he Omaha - Sunday Bee
PART VII
i:isunA!iCE sectic:i
PACES 1 TO 6.
THE OMAHA DCO
Best ..IT. West
VOL. XXXVII NO. 43.
OMAHA, SUNDAY MOl!NIN(, APK1L 12, 1D08.
single copy five cents.
A. J. LOVE. Irsiden
FRANK J. HASKELL, Secretary
Company
JLL c
Z7
Brennati
ve
CERTIFICATE OF PUBLICATION,
STATE OF NEBRASKA. OFFICE OF
AUDITOR OF PUBLIC ACCOUNTS,
LINCOLN. Feb. 1, 10.
IT IS HEREBT CERTIFIED, That the
American Bonding Insurance Company of
Baltimore In the 6tat of Maryland, has
compiled with the Insurance law of this
tat a, applicable to auoh companies, and
la therefore authorised to continue the
bualneas of Fidelity Surety Burglary In
surance la thla atata for the current year
ending January Slat, ItOf.
Summary of Report Filed for the Tear
Ending December Hat, 107;
INCOMB
Premiums $7(1. (?4 58
All other sources I6.22t.18
Total $ SIl.sM.TI
DISBURSEMENTS
Paid policy hold
era I4l,035.47
All other pay
ment 10.J21.7t
Total l,01s.2S7.2
1 ADMITTED A6PETS
11.421.7(1.17
LIABILITIES
Unpaid Claim and
Kxpensea f 111.712.2
Unearned Prem
iums 446.114 27
All other liabil
ities 10,14. 21 $ 724,090.70
Capital stock
paid up t0, 009.00
Surplus beyond
Capital Stock
and other llabll-
Itles 202.t70.47 702.f70.47
Total II. 414, 741. 17
Wltneaa my hand and the seel of the
Auditor of Publlo Accounta the day and
year first above written.
E. M. SEARLE, JR.
(Seal.) Auditor of Publlo Accounta,
JOHN L. PIERCE, Deputy.
CERTIFICATE OF PUBLICATION
STATE OF NEBRASKA. OFFICE OB
AUDITOR OF PUBLIC ACCOUNTS.
LINCOLN. Feb. 1. 10S.
IT IS HEREBY CERTIFIED. That the
Calumet Insurance Company of Chicago,
In the state of Illinois, haa complied with
the Insurance law of this state applicable
to auch companies and la therefore author
ised to continue the buslneea of Fire,
Lightning and Tornado Insurance In this
state for the current year ending January
list, 10. ,
Witness my hand and the aeal of the
Auditor of Public Aocounts, tba day and
year first above written.
' E. M. 8KARLE, JR.
(Seat) Auditor of Public Accounts.
JOHN L. PIERCE. Deputy.
CERTIFICATE . OF PUBLICATION.
STATE OF NEBRASKA. OFFICE OF
AUDITOR OF PUBLIC ACCOUNTS.
LINCOLN, Feb, 1, 1908.
IT IS HEREBT CERTIFIED, That the
Spring Garden Insurance Company of
Philadelphia. In the atata of Pennsylvania,
ha compiled with the Insurance law of
this state,-applicable to auch companlea
nd Is therefore .authorised- to -oentuiue
the business of Fire and Lightning Insur
ance In thla state for the current year
ending January list, 1(00. .
Wllress my hand and the seal of tba
Auditor of Public Accounta, the day aud
year first above written.
E. M. SEARLE, JR.
(Seal.) Auditor " of Public Accounts.
, JOHN L. PIERCE, Deputy.
Every Known Kind of Insurance
Room lt New York Life Building
'Phones Douglas 350. Independent 1350
INSURANCE is our business not a sideline. We employ expert help in every depart'
& ment, and give our business our wn direct personal attention, Hot "Some of the time,"
BUT ALL THE TIME!
Nebraska Staic Agents For the Following Companies
AMERICAN BONDING COMPANY of Baltimore.,
Fidelity, Court, Contract Honda, Hank, Itesldi-nce and Burglary Insur
ance of every description.
TRAVELERS' INSURANCE CO., of Hartford.
Employers' Liability and Automobile Insurance.
NEW YORK PLATE GLASS INSURANCE CO., of New York.
