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COUNT myself fortunate indeed that it has fallen to me to bring this message of greeting and good will because in your membership and in this audience there are so many with whom I have such close friendly relations, business and personal.
You have already been informed of the appointment by the National Board of Fire Underwriters of a standing Com¬ mittee of Conference with your Association and it is most gratifying to know that the significance of that event is fully appreciated. It does not mean that we have differences that require adjustment or that either you or we are apprehensive of controversie’s or contentions in the future, but rather, I think,- it is a recognition of a certain community of interest, privilege and duty in which a point of contact is needed if we are to utilize all our energies and influence to the best ad¬ vantage.
Our two organizations deal with different phases of the same general subject and it is in the hope that your efforts and ours may be better co-ordinated, and that as we serve the public better we shall the better serve our own interests that we are here to-day.
At the outset it will perhaps be well to make clear to you precisely what the National Board is; what its activities are as well as its limitations. It is a voluntary organization of stock fire insurance companies, fifty-three years old and at present its membership of one hundred and fifty-one com¬ prises practically all of the companies of any importance doing a general as distinguished from a purely local business. In its early days it attempted to regulate all details of the business, but after a turbulent experience extending over a period of some ten or twelve years, all control over rates and practices was abandoned in April, 1876, and ten years later the dead letter of authority over commissions was definitely renounced.
For more than two decades following this action the Board’s chief function consisted of the preparation of statist¬ ical tables which comprised the principal feature of the an¬ nual reports.
It will be observed that long before any other line of business thought of organizing a trust, and indeed before that word was ever used in its present opprobrious sense, the fire underwriters had organized, operated and abandoned theirs, and for more than forty-three years there has been no such thing in the fire insurance business in this country.
One of the most interesting things in the history of the National Board is the steady and apparently inevitable way in which its activities have come to be more and more of a public service character. This, I am frank to say, was not originally intended, in fact, it was a matter of years before we ourselves became aware of the meaning of the changes which were taking place, but we are proud and happy to be¬ lieve that the fire insurance profession has led all other great business interests in the United States in completing the cycle of this evolution. In other words, more’ than a generation ago, our business definitely and finally learned the lesson that business measures, which were even unconsciously oppressive, of the public, were “bad business” for the companies and that conversely, public interest and underwriting interest were synonymous terms. This may sound like mere assertion, but those who have’ taken the time to study the somewhat check¬ ered history of the National Board of Fire Underwriters will realize its absolute accuracy.
At the meeting of the Convention of Insurance Commis¬ sioners in Hartford last month one of the members com¬ plained that the companies had no central organization with which the state officials could confer and which could commit its membership on matters of rate—overlooking for the moment the provisions of many very explicit anti-trust and anti-compact statutes.
In passing it may not be out of place to remark that the underwriters have sometimes wished that the National organ-: ization or Conference of State Insurance officials had some such control over its own members, but no doubt they wish so, too, and it is through no fault of theirs that they haven’t.
The evolution of our business offered from time to time opportunities for usefulness which the Board was not slow to improve until at the present time it has become a service institution of value not only to its members but to the public.
It holds but one meeting annually, its work being con¬ ducted under the direction of the following Committees, whose names suggest the nature of their functions :
Clauses and Forms
Construction of Buildings
Fire Prevention and Engineering Standards
Incendiarism and Arson
Membership Public Relations Statistics and Origin of Fires Uniform Accounting.
The working force consists of the General Manager and office, and special staffs, and the general office in New York is a very busy place, employing at present one hundred and forty-eight people.
It would require more time than you can give me to go into a detailed discussion of the work of these Committee’s, but it may safely be asserted that there is no privately sup¬ ported organization in the country doing more for the pro¬ tection of life and property.
For example, we are maintaining Fire Prevention En¬ gineering Service in three important fields. Our Committee on Fire Prevention and Engineering Standards maintains field parties of trained engineers who are constantly engaged in trying to eliminate conflagration hazards in American cities.
Our Committee on Construction of Buildings reviews most of the building codes prepared by the different cities and is laboring constantly to elevate their standards.
Our great Underwriters’ Laboratories in Chicago, with a branch in New York, employ their large staff of technical experts and their re’ally wonderful laboratory equipment in tests of all devices, materials and processes that directly, or indirectly, affect the fire hazard.
On the personal side our committee on Incendiarism and Arson is rendering assistance to fire marshals and other state and city authorities, and through its own staff of investigators is seeking to make the crime of Arson unprofitable—a work in which the local agents can and do co-operate very effec¬ tively.
Our Committee on Public Relations is conducting an extensive educational work in fire prevention which includes the publication of a widely circulated monthly paper, the pro¬ motion of fire prevention courses in thousands of school rooms and a great variety of other details all calculated to bring the public to an appreciation of the need of careful habits and precautionary measures.
Many of your members receive the publications of this Committee, and we shall be pleased to add to our mailing list the names of all others who de’sire to have them.
Even upon mere technical lines the public interest is a constantly dominating factor.
Our Actuarial Bureau, with its eighty-six employees and its equipment of classification and tabulating machinery and its millions of record cards in files, is making such a scientific study of fire statistics and causes as has never previously been attempted.