El Paso herald. (El Paso, Tex.) 1901-1931, 1910-09-19
Pro 7 ECTION
FROM FIRE
ANCIENT
Plans for Reduction of Rates
and Other Important Is
sues Are Discussed.
INSURANCE MEN
CONVENE AT CHICAGO
eBy Frederick J. Hankin.)


cut down the commissions paid to
agents. 1t is claimed by the insurance
companies that in the past TOO much
cent of the premiums were paid back to
the insured while 37.3 represented the
expense of the business.
Insurance statistics afford perhaps
the best evidence of the effectiveness
of the crusade against national waste
in the United States. Figures covering
the first half # the current year show
that it is the first year since 1905 that
the losses from fire in the United
States have fallen under 500, 900, 600
for the first six months OF the yea:
Insurance men believe that the declin-
ing ratio of loss may be another fac
tor in the reduction of Insurance rates.
That there is still great opportunity
for cutting down fire risks is shown
by the fact that if they were as good
in North America as the-are IN Eu-
rope. our annual loss today from fire
would be only $4,000, 900 instead OF
$3.50, OO0, 900.
Beginning of Insurance.
Fire insurance had its beginning in
the great London conflagration of 1866.
Relatively speaking, this was the most
disastrous fire the world has ever
known; the actual loss Their sustained
amounted to S5OGOO00O, which would
be more than $500 OOO 600 according to
present day valuations Three-fourths
of all the houses in London were de-
stroyed, and ten years after the fire
there was still abundant evidence of
the destruction II had wrought. In
1867 the first regular system Of insur-
ing buildings against fire began.
Nicholas BarbOn opened an office and
had some success. In 1880 he organized
a partnership known as the Fire OF
flee and did considerable business.
About the same time the city of Lon
don went into the business. but its
Of the premiums has been used in pay
ing agents. 1t is admitted that insur-
ance rates are now too high, and than
something must be done to reduce them.
it being believed that a reduction OF
rates viii result in more than a cor
responding increase in business The
last few months have witnessed a
movement all along the line to stop
the cut-throat competition that has
been going on, the insurance men be-
Iieving that such methods do harm
to the business rather than good.
Reduction of Rates
There 3 ample room for a reduction
of insurance rates and much opportuni-
ty for hewing down of expenses Incl
dent to the business This is shown
by figures furnished in the report made
TO the New York commissioner Of in
surance, covering a period Of twenty
years ending on the first Of last jan
uary- During those two decades pre-
miums aggregating s3,391, 5000 were
paid to the insurance companies re-
porting to the New York department
OF insurance During the same period
losses aggregating s1,9SS, OOO. 900 were
paid The expense of conducting the
business amounted to s1266. OOO 600.
1t Will be seen from this that 5S.6 Der-
experiment Of municipal insurance was
not very successful. In 1858 the
Friendly Society was organized, it be-
ing an association of individuals un-
der the mutual plan In 1896 another
mutual, not the Hand -in-Han was
organized This company is still in
existence.
Charles POvey has the credit Of being
the originator of the idea of insuring
the contents of buildings He organ
lied a company for this purpose in
1706, and when his venture did not sue.
coed he anticipated modern corporation
methods by organizing a holding COM
pany to take over the other This
was known as the Sun Fire Office. and
y,
Oldest non-mutual insurance companE
in the world. Marine insurance had
been resorted to long before fire in
first came into existence. Being
the seafarers Of the world. it was but
natural that England SHOULD have been
the birthplace of a modern marine in
surance
First American Insurance.
in America the first insurance bust
ness was marine. In 1921 John Copson
Of High street, Philadelphia, advertised
his business in the Philadelphia Mer-
curry, and became the forerunner or
that great brigade of advertising
agents of insurance companies III the
United States. In 1882 John Kidd and
William Bradford announced them
selves ready for the business of insur-
ing all sorts OF property and goods In
1852 the Philadelphia Contributorship
was established, having the endorse
ment of Benjamin Franklin. In 1871
a dispute arose in the Contributors
as to whether property with trees in
front Of it should be insured or not,
some asserting that trees around a
house prevented effective fire-fight-
ing and others that they did not. The
sign Of the diSsenterS was a green
tree cast in lead, affixed to a board
which was attached to the front Of the
insured property.
The National Board of Fire Under
writer's was organized in 1865 For
many years there had been such
reign Of justified competition that the
insurance companies were in danger of
going to the wall In this embarrass-
ing situation they got together and
organized the Underwriters associa-
ton, whose members were confronted
with the task of adopting rates. rules,
and regulations that would permit the
insurance company to live and let Ire
Ancient Insurance Custom.
In reviewing the history of fire in
one is impressed with the. fact
that there is nothing new under the
sun, for although modern insurance be-
gan with the great London fire, the
dea may be traced back to the very
lawn Of civilization. In Assyria $500
Years ago, the country was laid off into
eommunes. Judges, priests and mag
strates we're appointed in these COM
nunes TO levy contributions for fire
css on every member of the commune