CALEDONIAN INSURANCE CO., of Scotland.
NATIONAL FIRE INSURANCE CO., of Hartford.
STATE INSURANCE CO., of Nebraska,
If you are a, Banker, Real Estate Agent or Insurance Man and desire to represent company
ies in any line of insurance, the facilities of our office are at your disposal. We desire agents in
every city, town or hamlet in Nebraska where we are not already represented,
We Represent Locally the Following Fire Companies
in Addition to the Above
CITIZENS INSURANCE CO., of St. Louis.
CALUMET INSURANCE CO., of Chicago.
NORTH BRITISH MERCANTILE INSURANCE CO., of England
PHENIX INSURANCE CO., of Brooklyn.
SPRING GARDEN INSURANCE CO., of Philadelphia.
. SUN INSURANCE OFFICE, of England. :
SHAWNEE FIRE INSURANCE Co., of Topeka, Kan.
-J
We Insure Aoyttliano Anywhere
Stability Accuracy Promptness Courtesy
CERTIFICATE OF PlTPXrCATION.
STATH OF KimnAfOCA, OFFICE OF
AUDITOR OF PUBLIC ACCOUNTS;
LINCOLN. Feb. 1, HOt.
IT 19 HEREBY CERTIFIED. That the
Sun Inmnnot Office of London, Kngland,
haa compiled with the Insurance law or
this state. applicable to such companies
nd ts thercfrtjkc authorised to continue
the buslavV 'r ''ire and Lirtnlng In
surance In tills state for the current year
ending; January list. 1908.
Witness my hand snd the seat of the
Auditor of Publlo Accounts, the day and
year first above will ten.
B. M. SEARI.K, JR.
(Seal.) Auditor of Publlo Accounts.
JOHN L. FIERCE. Deputy.
CERTIFICATE OF PUBLICATION.
STATE OF NEBllABICA, OFFICE OF
AUDITOR OF PUBLIC ACCOUNTS.
LINCOLN. Feb. 1. 190S.
IT 18 IIEREBr CERTIFIED, That the
Fhenlx Insurance Company of Brooklyn,
In the state of New York, has complied
with the Insurance liiw of this state, appli
cable to such companies end In therefore
authorized to continue Te business of
Fire, Lightning ajid Tornado Insurance
In this stHte for the current year ending
January list, 1998
Witness my hand snd the seal of the
Auditor of Publlo Accounts the day and
year first above written.
E. M. HIOArLF, JR.
SeaL) ' Audlter of Publlo Account.
JOHN I PIERCE. Deputy.
CERTIFICATE OF PCRMCATION.
STATIC OF NEBRASKA. OFFICE OF
AUDITOR OF PUBLIC ACCOUNTS.
LINCOLN. Fob. 1. 1V08.
IT IS HEREBY CERTIFIED. That the
Shawnee Fire Insurance Company " o
Topeka, In the state of Kansas, has com
plied with the Insurance law of this state,
applicable to such companies and Is there
fore authorized to continue the business of
Fire, Lightning and Tornado Insuratice In
this state for the current year ending
January list, 190.
Witness my hand and the seal of the
Auditor of Fubllo Amounts, the day and
year first above written.
10 M. SEARLE, JR.
(Seal.) Auditor of Puhllo Auoounts.
JOHN U PIKROE. Deputy.
CERTIFICATE OF PUBLICATION.
STATE OF NEBRASKA, OFFICE OF
AUDITOR OF PURL1C ACCOUNTS.
LINCOLN. Fob. I. 180J.
IT IS HEREBY CERTIFIED. That the
North British and Mercantile Insurance
Company of London and Edinburg. Eng
land, has compiled with the Insurance law
of this state, applicable to such com
panies and Is therefore authorised to con
tinue the buslneea of Flro and Lightning
Insurance In lliix Ktate for the current
year ending January 81st. 1909.
Witness my hand and the seal of the
Auditor of Public Accounts, the day and
year first above written. i
IE M. HEARLE, JR.
(SoaL) Auditor of Publlo Accounta
JOHN U PIERCE, Deputy.
CERTIFICATE OF PUBLICATION.
STATU OF NEBRASKA, OFFICE OF
AUDITOR OF PUBLIC ACCOUNTS.
