May 19.
The story which appeared exclusively in these columns yesterday reporting the __proclama-ton issued by General Fuchu in Tsinanfu on the subject of regulations with retference to fires and fire insurance, fantastic enough to be almost unbelievable. In cases of Ares of doubtful origin the whole payment made by the insurance company by way of compensation to its client will be confiscated while the unfortunate victim will also held lable to compensate neigh-hours for any losses sustained. In the case of an accidental fire forty per cent. of the money recovered lurider the insurance policy shall be confiscated for the purposes of public charity, while the victim will still be obliged to compensate his neighbours for any loss they may suffer, while in the case of Jany fire occuring on premises. not insured the proprietors shall_be imprisoned for one month. The third provision ought to be good for fire insurance companies were it not for the ludicrous effect of the first two, for obviously if the third rule stood by itself it would oblige every person to whom these astonishing regulations apply to effect insurance not only for the protection of their property but to Prevent themselves spending a month in jail should a fre break out thereon. But the insurer is naturally going to ask what is the use of spending money on me [surance if the action of the authorities is going to deprive him of the results of his prudence? The regulations do not cover the question of arson. That, it is to be presumed, would be dealt with under the Chinese Criminal Code which provides for condign punishment. When they come to fires of doubtful origin and those which are accidental the situation is amazing. A fire of doubtful origin is obviously one in which the accidental nature of its commencement is a matter of some doubt to the insurance companies, 'The insurer may, however, be entirely guiltless, and in' the absence of very definite proof of client's guilt companies prefer pay rather than lose an action which must undoubtedly tell against their future business prospects in the particular area in which the fire occurred.
But apart from that aspect there is the moral one. If in the case of a doubtful fire the unfortunate owner being guiltless is deprived of his lawful compensation, for which he has paid in the shape of premia, a particularly grave in-Justice is done. If on top of that eprivation he is called upon to compensate owners of adjoining properties which may have suffered either fire or water damage, it readily conceivable that despite all his prudence he cannot made whole as against his loss,
Text read from the printed page and cleaned; old type leaves the occasional error.