New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1916-04-12
URGE LOWERING OF
INSURANCE RATES
OWNERS OF PROPERTY SHOULD
UNITE TO BRING DESIRED
RESULTS
PROPOSE REcRATING OF CITY
ACCORDING TO LOSSES
SUSTAINED

Is the opinion expressed IN circulars sent
out by the Property Owners Federation
of Iowa and Minnesota, formed for the
purpose of reducing the rates charged
for fire insurance premiums. It does
not follow, however, that cities or towns,
where fires are infrequent and the losses
small, enjoy lower rate than the rest
of the country and it seems that rates
are only reduced when organized effort
on the part OF the insured make re-
rating imperative. Tricks of the trade
A cent added here and there for some
alleged special hazard, condition Or
situation of the building or it's contents,
all enter into the rate making problem
until the insured is confronted by maze
of statistical figures that make his head
swim and he submits to almost any rate
quoted in disgust.
Distance from other structures is
always one of the first things considered
by the insurance companies, then come
the infammable character of the con-
tents, the safety appliances provided
against fire, the time the building
actually is occupied, etc.
People who are informed on the subject
are of the opinion that New Uln should
not only have re-rating of fire insurance
rates, but would get it if any kind OF an
organized effort were made IN that
direction. It is urged that branch of
the Property Owners Federation be
formed in this city unless the Commercial
Club makes serious and determined
effort in the matter.
A recently issued bulletin of the
federation says:
''The Federation has established in
dependent rating bureaus covering the
organized towns in Minnesota and Iowa,
reducing the present fire Insurance rates
:. about one--ffth, having made arrange
ments with Substantial Insurance. COM
panies to carry the risks at the reduced
rate fixed by the Federation Bureau. In
future years, the rates of the organized
towns will be fixed according to their
own losses. So that if the insuring public
will crystalline strong sentiment against
incendiarism and treat the fire bug as
we do the horse thief, safe cracker, or
any other robber, also abating dangerous
conditions as far as possible, we will soon
reduce the cost of fire insurance to a
satisfactory minimum in the associated
towns.
1.-THE insurance companies employed
in this federation campaign, both Stock
the supervision of the State Insurance
Department. But the federation man
:agement favors the "Mutual' companies
as mutual policy holders represent a
vital force of local self interest that is
constantly on guard against fires. Fur
thermore, the fire bug" usually selects
a stock company that has no local
friends so that the jury is most likely to
conjure verdict against the company.
These conditions, and also that Mutual
companies avoid the company killing
CONGREGATIONS of the large city congested
districts, pave the way to large fire tax
reductions for Mutual policy holders.
''The cost of fire insurance for the
smaller cities and towns is in their own
hands, but it requires conservative,
vigorous activity on the part of the fire
tax payers in order to secure early and
most favorable results" AS actuary
of the New York legislative committee,
Professor Whitney showed that while
in 1909, the profits of the six largest
American companies had averaged 1874
per cent; in 1908, when the fire loss had
been greater by $35,000,000, their
profits had averaged 26.2 per cent. Over
insurance is large factor in the pro-
pagation Of "The Red Plague" Over
INSURANCE increases agents commissions,
and commissions are never consumed in
the fire. The Albert Lea Tribune, in a
recent editorial under the caption of
"Our Criminal Ash Heap" brings this
burning question forcibly into the lime
light as follows:
'The annual fire waste in this country
amounts to about one quarter of billion
dollars, and a large part of this tremend-
Gus waste, probably more than half,
is due to incendiarism for gain. For this
unruly state of affairs, public sentiment
is largely to blame. When suspicious
looking fires occur, the popular feeling,
often expressed, is ''The insurance COM
panies should worry. We have paid
them enough; let them pay their losses -
A common expression is often heard even
among hard-headed business men
"another fellow selling out to the in
surance companies" This is a mis-
homer. He is not selling out to the in
surance companies. The fire bug simply
robs the fire tax payers.
Recently juror, who with his fellow
jurymen had voted to acquit frebug,
told deputy fire marshal, "We knew he
was guilty, but if we convicted him, how
could he collect. his insurance." What
a commentary on common sense and
justice!
Lay hard and fast hold on this fund
amental fact-insurance companies only
collect and distribute the fire tax, and the
stockholders of these companies are
bound to make profit. The public
pays all the fire losses; hammer this fact
home whenever the fire waste is under
discussion! 35 ~
Public sentiment should be so strongly