A NOVEL SCHEME!

Gisborne Standard and Cook County Gazette, Volume II, Issue 250, 22 January 1889, Page 2

A NOVEL SCHEME!

Gisborne people have to submit to high rates of insurance, and they will'’ Perhaps readily give consideration to any scheme that has for its object the abatement of those rates. The Sydenham Borough Council have a similar trouble to contend with, the insurance companies threatening to increase the rates in that Borough unless some better safeguard 9 against fire are adopted; but in the latter locality there is one who is able to rise to the occasion, and who has proposed a scheme which has the merit of originality and of looking well in theory, though we do not think it would stand a practical test. The idea oomes from a former Fire Inspector of the Borough referred to, and is in effect as follows:—The local bodies should become insurers on all buildings on the mutual principle; buildings should be valued each year, and a rate struck of say two-thirds of the value as an insurance against fire, rate to be collected in the same manner qs ordinary ratss, with 10 per cent, added on overdue accounts; the money thus raised to be first responsible to losses by fire, then to the maintenance of appliances for the prevention of fire, and then to the accumulation of a sum which would make it safe to reduce the rate. Of course the rate would have to be compulsory, and many of the bodies, though collecting their own rates, would require to have a combined fund, so as to prevent a large risk being taken on too small ah area. The originator of the plan claims for it—1, The ratepayers would receive the full benefit of money paid, instead of large sums being sent out of the colony, to its detriment and for the hepefitfof outsiders. 2. Economy would be effected by the officers of the local bodies doing the work, thus saving a very large portion of the -now heavy working expenses of insurance companies, 3. Each ratepayer being personally interested would be more ready to assist in staying the spread of a fire, or saving as much property as possible 4. The plant of amalgamated districts could be placed in the best position to cover such districts, and would all be available in case of large fires in the more thickly-built parts. There is no doubt the scheme reads well on paper, but to take any steps towards its adoption would be to fly in the face of danger. It is probable that the administration would be the reverse of economical, were it left to those upon whom direct influence could so easily be brought to bear.' Then again it would not be right for the siheme to be extended further than to oovsr buildings, and even these the insurance companies very often find it impossible to ascertain the true value of, with all the anxiety and keenness for profits and dividends. But if the insurance were restricted to buildings only, it is not likely the foreign insurance eompanias would be content to accept the present rates on other property—they would immediately hjgbtjr ther»tei, and thus minimise whatever advantages were gained in other ways. In fact the mind suggests many difficult obstacles to the working of the scheme, and we think it may be nut aeidJ as impracticable. Th* Sydenham Council referred the matter to a committee oi ihe whole body,