LINCOLN. Feb. 1. 1988.
IT IS HEREBY CERTIFIED, That the
Caledonian Insurance Company of Edin
burgh. Scotland, has compiled with the
Insurance law of this state, applicable
to such Companies and la therefore auth
' or I red to continue the business of Fire
and Lightning Insurance In this State for
the current year ending January 81st. IMS.
Witness my hand and the aeal of the
Auditor of Public Accounts the day and
.year first above written.
- . E. M. 8BARLF JR.
. (Seal.) Auditor of Publlo Accounts,
JOHN L. PIERCE, Deputy.
ft
mi
"I
FIRE PREVENTION PROBLEMS
Fully as Important at Means of Fight
it After it Starts.
MPR0VED CONSTRUCTION ONE
Mechanical Devices for KxtlaKBlshlasf
Them la laclpleaey All Tea
to Decrease Insurance
Hates.
In the March number of the Business
World It was stated that fire prevention
roust be regarded not only from the stand-
point of preventing a fire from originating,
but also preventing the spread of a fire
after It has once made headway. To pre
vent the spread of a fire numerous devices
' are in use today, such as fire palls, private
' fire departments, standplpes, thermostats,
automatic sprinklers and chemical 'extin
guishers. ' The adoption of these devices In
mercantile risks. It was shown, result In a
- reduction In the building rate varying from
80 to 75 per cent a reduction so large that
the saving In the annual premium will lu
many cases pay for the fire extinguishing
facilities In a few years. In addition to net
ting a good return on the capital expended
for such facilities. Their Introduction also
gives to the property owner added security
gainst the large loss in time, convenience
snd business which follows In the wake of
tvery large fire.
The prevention of the spread of a fire,
after it haa once obtained a good start,
depends primarily upon the construction
and planning of the building. From the
standpoint of fire prevention, buildings may
be grouped Into four main classes, viz.:'
fireproof, seml-fveproof, slow burning and
ordinary buildings. As regsrds each the
greatest care should be exercised In plan
ning the building. Available fire protec Ion,
such as fire service tanks, pumps, hol ers,
etc., should be considered when determin
ing the height and depth of a building.
Elevators and stairways should not bs
located in Inaccessible places, and all com
munications between floors should be so
protected that fire may not seek these ave
nues In spreading throughout the building.
Special hasards, such as the heating plant,
should be properly Isolated, and light and
air should be secured without creating ex
posure and draft conditions. If the nature
of the business permits, the risk should
also be subdivided Into several fire areas,
snd the most dangerous processes In the
business should be located where they will
do the Uast harm to the rest of the plant.
Thus In knitting mills, the card rooms,
where fire most frequently occurs, are In
too many cases situated above the finishing
room, with lis large stocks of finished
goods, although such a position for the
card room Is entirely unnecessary for the
economical operation of the mill. A fire
occurring in the card room will naturally
result In an unnecessary water damage to
the slock below, the loss frequently ex
ceeding several times the damage done by
the fire Itself. -
Fireproof Balldleas.
A fireproof building may be charscterlxed
as possessing four chief features. It should
be of steel cage construction, and should
have all of its structural members safely
insulated against beat from within or with
out the building, or lt may be of reinforced
concrete construction with the reinforcing
members similarly insulated. All commun
ications between floors for freight or pas
sengers, such as stairways and elevators,
should be encssed in fireproof cut-off
shafts, and all horlzpntal tiers of windows
should be fitted with wire glass In fire
proof frames. A fireproof building should
be designed so as to constitute a stove, and
if used for the storing of combustible ma
terials should be so constructed that the
contents on any floor may burn with the
least danger to the building and with the
least possibility of the fire spreading to
other floors. If the horizontal tiers of win
dows are not fitted with wire glass the
chances are that a fire on a given floor,
since It cannot go up or down, owing to
the fireproof construction and the protecled
floor communications, will be forced out
through the windows, and will thus com
municate to upper stories through the tier
of windows Immediately above.
It Is needless to say that a great many
buildings called "fireproof" are not fire
proof at all, and it Is Interesting to note
how many well Informed people are wedded
to the belief that noninflammuble things
are fireproof, and tlisU a fireproof building
gives this quality to its contents. On the
contrary, it appears that goods In fireproof
buildings will burn fiercely In fact, will.
