Trade Depression and Fires.

Wairarapa Standard, Volume XIX, Issue 1838, 31 May 1886, Page 4

Trade Depression and Fires.

Accoeuing to the dictum of the Hon G. Randall Johnson, Chairman of the Colonial Insurance Company, there is a close connection between Trade Depression and Fires. At the recent annual meeting ofthe shareholders of that company the Chairman remarked 11 During the past year, as in former years, the losses from fire had been much greater than marine losses. For some reason or other, which he would leave the shareholders to find out, there was a connect ionhetween the depression in trade and the outbreak of fires. In the list of losses, what were termed firstclass risks figured quite as conspicuously as those considered more hazardous. So tong as depression in trade continued, insurance companies must expect to meet icith losses."

Mr Johnson puts the matter very delicately, but if his words have any meaning at all, it is plain he desires to convey tiie idea, that where trade is depressed, a certain number of people who are well insured, are specially subject to the misfortune of having their premises burned down. We do not in the least doubt the fact. We remember some je .rs ago that when trade was dreadfully bad in Auckland, and hundreds of traders were on the very verge of insolvency, fires occurred right and left, and heavy claims had to be met by the Insurance Companies. We have seen the same thing take place in other parts of the colony under similar circumstances. Wellington itself has shown some very notable instances of very suspicious fires, and even in the Wairarspa there has not been wanting examples of the same sort. The explanation is exceedingly simple. There are a certain number of people in every community, who under ordinary circumstances, are fairly well honest, but who under the heavy pressure of adverse times are liable to succumb. When severe trade depression exists and bankruptcy threatens traders of this stamp, the idea of setting lire to a heavily insured shop or house, in some instances, becomes dominant and irresistible. The ment of the insurance money is the temptation. With a good sum of hard cash in hand the embarrassed trader could arrange with all bis creditors, and have something to good for a fresh start. So it happens that mysterious fires take place, and m nine cases out of ten the origin of the fire is never made clear. Of course the fires of this kind which occur make up only a small proportion of the whole, Still, during times of severe trade depression there is no doubt that a certain percentage of fires are caused wilfully and purposely. Trade depression is a powerful factor in stimulating the increase of arson. It seems that a number of the Insurance Companies doing business in the colony have had a bad time of it lately. Certainly, the Colonial Insurance Company has not fared well, as it is proved by the fact that its shareholders’ cannot get any dividends.