Birmingham age-herald., 1895-03-26
THE THREE-QUARTER CLAUSE In Insurance Policies Issued on
 Property Here
BIDS FAIR TO BE REVOKED
And the 75 Per Cent Coinsur- ance Clause ReinStated.
 Inspectors in the City.

The agitation of the removal of the three quarter insurance clause which has ob- tained in Birmingham since the burning of the Caldwell hotel last July has about accomplished the desired result. By to- night, in all probability, Birmingham will be on an equal footing with other first class cities in that respect, and great bur- den taken from the shoulders of Birming- ham property owners and merchants.
 The 75 per cent reinsurance plan was in force prior to the Caldwell fire, but follow ing immediately after that the Southeastern Tariff association ordered that the three- quarter clause be substituted for it. This was brought about by reason of a reduc- ton in the fire department and reported insufficient water power.
 That clause is as follows:
 'sIt is understood and agreed to be a con- dition of this insurance, that in the event of loss or damage by fire to the property insured under this policy this company shall not be liable for an amount greater than three- fourths of the actual cash value of each item of property insured by this policy (not exceeding the amount insured on each such item) at the time immediately preceding such loss or damage; and in the event of additional insurance-if any is permitted hereou-then this company shall be liable for it's proportion only of three- fourths such cash value of each item in- sured at the time or the fire, not exceeding the amount insured on each such item.
 This change worked great hardship on the Birmingham merchants, as 1t required them to carry one- fourth of the value of their stocks themselves.
 About two months ago the city council increased the fire department 10 comply with the requirements of the Southeastern Tariff association, and that fact was re- ported to the president, but for some cause the executive committee did not act on it, and the three- e-quarter clause was allowed to remain in force.
 Last week some of the local agents re- ncwed the agitation and took steps to bring about the desired change. The AGE HERALD of Sunday morning published a card which w. J. Dangaix & Co. local agents, addressed to the stamping clerk in Birmingham. In that letter they gave mo- tice that they would discontinue the use of the three quarter value clause for such cus- toners as desired 1t.
 and yesterday MT. c. c. Fleming of At. ianta, secretary of the association, and Special Agent Fred 0. Calkins of Jackson, Miss, arrived in the city to investigate Birmingham's fire department and water works and report on same. They were joined here by Mir. J. c. Hunter, a mem- Der of the executive committee, who as- sisted them in the investigation. Col. J. D. Young, southern special agent of the Royal Insurance company, was also in the city to watch the developments.
 These gentlemen inspected the fire de- partment and water works system, and the secretary, Mir. Fleming, will return to Att lanta this morning and submit his report to President Eggleston.
 MT. Fleming was seen at the Morris hotel last night by an AGE-HERALD reporter, but declined to state the nature of his report. He said that he had nothing to say just then; that he had held a conference with the insurance men here and made such in- vestigation as was necessary and would make his report in Atlanta today.
 The reporter learned, however, that MT. Fleming's report would be favorable, and that in all probability the obnoxious clause would be removed by tonight and the 75 per cent coinsurance plan substituted therefor. That plan is as follows:
 s'It is part of the consideration Of this policy and the basis upon which the rate of interest is fixed that the assured shall at all times maintain insurance on each item of property covered by this policy to the extent of not less than 75 per cent of its cash value, or, failing to do so, shall be a coinsurer to the extent of the deficiency, and shall bear his, her or their proportion of any loss that may occur.'
 On reception of the report 1t IS believed that President Eggleston will at once re- instate the coinsurauce plan, though there is possibility the matter will be deferred until the meeting of the executive com mittee on the first Thursday in April, but that is hardly probable.
 Yesterday w. J. Dangaix & Co.,, con- sented to withdraw their notice served on the association last Saturday if the associa- ton would remove the three- quarter clause.