The Birmingham age-herald., 1909-02-26
FUOUAY SUGGESTS SOME
 INSURANCE LEGISLATION

ing apparatus should be made to conform to the standard with penalties attached.
 In this connection, by act of the leg islature the governor should be em- powered to appoint a competent state fire warden whose duties have been partly outlined, and also a state mechanical and electrical engineer under whose depart ment the lighting and power plants, also the fire-hghting equipment in the state, should be regulated and controlled by a given standard. And the warden should be required, or his deputies to inspect every piece of property in the state with ing every two years, from the humblest negro cabin to the steel skyscraper, to as- sure that the standard Is being main tsined. Approximate cost of these depart ments: One fire warden at a salary of 5000; one mechanical and electrical en- gineer, s2000; two deputy wardens, $1500 each. 5000; travelling expenses, deputy wardens and engineer, s45oo-total $l1 800.
 The cost of maintaining this department should not, by any means, be levied upon the already heavily taxed insurance com panies, but might be drawn from the agents license fund already paid by the companies. By referring to your annual report will be seen that the state collect ed from companies on account of their S589 agents sum of S1s,66l, which will
 
 $1000 to spare.
 Tn my opinion the foregoing thoughts carefully legislated and strictly executed will reduce the fire waste in Alabama at least 50 per cent. This being the case, the policyholders of Alabama should not be called upon to pay the same rates pre- vailing In other states of less fire waste restrictions.
 It>therefore seems apparent that in the same act the insurance commissioner should be empowered to collect from the insurance companies certain data on their, Alabama experience for i've years on each respective classification of properties in sured, and from year to year the premium receipts and losses incurred upon each class of property be made known. From the data obtained, after allowing, say, 30 per cent for commissions and expenses, and taking whatever losses may have sus- taned to each class, an equitable rate of insurance upon each classification of risks should then be promulgated by the in- surance commissioners. either up or down as the case may be, in accordance to losses sustained each class, and all companies and all agents be required under penalty to abide by that rate for 12 months
 In proportion to the reduced fire waste, which l believe would be at least 50 per cent, I believe the insurance rates would be also reduced. This, as you will also observe, relieves the property owner who has nothing but preferred risks to insure, from paying an extra royalty to the in suring company for accepting unpreferred risks at usually low and losing rates for that class.
 A standard fire policy for Alabama should then be made law in which certain ot the above thoughts should be made a part.
 Let me thank you In advance for your patient and careful perusal of the above thoughts, when I may be assured the gov ernor's attention will also be brought to consider their advisement In his honorable message to the next converting legisla- ture. Yours very truly.
 A. P FUQUAY.