The San Francisco call., 1906-07-04
NOT A PRACTICAL PLAN.

Governor Pdrdee, IN reply TO letter OF inquiry
from taxpayer, in which the executives opinion
Iof State insurance was requested, says that the
State could not undertake insure its cities and
towns, and that such loss as that of San Fran
cisco by the great fire would be an overwhelming
burden on the State for years if attempt were made
to settle it by applying certain assessments as out
lined in the State cooperative insurance plan
Cooperative insurance, State insurance and Fed
efa insurance are merely in the she'll There has
been no definite form developed In the peoples
forums the three schemes have been discussed and
no conclusion arrived at upon which to base iudg
ment. 1t appears, however that the so-caed State
plan does not aim to force upon the taxpayer the full
settlement of great losses except to the extent of
money accumulated in reserve for payment OF losses
by fire.
As near any seems to understand it. the
advocates OF State insurance propose to levy by
voluntary assessment tax upon personal property
which tax shall form State fund from which in
surance losses may be paid. 1t is assumed that in
ten years the reserve fund will be sufficiently large
To offset extensive osses-having in the meantime
kept up payments on small losses by fire through
out the State on property insured by the general
State fund Accumulated interest would, with the
collected tax each year, form in time great re-
serve of money which would meet all losses unless
some Unforeseen disaster, such as the San Fran
cisco fire, were to occur
There does not seem to be anything practical in
this plan. The obstacles in the way of its consun-
nation are so many and great that not even the
keenest financier would undertake to overcome
them. If the insurance of personal property in the
general State fund not compulsory ONLY a
fraction of the people OF the State would apply for
policies. There would be much friction in the adj
usting of losses and the investment of the reserve
would be constant bid for "grafters' and an in
citement to political jobbery. Bad as the insur-
ance situation IS resort to State insurance might
make things worse. At first glance the State in
surance plan is allurng, but after brief study it is
obviously impractical.
Don't forget to send your youngsters to Golden
Gate Park this afternoon, that they may take part
in the Fourth of July celebration. This is the
urgent request OF the Fourth of July committee,
and it ought to be complied with.
Ten employees Of the Mint have been DISCHARGED
because the coinage OF the fiscal year was in excess
OF the usual and the surplus in cash is too great
Here IS warning not to make money too fast
The Pacific Mail liner City of Panama brought
100000 in gold bricks from Mexico on her last trip
But what San Francisco is most interested in lust
now are bricks of clay.
Rockefeller has announced his intention OF
making another gift of money to his favored uni
versity, and the world is anxiously looking for
raise in the price of oil in consequence
The toy cannon and the toy pistol have already
been heard from in Chicago, with two fatalities TO
their credit. Chicago always does go off half-cock