St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-04-04
LUMBER OWNERS PROTEST
Against the New Rider Adopted by
UnderWriteFs

A NUMBER OF Duluth lumber firms have nro
tested TO the insurance department against
the new policy which has been agreed unon
by the underwriters for lumber risks Tn tba
hfst place, they object to the so per cent Inoi
catioh' ana they have called upon the insurance
department for decision as to the legality of
the restriction. The other objectionable
clause is that known as the pro rata and an
phes to yards separated from the rest of the
rlsK by a space Of fifty feet or more. The
companies hold that they may divide the
pelcy to cover each division, and in the event
one Is destroyed and the other left thew ara
liable not to the full extent of their risk hrt
only to the portion allotted to the district
burned. o
mat is to say, If firm had 0O00 worth
oI lumper In one pile insured for 100000 or 20
per cent of Its value, and SIC, 600 shoua1 become
separated by fifty feet or more frGH the re-
Inalnder and be destroyed by fire. the insur-
ance company would hold itself liable for onIv
% per cent of the loss the Sic, 900 worth Of
lumber "a
Inc wording Of the clause also leaves IL
open to suspicion, that, in case of loss On a
pile OF this kind, the companies would allow
only one-fourth the value of the pile de-
stroyed.
The insurance department has referred the
matter to the attorney general.
The proof sheets of the commissioners an
nual report are out. Much of the statistical
matter contained therein has already appeared
in the G o e.
The department admitted eleven mutuals
and i've fire Lloyds companies, very large
increase over the number of this class of
companies admitted in any preceding year and
the commissioner attributes this to three
cause.-the new law, which makes it much
easier for them to qualify; the demand for
cheaper insurance and the fact that many
largo firms have not been able to secure in
surance from the regular companies The de-
mand for Lloyds and mutual insurance has
increased greatly since the stock companies
arbitrarily advanced their rates 20 per cent
two years ago.
Two mutual companies withdrew from the
state. The Essex, of Salem, Mass, left no
loss to the stockholders, and the commissioner
says that the Continental, Of Minneapolis.
was refused license to prevent making a bad
matter worse.
Attention is called to some defects in the
new insurance law, which should be remedied
at the next session of the legislature. They
generally occurred by the insertion of clauses
and neglecting to alter subsequent clauses, so
that often penalty is found for violation of
certain section, referring to the section by
number. contained in the original draft,
and 1t Is found that the section now bearing
that number does not refer to the subject the
succeeding section contemplates at all.
The commissioner says that it is impossible
to make the examinations and exercise the
supervision the department would like to over
the companies owing to lack of funds The de-
rartment collects annually $160 900, and the
salary list is Sc, 000 He asks for an actuary
at from 81 500 to 81 800 per year, and 81 coo for
contingent expenses.