A Number of suggestions made at various times by different persons for subjecting Fire Insurance Statistics to systematic treatment were reviewed by Mr. Cornelius Walford some time since in an Article “On the scientific application of Data to the purpose of deducing Rates of Premium for Fire Insurance”, which is published in the April 1878 number of the Assurance Magazine. The present paper is an attempt to lead the investigation into another course, and its purpose is to enunciate a Theory of Statistics in dependence on which algebraic formulae may be constructed and arithmetical calculations made of the values of risks. The particular line it will take is that of averaging quantities, but it could be developed in other directions if that were desirable.

Proceeding, without further preface, to the consideration of the subject, we observe :—

That the readiness with which materials can be ignited by any particular agency varies—

1. In consequence of their constituents being different, as Wool contrasted with Cotton.

2. From the same kinds of substance being in different forms, as timber in logs, deals, shavings, sawdust, or splinters.

3. From substances existing in different states, as flax lying loose in repose, and flax tossed about and being cleaned in a heckling-house.