Omaha daily bee., 1893-12-10
TALKING INSURANCE RATES
Reasons Given Why Local Companies May
Decide to Raise Them.
LOW WATER PRESSURE THE MAIN CAUSE
Aud on All Sides AN Improvement In + re-
Fighting Equipment Is Urged-what
the Underwriters Are
Talking About.

water and light, has now plunged into fire
and electricity. AT the regular monthly
meeting of the organization last Tuesday
evening the subject Of fires, insurance rates,
defective electric wiring. poor facilities for
Fighting fire, water pressure, and, in fact,
all the auxiliaries of q lively discussion or
insurance rates received the vigorous atten-
tion of sixty members who gathered around
the banquet board and expressed their
views fully and in exceedingly plain English
without any unnecessary trimmings.
The result of that discussion has been
clearly evident in insurance and commercial
circles. 1t developed the fact that the fire
insurance companies seriously contemplated
au advance in rates unless better fire pro-
lection was secured soon. The warning
given by Captain Palmer ard Commissioner
Hartman on that occasion caused consid-
cradle thinking among property owners. and
"a special meeting of the club Will be held in
n week or two to more fully discuss the
subject and take prompt action.
Fault Found with Water Pressure.
In conversation with a number of repre-
sentative Omaha business men and property
owners during the rast week n BEE reporter
ascertained that the concensus of local
opinion condemned the water works COM
pany for the poor display of pressure at the
Farnam street theater fire, thus giving in
surance companies cause for complaint, and
1t was generally acknowledged that the city
needed more fire engines and an increased
appropriation to maintain the fire depart
ment. There seemed to be unanimous OBJ
lection to an advance in insurance rates,
especially at the present time. Some of the
merchants said that every time
there was a large fire, the
insurance companies complained about
poor fire protection and threatened
to put up the rates. He stated
that merchants were compelled to
carry insurance, as it was essential, and the
companies knew it Tine merchants and
property owners universally commended the
valued policy law as being a safeguard
against insurance adjusters, and a just
measure for the insured.
merchants in st. Joe, Kansas City,
Minneapolis, Sioux City, st. Paul and
elsewhere on the subject. The re-
sponses indicated that the present
ures named in those cities. There has re-
Gently been a raise IN Kansas City and st.
Joe which caused "A wall of regret from bust
ness men in those localities.
As Mr.. Baldriuge Sees 1t.
}; M, Baldridge, secretary of the Creigh-
Baldridge company, said that the conf
pact receipts of the fire insurance
companies of Omaha did not
exceed $4,000 per annum. Within the last
year the losses exceeded that sum. He con-
delnned the lack of sufficient water pressure
and better fire protection. Furthermore, he
branded the valued policy law as a pre-
mum on incendlarism." MIR. Baldridge said
that the companies were contemplating a
new rate. Construction, occupancy and eX-
posture cut 2 large figure in all rates. Dur
ing the past year many fires had oc-
Cured on large area risks all over the
country. Omaha was not an exception, he
continued. What was badly needed here
was a better system of protection, o
stronger pressure and two more engines. If
these were obtained possibly the present
rates would not-bc increased, but he did not
believe that they would be decreased. Ne
braska, he said, was not a profitable state
for the fire insurance business, largely on
account of the valued policy law and poor
inspection. He thought that defective
electric wiring was responsible for several
large confiagrations in Omaha.
Chris Hartman was seen at his office and
reiterated his remarks made ut the Com
mcrcial club. In addition thereto he said:
"There are at present ninety-six conf
panies doing business here. Ono company,
the London & Lancashire, has recently
pulled out in disgust and cancelled it's pol
icies. The rates elsewhere exceed those in
effect at present in Omaha. | would not be
surprised to see an advance in
rates, although l think it possible that if
fire department facilities are increased,
and a better system of inspection is en-
forced, rates may remain at their present
quotations. Insurance companies are taxed
heavily, and then there Is the valued pol.
icy law to contend with. Prior to the
passage of the valued policy law, the loss
Iiu uoI cANccu ~ per Ccllb u 4 Jlt clJift
premium receipts. Now it exceeds 20 per
cent.
The Present Fire Department.
Tho present appropriation to maintain
the fire department is judicicusly used and
the boys are doing the best they can with
= sessed valuation of Omaha is $50, 000, 900, and
, the maximum is ) mills levy. That places
9 5000 in the fund to maintain the fire de
partment. Out of this amount all expenses,
salaries nurrhaSpS Ot anpinps etc arc pai1
1t is not enough. IT the assessed valuation
was increased to $50, 600, 900, with n com
paratively slight increase in the tax levy
/ it would give the city Sl35 900 to improve its
: fire department and give ample protection
against contiagrations.
"Many business men use their insurance
I policies for collateral" continued Mr.. Hart
i man. 'Frequently they put up these poll
n cieS in business transactions, and they are
I as good as capital TO some merchants fol
this purpose.
s Il do not say that all merchants and prop
s erty owners are careless, but many of then
are. They invite fire, and evidently would no,
shed many tears of regret IL they were
burnt out during dull times under the valued
policy law. The action of the Commercial
club in asking for better inspection vii
+ doubtless bear fruit. Another new fire en-
o CINE will be added TO the present equlpmen
February TO-"
In conclusion Mr.. Hartman expressed tn,
belief that the time might possibly com,
when the German insurance rule woult
h be used in this country. In Germany tn,
fire insurance companies do not pay in
, demnity TO IA man who is burned out unles
: his neighbours house burns first and In,
formers residence catches fire from tn
flames next door.
What Others Say.
g Captain Palmer corroborated the sent
ments expressed by other insurance men
Q and expressed himself n little stronger in ad
Q vocacy of insurance interests. He said tina
. $4,000 had been paid in losses in Omahi
D within the past year.
President Gibbon and Commissioner Ut
u of tho Commercial club vigorously echoe
e the protest Of property owners against a
~ advance in rates and expressed the hop
that the principal causes of the ~insuranc
mems complaint, namely, limited fire protec
tion, poor water pressure and lack of prope
u inspection, would be remediea and thus oil
yiate the contemplated raise in rates.
4, Insurance Items.
Il. n. Hopkins of the Underwriters RI
u view at Des MOines will establish a branc
3 Office in Omaha.
n o, ii. Jeffries, who has been identife
with the Massachusetts Mutual Life IN thi
&c city for years, has resigned and will go I
San Francisco January /.
Tho ifa JTndaruvrita, Aeeooio,;on .