The Standardization Activities of Underwriters' Laboratories

Abstract

UNDERWRITERS' LABORATORIES is not engaged in standardization work as a primary function. It is true that incidental to the performance of the work for which the Laboratories was organized a certain amount of what may be called standardization is brought about. Through its affiliations, however, by means of memberships of its engineers on the committees of various standard-making bodies, it exercises a very strong technical influence' on standardization work in many lines. Underwriters' Laboratories was started some thirty-one years ago in response to a rather definite need that was sensed by the founder of the Laboratories, Mr. William H. Merrill. With his far-sighted analytical mind he foresaw, even before the underwriting organizations were aware of it, the increasing necessity to rate-making organizations of accurate technical knowledge of facts relating to the hazards-introduced by the increasing use of the then new force, electricity. Fire insurance had grown to be a very important factor in commercial credit to the extent that it had become one of the cornerstones of the structure of our very complex commercial credit system in the United States. A long and rather costly experience had taught the insurance companies that insurance rates to be scientific and a basis for a stable and prosperous industry must be based upon an accurate knowledge of the facts regarding the hazards introduced or protection against fire and accident afforded by the use, storage, and transportation of devices and materials used in the conduct of our industrial life. The insurance world was gradually coming to a realization that this was a very technical problem which should only be undertaken by an adequately organized technical staff and for best results this staff should have absolutely nothing to do with the formation, application, or enforcement of rates for insurance. Mr. Merrill had foreseen this and was prepared in a small way to furnish this service. The first work of the Laboratories was in connection with the then new art of utilizing electricity, and as the value of this work grew in the minds of the insurance companies the small beginning that had been fostered by Mr. Merrill was taken up definitely and its findings accepted by the insurance companies.