The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-05-29
THINK PETERSON
SPOKE TOO SOON
GOVERNOR AND INSURANCE COM
MISSIONER REGRET REPORT.
Mr.. O'Brien Says the Fire Insurance
Situation Is One Which Demands
Careful Investigation in All It's
Phases, Before Any Working Con-
illusions Can Be Drawn.

In the opinions of Governor J. A.
johnson and T. D. O'Brien, insurance
commissioner, the release to the pub
lie of the receEt report of Edward A.
Peterson on the subject of fire insur-
ance rates was premature, and his con-
ciuslon that rates generally thruout
Minnesota are 30 high wa.
prepared by Mr.. Peterson as q
basis for further Investigate lions
before giving a conclusion to the pub
lie. Commissioner O'Brien today held
conference with Governor johnson on
the subject.
Duties of Marshal.
''The Office Of fire marshall said Mr..
O'Brien after the conference, "was
created by the legislature of 1905, as
the result of certain Investigations that
were made by committee appointed to
consider fire insurance rates, and it was
intended that the fire marshal should
procure data and information for the
benefit of subsequent legislatures. Pur-
suant to this idea, Mr.. Peterson has for
some time past been making certain
tabulations, but the work is far from
complete and [ do not consider that
enough has yet been done in this direc-
ton to justify any definite conclusions
upon the subject.
visibility of an anti-compact law, a
question which is being vigorously agi-
tated in many Of the other states, and
one upon which the legislature of this
state will no. doubt desire information
when it meets next year.
g am informed that the conditions
in Minnesota are somewhat peculiar.
We have, first, the three large cities,
st. Paul, Minneapolis and Duluth. Then
again an entirely different condition
prevails in the northern portion Of the
perhaps third condition in the middle
portion Of the state. In considering the
propriety of rates, therefore, the ques-
tion at once comes up, whether the
entire state is to be considered to-
gether, or whether the rates should be
examined with reference to their suffi-
cheney in each particular locality. 1t
might be, therefore, that the average
rates would appear too high or too low
for the entire state, and yet each rate
considered by itself might be shown to
be entirely fair.
Lessons from Frisco.
"fThe San Francisco fire has demons
trated, first, that many years expert
ence must be considered in determining
what are proper rates; and, further
it at least suggests the ACCESSIBILITY of
establishing what might be called con
fagration districts thruout the United
States. I believe most of the com
panies use what are known as the Dean
schedules, those being schedules which
contain, first, basic rate, and then
additions or deductions from that rate
according to the peculiarities of the
| risk, being considered. A confagra,
ton hazard could, it seems to me, be
! included in those schedules. It has
been stated in the press that the fire
insurance companies contemplate an
increase in rates because of the losses
in San Francisco. If this is true, it
| becomes very important that the whole
| question should be considered, and the
propriety of establishing confagration
| districts particularly.
GAS I have said, I do not think the
| investigation has gone far enough to
| Justify. me in coming to any definite
conclusions I shall certainly want to
discuss the question with the under
writer's before expressing any opinion
upon the subject, but in this matter, as
in all others, I believe. that the best
way to arrive at the truth is to exam,
inc oil sides of the question fuily.'