Morris tribune., 1919-09-05
SMALL CITIES CARRY
BURDEN OF FIRE TAX
Minnesota Record of Classified Prem
iums and Losses by Towns
Shows Rank Discrimination
By K. Neutson.

by n. NSuL0Oh'
Mr.. ]. C. Doyle, General Counsel
of the National Board of Fire Under
writers has stirred up the Stock In
surance Company managers to
rather high pitch by his declaration
in a recent public address that the
stock fire insurance system, in order
to survive, must "show it's hand" to
the public and play the game with
all it's cards on the table. A very
prominent Insurance Journal, which
usually voices the views of the Stock
Company managers very clearly,
publishes the suggestion that 'The
Fire Insurance Companies will balk
at a campaign of education or gen.
eral publicity, as they would not
want to make public their under
writing experience"
One feature of the game, which
the Stock Insurance Companies at
tempt to play under the table" is
clearly illustrated by the following
record of their dealings with Min
nesota premium payers for the last
26 years.
In the following statement, loss
and premium payments have been
compiled from the Report of the
Commissioner of Insurance. So far
as l am advised, Minnesota is the on
ly state in the Union that has CLASH
fed premiums and losses by towns,
and the figures verifying the follow
ing statement are available at the
State Insurance Department.
The following is a record of st.
Paul, Minneapolis and Duluth:
Fire loss in these three cites for 26
years, $51, 2OO,721.08.
Add usual double premium loading
to cover agents commissions and
other expense, and company profits,
$51,2OO,721.O8.
The Fire tax these three cities
should have paid, $1O2,4O1,442.16.
Fire tax actually paid by these
cities, 79,O88,419.72.
Deficits, paid by smaller communi-
ties and owners of smaller risks,
S23,313, O22.44.
Of this deficit, $3.50, 38O.95 oc-
CURED in 1918.
During these 26 years, even the
smaller villages and towns of Min
~nesota, which have no fire protection
whatever, have paid $1.00 in prem
iums for every 80 cents of fire loss.
In a recently published article,
Hon. Ed. F. Dunno, former Governor
of Illinois, states that very large
majority of smaller property inter-
ests paid fire tax of $500 for every
$1O0 of loss occurring in their class;
and on the other hand, he pointed
out three classes Of millionaire risks
that incurred $1.40 to $2.35 of fire
loss to every one dollar of premium
paid.
The fire insurance premium tax is
gathered from the base of least re-
sistance," and each small town or
community standing alone is alb
solutely defenceless. On the other
hand, by undertaking the jumbo
risks of the large commercial centers
where the smaller insurance COM
panies are needed, such companies
usually become fatally poisoned be-
fore they realize the source of their
Nndoing.
When the Stock Company manag-
ers have the temerity to apply such
unruly discrimination against small
risks and the smaller communities
in Minnesota in the face of this pub
lie record at the Commissioners
office, to what extent would they not
go in states where there is no bar
whatever to such unfair propaganda.
Have not the country press been
derelict in not using this accumul-
ating information from the public
record at the Insurance Department
when, if in the last &c years, this
rank discrimination had been kept
before the public, some means would
have been found for it's discontin-
uance. Why remain "asleep at the
switch?''-