793%.??? Speaker U»
i”: P. E. S. Hears
J. G. Hairball Tali:

Topic is “Moral Hazards of
Fire insurance"

 

”Moral Hazard of Fire Insur—
ance,” was the subject matter of
the talk presented to the Fire Pro-
tection Engineering society by Mr.
Joseph G. Hubbell or” the National
Inspection company at a meeting
held last Friday.

Mr. I—Iubbell introduced the sub-
ject by first explaining the state of
affairs of the method of obtaining
business in the insurance world. For
clarity he assumed a small town
with no fire protection. In the town
is the main street 125 feet wide,
with stores on both sides, including
the bank, and insurance agency.
From one to five insurance com-
panics are represented by the
agency, with any one of the live be-
ing able to write all of the town
business. With the rates fixed by
the inspection bureau, the only pos-
sible way for competition to enter
into the picture would be through
commissions paid. This is very true,
there being three different groups,
the Western association companies,
the Western Bureau companies, and
a few free lanccrs, all paying dif—
ferent commissions to the agents.
The latter group is willing to pay
large commissions and thereby are
able to obtain better classes of risks.

Moral Hazard Not in Rate

He then went on to explain what
rates do not do. Rates are compara-
tive estimates of fire hazard. The
rates determine the premium to be
paid and, in the mind of the insured
the premium, is a tax and is always
too high. Due to the keen competi-
tion in the business, every inspec-
tion becomes a detailed analysis. In
a building that is unexposed and
vacant the only hazard involved is
lightning, whereas as soon as it is
occupied there are occupancy haz-
ards and moral hazards involved.

The rate on a risk makes no al-
lowance for the nature of the in—
dividuals insured. The personal
element determines the probability
of fire more so than any other haz-
ard which may be measured in the
making of the rate. The moral haz»
ard is determined by the owner and
the property. In the case of an iron
est owner and profitable property,
the moral hazard is good, whereas
when the owner is dishonest but has
profitable property the moral hazard
is questionable, but where the own—
er is dishonest and has unprofit—
able property the risk is considered
as a dangerous undertaking.

For example, when a person builds
a new building and sells his old
property it is liable to very decided
changes under the new management.
In buying the property and then
renting it, it will be first necessary
to make changes in the building‘s
appearance, and this must be done
with the view that the changes will
be paid for by the prospective cus—
tumors and not profit already de-
rived. The owner will therefore cut
down on his expenses as much as
possible, substituting poor materials
for what is proper. Here the haz-
ard has increased greatly over the
original, because of the new occu-
pants and methods used in obtain-
ing them.

Adverse Risk Loss High

In closing, Mr. Hubble explained
that where a systematic administra-
tion of the care of the property was
apparent and continued, the chances
for success of the management are
great, and the risk becomes desir—
able. The business referred to the
inspection company jor inspection
are usually sub-standard risks. It is
true that losses in adversely report-
ed risks are much greater than
should be expected, whereas,
losses in desirable risks are al-
ways less than would seem reason-
able to expect from fire loss records.
Rates there'iore do not entirely show
the selection of business for under—
writing. It is very necessary that the
management be taken into consider-
ation before the risk is accepted for
underwriting.

Upon being questioned, Mr. Hub-
bell stated that the National Inspec-
tion company was the survival of
company efforts to inspect their own
risks. The company makes reports
on risks only on request. Inspections
usually include only high valued
property with decidedly heavy haz-
ards.

“934

Am News

A few weeks ago this space con-
tained an article referring to the
senior urx being trapped between
an incinerator and a Duplex apex-ll-
merit. Well, such was the case, and
when the debris was finally cleared
after the judgment of the “Housing
Development” projects, the lucky
survivors were Stow GRANGER,
Wally SOBEL, Bill NlCHOLAl, and
Carl SEABURG, all of whom re-

ceived mentions.

 

Of course, the usual postmortem
was held, but in spite of the im-
partial criticism by Mr. George
CARR, the outside man on the jury,
those who “GOT SOCKED" and
those who did not fare so well were
not CONSOLED.

 

Nor was the entire project without
its moments of relaxation. F’o‘instance
many enjoyable dinner-hours, and we
might add that they were a little
riotous, were spent at “RAK’S.” On
one particular evening a free»for~all
sham battle took place. It wasn’t ex-
actly a WET party; but nevertheless,
water—soaked napkins were used for
ammunition.

 

If you read this at nine o’clock
Tuesday morning, Nov. 13, you still
have ElGHTY-FOUR HOURS be-
fore attending the ARK DANCE.