In many instances, burn more fiercely than
when situated In other buildings. Because
of this fact It is highly Important that
the floors of a fireproof building should
be carefully separated. This fart cannot be
too strongly emphasised. Mr. F. C. Moore,
In his "Fire Insurance and How to BuilJ,"
remarks: "Itls probable that few sub
jects connected with construction are more
generally misunderstood than the fireproof
building. The average Individual regards
lion and stone as fireproof. He, at the
same time, overlooks the fact, stranguly
enough, that glass windows are not fire
resisting. Even underwriters In estimating
rates on fireproof buildings and their don
tents often overlook the fact that a build
ing intended to be fireproof, but of filing
nothing more -substantial as a fire shield
against an outside fire than ordinary p'.ate
glass In a wooden sash and frame If even
more likely to have its contents thoroughly
destroyed by an exposure to fire than an
ordinary building of wooden Jointed con
struction; for the fireproof structure, as
already stated, holds its merchandise and
the other contents suspended where they
will be more effectually destroyed. The
wooden Jointed building, on the other hand
would probably collapse, and no small sal
vage might be realised out of heaps of
merchandise In the cellar so covered up
that combustion would be retarded for went
of air. on the same principle that a pile of
wood shavings ts seldom Invaded by fire
to a greater depth than ten or twelve
inches.
"A further reason why the contents of
fireproof buildings are so thoroughly de
stroyed when once ignited Is that ttu fire
proof construction, like a reverberating fur
nace or oven, confines the heat until ex
tremely high temperatures are reached.
Indeed, firemen who have had experience
In fighting fires In fireproof buildings claim
that It la almost Impossible to remain on
a floor where merchandise Is on fire, so
Intense Is the combustion. Everything
ignitable Is shriveled up. The principal ad
vantage, therefore, after all, of a fireproof
building Is the separation of the various
stories from eseh other, and this may be
largely, if not entirely, lost if the building
has well holes, or If staircases and ele
vators are not cut off by fireproof hall
ways."
It should also be noted that the public
Is altogether too apt to minimize the Im
portance of exposure to fireproof build- 1
tngg. The danger of firo to contents within
a fireproof building Is much greater be
cause of the presence of a poor risk In
the near neighborhood. On the other hand,
a fireproof building radiates very little
of its exposure to surrounding rinks.
"Psobably no class," writes Mr. F C.
Moore, "of risks is more inadequately
treated In the matter of computing danger
from exposure than fireproof buildings, be
cause rating bureaus so frequently over
look the obvious fact that plateglass and
wooden window frames and sash are not
fireproof, and that a so-called fireproof
building offering nothing more, substantial
to an outside fire than plateglass haa no
greater fire resisting properties than an
ordinary showcase would present. More
than 75 per cent of the fireproof structures
of the country have window openings to
the extent of from 40 per cent to 75 per
cent of the superficial area of each en
closing wall which are not protected by
fireproof shutters. Heat from a burning
building across a wide street finds ready
entrance through such openings, and the
various fireproof floors serve only to hold,
like a great gridiron, ignitable merchan
dise In the most favorable form of distri
bution for Ignition and combustion, to the
full force of an outside fire. If (ire once
secures entrance to a fireproof building
through the windows of any store, the con
tents of such a store, especially If at a
great height from the floor, are almost
certain to be destroyed, and the danger of
Ignition is greater where the fireproof
structure Is higher than the one which la
burning."
Fireproof Balldlnas la Hrcrst Fires.
