INSURANCE COMPANIES AND FIRE PREVENTION.

New Zealand Herald, Volume XX, Issue 6821, 27 September 1883, Page 6

INSURANCE COMPANIES AND FIRE PREVENTION.

-:.'.: -TO TUE ED'ITOB. - Sir,—l ani not quite-so , , certain that any great number of our. community .will be . found to agree" with the reasoning ot yoiir correspondent,;"An Insurance Shareholder;" in his letter.of yesterday. Of course, from his point'of view, and those who aro : largely interested in these companies, -- anybody that saves expenditure to' theni will b9 doubtlessconsidered, in .his" own words, *' To have grasped-,the true principle involved in this question,", i.e., a saving,, or-an immediate, or apparent saving, more particulary. if it results in ■ throwing the'" whole . burthen of supporting an efficient Fire Brigade on the ■ratepayers; =Can it possibly bs denied that the insurance companies benefit from a good water-supply? If not, why did : they so urge . the -city in getting it?i' As to "the., consequent reduction in .premiums, of course as the risks were materially- less, ■ the insurers ■ look for such reduction,- but.th'ey are, at the same.time, , somewhat sceptical as to its being due solely to the water .supply.. It is -.plainly stated that it. is mainly due "to. tbo competition amongst the " numerous • companiesj and but tor which, wo should- not see so considerable a reduction in-the rates of . premium. • The ratepayers'- .tax. themselves highly to provide a-good and efficient water supply (unlike some; towns),' keeping the mains at. all times charged ; every drop.of this water of which, not being a gravitation supply, has a cost, and which the consumer, inaddition to his ordinary taxes, has to .pay. Surely this is a liberal contribution to both insured and uninsured property,' without-throwing the'wholecostonthe ratepayers' shoulders, it will ho difficult to convince, the taxpayers that a'good water supply does not materially ' lessen the risks of the insurance companies, and that they thereby benefit; while they continue to 'admit the principle in some places, and in others are compelled.by Acta of Parliament to contribute in proportion to ■the annual premiums received, and also while they continue to pay dividends and divide profits far exceeding those paid or received in the old country. Let the public be convinced thattho premiums or profits are so small that they do not admit of largo dividend.,!, and it may be brought home to their obtu c o senses that the companies cannot afford to pay the small contributions hitherto paid. —lain, &c., Tnsurkk,