The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1913-11-07
WOULD SAVE STATE
s3,5O0,0O0 YEARLY
]. o. A. PREUS, STATE INSURANCE
COMM SSIONER, GIVES SOME
SIGNIFICANT FIGURES.
SEEKS FIRE PREVENTION AID
Says If People Were Properly Aroused
Much Good Would ResuIt-State
Officials to Confer in New York
City Relative to Rates.

st. Paul.-The average per capita
fire loss in the state of Minnesota for
the past ten years has been $2.02. The
average per capita loss in the leading
European countries is SO cents, or ap-
proXimately one-siXth the loss in this
state. These are interesting figures
with which State Insurance Commits
sioner ]. o. A. Preus prefaces a
scheme for saving the people nearly
$4,000 annually.
Losses Might Be Reduced.
"The losses in Minnesota could, if
proper action were taken, be reduced
to the European figure" declared Mr..
Preus. IF this were DONE" he con-
tinued, "our losses in 1912 should have
been $706,3S7 instead of $4,O45 ,69S. In
other words, premiums paid out on
such basis might have been S. $685.
166 instead of SS,96S,477; that is, a
saving of $3,339,311. Nothing short
OF a catastrophe in any one year could
alter these figures and cause a great
er loss, if the question of fire proven
ton were properly treated"
AS to Fire Prevention.
Speaking of the Importance of fire
prevention provisions, Mr.. Preus said,
in part:
"The general public should be
aroused to the situation which pre-
walls in this state. There should be
concerted action in order that our
people may be relieved from the ire
mendous fire loss which they are at
present forced to bear. 1t is argued
that it is not the function of the fire
insurance companies to prevent fires,
but that their duty is simply to equalize
the misfortunes to the public. In 1912
companies carrying approximately 80
per cent of the fire innurance of the
country received $290,000,0OO in pre-
miums and expended but six millions,
or 2.7 per cent for fire prevention pur-
poses. Their expenses during the
same year amounted to 100000, 000"
AS pointed out by Mr.. Preus, the
people of the state are not expected
to become interested in the question
of reducing the fire losses until they
can be shown that a direct financial
gain to them will result.
Steps Being Taken.
- AS a step in the right direction to-
wards adjusting the rates now being
charged by fire insurance companies
of the country, a special committee,
consisting of nine commissioners of
insurance, of which Commissioner
Herman l.. Ekern of Wisconsin is the
chairman, and of which the commits
sioner of Minnesota is a member, has
been charged by the National Con-
VentiOn of Insurance Commissioners
with the duty of drafting a uniform
measure for the supervision of rate
making institutions, if deemd advis-
able, and the equaliZing Of fire insur-
ance rates between individual prop
erty owners, and in order that the
cost of protection may be equalized
throughout the various states with
out discrimination against any state
1t is hoped that through the efforts
of this committee uniform legislation
in regard to the supervision of rate
making institutions, may be enacted
in the various states.
The next meeting of the committee
will be held in New York City,
Nov. 10.