loyal, act under limitations of knowledge of detail which experts possess; act under such knowledge as the Managers have, which is frequently not equal to their own. What both Managers and Special

Agents lack is expert knowledge. What seems to be needed, then, is : First-Expert inspection.

Second-With reasonable frequency.

Third-In time for use before the risk is written.

To know all that we can before a risk is written is obviously the dictate of sound sense. Our present methods of what we call inspection are, in my judgment, far short of what is needed and of what is attainable. The time must come when a great reform in this part of our business must be made, and one thorough expert inspection, both of the risk and its ownership, suffice for all companies interested, and give place to the irregular visits of thirty or forty Special Agents having each so small a line that the premium will not warrant the spending of sufficient time to properly examine and suggest improvements in the risk; not to speak of the more important inquiry into the standing and character of the assured; or, what we term the moral hazard. But you will be addressed further on this subject, during this meeting, by a gentleman who is familiar with the efforts made for united inspection, and I leave it to his experienced and able handling.

My next suggestion is, that it is probable that if we knew more about our business after it burns, we could thereby materially lessen and check the present loss ratio. A great deal has been said about fire inquests, and I wish to add, with all the emphasis possible, that I believe that if it were known and established by law that every loss would be fully inquired into jointly by the insurance companies and the public, by one's own neighbors appointed by law, it would prevent a multitude of losses. In his last report, the Insurance Commissioner of the State of Minnesota says:

The proportion of conflagrations that are of a supposed incendiary origin is alarming, and how this monstrous evil can be abated, is a matter of vital impor tance, not only to the insurance companies, but to the financial interests of the State as well. It is clear to my mind that the proper step to be taken in this direction is, for the legislature to enact a law, providing for a systematic and thorough investigation as to the origin or cause of all fires, and provide that a report, giving a detailed statement of the findings of such investigations, be published, which would not only tend to secure a more general and vigorous enforcement of the criminal law against incendiarism, but would also advise the public as to the many and varied causes of fires, thereby aiding, in a great measure, to guard against their occurrence in the future.

I

am happy to announce that we shall hear from a life-long student of this subject, our friend, who is an honorary member of the Association, Mr. C. C. Hine.

Now a word as to the need of our attending to this. The necessity for it is self-preservation. The problem of a low insurance rate is a part of a general economic question—the question of expense-which every business is closely studying now, and that is what largely enters into the formation of trusts—the union of many for the benefit of each of its members. I think that we shall be forced sooner or later to unite in several matters that will lessen our expenses, in order to meet the demand for a less expensive insurance. This question must be met and will be successfully, if not by us, by others-possibly Mutual associations or individual underwriters.

There are other important matters to which I would briefly call your attention. The underwriters have not kept pace with the rapid growth of the use of electricity, and our neglect to insist upon proper safeguards has been dearly paid for, but of late much attention has been given to the subject, with the result of establishing a code of requirements which, it is hoped, will be generally adopted and enforced by all companies. It may be well to refer this subject to a committee to report upon at this meeting, that we may know what has been developed in recent conferences of experts.

The almost entire destruction in the city of Minneapolis, some months ago, of a modern fire-proof (?) office building, and within the past month the complete destruction in St. Louis of a six-story building of modern, slow-burning construction, used as an office and warehouse, point to the necessity of immediate attention to the subject of high-pressure water works. Each of these fires was communicated by the burning of low buildings several feet away. The question is often asked, How can the upper stories of the modern buildings now erected in Chicago be reached with water in case of fire? Mr. William Musham, First Assistant Chief of the Chicago Fire Department, and a famous fire-fighter, has made the answer in a suggestion of a highpressure water works system entirely independent of the present one, and declares that it will be adopted in this part of the country within a few years. I am informed that a system of high-pressure water works is in successful operation in the city of London and other European cities. The one in London, having been in active operation for the past seven years, has forty-seven miles of pipe, the largest being only seven inches internal diameter. The power reservoir consists of

accumulators loaded to a pressure of seven hundred and fifty pounds to the square inch, producing the same result as though the supply were by gravity from a point fifteen hundred feet above the street level. This system was established for the purpose of furnishing power to various manufacturing industries, but it has also been made the means of extinguishing fires with results most satisfactory. In many of our cities the buildings are six and more stories high, and yet they retain their three-story fire departments. Can this Association do anything to improve this condition?

THE WORLD'S FAIR.

