The Cairo bulletin., 1904-09-25
INSURANCE RATES
TO Be CHANGED
City TO be Rerated Early Next
Week.
DEAN SCHEDULES USED
STATE BOARD OF FIRE UNDER
WRITERS cRlTlcizEs CON-
DlTloNS IN CAIRO AND
SUGGESTS IMPROVE.

1 "A complete revision OF the fire lnSur
ance rates of the city win be made
Secretary p. j Purcell, of the local
board of fire underwriters yesterday
received notice from the secretary OF
the state board that inspectors would
visit Cairo soon after the first of next
month for the purpose OF rerating tal
city This is in line with work that
has been going on throughout the state
for number OF months during which
time practically the protected cities
towns having water works and fire de
partment, have been visited and their
risks scheduled,
The tariff to be applied to this city
is known as the Dean schedules. the
author being A. F. Dean. Chicago,
underwater OF much ability and ex.
perience. The new schedule takes In
TO consideration not only the class OF
building but is construction
occupancy. and exposures. In
4 the past similar buildings
were rated pretty much alike
without reference to the above char
acteristics or the care OF the particular
| premises or its adjoining and exposing
buildings, If two buildings were, for
instance, constructed Of brick and had
/ a tin or metal roof the rate was much
the same even if one was occupied as
a high grade office and the other as a
low class dive. The class of tenant
and the care he took of the premises
made little difference.
Experience has taught, however.
that many things enter into the fire
hazard, that the well kept building
burns less often than the neglected
one. That the modern ediflce of
standard construction is much less IL
able TO loss by fire than the ancient,
poorly built structure.
A standard is proclaimed
which takes basis rate
and TO which charges are
added for occupancy. expenses. care
and general conditions. 1t is not the
object OF the schedule TO increase
rates so much as it is TO equalize
them-to place the charge whore il
justly belongs. There is little doubt
but that on some classes the rates
will be reduced The loss ratio on
lumber, as an example. has been uni
! formly low with but few serious fires
! within the fifteen or twenty years that
Cairo has been important as a Ium-
Der center. Ii Is understood that
general reduction viii be made on all
yards with the possible exception OF
mill yards, On other classes of bust
ness where the experience has been
unfavorable such may not be the case,
but in this state the lumber business
at Cairo is practically in a class of It.
self and it is claimed by underwriters
that much lower rates have existed
here for number Of years than at any
point in the state on similar property.
The enormous fire waste of recent
years. to which the city of Cairo has
contributed its full proportion, has
lead TO the compilation of a tariff
based on conditions as explained above
and II is this schedule that will be ap-
piled TO the city within the next week
or two. BY the Dean schedules towns
are divided into five classes the basis
rate OF the mercantile building. which
may be regarded as a standard. being
determined by the various features OF
the city from a fire insurance stand
point, such as streets. water
works. fire department and equipment,
fire alarm and the ordinances regulat-
ing the same and the enforcement Of
these ordinances. All play an i'm
portant part in arriving at a basis rate
upon which the premises of the indi-
vidual risks depend.
II seems that Cairo has been more
or less defective in severtl respects
and although the attention OF the city
authorities has from time TO time been
called o these defects. but little i'm
prOvement has resulted. In June Of
last year memorial was presented u
the present city administration recit. !
ing conditions in detail and pointing !
out means whereby relief might be oh. |
tanned. The letter was signed by ev-
cry local fire Insurance agency and |
was largely the result Of proposed /
measures whereby the office Of chief 1
" the FIRE department was To be abol. /
ished and against which the under
writers particularly protested Owing I
TO the state OF the city finances II was
thought best by the authorities 20 re-
move the acting chief and bis duties
were divided between the captains Of
the two departments and the mayor.
The state board of fire underwriters /
we're apprised OF this communication
and * Is made the text Of a letter
from the secretary Of that body 10 the
ocal board. This letter The Bulletin
las received permission to publish ami
that its contents should be u
interest and value not only TO the au-
horities. but 10 all property owners as
veil the letter Is reproduced in full. L
Chicago, Sept 20, 1904.
cairo Local Board Cf Fire Under /
writer's.