The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-11-15
REAL ESTATE NEWS
High Insurance Rates
Threaten the Prosperity
Of the City.
LOOSE BUILDING Law TO BLAME
:" u 70
Fire Department Severely Criti-
cized-New Buildings Still Co.
ing Up-Transfers. 3
LOOSE BUILDING LAW TO BLAME


AT the next meeting of the Board of
Trade a matter that is of interest to
every property owner, the high rate
charged by insurance companies in Jersey
City will be discussed The complaints
from the business men and manufactur-
ers of the city lave been so numerous
that President John j. voorhees, has
decided to bring the matter before the
Board. President Voorhees, is as much
interested as the complaining business
men. He is the Secretary, Manager and
Treasurer of the New Jersey Car Spring
and Rubber Company, which has an ex-
tensive plant at Railroad avenue and
Monmouth street.
When 1 saw Mr.. Voorhees, yesterday
afternoon he said that he had heard a
great many business men, property own
ers and manufacturers complaining Of
the high tax imposed upon them by the
insurance companies.
why, right here in this plant he
said, f"our rate has been increased from
l per cent. to 1.68 per cent within the
past year. This is an increase of over
so per cent. and we consider this rate
exceedingly high. Previous to renewing
our policy last year we equipped every
| room in our plant with fire extinguishers
hoping that our rate would be cut down
but instead of a reduction we got an in
! crease. One of the most Objectionable
features contained in our policies now is
the so per cent. co-insurance clause.
This clause provides that in the event of
loss, the mpan shall be liable for no
greater proportion thereof than the sum
insured bears to so per cent. of the
cash value of the property at the time
when such loss shall happen; nor more
than the proportion which the policy
bears to the total insurance. If the poll
cy be divided into two or more items
these conditions apply to each item
separately. Provided, however, that if
the aggregate claim for any loss does
not exceed 5 per cent. of the total in
| surance the first condition specified is
waived.
EIGHTY PER CENT. CLAUSE.
This clause is one of the most objec-
tionable features of the present insur-
ance policy. 1t is unfair to the insured.
L propose to bring both matters before
the Board5at the next meeting"
Mr.. Gopsill of GopsilIs Agency, when
asked why the rates had been increased,
SdI0 tldl L was VI tiiO "A 81
number of fires, but beyond this he would
not discuss the matter. Mr.. Nelson Of
the firm of Nelson & Ward, Insurance
Brokers of Montgomery street, was
mores willing to explain matters, and
said that he would be pleased to CO.
operate with the Board of Trade in an
effort to secure lower rates.
1.-THE insurance companies" said he,
"are not responsible for increases when
they are made. They are compelled to
make increases at times to protect them
selves. But l. don't see what the Board
of Trade can complain about. The fact is
that the insurance rates are lower now
than they were ever before. When l say
this / mean on the ordinaryrrisks. There
has been an increase in rates where in
surance was given on factories and plac-
es where the risks are extra hazardous.
eff the Board of Trade is in earnest
in this matter it should look at both
sides of the question. If it wants to low
er the insurance rate it can do so by de-
manding that proper building ordinances
be passed; that our streets be paved; that
our fire department be allotted as much
money annually as the police depart
ment; and thai Intelligent executive
ability be injected into the fire depart
ment. Get these things and the rate
will come down. Take our buildings for
example. A purchases a lot and erectS
d fine residence for himself. B purchas-
es an adjoining lot and erects an ugly
three or four-story factory. A as no re-
dress, and B goes ahead with his plans.
The ground floor of the factory is let
out as a saw mill, n boilers have to be
erect to furnish power. Result, up goes
AS insurance rate. OF course the COM
pany is blamed. This is no attempt at
c%oloring things; It is har q fact;
'.Then take our fire department. The
rank and file, / must say, is as good as
can be found anywhere. The men are
ed. But what is needed is executive abil-
ity at the head. Why does the fire de-
p%artnent receive. a less appropriation
than the police department? Which
US improved apparatus and good streets
and the insurance companies will soon
act in favor of a reduced rate. Some
may doubt it. but it is a fact that were
it not for the insurance brokers here
Jersey City could get very little insur-
ance. The risk here is enormous and
keep their hands off. h insurance
companies are all well posted and know
more about this city than the property
owners have any idea Of. It is an actual
surance on Jersey City property
Real Estate Notes.
The Fire and Street and Water Commits
sioners have been at loggerheads for the
past three or four weeks over their, re-
spective rights in the triangular piece Of
property at Newark and Railroad ave-
nues, adjoining the bell tower. The Street
and Water Commissioners laid claim to
it, and when Andrew Kane petitioned
them for permission to construct a small
building there to- be occupied as a store.
They at once granted the petition and
ordered the necessary yearly lease drawn.
Fire Commissioners Mills got wine of what
was going on, and yesterday he waited
upon Mayor Wanser and made an able
bodied kick. He informed His Honor
that the Fire Board had never relinquish-
ed its claim upon that property, and that
if it was to be leased to anyone the
power rested purely with them. The
Mayor returned the lease to Attorney
Weart, and that official reported that
there was justice in the claim of Com
missioner Mills. The lease prepared for
the Street and Water Board was de-
stroyed. Last night at the meeting of
the Street and Water Board Commits
sioner Mills secured the adoption of a
at $26 per month. The money is to be
paid to the Fire Board and applied to the
repair of the bell tower.
Mrs. Nora Ford has contracted for the
erection of a tWo-story house on McAdo
avenue. 1t is to cost 1,200.
Jacob j. APPEL intends investing Sc, 749
in a three story brick at No III Bright
Real Estate Dealer Edward has gper-
fected the sale of a ive-story brick fiat
on York street, near Barrow. "A young