Raise In Fire Insurance Rates Contemplated

Of particular interest to lumbermen is the cohtemplated raise in fire insurance rates on unsprinkled planing mills and furniture factories.

The California Lumber Merchant, hearing of this rerating which will soon go into effect throughout the entire Pacific Coast teiritory, asked C. Q. Brady, Industrial Insurance expert of Los Angeles, if he would explain to our readers the reason for this re-rating and also give the new rates that can be expected. Mr. Brady gladly consented to do this, and quoting from his letter, he says:

"In the insurance field, we classify woodworking plants and lumber yards as follows:

1. Smal[ retail lumber yards with small saw-sheds.

2. Large distributing yards with planing mills.

3. Dry lumber planing mills.

4. Furniture factory and sash door factory.

5. Small cabinet shops.

The rates on the various classifications are based upon the fire experience of the respective risks. Special records are kept for the entire Pacific Coast Division for a certain period of years, and if it is found that the rate on a certain ilassificatioh does not prevent an average underwriting loss, rate revisions are made to reduce the underwriting loss to a minimum, Thus, from time to time. rate adjustments are made, either reducing the rates on some risks, or increasing rates on other risks, so that each classification can approximately pay for itself on losses.

The experience on small retail lumber yards has been quite satisfactory; hence they enjoy a comparativelv low rate. Lumber yards with large planing mills have intro- duced the hazard of woodworking; therefore they are charged accordingly and the rates on these yards are higher than the ordinary retail lumber yard. announces Jhat its culinary department is now under the manageiment of the noted Joe Dier, formerly food chief of the Palace, the St. Francis and the Freeno Californian-assuring you savory menua when you come to San Francisco.

Lumber yards are codsidered a good class oI risk, due to the fact that they generally have lumber well piled and alleys are well maintained between lumber piles.

In the matter of woodworking plants, the experience of all insurance compahies has not been satisfactory during the past few years, and for this reason it was found necessary to increase the rates on this classification. A recent re-rating of unsprinklered planing mills with over five or six woodworking machines, and employing about ten hands will cause rates on these risks to be increased from $1.0O to $1.50, according to conditions about the plant.

The experience on furniture factories has been very poor for many reasons, one of which is the introduction of spraying furniture with paint such as Pyro-oxlene base paints. This form of paint is very explosive and proper spraying booths are seldom installed. Plants of this character can expect an increase in rate from $1.00 to $2.50 according to the conditions existing about the plant.

The rate on small furniture factories and cabinet shops that cannot be classified as large, probably will not be increased at this time, although the experience has not been satisfactory. The greatest hazards of a small cabinet shop is the poor housekeeping. The owners of these small plants generally do not understand the fire hazards within lheir shop, and consequently these hazards are not well guarded.

The best protection for lumber yards and woodworking plants are fire appliances that produce a quenching effect on fire. These appliances are: first. of course, automatic .sprinkler systems, standpipes and hose; 4o-gallon caskets of water and buckets; 40-gallon soda and acid chemical extinguishers, and Zfu-gallon soda and acid chemical extinguishers for small incipient fires.

Periodic inspection of a plant is essential to see that good housekeeping is maintained throughout, and that all {ire appliances are in good order and ready for use."

Post Street at Stockton SAN FRANCISCO

RETAIL LUMBERMEN N. H. PARSONS

Do You lcrow who Tcrrecc ll07 ePecializee in aftcr Juac 25 oAK FLOORINC welccficld l6ilr to thc lumbcr tr.d.; 241 N' Allcn Avc' "6ll Parronr-bc har it.' PASADENA CALTF'