Omaha daily bee., 1896-02-23
lELD UP FOR INSURANCE
omaha Business Men Speak About the
Excessive Rates.
TIME FOR THEM TO Be PULLED DOWN
no Reason why Charges should lie
Higher Than Elsewhere, Espcci-
ally since Improvement In
Fire Department..

Yesterday The Bee published an article
showing that insurance rates are much higher
In Omaha than in other cities similarly stu
rted and having about the same facilities
Tor 6ghtng fires The publication of this
article set Omaha business men to thinking
and they are not slow in expressing
their opinions upon the subject OF Insurance
matters.
Frank Murphy, President OF the Merchants
National Bank--1 think the rates in force
In this city are outrageousy high and some
thing should be done to get them down to a
reasonable figure. We pay S4 cents per S1OO
On this building, when there is no good reason
why we should pay more than the rate we
paid a few years ago, 60 cents per 500.
[ can see no reason why the rate should
be higher here than II is in the east In
New York and other eastern cities the rate
is not to exceed one-fourtn of l per cent.
The business men OF this city should COM
bine and force the rates down. IL the busi-
ness men would stand together we could
compel the insurance men to reduce rates.
with the improvements which have been
made in our fire department within the past
two years we would have an excellent ground
for insisting on a reduction ana l nave no
doubt we would secure It,
Herman Kountze, president OF the First
National bank-lnsurance rates are entirely
too high. Seven or eight years ago we paid
a rate Of 60 cents on our bank building. but
when the rate was raised, the agents wanted
to put In an so per cent clause, to which
objected and in order to get insurance with
that clause emitted they made the rate SO
cents. The rates ought to be reduced, but
don't see just how that is to be ac-
complished. There might be a concerted
move to place insurance with companies out
side the pool but whether the business men
If Omaha would stand together on that or
any other proposition is a question. 1t
would be an easy matter to force a reduc-
ton IL business men would stand together,
but my experience with them has been that
they won't stand together on anything
MAKING UP ON LOSSES.
Proprietor Kitchen of the Paxton Hotel
We are compelled to pay a rate Of S2.20 per
800 for insurance. This is the same rate
we paid two years ago when omaha's facili-
ties for fighting fires were altogether made
quate. Our fire department has been i'm
proved immensely since then. On three or
four occasions recently I've seen our flremen
put out fires that looked pretty formidable,
before much damage had been DONE 1t has
struck me ON these occasions
that Omaha had an excel
lent fire department. The water pressure
also has always seemed to be sufficient. 1t
certainly stands to reason that If we paid
$2.20 per 500 two years ago, we should not
now, when all the conditions are more favor
able to the insurance men, be held up for
the same rate. l had an insurance man
tell me the other day that he had made con-
siderable money in the last two years, and /
don't doubt it. l believe they maintain that
they lost money previous to two years ago,
and that now they are simply making what
they then lost"
Dr. S. ID. Mercer-I have read the article
In The Bee regarding the exorbltant insur-
ance rates charged in Omaha, and consid-
cred it very just. There is no doubt about
1.-THE insurance rates are outrageously high.
They are driving business from this city.
l know business men who would carry a
larger stock of goods, but they don't dare
Increase their stock because of the eXor-
bitant insurance rates charged. This is one
of the principal obstacles that is keeping
Omaha back today. The so per cent clause,
which the local insurance men insist on, is
O most vicious article. I'm in favor of any
thing that will bring the rates down to a
reasonable figure, but cannot say that l have
any remedy to suggest at present.
Thomas Swobe, proprietor Of the Mercer
hotel-The rate that we are taxed is unjust.
This hotel is we'll built and stands perfectly
free from adjoining property, and there is no
excuse fer such a rate as $l,90 per 500. The
insurance rates in Omaha have not been re-
duced for several years, and the fire and
water service has certainly been improved.
Tho exorbitant insurance rates are an in
Justice and are interfering seriously with the
prosperity and progress of Omaha.
PROMISES NOT KEPT.
Charles Karbach-The article on the sub
ject OF insurance rates, printed in The Bee
Is highly commended. The rate on this
building, the Karbach block at Fifteenth and
Douglas streets, has not been reduced since
the burning of the Farnam Street theater
We have been promised a reduction If the
city would secure more fire engines and pro-
vide larger water mains. We have three
new fire engines and an excellent water
supply, and yet the rates are kept up Chief
Redell has shown that he is great fire
fighter, and think Omaha has one of the
best fire departments in the country today
This building stands perfectly clear, with an
alley on each of two sides and broad streets
from the basement to the roof and divides
the entire building. The insurance COM
panies have promised us a reduction in the
rate for the last three years, but It Is no
nearer In sight now than II was in 1898. The
companies have had inspectors from the
east, who have carefully examined the build
ing and Its surroundings, and pronounced it
q good risk for any insurance company But
this does not seem to cut any figure. The
insurance people are looking out for their
own selfish interests and we, with the rest
or property owners here, have to suffer in
consequence. There Is an insurance agent
here who has his office in this building. At
the beginning of the year he came to us
and begged fer a reduction In his rent. We
told him that We should like reduction in
our insurance rates. which 1--WE considered ex-
orbitant. He replied II we would reduce his
rent he thought matters could be arranged
He said the entire town was to be rerated at
an early date. and that II our building came
within the district for which lower rate
was ordered, We would secure reduction
haa rl
another word abont lower insurance rate
and don't presume we ever will. The whole
thing in nutshell is that the insurance
people here are looking for the long end OF
the bargain all the time, and are discrmi-
mating against Omaha.
4
Musce People Out of Court
Z The case of the Eden Musea cn,nno ,,,