In the recent Baltimore and Snn Fran
cisco conflagrations the fact was brough'
out very strikingly that so-called "fire
proof buildings after all are not fire
proof, as generally supposed, apd that
there were present many deficiencies In the
construction of such buildings whk'h might
easily have been averted. The statistics
for the Baltimore conflagration, so far as
"fireproof" structures are concerned, have
been carefully compiled, and show that
the Insurance loss on such buildings was
in almost the same ratio as on the ordi
nary buildings and combustible stock. This
striking fact is to be attributed mainly
to the large damage dune to auch buildings
and the comparatively small amount of
Insurance held as compared with the value
of the structures. Of the seven so-called
fireproof "skyscrspers," of steel cage con
struction, it appears that 64 per cent, or
nearly two-thirds, of the value of these
buildings, was destroyed. This large pro
portion becomes stilt more striking when
It is remembered that these seven buildings
wert,all used exclusively for offices, and
contained but small amounts of combusti
bles which could bavo caused a serious and
prolonged fire. As a matter of fact, fire
swept In and out of some of these big
office buildings In the course of an hour,
nd the opinion prevails ameng experts
that had these buildings been filled with
large quantities of combustibles the loss
would certainly have been much greater,
and ir. all probability might have been a
total loss. These skyscrapers were prac
tically without any form of fire protection.
partly because there was no such apparent
need for fire protection and partly because
of the Impossibility of the fire department
approaching them during the conflagration.
In San Francisco likewise, the conflagra
tion tested thoroughly the various typss .
of fireproof steel structures and gave to
the world a most valuable lesson as to the
future construction of such buildings. Ter
cotfa, so generally used In San Franlcsco.
was shown to be wholly inadequate. Wher
ever steel work was protected by terra
cotta the covering was in nearly every
case torn off and destroyed. As stated
In one of the reports of the performance
of different flreproofings in the San Fran
cisco fire: "When terra cotta was used
the partitions fell down, the fire proofing
around tho columns came off, and a very
large proportion of the floor arches either
fell out of the bottom plates or the arches
broke off and left the arches in a very bad
shape." In most cases Ute flreprooflng
of columns was of terra cotta. With the
destruction of the column covering by the
excessive heat, little protection was left,
and the result was that very few build
ings in Snn Francisco did not present the
sight of badly bent or buckled columns.
As contrasted with terra cotta, concrete
stood the test of the conflagration well in
nearly every Instance, little-or no dam
age resulting to steel work which was flre
proofed with this substance. Another form
of column covering which withstood the
fire, well consisted of two thicknesses of
wire lath and plaster, with an air space
between them. Whit In many oases the
outside covering was torn off. It seems
to have resisted the fire during the most In
tense stage, thus enabling the Inner cover
ing to protect the column. ,
Stone u. Brlrk la Wall Const met Inn.
The best material for the construction
if Walls is hard burned brick. Stone,
contrary to common opinion. Is a very un
desirable building material, and If used ex
tensively, esiMH'lally for supporting heavy
I welgbj, may serve as a means of wreck
ing 4 he entire building. One of the most
prominent fire preventing experts In the
country. In speaking of t)Uajeclares that:
"The best fire resisting material for walls,
It may bo safely asserted, Is hard burned
brick. It is also the best material for the
floor a rclijs between the Iron beams of
fireproof buildings. It is Incomparably
better- than stone, because stone is utterly
unreliable for resisting fire, especially the
llnmstone, granites, maible, etc. In fart,
stone U a .dangerous material wherever
it is subjected to fire and water, and car
ries a heavy super-imposed wtiglit. Alter
the great Boston fire granite piers and
columns were Bhoveled up like so much
sand. Notwithstanding these facts, stone
enters Into most ordinary structures to the
extent of being Incorporated as Important
members of piers and walls. In some cases
piers or columns are built entirely of stone.
Such architecture Is almost certain to re
sult In disaster, especially where stone is
a weight carrier, and is located in tho In
terior of a building and subjected to fhe
combustion of surrounding merchandise
In the outer walls of a building It Is not
o dangerous, although almost, certain to
be defaced to the extent of requiring re
placement. In Interior construction, even
where bond atone and cap stones are used
In brick piers. It rTlaywreck the build
ing. . . The apathy of building depart
ments, architects, masons and legislators,
and of some undewriters, in this matter
of the danger of stone as a building ma
terial, is utterly incomprehensible to me.
If columns of a building were constructed
cf glass or of porcelain there would be an
Immediate outcry, and yet well annealed
glass, terra cotta or porcelain would ac-1
tually stand the effects of fire and water
for a longer time probably than granite
or marble columns." (H. C. Moore, in
"Fire Insurance and How to Build," page
78.)
