In general I'm in favor of smaller government and greater personal freedom and responsibility, but any idea can be carried to an illogical extreme.
For a fire department to not make an attempt to extinguish a fire sounds pretty illogical to me. Especially over 75 bucks.
Not everything should be profit driven. Some things, such as fire protection, should be a public service.
If nothing else, they could have put out the fire then billed him for actual costs of putting it out.