The Birmingham age-herald., 1914-09-03
ls Insurance Companies Frequently Pay a i'm Without Proper vestigation of Fire
sI OST IMPOSSIBLE TO CONVICT ANYONE
 0J ARSON CHARGE
should Pass Better Laws, Educate thu Public and More Courage on the Part of the Companies
 Are Remedies He
 Proposes sS@i4

fTOpOSeS tEMla
 "8ad morals. the almost utter im- possibility under the present state laws to convict fa case of arson, and the settlement of claims by insurance conn panies without proper investisations nrc whnt think Is the matter with Birminrham from fire insurance mans stnndpotnt.'
 This is the ktatement made by Robert McDavid of the McDavid investment com pany, when asked yesterday his opinion in the matter MT. McDsvid for many years a member of the firm of McDavid' Meyer, Goldman & Terry. was one O. the foremost fire insurance agents in the city.
 "The remedy, in my estimation, said MT. McDavid. lis legislation by the state legislature giving better facilities for con viction in arson cases, more stringent conduct of fire insui ance agencies and education of the public of. Birmingham to it's responsibility as regards fire hazard.
 Penalty for Boom ! "The truth is this. We've got a new town, a boom town. and we're paying the penalty for it. The citizenship is a metropolitan crowd of all classes and ifa- tionalities. Generally speaking, citizens have no ties of sentiment or ancestry here Many of them are irresponsible and without proper scruples in regard to fires and the big fire loss is the re- suit
 I'm out of the fire insurance business now. but for many years 1 represented some of the oldest and largest companies in the world in this city and during the entire time l represented them here they lost money. I tried in every way l could to remedy the situation and never sue ceeded.
 'when I was secretary of state I un- dertook to see if convictions could not be secured in arson eases. 1 did nor jeopardze the reputation Of men of high standing in a community. sur durfng my administration there were several notori- GUS arson cases. Tn spite of my efforts it was impossible to secure conviction The only way to convict a man of arson under our present state laws is to see him set fire to his building and no man is going to set fire to his building while you are standing looking at him.
 Prejudice Against Companies
 Ut is not only here, but throughout the state that this condition prevails. People naturally are prejadiced against the insurance companies, which they be- lieve are always making money and when a fire occurs it is regarded as merely d chance to get back sou'e of the prern- iums which the citizens have been paying in On the other hand, due to the com petition among the companies, when man insures with certain agency 1t is natural for that agency to feel friendly toward him for the business. He is in reality a patron. So m the result of a fire there is much hesitancy felt by an agent in conducting an investigation IS to it's real cause.
 ''The fire insurance companies should be more courageous. They should net settle claims without thorough investiga- tiois. There has been something said about an agent inspecting the risk before he writes 1t, but there are many draw backs to this procedure. The agent s commission on a 5000 policy on resi- dence is only a dollar or two. 10 go t) that residence and really, intelligent1y, inspect that risk, to ascertain whether or not the man has as much furniture as he says, would take perhaps a day.
 
 casual glance say how much the fam ilys silvervare is worth. the value of a womans jewelry or suite of parlor furniture. To. do II at all it should be done right and that would take so long as I have said, that the agent would lose money on the transaction Of course the big commercial houses are inspected before a risk is written but the losses ill Birmingham that are hurting the in- surance companies now are from the residence fires.
 Desires Even Break
 "As a matter Of fact, fire insurance company doesn't ask to make money on the premiums. If it can break even it usually is satisfied. It makes it's profits from the use of the premium money for a year. But the companies in Birming- ham are not breaking even and they haven't been for 10 years or more
 Ut is the honest man m the long run who is carrying the burden. The com paliy's are not going to lose much money Gcne and 1t is the honest citizen who is paying the debts of the dishonest masl whose criminal negligence or arson makes the big fire loss.
 Building Laws Good
 "The losses do not come frora our eld buildings They are burned more or less but do not believe that they are re- sronsible in any way for the abnorma fire loss. The present building laws art very good, in fact almost too stringent The shingle roof ordinance is eliminating the shingle roof and in time I can see no reasCn why Birmingham vii. not over- come her present condition, due as said to her youth, and be model city as re- gards fire losses as well as in other things
 Birmingham citizens will have to real ize that whenever another mans house