Evening star., 1950-12-24

incident. Jesse Jones, then head
of the Reconstruction Finance
| Corporation, issued a press re-
lease dated December 13, 1941
creating the War Insurance Cor
poration for the purpose of insur-
ing owners against damage to
property from enemy action. In
the light of the British debates on
the question of such insurance
this was indeed bold action. Later,
Mr.. Jones told a Senate committee
that this press release constituted,
in itself, an insurance policy. In
fact. this press release had the
effect of insuring without cost all
property owners in continental
United States against all damage
to their real and personal prop
erty. including growing crops and
orchards, which might result from
enemy action. The Government
actually paid claims under this
press release insurance policy"
1t was the forerunner of the War
Damage Corporation. which the
Congress is reviving.
The old War Damage Corpora
ton was created on March 27,
1912. The legislation creating it
authorized the RFC, with approval
of the President, to supply it with
81 billion, over and above it's
$1O0 million capital which was to
be provided through sale of stock
OF the corporation to the RFC.
This corporation was authorized
to provide. through insurance, re-
insurance, or otherwise, reason
able protection against loss of, or
damage to. property which might
result from enemy action, includ-.
ing action of the Air Forces of the
United States in resisting enemy
attack. This insurance, to be
made available at least by July /,
1912. was to be extended to loss or
damage sustained after December
8, l941, and before policies had
become available, and as if poll
c1es had been in force at the time
OF the damage.
Special War Policies
Under the press release policy"
there was no premium-losses
were to be paid out of the ma
tlonal treasury. But under the
1912 act. the insured paid for
his insurance. 1t was, however,
purely voluntary. and premiums
were paid to an agent at the
time the policy was issued.
Although the War Damage
Corporation was a Government
operated enterprise, private in
surance companies had partici-
pat1ng interest in it amounting
to 10 per cent of the ultimate
profits. or losses, up to a maxi
mum total of $40 million for all
companies participating.
Some 546 fire insurance COM
panies, with some 1900 policy
writing Offices in the United
States, and some 88 casualty and
surety companies participated in
this war insurance during World
War II. These companies issued
war damage insurance policies to
their clients along with other
policies.
Property damage insurance poll
cies of private insurance COM
panies. both fire and casualty,
have for a number of years con-
tanned a war risk exclusion clause.
Recently these policies have been
amended so as specifically to deal
with the potential atom bomb
hazard. Since these risks are
deemed too great for the insur-
ance industry to assume. the task
of providing war insurance against
property damage is now regarded
by all as a proper function of any
government. In view Of this, the
Senate will probably pass the
House Bill (H. r. 98o2) calling
for a rebirth of the old War
Damage Corporation.
Survey of Values
It is, of course, impossible to
make any estimate of the prob
able property damage that might
result from hostile enemy action
But it Is interesting to observe
that, according to the Economic
Almanac for 1850. property values
in the United States as Of 1885
Qatest figures available) were
estimated at $285,213 900, 900
However. the Insurance Commit
tee of the United States Chamber
of Commerce estimates that with
additions made during and after
the war, as we'll as the imitation
which has occurred since 1898
this figure is now closer to $400
billion or $500 billion.
Naturally, any enemy attack the
United States may experience may
be expected to be directed at the
large strategic cities. Therefore
it is interesting to observe that,
as of 1948, the assessed valuation
of property. real and otherwise
in selected large cities of the
country which may be regarded
as probable enemy targets in any
bombing attack, is as follows:
For New York. $169 billion; for
Chicago, $7.5 billion; for Phila-
delphia. $2.7 billion: for Detroit
$3.4 billion; for Cleveland, SIS
billion; for Washington. D. c..
$1.9 billion; for San Francisco
$1.3 billion. and for Seattle, 1851
million. These figures are, of