When the men of arts, sciences and handicrafts of the world shall assemble in this city in 1893 to commemorate the discovery of America by Columbus, and the congresses of the world's thinkers shall come with them, would it not be unpardonable if the wonderful business which we represent would fail to honor itself by appearing in its place with due importance? Then, again, all insurance associations have their social sides, but this one being the largest purely social of all Underwriters' Associations, with a membership composed of residents in good standing in our profession in nearly every State of the Union, would seem to be the proper agency to take initiative action in devising plans, ways and means for the proper reception of insurance guests to the World's Fair. Hence, does it not eminently become the Fire Underwriters' Association of the Northwest, whose fair fame is not confined by the Atlantic and Pacific, but extends beyond the seas, to rise to the importance of the occasion and do something in the way of extending a welcome to all the fraternity who may chance to visit our headquarters? I recommend that we appoint a committee to consider this matter. is none too soon for consideration, and let the committee advise with officers and managers of companies as to what should be done, if anything, for I take it that all will prefer to co-operate with some wellknown committee in some sort of undertaking on a comprehensive scale rather than rely upon the individual efforts of their Chicago representatives, who, while every one of them will remain at his post at such an important time, each willing and anxious to perform all business and social duties that may be demanded of them, will find it a physical impossibility to carry on their own regular business and at the same time extend the full measure of hospitality they would desire to their visiting friends. These questions will be before us during this session, and the Hon. Thomas B. Bryan, Vice-President of the Columbian

It

Exposition, and'a citizen whom Chicago delights to honor, will talk to us upon them.

The city where we meet is itself the most amazing witness to the great value of our business. Twenty years ago these meeting days, who that walked through its desolated streets, devastated by the great fire, could conceive that such strength and such beauty would arise here! It is one of the glories of our business, that by its help, in the payment of nearly fifty millions of dollars, these marvelous things were inaugurated. At that time one of our insurance editors gave to the public wonderful pen pictures of the great conflagration, and an address by his son, Mr. Charles Hewitt, editor of the Argus of this city, will be read commemorative of the event, and an opportunity afforded to the Adjusters of those enormous losses, who still live, to talk over those old times with their friends. As it is not likely that such a gathering can be had again, it is hoped that the privilege will be appreciated by all. Other topics, happily chosen in the spirit which has ever characterized our members—the spirit of devotion to the best interests of all of us-will come before us. Good as these papers will be, they will yield more good if they have a careful discussion by you, and if there should be any failure in this respect it will be your fault.

Death has claimed four of our number since our last meeting, increasing the roll of silent members to forty-six: Jacob Peetry, Erastus J. Bassett, Frank S. Boughton, A. H. Hawley, and we must not forget Mr. J. H. C. Whiting, the oldest insurance journalist in point of service in the United States. Although not one of our members, he was a life-long friend of the Association, and it should be our privilege to properly record our sorrow at his taking away. These faces we shall see no more among us. At the proper time a committee will be appointed to prepare memorial resolutions, and I will not anticipate the work of this committee by any remarks of my own, but I express the hope that we who are left may live lives of untainted honor and gratitude for all we receive.

And now, gentlemen, with thanks for your attention, we will take up the regular order of exercises.

Major Charles E. Bliven—

The address of our President, one of the ablest and most practical ever presented from that platform, deserves more than passing attention. I therefore move that the same be referred to a committee of five,

appointed by the Chair, for division and reference to appropriate committees.

Mr. Hayes seconded the motion, which was carried.

Mr. G. H. Moore

I move that the courtesies of the floor be extended to Local Agents of the City of Chicago, and others who may be in the city and wish to attend our meetings.

Motion carried.

The President

I wish to give notice in regard to the formation of the programme of this meeting. Particular attention has been given to the importance of to-day as a holiday. It was intended to have an early adjournment, or at least no session this afternoon, it being the occasion of the unveiling of the equestrian statue of General U. S. Grant in Lincoln Park. Since the arrangement of our programme it has come to my knowledge that the procession will move much earlier than we had anticipated, and by 12 o'clock in this vicinity the beating of drums and sounding of bugles will be so noisy that we can hardly hear any remarks on this floor. In deference to what I take to be your wishes, and also due deference to the speaker himself, who desires to participate in the march this afternoon, the annual address of Mr. George F. Bissell will be put over until to-morrow morning at half-past 10, and the remarks of Mr. Thomas B. Bryan, also, will follow those of Mr. Bissell to-morrow morning.

Before the announcing of committees, while the attendance is so large, I wish to read a communication, which I do with very great pleasure, and ask that you take immediate action upon it, the necessity for which will be apparent to all.

CHICAGO, October 6, 1891.

To the President of the Fire Underwriters' Association of the Northwest. DEAR SIR: The undersigned, executive officers, Managers and General Agents of insurance companies doing business in the Northwest, desire to tender to the members of your Association and its guests, the compliment of a banquet on October 9th next, commemorative of the great fire twenty years ago, the date named being, as we understand, the time of your next annual meeting to be held in this city.