The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-05-17
THE INSURANCE WRONG.
Report Of ths Austin Committee That Went
10 Dallas.

DOdlu Vi 1Iaue directors Yesterday
evening Mr.. John Orr reported for the
committee the Board OF Trade had
asked to attend the fire insurance con-
vention at Dallas in Austin's interest.
He said it was strictly businessmen's
convention. Some Is cities and towns
we're represented and Galveston had
- of her most prominent business
men there. The new reinsurance and
contribution fire insurance clause was
thoroughly discussed and as thorough
ly condemned. A committee composed
of delegates from each of the 13 points
represented formulated the following
letter which was unanimously adopted
by the convention:
DALLAS, May 8.
Ky:
GBNTLEMEN-Ata meeting of the
delegates from various cities and
towns in Texas. assembled in meeting
in the city OF Dallas, and representing
various kinds of insurable interest TO
the value of millions of dollars, it was
resolved that the following letter be
addressed to you for your considera-
ton and reply:
The co-insurence clause now being
inserted in most of the policies issued
in this state, we regard as unjust and
unfair TO at least that portion OF the
mercantile community who for years
have been paying the premiums de-
marded by your companies and re-
ceivipg in return that full protection
which is necessary to the success of
every business.
We feel satisfied that it is great in
Justice to the insurers of TEXAS to sim
gle them out for the purpose OF being
experiment. upon with this unpOpu
lar clause, and the more so as this
stigma which is being placed on them
is attempted to be justified by ma
iority of the executive comnittee OF
the Underwriters association of Texas.
10y the assertion that the ratio OF loss
is greater in Texas than in any other
state in the Union. That this asser
ton is erroneous you gentlemen who
are posted on insurance matters are
fully aware.
We think that the proper steps have
not been taken to investigate and cut
out the extra hazardous risks, which.
paying large commissions. have been
accepted by your agents, thereby in
creasing the fire waste which you pro-
pose to cure by the insertion of this
Objectionable and unfair clause, one
which the mercantile community
throughout the state feel is imposing
upon them certain and unjust loss,
which they cannot bear in addition to
the legitimate losses of the business
insured.
No system has been proposed by
your companies 10 reduce expenses or
commissions or to offset what you
claim is an extraordinary loss by fire
in this state, and we think that before
such an arbitrary clause is inserted in
our policies the risks in force should
be infinitely inspected, policies on fire
trans cancelled, the rates on eXtraor
binary hazards increased, commissions
cut down and nothing left undOne to
enable the legitimate merchant and
property holder to have ample pro
lection at a fairly compromising pre-
MUM.
We respectfully protest against the
reinsurance clause being inserted in
our policies, and in our own defense
must find some remedy that will give
us ample protection from fire.
With this OBJECT We have appointed
a committee of gentlemen selected
from various parts of the state who
will await your reply to this letter,
We hope this communication will be
received by you in the same spirit in
which it is rendered and will meet
with such response as will obviate
the necessity of any further action on
our part to protect our interests.
The following action was also taken
Mr. Wilson of MeXia offered the fol
lowing. Be it
Resolved, That a committee of II
representative men throughout the
state be appointed by the chairman Of
this convention to formulate plan CT
relief in case the insurance companies
do not see proper to furnish relief as
asked for in the resolutions and peti
tons this day passed by this conven
ton, and that said committee he in
structed to report at a meeting called
for this purpose az -- on the -
day of -. 1894, subse quent to the
meeting to be held by the Insurance
men called to meet at Louisville, Ky ,
on May "A, 1894
That said committee be requested ~
gather such information and data as
may be necessary to act intelligently
upon organization of local insurance
companies for the protection OF citi'
zens of texas from eXorbitant and uG-
Just charges and conditions.
This was adopted.
Mr.. Shaw of GalvestJn-lt ought to
be added and the meeting at Louis
Vile ought to know that we will resist
any attempt to force this clause upon
us TO the last ditch"
The convention adjourned to meet
in Galveston on the call of the chair
man after the committee of II had
heard from the Louisville meeting.
Mr.. Orr said all the delegates were
in red hot earnest over the question
and it was generally understood that
if the Louisville convention did not
give relief the matter would be carried
before the next Legislature and it
would be asked to pass very stringent
laws on the subject.
The board of directors passed reso'
luton of thanks to Mr.. Orr and his
= linn l