 

Who do you suppose visited the
seniors 0N CHARET'I'E lust Tues-
day? You’ll never guess in (4, million
years. . . . GUESS! GIVE up? They
were Bruce LOCKLING and Sholla
SPEARS, and both diplomatic enough
not to make any commcnrs on the
projects!

 

A little birdie «relates the one about
Irv ADDIS calmly whistling and
leaving the ART lNSTI’l‘UTE with
a package of what was disguised as
a lunch box under his arm. However,
the BIRD is on IRV; because it was-
n’t a box of lunch, but a box of clay.
J. WAGNER still has his eyes open,
[RV!

 

Pity the poor juniors! Today their
DUPLEX houses are due. Now pity
the poor sophsl Their LIBRARIES
are due next week. PITY, PITY,
PITY! Slowly but SOUKLY we’re
turning,r to obituaries.

 

ODDLY enough Johnna BENYA
made a personal appearance the
other day. Glad to see you, John,
and where have you KENYA?
(Apologia: for this putrid pun are
clue H. Hal SLAVlTT.)

 

Also when Charlie BEERSMAN
cril ism] that someone had designed
housing courts that were too closely
spaced, Messimu' SLAVITT again
(mine through with, “Yep, they’re too
clashing/other." Got it . . . (1140’s—
TER courts! Would that Phil FARO,
[muster emeritus, were back to ,M'ml
I-lc'cl give this guy SLIM/[Tr a mm
[or 11's pmmy.

  

 

Chuck HANDLER of the formid-
able senior double E’s touchball team
which trounced the mechanicals to
the tune of 14-0 announces a formal
challenge to the ARK, whose football

 

 

has been idling for the past four
weeks in Stew GRANGER’S locker.
After ’em BOYS!

 

After beating the dauble E’s
(next week) these same versatile
ARX will tackle the EMERSON
PRIZE on Nov. 20. And if they can
still take in on Nov. 26, they will
throw the “Roman House” archeo
for a loss.

EAGLE EYE.

 

Junior Chemicals to
Visit Softening Plant

This afternoon the junior chemi-
cals will make an inspection trip to
the Hinsdale water softening plant.
Here the hard water forming mater-
ials are removed by precipitation,
The lime and soda ash treatment is
used for their removal.

The village of Hinsdale, like all
the remaining villages and towns S'Lll"~
rounding Chicago, obtains its water
from deep wells. These waters are
very hard, since large quantities of
calcium and magnesium salts are
present. The other Villages do not
have softening plants; individuals
who require soft water must soften it
themselves.

 

 

 

 

@rganiue (lawman
@onversation flab

Last Thursday morning," a small
group 01‘ students met with Ilen-
Doctor Fisher and spent a profitable
hour in German conversation. In
fact they had such a good time that
they have decided to organize into
a German Conversation club. No
topic of interest will be excluded
from the conversation, which will
eventually be entirely in German
although now some questions are of
necessity allowed to be asked in
English.

Herr Doctor Fisher is using; his in.
fluence outside of school to get spe-
cial rates to the Kino, a German
theater, and invitations to strictly
high class German affairs. In prepa-
ration for these, the group will at
the next meeting pretend they are
at one of those affairs and go
through all the-motions talking Ger-
man. Topics now under discussion
are a German student’s social life,
formalities observed in Germany,
and several books not allowed to be
printed in the English language.

Der Deutsche Klub will meet
every Thursday morning at 8‘.le a.
m. in F Mission. All those dc
to increase their speaking“ German

  

vocabulary, their knowledge of
German customs, and to actually
participate in German social li 1'0

with very little expense involved are
invited to come.

Alumnus Is Officer
of Spring Company

 

 

C. R. Simmons, a civil engineering
graduate of the class of 1915 was
chosen secretary of the Nachman
Springfield company at its .reccnt
election of officers and directors. Mr.
Simmons thus holds a position of re-
sponsibility in one of the large spring:
manufacturing organizations in the
middle west.

5’7"

 

 

eff/Q I
Max/x

-cJfiiMQQR T599” Nail/.5..-

 

Junior Meohs Visit
Loop Building Plant

Through the courtesy of Roscoe E.
Harris, M. E. '02, chief engineer of
tho Conway building, the junior mc—
chanicals made an interesting inspec-
tion trip to the power plant there last
Friday.

Accompanied by Professor Perry,
the juniors had explained to them
the operation ol‘ the various machines
which supply electric power and heat
to the building. This included sev—
eral Corliss engines, among which
was one that was being taken down
for repairs, a diesel engine, the boil—
ers, and the ventilating system. An
exploration into parts of Chicago’s
freight tunnel system, a branch of
which runs immediately beneath the
building, was also made.

Mr. Harris is the father of Don
C. Harris, a junior in the department
of mechanical engineering here, and
received his M. E. degree at Armour
in 1908.

