The Providence news. (Providence [R.I.]) 1891-1906, 1893-05-04
UNIVERSAL SCHEDULES.
INSURANCE POLICY BOTH CRITI-
CISED 1ND iPPROYED
Dy the Owners of Various Kinds Of Build
ings-Good and Reliable Insurance the
Mair Point Desired,

The new insurance rates, according to
the universal mercantile schedule, not
yet having been put in practice on build
ings the owners of building property
have not considered SO carsfully as they
might the effect OF them.
"Will it raise or lower our present
rates?" was the almost universal ques-
ton that has greeted the News represen-
tative when discussing the question with
those interested It's application when
understood calls out favorable or unfavOr-
able comment, according as the rate on
property owned by the one talking is
likely to be raised or lowered. The
builders Of cheap buildings aud the
owners of the wooden shanties that have
stood in the centre of the city since the
REVOLUTION are outspoken in their con-
demnation.
Gist of the Criticism.
The gist of the criticism lies in two
points. The main objection is that the
insurance companies are try lug to rule
the real estate owners. "The truth is,"
said one gentleman. ''tbe insurance men
don't know as much about building as
they ought. The character OF n building
very frequently depends largely upon
its surroundings. The thickness Of the
party wall is almost always determined to
a great extent by the adjoining wall, aud
it IL absurd to lay down law stating
how thick the walls for each building
shall be. The owners of buildings know
by experience what kind of buildings
tenants want in the various sections of
the city, and they must build IL they build
AT all with a view of maNing money on
the investment. TO comply with this
law as / understand IL would either
make insurance so high that the profit
would AL disappear or the rentals would
need to be SO high that H. would be i4-
possible to rent buildings"
New Companies.
If the law is enforced the result will be
the formation OF new companies outside
the association. OF course tney will be
small at first but they will grow rapidly.
do not know that they would interfere
with the business OF the old companies
much, but they would be stronx competi-
tors for new business.
Another criticism was based upon the
local standard. IL am aware" said an
other gent leman, that the Insurance
companies are not making money, but
their losses are not In this city 1f the
standard loss Is $500 year per $1,000,
insurance is higher than the average loss
raiseul There is no need to add charges
10 local buildings because insurance COM
panies have suffered large losses in other
cities"
The other Side.
or course all the criticism OF the law is
b ,sed upon the supposi'ion that rates
will be raised. Still it is not certain
that on the average building rates will
be higher.
more conservative view was taken by
many. A large owner OF business blocks
i'm TIE heart Of the city said he had felt
the need OF n change In rates for some
time. Insurance companies are and
have beeu losing mouev," said he. "They
can't continue their losses much longer,
aud we must have them and they must
be strong TOO. We want insurance but
we want II to be absol otely reliable. The
value of the insurance Is the important
point for a property owner. III
we want first-class Insurance we should
be willing TO pay for 1t. do not
believe that the substantial bu siness
men OF the city will object to any rea-
souahle changes In the rates that will
add To the stability OF the insuran CO
comp snes aud enable US to get all the
Insurance. we desire in companies who 80
policies are sure to be paid"