Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-02-23
f|REBUC' TRADE
.IIS.EXPOSED BY
!: ! JOE JOHNSON
Former Albanian, Fire Com
smissioner of New York. Re-
Z veaIS Conditions.


Revelations that are startling be-
cause of the story of gigantic crime
which they tell, a crime which Is
charged to the fire insurance compa-
MES In collision with incendiaries
against the honest public, are made in
the course OF crusade which has been
launched by Joseph Johnson, native
ATLANTA man. now fire commissioner OF
New York city. against the prevailing
system of fire insurance.
EMr. Johnson, in a convincing indict-
inent Of the system published IN the
March issue Of Parsons magazine,
which came to Atlanta today, blames
the fire insurance companies them
selves for the great loss OF property
danger to life. tremendous fire risk
ana burdensome rates that exist in
the United States.
3"The fire insurance companies know
that one fire out Of every four is of
incendiary origin he says. They
thrive on fires"
SHe quotes the words Of the manager
nf an insurance company:
'Were there no fires there would he
no insurance business the greater the
Are damage. the greater the turn
over. out Of which fire insurance COM
panes make profits
SFightinx the habit Of incendiarism,
Mr.. Johnson placed himself in the po-
Salon Of the firebug in what is known
as the arson zone" Of New York city,
because of the large number of fires OF
suspicious origin. in all of which in
surance is collected His adventures
in incendiarism are almost unbelieva-
bic.
Match Goes With Policy.
.He relates:
in the frebug zone in New York
city there is an insurance agent who
Sips a match under the rubber band
when he hands a policy to a customer
This is, in effect what the fire insur-
ance companies themselves are doing
eNery time they write a policy. They
have placed a premium on arson. |
have proved it on them. They have all
but handed me the match.
Working through disguised mem
hers Of the fire department | insured
1886 worth of property in New York
city for 1921, 500; even in the heart of
the 'firebug zone | have been able to
ght insurance without investigation.
s~'This $396 worth, of property is COW
cred by 1875 policies "of insurance in
practically all of the companies in New
York none of them knew what they
were insurirg; apparently none of them
cared. as long as premiums We're paid.
'''1 put two chairs, costing $l.62; a
gas stove worth 1925, three sash cur
tains, which cost As cents. and GUS
pAdor which cost nine cents, in fiat
ana got slo,5oo insurance. Then |
moved the stuff to another fiat. and got
$50 600 more insurance.
Il rented another fiat and installed
in 1t two picture frames, worth 10
cents. and a nickel plated soap dish,
worth 10 cents. on these | got $40 600
Of insurance. l did not even have to
pay cash on. the premiums, but we had
the Insurance.
Recklessness Increases Rates
This reckless way of issuing in
surance increases the rate and causes
many fires. One-fourth Of New York $
fires are incendiary, and the insurance
companies are responsible.
'They do things differently abroad
There the same companies which -
business here are required to investi-
gate before insuring Result New York
has fire loss of $2.45 per head. while
the average for all European cities is
80 cents.
The answer of the companies is
that YOU may insure as much as you
please, but collecting is a different
thing That's just it. The frebug Is
fixed TO collect after fire; the honest
man is not and suffers. for that rea-
SON
Under the existing system OF writ
Ing fire insurance in this country, you
are not only compelled to pay an ex-
brilliant rate to cover iucendiary losses.
but you can not collect on your honest
losses as easily as the frebug can col
lect on his, with his prearranged in
voices, bills OF lading and inventories.
1T Is nice little game and works
out 20 the profit of every one except