Smyrna times., 1925-03-18
FIRE COMPANIES RECEIVE AID
Bill Passes House Making Insurance
Companies Pay 2 Percent on Gross
Premiums for Fire ASSOC atiOns


Premiums for Fire Associations
Although it had come from COM
mittee on its merits, the House Mon
day fternOon passed by the unanimous
vote of the members present the bill
introduced by Representative (Mrs.)
Handy providing for the taxation of
fire insurance companies doing busi-
ness in this state for the purpose of
assisting in maintaining fire depart
ments in incorporated cities and towns
and rural districts throughout Della
ware. Under this measure, should it
eventually become a law, the fremen
will benefit to the extent Of several
thousand dollars a year which will go
a long way to aid the men maintain
ing their organizations and keeping
all their equipment and apparatus in
good repair. Senator Lord was called
to the House to explain the bill at
| Mrs. Hanby's request. He stated that
under the measure two per cent Of the
gross premiums paid all fire insurance
companies in Delaware will go to
maintain the fire fighting Organiza-
tions. The state will be divided into
four districts, the three counties and
Wilmington. In Wilmington the two
per cent collected from the insurance
companies will be paid over to the
fremen's pension fund. In each of
the counties the amount to be divided
equally among all the fire companies
in said county will be two per cent
of the business done by the insurance
companies in that county. That it the
rural New Castle fire companies will
get two per cent of the business done
in New Castle county, Kent county
the same and likewise Sussex county.
Senator Lord said this is practically
the same bill that was passed by both
branches of the Legislature two years
ago but when it reached Governor
Denney he did not see fit to sign it.
Similar laws are in effect in twenty
six other states and it has been in
effect in New York state for seventy
five years, he said. Fire companies
to benefit under its provisions, must
be motorized. 1t is estimated the bill
will be productive Of between $4,000
and $4,000 a year, he explained
'"The fire insurance companies will
tell you that if this bill is passed they
will have to go out of business il
Delaware" said Senator Lord. "But
they did not have to get out of Penn
sylvania or Maryland where they have
similar laws. The volunteer fire com
/ panies have saved the insurance com
panies hundreds of thousands of dol
lars in recent years but these insur
ance companies have not reduced thei
rates one cent" Edward Jones o
, Middletown, president of the Della
! ware State Volunteer Firemen's AS
. sociation, thought something was du
: the fremen for the protection the.
E have given the lives and property o
the residents. He said there ar
= twenty-five volunteer companies il
. Delaware and all are motorized an,
, it costs between $4,000 and $4,000
a year to maintain these organiza
tions with their equipment. He sal
the old line fire insurance cOmpanie
have never contributed a cent tOwar
n the maintenance of the volunteer fir
companies but the mutual fire insur
ance companies have given them som
= assistance. There was a delegatiO
f of firemen on hand in the Hous
e chamber when the bill came up 70
e final action.