Of all the materials used In the fronts of
the buildings in San Francisco, stone
showed by far the worst effects In the
recent conflagration. In the Postal Tele
graph building the granite columns In the
first story almost entirely disappeared
through the splitting and crumbling oC the
stone. According to one report: "This Is
true of every place where the
flames or heat touched the stone; It spalled
off and left the fronts In such a bad condi
tion that they will probably have to be
taken down." Terra cotta did not resist
the effects of heat and fire much better
than stone.
From the above facts its is evident that
the iron work of a fireproof building should
be carefully insulated from heat, and that
stone should not be used In vital portions
of the building. An ideal fireproof building
has been defined as "one consisting of sub
stantial walla of brick, well burned brick
being a better fire resistant than any rilrer
material; wtthjall iron work protected by
fireproof material; with all floors properly
cut off from each other; the staircases and
elevators In hallways; and all pssiages from
one floor to another, whether In the shape
of channels for plumbing, . gas or other
pipes, electric wiring, or shafts for dumb
waiters, in fireproof shafts; the floors them
selves being fireproof, without floor boards,
the surface being of concrete or asphalt,
and Inclined, with scuppers through the
side of yie walls so arranged as to drain
off any water which might be thrown by a
fire department, and piotect the floors or
I merchandise beneath the one on fire."
sruii-r ireprooi uaiiuiasis.
Stml-fireproof buildings dater irom fire
proof buildings In so far that, while con
structed of non-inflammable material, they
ate equipped with structural 5r tension
metal members which have not been
properly insulated against heat or have
been left .entirely exposed. These buildings
are constructed because of their greater
cheapness as compared with fireproof build
ings, and because the prevailing building
code in many cities does not prevent their
construction. They are elected very often
to serve for offlctf purposes or as dwelling
houses, or for other uses of a similar char
acter, in which it is presumed that the
limited amount of combustible stock which
they contain will make it extremely unlikely
that sufficient heat will be generated to
impair the ironwork In the building.
Mow Baralagr Balldlags.
Blow burning or "mill construction" build
ings are to be distinguished from seml-flre-proof
buildings. The floors In slow burning
buildings are without openings, and consist
of heavy pUnk laid on heavy timbers
paced from five to twelve feet apart, such
timbers resting on stout wooden posts. It
U also prescribed that there must be a
tight top flooring, with waterproof paper
between it aud the plank flooring below,
which must never be less than three Inches
in thickness. The aim of such requirements
la to separate Iks different stories by a
floor of considerable thickness. The Idea Is
to construct the building In such a manner
that, even though large stocks of combust
ible material may be contained In the build
ing, lt would require several hours under
normal conditions for a fire to burn through
the flooring. Before this Is accomplished
It Is presumed that the fire department will
be able to get the fire under control and
prevent Its spread.
Fire Doers aad Shatters.
A number of special features must be
noted In the construction of buildings, de
signed to retard the rapid spread of fire.
The first of these are the floors a,nd shut
ters. The door now commonly used is made
of wood covered with metal and provided
with special lock Jointed tin plates. The
Idea la to allow the wood to carbonize In
case of great heat and to permit the gas
resulting from the carbonising of the wood
to escape through the lock joints instead of
permitting it to accumulate and throw off
the metal sheets. As the wood carbonizes
the charcoal will drop to the bottom of
the metal covering, but the metal will hold
together, thus preventing the passage of
the fire.
Wire glass Is also of considerable Impor
tance. It gives splendid protection when the
sash Is fireproof and when the glass is
double, with an air apace between. Wire
glass In most cases serves a better purpose
than shutters, because the latter must not
only be closed to become effective, but will
deteriorate if not properly cared for. More
over, where there Is not an exposing risk
to be guarded against, shutters are regarded
by many underwriters a nuisance. It
hould be remembered, however, that wire
glass' radiates heat, so that in case of a
I severe exposing fire lt may happen that
j combustibles within the building and near
the glass, cny Ignite. In this respect wire
glass Is Inferior to well designed shutters.
Rating of Fireproof Bulldlags.
