The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1895-04-27
TO INSURE ITSELF.
Consolidated Traction Com
pany Makes a New
Departure.
BREAKS WITH THEGUARANTEE co.
Hereafter Motormen and Con-
ductors When They Have an
Accident Must Work Up
the Evidence.
BREAKS WITH THE GUARANTEE co.

terday the Consolidated raction Company
opened a new department styled the "ac-
cident insurance department" and here
after the company VIII be wholly liable
for all damages recovered because of
accidents, instead of having the burden
shared by the Guarantor Indemnity Com
pany of Philadelphia, as heretofore. The
reason for the change is not very clear,
owing to the fact that both the Traction
and Insurance Companies give different
versions of It.
The former makes it appear that the
action is voluntary. and the latter as
serts the policies were cancelled because
of an indisposit:on to carry the Con-
solidated any longer. In referring to this,
one Of the Guarantor's agents said his
company had at present LASS cases to
defend, many of which they expected
to lose because of the carelessness dis
played by the party or corporations in
sured. For this reason they We're about
to make a change N rates. n in some
instances positively refuse to assume
risks.
AT noon yesterday. he said the contract
of his company with the Consolidated
Traction Company would expire, and it
would not be renewed. With the New
ark and South Orange Company a new
contract was entered into, but he would
not say It was because the South Orange
Company was considered a more desir-
able risk, or because they pay a higher
rate. Neither would he say why the
Consolidated Company was no longer in
] sured.
That the change had been carefully
considered, and was IN contemplation for
some time, he said, was made appar-
ent by the fact that on the docket for
the present term of court nearly every
case against the Consolidated is defend
ed by the law firm of A. Q. Keasbey
& Sons, instead of Depue & Parker.
counsel for the Guarantor Indemnity
Company. It was further explained that
under the contract the insurance com
, pany was not liable and would not have
to defend any accident which was not re-
ported to it within ten days from the
occurrence.
DON'T REPORT ACCIDENTS.
AFreauently accidents are of a trivial
.ture. and conductors and m~ctormen. iii
.de- to avoid trouble and possibly cen
: sure or dismissal, do not report them.
Weeks later, it frequently happens. the
TRACTION company learns of the accident
e the first time through papers served
the injured persons attorney.
Che ten days have expired. n conse-
Entity the traction compan is forced
5defend and assume all liability in the
ktion.
Figuring on the basis of half OF all
Eases occurring in that manner. some of
Officials ceasideredeA-%6ll
pay to assume all liability and save the
large annual premium paid the Guaran-
tor Indemnity Company.
This is one of the explanations for
the change given out by the traction
company and is done in a matter cal
culated to leave the impression that it
is due to their determination and not
that of the insurance company
From an unofficial source it was learn
ed thai the Guarantors' Company wanted
to increase the traction company's prem
ium to $780, 900 a year, together with GER
tain stipulations that the railroad people
did not feel they could agree to. The old
rate was said to be Sc. 900. and the jump
in price was thought to be too big even
if the stipulations were not imposed.
It is also said that the Consolidated
Company had engaged vredenbergh &
Garetson of Jersey City, as counsel for
its new department., and the officials
seem to think that the verdicts will not
be so severe when it becomes known that
the traction company will no longer hire
out the privilege of paying damages.
The assertion that the insurance com
pany cancelled the policy because of de-
lay in reporting accidents, the Traction
officials say is ridiculous. because it was
really to the advantage of the insurance
company if there was a delay in every
case.
They do not say positively that the
action was voluntary, nor that it was be-
cause of an increase in rates. All they
are willing to admit is that they have
decided to do their own insurance against
accidents.
TO BE MORE CAREFUL.
This conclusion has resulted in imposing
a little more work on the motormen and
conductors. In the morning every en-
ploye. before starting out. was informed
at noon, would be liable for all accidents,
and on that account the employees were
warned to exercise more vigilance n
In case a mishao should occur the con-
duetor was informed that it was his
formation. such as names of witnesses
and all the details heretofore attended to
by the special officer employed by the
information should be. transmitted at once
" JOIiD our icy, WIZ lidS Deeu T0-Gili-
ployed by the traction company to take
charge of the accident insurance depart
ment.
It was admitted by the Traction officials
that such orders had been Issued. and it
was also said that Instructions to be very
careful were always in force. even when
the company was not liable for any
amount under $1,000. the sum paid by the
insurance company.
Another official explained that one of
the reasons for the change was the fact
that the insurance company has been
derelict in settling damages awarded in
accident cases
He said that almost all the appeals,
while made in the name of the Console
\ dated Traction Company. had been taken
by the G%uarantor Indemnity Company,
and that it was the latter and not the
traction company which ives responsible
for the failure to pay damages awarded,
The conductors lave been furnished
with printed cards on which to make a
ed question Was there an accident?"
write the answer Yes or NO" If the
answer is YES" all details of the casual
ty, with the names of witnesses; nus ae-
the Newark and South Orange line were
furnished with similar cards today, hut
+1ox- raopiyad mn nQU inStrlfetianc ra1a-