 

insulators Subject
of Talk by Peebles

Prof. J. C. Pueblos spoke before
the downtown W. S. E. yesterday in
the Engineering Building, 205 W.
Wackcr Drive. In his talk, which was
on “Thermal Insulation," be dis—
discussed the properties, manufac-
ture and used of" bulk, blanket, board,
and reflective insulators.

Some of the most common bulk in-
sulators are refractory materials,
such as asbestos. The most common
type of" blanket insulators are hair or
felt mats. These are used where a lim—
ited space is available. Pressed Wood
fibre, wheat straw, corn husks, jute
and hemp form the most familiar
types of board insulators. Aluminum
foil pasted to a suitably stiff ma-
terial is the usual form of reflective
insulation. This type will turn back
as much as 50 percent of' the radiant
energy.

 

' 1

l

 

 

 

 

\ Fraternity Notes ii

l’Hi Pl Pl—ll

 

 

Gamma chapter of Phi I’i Phi
takes great pleasure in announcing
the formal initiation of:

Bernard Phelan, C.l§., ‘37.

Lorentz A. Johanson, ArclL, '37.
and the pledging of

Frank Smetana, Ch.E., ’36.

The Mothers’ Club gave a tea at
the house Sunday and everyone pres-
ent had a most enjoyable afternoon.

Brother Ray Stellar, ’29, gave a
very interesting talk about his trip
to Europe last summer, at the Junior
Meeting of the Western Society of
Engineers last Thursday evening.

DELTA TAU DELTA

The meeting of the Mothers' Club
was unavoidably postponed from last
Sunday. The meeting is to take
place next Sunday afternoon. Plans
for the Pledge dance have now been
well formulated and rapid progress
is being made towards the staging of
a very successful all’air. The com-
mittee under the able leadership of
Norman J. McGuone is working- hard.

Brother Harry Green, an alumnus
of the Washing-ton State chapter and
now national travelling secretary is
staying at the house for a few days.

 

BETA lPSl

The Mothers" Club held their rem
ular monthly mectinu last Tuesday
afternoon. They spent the afternoon
playing buneo, and discussing com—
ing events.

The Thanksgiving dance will be
held on Saturday, November 24, and
the Christmas dance on Saturday,
December 22. Both will. be orchestra
dances.

 

Pl‘lll KAPPA SHGMA
Quite a number of the fellows
journeyed out to our chapter house
at the University of Chicago for the]

Page Three

annual Fall l’rolic
night.

The Phi Kap Mothers’ Club held
their second meeting of the school
year on Sunday, November 11. Plans
are being formulated which insure
a very successful season.

Under the direction of Brother
Biciglor, the basketball team will hold
its first practice tomorrow night.

Brother Fraizcr, who is now at—
tending; Purdue, and several other
members 01' Alpha Xi chapter stepped
off at the house while in town for
the game with Chicago.

last Saturday

 

SIGMA ALPHA MU

Plans for our autumn, or Thanks-
giving party are being organized by
Fra Bernstein, for which reason we
expect it to be a great success.

Other campus fraternities should
take notice that we expect to be the
“dark horses” of the ping pong sea’
son. The challenge laid down by Phi
Kappa Sigma last week is hereby ac-
cepted.

Elaborate rearrangement of our
new rooms has been effected, so that
with the addition of a game room
downstairs we find ourselves becom-
ing more comfortably and better sit-
uated each day.

KAPPA. DELTA EPSILON

Alpha chapter of Kappa Delta Ep-
silon was recently honored by a visit
of one of its well known alumni, Mil-
ton Shapiro.

Under the guidance of brother
lkenn and the management of
brother Kubcrt, the basketball and
swimming teams are progressing fav-
orably and are awaiting the begin—
ning of the season’s inter—fraternity
athletics.

A Halloween party was held at the
house Saturday, October twenty—
seventh, and a good time was had by
all.

Mort Fineman, our social chain‘-
man, announces the resumal of the
monthly banquets at the Allerton
House in the near future.

 

in the manufacture

of Granger Rough

Cut Pipe

Tobacco the Wellman Process

is used.

The Tillicllman Process is dif-
ferent from any other process or
method and we believe it gives
more enjoyment to pipe smokers.

. . . it gives t/be tobacco an ex-
tra! flavor and aromas

.. .2'! makes the tobacco act
right 2’52 a pipe - [mm
slower and smoke cooler

. . . it makes the tobacco milder

. . . it leaves a clean dry mfg

-~ r20 saggy residue or beef

in the Pipe bowl

LIGGETT 8; MYERS TOBACCO C0.

 

 

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