The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1885-12-03
GALVESTON.
BOARD OF UNDERWRITERS
RAISE THE RATES OF
INSURANCE.
CERTAIN BIG COMPANIES THREAT
EN- TO WITHDRAW
FROM TEXAS.
Special telegram to the Statesman.

GALVESTON, November 30.-One of the severest
penalties of the big fire has just been inflicted upon
those whose property did not burn, by an increase
of fifty per cent. in the rate ofnsurance on frame
dwellings which class of residents may be SAID 10
comprise the entire residence portions OF the
city, with the exception of dozen or so brlck resi-
dences 1t seems that no sooner had the horde of
adjusters reached the stricken city than they set up
an almost unanimous cry for higher rates.
much as Galveston had caused their
companies to sustain heavy losses, why, poor Gal
weston must make up that loss to them: Other
WISE certain big companies threatened to leave the
state 1t is noticeable fact that some of the small
est losing companies are doing the loudest crying
Last Saturday the state board OF underwriters rec
commended to the local board an increase or thirty
five cents per one hundred dollars for frame dwell.
Iings This was the minimum recommendation of
the state board, which, in all previous instances,
have been adopted by the local board.
In this instance, however, the local companies,
epurred on by the presence OF some twenty brow
beating adjusters overshot the mark, in the opin-
ion of many, and raised the minimum recommend
alton Of the state board a cool
dollars by adopting the following high tariff of
premiums on frame dwellings and contents. The
old rate basis was one dollar on the hundred The
state board recommended 81 3D. and the local board
adopted S150 Dwellings with fire proof roofs,
basis increased from 80 cents to S1.25. Brick
dwellings with fire proof roofs increased from 20
cents to 81 co. brick dwellings with wooden roofs in
creased from $1.00 to $50. Brick mercantile
risks increased from S15O to $1.75, while the pre-
MUM on frame business houses Is increased 70 per
cent.
Such astounding rates of insurance never before
prevailed in a community as large as Galveston;
and with water works. The underwriters raised
the rate in secret session, wherein each member
was pledged not to divulge the causes ETC. In their
supposed secret discussion the fire department was
ridiculed as mere sham Its membership, they
said, comprised a good many men, including the
chief who wont to spend too much time In
lager beer saloons. The water works were pro-
nounced fraud. They would never squirt when
it was most needed, and one insurance man said
how air IN These
are the excuses which the local board
sought to give for submitting to threats of bull
doing adjIsters who declared they would advise
their companies to quit Texas if the rates not
Immediately raised. Among those companies
whose travelling representatives are known to con-
Texas are the North America and the Etna, of
Hartford the Hartford the Royal, the London and
Lancashire, and several others. Texas has proven
poor feeding ground for some of these sleek cor
porations They want to get out but hate to quit.
In the United States district court
the jury in the case of VIM. Angerhoffer, jr., Of
Houston, vs.. the Bradstreet Co., rendered YER
dict in favor of plaintiff forS2500. The suit was
brought for $4,000 damages which plaintiff claimed
alleging that the defendant company had issued
fraudulent and libelous report against him, touch
ing his business affairs.
The board of aldermen met at 10 O'Clock to-day
in pursuance of the city charter which makes il
obligatory upon the board to meet in the month
of November of each year, and make careful es
innate of tie probable revenue OF the city for the
ensuing year and provide for the disbursement and
expenditure of the same The board resolved
itself into committee of the whole, and elected
Capt. Charles Fowler, alderman from the fifth
ward, chairman, and Mr.. Frank Lestrange, city au
dtor, clerk of the budget committe. This com
mittee will appoint a subcommittee whose duty il
will be to frame budget embracing the various
revenues of the city and STIMULATING hsw they shall
be disbursed and for what purposes expended. A
joint committee, consisting of the water-supply
finance and fire committees held meeting to
night, for the purpose of devising means of better
protecting the city from fire. Nothing, however
of definite character was DONE