The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-12-12
HIGH RATES OF INSURANCE
Merchants and Manufacturers Feel that
They Are Hurting the City.
Much Talk Of Taking Their Risks to Other
Cities for Observation-Disclosures
with Business Men.

6pIcdQ, tu8t tQoT arc Ocluk lmpooCo ~ AZ
the matter of rates charged for fire insur-
ance. 1t has reached q point where they
say that aquiescence has ceased to be .
virtue. and they propose to, if possible. ef-
feet some sort of a modification OF
them. Rates have steadily been grow
ing higher for q number of years
and within the last one or two they have
taken some very spasmodlc and aole-
bodied jumps.
For example, the rate on one of the lead
ing hotels In the city was 81 on Sl0O. and
| without warning IL was pushed up to Sl.6o.
This was done without anything being
placed in or about the building TO increase
the risk of the insurer. In fact, the con-
trary was the case. many precautions
| against fire having been made by Its pro-
prietor between the times of the fixing OF
the two rates. In another large building a
Jump was made from about 30 cents to
s1.25. The reason given for this
was that an Objectionable neighbor had
| been discovered in close proximity TO II
1t happened that this neighbor moved
away several months later. and the writer's
| of the insurance were informed Of the fact
and asked to re-esrablish the old rate.
They refused to do so, saying that vacant
apartments were equally. IL not moro. dan
gerous than were occupied ones. These are
Aside from the very general rise In rates.
there IL q complaint that the
fire insurance men use little or
no discrimination with the assured.
That is. that the rate on some rattle-trap
building is generally almost on q par with
the one on q building of more modern
structure and less imfiammable material.
Also, that no matter what precautions the
assured may take to lessen the insurers
risk, the latter refuses to lessen the cost to
the former in securing his indemnity IN
case of fire.
Nh. d. p. Erwin expressed himself very
forcibly in regard to these points, and said:
mt purpose s0e' and not the seem policy sS S Of the the
fire insurance companies in indianapolis
to lessen the risk of losses to be sustained
by them. but rather to increase TO the high
est possible limit the amount of the pre-
point of o business man theirs is the most
poorly conducted business of any / can
conceive of. They pushed my rate on the
Denison Hotel from 81 up to Sl.65. asked
give me was that the companies were los
ing money, sDo that 1t had to be made up
some way. l said nothing, but sent
word to Mr.. Allen, who is at the
head of the Fire Inspection Bureau. that l
would like to have him come and look the
building over with me and suggest to me
anything that might protect US both In
case of tire. He made several appointments
with me at which he aud not appear and
finally sent n representative. We went
over the building together and when we
had finished he asked me what / had done
at my own instigation. l told him that l
had had a s~tandpipe put In OF the front
n center of the building by which all
the floors could be quickly reached. He
thought that was good and asked him how
much they would allow me for the decrease
In risk, he seeming to think that 1t was u
big decrease.
your insurance was writtenTs
IL told him thatit was not, and he replied:
We'll, we thought it was
THAT is a nice way for q man who is con-
Quoting millions of business and taking q
risk of a dead loss of $4,000 to talk about
q contrace He thought he was protected!
Then l asked him what he could
suggest, as q practical hre-lnsurance
H Hs said u that si hs could % not 'a think 0 OF amy.
thing at all. Everything appeared to be
in good shape. he said. Then 1 showed him
what i had to suggest, and he was sur
prised that he had not thought OF the same
things. l asked him what allowance would
be made me for these precautions. and he
said that he really did not see how any
could be given.
THAT shows their policy in q nutshell.
There is no desire. or at least no effort. on
their part to eliminate risks and give cheap
insurance where cheap insurance Is due.
but rather o wild grab to get just 40 much
money for their policies as possible. and
trust to Providence for immunity from
flames.
They say that their companies are not
making. and / do not wonder at IL. I'll
venture to say that 81 per cent. of their
earnings go to support the horde of agents
and solicitors they have all over the coun-
try. / do not see the sense In having them.
If q man WANT insurance he will hunt for
a place TO put 1t without being
eternally drummed to death to take it.
Why do they not do something like thisf
Pay a man a stipulated salary to locate in
the city to write his cOmpany's policies.
Then place this city on q schedule basis. so
much for such q risk and so much for an
other. Let them even place the rate for o
standard building as high as it Is at pres
ent. but when q man takes unusual.a and
material precautions let him be allowed
for it. and if he n~eglects them. be made to
pay for so dong. would organize o body
of men, say ten IN number, to be
known as inspectors, and have them
canvass the city. say once every month.
They should be experts. and on their re-
ports of the condition of buildings the
rates should be made. largely. Such a
number of men GOULD be kept at an expense
of not over $40. 600 q year. and l will ven
ture to assert that they would save those
for whom they work $3.50, 600 annually.
why 1 could almost tit out and MAINTAIN
q fire brigade of my own at the price l am
now paying fer insurance. and l know that
/ ar not the only one complaining"
MIR. Erwin's views are Endorsed
as far as they express a
oLS ~
the major portion of business men. East
man, Schleicher & Lee are among the NAL.
contents In this direction. though Mr..
Eastman feels confident that a change for
the better from the assured's standpoint il
not far distant.
The fire insurance people are as cogni-
zant of this feeling as Is the man who feels
himself to be the most imposed on. The
under writers point to their books and soy,
Look at tho losses this company has had,
and here is q company which has
not paid any dividends for 80
mani years on account of the
poorness of business. They claim that the
losses by fire in this vicinity for the past
five ears have been unparalleled aud have
upset al previous calculations on which
they did business. This they claim car
only be met in one way. AID that is by the
increase of the premiums on their policies"
Charles +. Say les said. in speaking of 1t:
These people who arc objecting to rates
do not fully realize what the condition OF
affairs Is. The rise they speak of Is not
only epidemic In Indianapolis, but is SO
all over the country. 1t is brough,
about by the one great fact
that the companies cannot sustain the
losses they have been subjected to. They
say TO us: Give US q schedule rate There
Is some talk of 1t. and If we were TO do 1t
fancy that there will be still more kicking
Indianapolis has not very many moderr
buildings. In fact. there are not to exceed
Q h~alf-dOZen IN the city which would come
some cases the rate would doubtless run VI
as high as Az or 5 per cent. under q SEIZED
ME. and then there would be a hue and CRY
1 u hfnh wnnld afarflp fha nnrnr N nnIfu "