 1t has been in existence it
would have been heavy loser.
MIR. cownie's Views.
| Mr.. Cownie argues that insurance
companies are money making concerns
and do not figure that they can afford
to- do business unless the amount paid
out for losses is but 30 per cent of the
sum received as premiums. He says
that he can see how a single individ-
ual with small holdings and small
means cannot afford to carry his own
risk, because of his inability to rally
. Immediately from a fire loss and re-
place the burned buildings unaided.
!, But in the case of the state of Iowa,
, with nearly 20,O0O,0OO people and in.
estimable wealth, he believes the in.
J terests are SO large and the value OF
the 'proprty SO small as compared with
its wealth that it would be foolish to
: invest in insurance. He thinks the
, state can better afford to carry its
own risk and can lessen the danger by
erecting flre-proof buildings exclusive.
ly hereafter.
Report of Board.
The foregoing list of losses was sub
mitted to him and called forth the sug-
gestion that the following extract from
) io1 Of !, fo&A orI
of control to the last session of the
! legislature be considered:
tThe loss to the state by fire since
the first building of the penitentiary at
, Fort Madison was occupied, in the year
1S41, has been $685., 261.43, and the loss
by wind and hail has been $4,000 "a
The value of property subject to such
losses is largely increased from year tc
year, but the information at our com
? mand does not enable us to state what
j. per cent of the value of such property
has been destroyed in different years
!. since 1910. We know that the losses
; were exceptionally large during the
r last decade represented in the table
|, Within that decade such losses, includ
ing buildings made fire-proof, aggregat
J. ing about $2,500,000, have been uset
by various state institutions, and it is
? probable that the average value of the
n property by the state institutions sub
: ject.to loss by fire was about $4,000,
900. The losses by fire during thu
!. time were $463,355, and by tornado So,
!, 0Sa.74 According to the best informa
y, ton obtainable, the fire rate for the in
" surance Of such property is about pc
n cent per annum, twice that rate TO
4, three years and three times that rat,
for five years. Had all the cumbusti
!. Bile property of the different institu
q tions been kept fully insured durin.
y the period designated at the fire rat
=. specified for three year terms, the cos
to the state would have been 100000
or $163,355 less than the amount of tn
d fire losses sustained, and would hav
q benefited the state in that sum. Blu
more than IA per cent of the fire losse
of the state since 1910 occurred durin
n the last decade. 1t seems probabl
o that the average value of the institr
tional property of the state during tn
last sixty years was $2000,000. Durin
much of that time the rates were higf
! er than they are now, but insurance O
$2,000,000 at current rates, for tire
year terms during the period of sixt
years, would have amounted to $500
4 900, or S177,73S.57 more than the aggr,
gate of the fire losses during that time
n Hence it appears, Notwithstanding tn
ir exceptional losses of the last decad,
I. that the best policy of the state hereto
r. fore has been not to carry fire insu
lie ance. The cost of tornado insuranc
at the lowest rates is about one-ha
1t of one per cent for three years, an
le at that rate the cost of insuring tn
ID state property subject to tornado 10:
Il. would have greatly exceeded the losse
N by tornadoes which the state has su
It. tanned"
I'd He who takes good care of the da,
st need give himself no worry over IL
to year.
n The foolish man will show his mo
IL ey and the foolish woman her clothe