Hawke's Bay Times. Nullius addictus jurare in verba magistri. WEDNESDAY, JULY 24, 1872.

Hawke's Bay Times, Volume 19, Issue 1383, 24 July 1872, Page 2

Hawke's Bay Times. Nullius addictus jurare in verba magistri. WEDNESDAY, JULY 24, 1872.

The acknowledged success that has attended the Government system of life assurance is evidently sugge-stive of an extension of the principle to the insurance of property against loss by the contingencies of tires, Hoods, and earthquakes ; and we believe that nearly all the arguments which can be adduced in favor of the life assurance and annuities scheme, may also be advanced in favor of, and will be found to apply to, one foi the extension of the principle, especially to the case of losses by fire. Several inipeifeetions in the existing system of fire insurance are manifest on the most superficial examination, and they arise primal ily from the fact of the main object of the various associations being the profit of the investors, and only for the interest of the assured so far as it is consistent with this end ; hence it happens that wherever extra risk exists, and, consequently, when the need of protection is greatest, those companies altogether refuse to insure ; and in cases where there is but a mini mum of risk they are unwilling to insure for more than a moiety of the value of the propeity covered by the policy. The main object of the companies being profit, also causes them to adopt a scale of premiums exorbitantly high, so that it often.becomes a question with wonld-be insurers whether it is not better to save the annual charge on their property made by the insurance companies, and take the whole risk of fire, or adopt the costly, though more prudent, course of insuring so far as the companies will permit them to do so. There are of course certain objections that may be advanced against the Government undertaking the responsibity of fire insurance, and certain difficulties in the way,;which, it may be said, did not exist, at least to the same extent, in the case of the life assurance scheme. Both the objections and the difficulties in the latter case have been successfully coin batted, and we believe that the true may be brought against the former, interests of the public will be sufficient to, over-balance whatever objections while a moderate amount of ability

will be found sufficient to overcome such difficulties as stand in the way of its adoption. "We have before us a pamphlet* from the pen of our fellow-townsman, Mr. B. A. Ferard, in which the subject is grappled with, and we think successfully. The plan suggested is of course capable of modification in some of its details,. hut as a whole it commends itself to the attentive consideration of the Government. Two propositions are laid down as the basis of the scheme. Ist. That a business which depends for its success, not upon the application of judgment or energv in particular instances, but upon the correctness of general rule-* deduced from statistics, and upon the command of capital and credit, and which is of general advantage, may be properly undertaken by the Government. 2nd. That much of the loss from fire may be prevented, and would be prevented, if the risks of insurance were localised. Although these propositions are almost selfevident, certain considerations are adduced in proof of them, and we may remark in addition that we consider the idea of localising the risk at once meets the main objection that can be brought against a Government scheme. We cannot do better than describe the proposed plan in. the words of the author :. —- "Let municipalities, within their several localities be at liberty to undertake the business of insuring buildings against fire upon the following conditions : Municipality to have power to fix: the rates of insurance subject to the approval of a Government Commissioner (say the Government Annuities Commissioner), and to the condition that foi the first year such rates hhall not be less than those heretofore charged by private compadies—all premiums to be paid into the account of the Commissioner, and the monies so re ceived by him for the several municipalities to be invested as a general insurance fund in Treasury Bills. Losses to be paid by the Commissioner upon the certificate of the proper officer of the municipality out of the general insurance fund (such losses, however, as will be seen presently, being borne ultimately not by the general fund, but by the particular district within which the fire has. occurred)-. In the improbable case of the general insurance fund being at any lime insufficient to meet the losses, Government being empowered to issue additional Treasury Bills to cover the deficiency to be redeemed out of the future accumulations of the general insurance fund. Half vearly accounts to be stated between the several municipalities and the Commissioner, in which the amount of the insurances effected with such municipalities shall be shown—every municipality to be credited with the premiums on insurances effected with it and with interest at the current rate of interest on treasury bills upon its minimum monthly balance, and debited with losses paid on its account, and, if these should exceed the amount standing to its credit, with interest on the overdraft at the treasury bill rate of interest. Whenever upou the half-yearly statement of account the balance standing to the credit of any municipality shall exceed a certain fixed proportion (say three per cent.), of the principal sums insured, such excess to be paid over to the municipality in aid of its gensral rates. Should any municipality whose account is overdrawn not place it in credit within three years, or such extended time as might under special circumstances be granted by the Assembly, the Commissioner to direct a special rate to be levied, sufficient to replaoe the deficit, and to place such municipality in credit to the extent of the last-mentioned proportion of 3- percent, on the sums insured, and to have power to require such municipality to raise its rates of insurance should he deem them insufficient."

The weather throughout yesterday nnd today hay been very inclement,, and. a. large quantity of rain has fallen* Jn, the Resident Magistrate* Court* yesterda}'- afternoon the following civil cases were heard: —Roper v. W.all.— Claim of £3 6s, damages on impounded, cattle.. Mr Lascelles for plaintiff; Mlv Lee for defendant.—Judgment reserved. Evans v. Brown. —Claim of, £S 9s-,, expenses incurred as witness. —Judgment for amount claimed, with. 12s costs, The Supreme Court was formally opened this morning,, and furthet. adjourned to Tuesday, the 30th instant.. Most of the summoned jurors were in attendance. His Honor Mr Justice Johnstou may be expected to. arrive in Napier to-morrow or the next day, ; by the s,s. Rangatira, from. Wellington. A recent telegram erroneously reported Sir W. Lawson's- PermissiveBill to have been k< talked out" of theEngUsh. Parliament. The- true- state of" the case is this :. —The debate occupied, the whole of the sitting, on the Bthi May, and stands foi resumption on the 24th July (this day).. The friends of the movement are well content with the position, of affairs. The Board, of Health at Lyiteltoiv. has resolved strictly to. enfoice quarantine regulations. The population, of Japan by. the last? census, was 37,000,000. One of the Prussian .nteel foundries;, the Krupp steel works, employs over 7000 hands, and one of its steam engines rates at 4,000; horse-power. Many of its facilities are for producing, war materials. According to the returns issued fioni; the Registrar-General's office,, Melbourne, the estimated population of the colony on the 31st March was 755.,6#6,. in round numbers' 25,000 more than shown by the census of 1871. The inciease for the quarter ending March. 31 was 3389, owing almost entirely to* the natural increase of the The arrivals and departures by sea wero 7670 and 7455 respectively, giving a balance in favor of the colony of only 215.