STATE FIRE INSURANCE.

Press, Volume LXIII, Issue 12852, 10 July 1907, Page 6

STATE FIRE INSURANCE .

ITS EFFECT ON PRIVATE COM- #■ PANIES. ' .1 A SERIOUS POSITION FORE- '\ SHADOWED. '-{ During the course of hie report to the Christchurch Fire Board, at the / meeting held last evening, the chair- \ man (Mr J. l>. Hall) submitted inter '■ alia the following reflection! for Uμ ~' consideration of members:—"Onr Legislature has, "by the Fire Brigades , Aot, imposed a somewhat heavy burden - on the inmiranoe companies, and hu , also inaugurated « competitor in the form of a State Imuranoe Department. * I only mention the matter as a point » which must be taken into oonaideiation in coming to a sound conclusion - as to amendments in the direction of relieving the insurance companies from > some of the hardships at present imposed ~ upon them by the combination of tin . existing Fire Brigades Aot and the State . competition—a combination, I believe, ,', unknown elsewhere. It is only a res- % sonable business proposition to assert '" that, if the effect of this combination' ■ is to very materially reduce the in- ( > surance profits, there appean to be #„"' reasonable possibility of these com* >',", panics withdrawing from the colony - altogether—a proceeding which, W± must be admitted, would entail some- . what disastrous consequence* upon * > Board -which depends upon insurance companies for nearly half its revenue. I Departure of this kind, when once be- , gun, would probably increase in nutt* t ber, and the movement must neoN* - eerily gather momentum with each «• ptrture, as the fewer the number of • the companies left, the greater would be the amount each would have to contribute to the Fire Board j in addrj tion to which those remaining wouH always have to face the competition of the State Insurance Department. , Aβ the province of the Board only citends to the suppression and extinction of fires end the protection of life and property, it is not neceessry for us to consider what other result* « would be caused by withdrawals of ■ companies from tho colony, consequent. upon the State competition. On the other hand, we require to take into cc moderation tho possible diminution in damage due to the more effective means of suppressing And extinguishing fires which should exist if «• Board is in possession of an up-to-date plant, and which should incresie tho Misuranco profits." The report was ladopted without dtf- > cussion. ___ ' DEPARTMENTS ANNUAL REPORT. (SPECIAL TO "THB PRBSB.") WELLINGTON, July 8. The net income of tho State Fire Insurance Department for the year 1906 was £20,9G2; for the previous ycer it ws» i £13,127. Mr Brindlcy, tho general manager, reports that in his opinion the difference between the rates no* prevailing and those prevailing juw prior to the advent of the State Fir* , Insurance Office represents £200,000 per annum. Mr Brindlry add*:-' "Though the prevailing ratos of premium presumably arc highly satisfactory . to tho insuring public, in view of tie fact that they are very much below what thov wero prior to tho advent oi tho State office, nevertheless . ience haa shown tlwt they arc lo*w , tlian they should bo, and this fact B« ~ been much impressed upon by the pr«- / vate insurance companies, wliose c°B>» ij . lias iaiiod to make tho bt»W Fire Office loso heavily, as theyanticijKitcd, although nocessarily " ,oi r*^"i l ß tion reduced its profit results ty »em vM £12,000."