The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1913-01-16
SHARP CRITICISM OF THE FIRE Waste
IN THE STATE Of MAINE
Commissioner Havey Says Fire Record is One
to be Ashamed of.--How to Reduce the Loss

In his annual report. Commissioner
Hayey of Maine dwells at length on
the state fire waste, and shows that
until the waste has been cut down fire
insurance companies cannot reduce
the rates in that state. He says:
The people of the State of Maine are
confronted by a serious condition OF
affairs as regards the annual loss
and waste as the result of fire.
The record of the State of Maine is
one to be ashamed of and statistics
show irrefutably that criminal negli-
gence and carelessness Is at the bot
tom of the Maine situation to a con-
siderable extent. When one hears of
the destruction of property by fire.
the question is asked, Was it in
sured?" or How much insurance did
the owner have?" the IDEA apparently
being that if the property was fully
insured there was no loss. Such an
idea is not only an erroneous one but
absurd as well, for insurance cannot
and does not replace property which
has been destroyed. Insurance helps
the individual loser, but the public has
suffered an absolute irreparable loss
An increased fire rate and tax rate are
sure to result An ineligible way to
get at the significance of Maine fire
loss is by reference to statistics. The
records of the department show that
the average annual fire loss in Maine
for the last ten years has been $1,000
328. In arriving at the total expense
attributable to fires (that is the Incl
dental expense such as maintenance
of fire departments, water supply, eX-
cess of premiums paid over losses
paid, together with the direct loss by
combustion), we will consider the
state percentage at a considerably
lower ratio than the national. so that
our state loss per annum cannot be
less than five millions. If this amount
were capitalized at per cent, we
have one hundred millions set apart
to take care of our direct and Incl
dental fire waste. Our assessed yalu-
alton as of April list, 1911, was $404,-
397,651 If this amount were increased
by one-half OF itself to allow for I'M
der valuation, we have $606,596,477, in
other words more than 1.01 per cent
of the total resources of Maine are
annually diverted to take care of the
! fire waste
The fire loss for the first foul
months of 1912 shows that we are go
ing at three million clip. A quart
er of a million a month wasted II
Maine Isn't the subject of sufficien
Importance to demand the serious con
sideration of us all?
LOSSES EXCEEDED PREMIUMS BY
NEARLY A MILLION.
The people of the State of Maine il
1911 paid to companies of other state
and countries fire insurance premium
amounting to the sum of $3,128, 7647C
an average of more than 81 for eacl
inhabitant of the state; compared witt
1910 these figures show an increas
of $291,O42.95. The total fire losse
paid by companies of other states AM
countries for the year 1911 amounte'
to $4,082 ,363.17. These figures SHOW
an excess of losses paid over pre-
miums paid of 1858, 59S.47 This con
dition of affairs can have but one re
suit, viz; an increase of the fire rate
Since 1868, foreign fire insurance com
panies suffered the experience of pay
ing losses in excess of premiums re
ceived, but once. In 1886, they re
ceived in premiums SLOT, 965.92 an
paid losses amounting to $1,090,574.2'
a difference against the companies o
$12,548.33, representing an average pc
cent. of losses of 1902. In 1911 the ay
erage per cent of losses was 1870.
The risks written in 1911 amounte
to 1910, 476,571.79, which shows a
average per cent. of premiums of 81.
40. In other words the average rat
on 800 of insurance which we peopl
of Maine paid in 1911 was approx
mately $3.50, while the rate of II
United States Joint stock companie
and fire insurance companies of fore
ign countries for one year insuranc
was approximately $l.15. The frs
impression naturally is that we ar
Disseminated against, but that sucl
Is not the case can be readily seen b.
a study OF the preceding facts. Name
average rate of Premium and Los
Ratios OF joint stock fire insurance
companies for 1910 as compared will
the other New England States Is shown
in a table. There is little comfort TO
us in this comparison.
1t is the opinion OF the department
that we as people are too prone Il
condemn the fire insurance companies
The ever present idea with large ma
jority OF our people is that the com
no n{aa ra rich oupht IN be lpgiSlate(