New-York tribune., 1910-12-08

on which he had to convince his Board of
Directors, before they approved the
change.
AS summed up by John Il. Freeman, one
of the earliest advocates of the ''mutuals.
who Is the head OF the Rhode Island
Mutual Fire Insurance Company, their re-
quirements are first, that the insured must
have no bad housekeeping Oh the prem
ises; second, that automatic sprinklers
must be installed and third that fire
pumps. hose, and water supply shall be on
the premises in sufficient quantity ana
quality TO make II possible for the regu-
lar employees OF the insured to defend the
property against fire.
That such course of preparatory pre-
ventton work paid was enthusiastically
testified 10 by Mr.. Westover. and by H.
w. Toppap and Edward Y. French VINO
are respectively president and vice-presi-
dent of the Arkwright Mutual of New
buryport, Mass
The automatic sprinlxlers. said Mr.. West
over, killed almost all fires before they got
started wherever they are installed. AS
proof of the fact he swore that the Gen
eral Electric Company, though having on
the average about fire a week IN It's
Schenectady plant, has had only from SIX
to ten fires in the sixteen years they have
been insuring in the ''nutuals," on which
they thought 1t worth While TO make
claim for loss
We have practically no losses at ALL
where sprinkiers were installed" said MI
Westhover, "and the largest fire loss we
have had in the last sixteen years was
one Of about $4,000, which was on an old
building in which had not instaled
sprinklers.''
All four of the men who enlightened the
committee on '.mutuals'' testified that III
their opinion such a loss of life as occurred
last week in the Newark factory fire wouio
have been impossible If sprinkiers had been
installed Mr. Freeman said he had inveS-
tigated the General Slocum disaster, ana
in his opinion sprinklers on that ill-fated
boat would have saved the terrible loss
of life.
Descending to particularities, Mr.. Free
man described a San Francisco risk which
his company carried, with all the mutual
requirements strictly enforced. That buld-
ing he said, though standing in block
in which every other structure was burned
down. stood intact, and need say no more
than that they were open for business and
at work the morning after the fire there.
The moral hazard, Contindaiy Aiai po'
upon by stock companies, was an almost
unknown quantity in their risks, MI Free
man said, and he added that in twenty-five
years OF experience in ''mutuals he had
known of only two instances where any
calculation OF the moral hazard had peeh
even remotely entertained Only one IN
40, 600 sprinklers, said Mr. Freeman, broke
prenaturely, and the loss damage by water
from such accidental breaking of sprinklers
was SO small that the ''mutualS charged
no premium fee for that hazard.
Summing up on the cost OF mutuais,
Mr. freeman put it in these figures: LIS
per cent of premiums on fire loss, 21e PEI
cent on water damage loss, per cent OF,
inspection expenses, per cent on rents,
salaries and other expenses and per cent
on state and city taxes" All contracts are
written and entered into i'll the home state.
either Rhode Island Massachusetts,
these two being the headquarters OF most
of the 'mutuals''; and men like NestoVer.
of Schenectady, and other New orkers
who want to avail themselves Of the mt
81, must TO their home offices.