The San Francisco call., 1907-06-23
MERCHANTS PLAN
NEW SYSTEM Of
FIRE PROTECTION
Launch Project for Salt
Water Plant to Be
Built at Once
CITY MAY PURCHASE
Insurance Buyers VIII Be
Asked to Subscribe
for Stock
TO REDUCE RATES
Proposed Improvement Is
Expected to Be of
Great Benefit

The immediate installation of an
adequate system Of salt water FIRE pro-
tecdon, the first cost to be met out
ot consequent savings in fire insur-
anoe premiums, IS 4 project that has
been submitted to insurance buyers
in San Francisco and in which busi-
nessmen generally viii be invited to
participate.
The scheme contemplstes the con-
sruction by the merchants of San
Francisco OF modern salt water fire
fighting plant to be taken over by the
city at cost at the city's option. In
the first instance the proposed system
is to be the child OF commercial CO.
operation. which viii be an immediate
source Of benefit TO the co-operators
and the city generally.
The movement had its inception in
an appreciation Of the insurance situa-
tion in San Francisco. It's materiaIiza-
ton VIII be hastened, It is believed. by
the announced intention of insurance
companies to reduce their risks in this
city.
Under normal conditions the premium
rates in san Francisco on commercial
risks were around l per cent Tn
der existing conditions business houses
are compelled to pay per cent for
inadequate amounts and are now con-
tronted with the disposition on the
part OF the companies to reduce their
business IN this field.
Chief among the reasons assigned for
this attitude on the part of the insur-
ance companies is that San Francisco
Is virtually without fire protection. Its
fire department is admittedly excellent
and the work Of the department on a
par with that done by the best fire
fighting brigades in the country. Put
these admissions touch only the eff
cheney Of the department in its organ
ization. The insurance people point to
the water system and then to their
rates.
The proponents Of the new salt water
system propose to restore normal rates.
abundant insurance and inculcste real
commercial cooperation in San Fran
cisco Their Investigations have dis
closed that q complete salt water plant
with pumping station can be installed
for $500, 600. This estimate of cost
does not contemplate direct or high
pressure plant but distribution OF
salt water in adequate mains that may
be tapped by the fire engines as con-
templated by the existing system.
BUSINESSMEN TO SUBSCRIBE
The first step is the organization or
z corporation capitalized at s2.5o0.00o,
OF possibly s300o0o0 The stock is to
be subscribed for BY the businessmen,
great and small of san Francisco in
proportion 10 the amount each would
save by re-establishment OF norRal
insurance premiums A limit of sIo,-
600 TO $4,000 TO the individual sub
scriber is TO be enforced as a safeguard
against the enterprise assuming the
character Of a private corporation and
10 protect the property from falling
into the hands Of a clique.
4 clause Of the proposed charter will
over By the city at cost or par value
Of the stock at the city's option, or at
such tine as the city may hold bond
election. Il is also suggested that the
charter unequivocalIy should provide
that the stock be paid for in municipal
bonds bearing interest at the rate the
city would be compelled 70 pay if it
noated the bonds On competitive mar
ket. Bonds can not be voted until the
general election in November, 1908. and
II work on a salt water system is post
poned until after the bonds may be
voted and hoated, san Francisco viii
be without adequate FIRE protection for
al least two and half years.
SCHEME OF sPREcKELs
The scheme is the result of investi-
cations prosecuted by Rudolph
n I'll