! In applying the rating schedule to fire-
proof buildings the most Important point to
i bear In mind is that In no class of buildings
Is It more necessary to know the amount
of Insurance carried in order to determine
the rate than in the case of fireproof build
ings. According to the universal mercantile
schedule, a certain percentage of the value
of fireproof buildings (15 per cent) covers
the wooden trimmings, window and door
frames, fresco work, plate glass, and other
features which are considered as destruct
ible. It follow i;, then, that if a fireproof
building is insured Vor only 15 per cent of
its vslue, the rale should approximate that
on tho ordinary brick building, because 16
per cent of the value of a fireproof building
Is considered as destructible by fire. This
percentage of 15 per cent Is, therefore, re
garded In the universal mercantile schedule
as one extreme of Insurance, and the full
value of the building (100 per cent) la re
garded as the other extreme. The rule
adopted by the universal mercantile sched
ule Is that, if tbe owner of a fireproof
building Insures it only to the extent of 15
per cent of Its value, he must pay the flat
rate, found In the schedule used. If,
however, the building Is Insured for more
than U per cent of Its value, a (reduction
la granted In the rate because of the exist
enue of the extra Insurance.
The reasoning which underlies the reduc
tion In the rale- In case the amount of in
sursnce on a fireproof building exceeds 15
per cent of Its value Is as follows. Assume
, a fireproof building to be worth ll,0w,oou
and the rale of premium for
minimum amount of Insurance (15 per cri
of the value of the building, or 8150,000) I
be 100 cents per 1100 of Insurance, or 1 jt
cent. The premium for $150,000 of Insuram
(or 15 per cent of the value) would, then
fore, be 11,500. Now, If the owner of tl,
property should agree to carry $LW,000 of li
surance, or 20 per cent of the value of V
building Instead of only 15 per cent, ti
extra 100,000 of Insurance could be assum
by an underwriter at a much smaller rn
'than the rate charged for the first $100,
of Insurance. As the universal schedt
committee says: "An underwriter, havi
already $?00,000 on a fireproof bulldii
offering an additional $100,000, would ha
presented to him, In fixing the rate, pra
tically the same consideration which dete
mines the rate In the case of what
known as 'excess Insurance.' He would l
already liable for all partial losses (sir
15 per cent of the value of the bulldii
is only considered destructible by flit
nd his extra $100,000 could not be call
upon until his $200,000 had been exhaust.
In this view he could afford to write t
extra $100,000 at a materially lower rs
than his $JU0,X."
The schedule table used In rating fir
rtrnnf hullrftnirs fixes the rate for the fli
$100,000 of Insurance above the first $200,
of Insurance at 40 per rent of the rat
charged for $200,000. "In like manner ea j
subsequent $100,000 of additional lnsuran
must be regarded in the nature of exc. t
insurance, and would be written at a 5
cent less percentage of the rate than t!
of the preceding $100,000."
The reduction given for each $100,000
extra Insurance is exemplified by the 1
lowing table, which was computed upon t!
hypothetical example of a milllon-dol
building with a rate equal to 100 cent I
$109 of insurance in case only 15 per ce
insurance was taken out:
3 -1
: aa3
( r
I i ! i
: : h : ?
r ;
lj "lirt t "luO.OOO '$1.00 Si".
M ib am.OOO .K;3 1
30 40 8tt.Oll .I.H 2
40 3i 4n0,m0 .578 ' 2,
60 Ml .4117 2
W Jh WlO.miO .4.'!5 2.
70 'JO 7'l.(0 .Ml I
75 17. t 75.0"0 .i.4 2.
80 15 soo.iKiO .X 2.
(Hi 10 .h .0 2
100 5 l.OuuA") m( t
A brief explanation of this table may
necessary. Thus, taking the first line of i
table, lt appears that. If the owner of
fireproof building worth $1,000,000 Insu
only 15 per cent of its value, the amoi
of Insurance will equal $150,000; the rate
aasuined, as found by the schedule. Is
cents per $luO of Insurance, or I per ce
and the total premium paid ty the ow
would be $l,5t0. Suppose now that
property owner agrees to Insure 20 per t
of the value of the building. According
the table the universal mercantile scheo
will permit the extra '.t,() to be taken
rate equul to only 43 lr cent of the r
on the preceding $!5o,0"u of Insurance.
The problem now Is to compute the I
on t-'K'" of Insurance. This may be fo
In the following wuy: The- $!.,) of ln-
ance we saw required a premium pay Oi
(Continued on Page Two.)
