The Oamaru Mail. MONDAY, JULY 25, 1910.

Oamaru Mail, Volume XXXVIII, Issue 10515, 25 July 1910, Page 3

The Oamaru Mail. MONDAY, JULY 25, 1910.

The report of the State fire Department has just boon

State submitted to the Fire Insurance. House, and discloses a very satisfactory advance in the business of the office. During its six years of existence the Department has commended itself to the people, and its net income has increased year by vear from £13,127 in 1905 to £33,281 for the year just closed. As showing the increasing popularity, the net premium' income was 24.55 per. cent, higher last year than in 1908. This growth of business has resulted in wiping off £2G9B from the debit balance, and in all probability, given a reasonably favorable year, the next annual report will show the debit altogether removed. During its infancy the workings of the office did not run on perfectly oiled bearings. There were many troublous factors to militate against its progress, and it had to combat the somewhat natural antipathy of the private concerns on whose rates the State 'Department stood as a check. Those rates before the Government institution came into being were high beyond reason, hut the rate war which ensued on the advent of the newcomer has removed that reprocah. In fact so fierce was the cutting that the rates are now too low, and' it is only a matter of time when, in the interests of all, some understanding will he necessary. The report under review has the following:—"lt will he remembered that the opening of the office in the year 1905 was the signal for a very considerable reduction in the rates charged throughout the Dominion, and although for the last year the office has been able to show a profit while working under these reduced rates, it should not be forgotten that for the year previous a substantial Joss was made. The office is certain to experience unfavorable years in the future, as it lias in the past, and it would therefore be unwise to gauge the adequacy or otherwise of the current rates by the result of the past year's operations- alone." So far, the State Department has been only a source of advantage to the people. It ha/Hbeeu the cause of a great reduction -in rates, and at the same time has paid its way notwithstanding that in one disastrous year the whole of its reserve was swallowed tip in claims.