The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-12-01
FIRE RATESCUT oNE-THIRD
ACTION TAKEN BIZ THE INsURANOE
MEN yesterday.

me Premiums on Public BuiidinEs, sky
scrnpers snd BiE Hotei,. which Are
Copridered Practically Fireproor. Great
" Reduces In tho Metropolitan District.
At q meeting OF tho Tariff Association Of fire
Insurance companies at 80 Nassau street yostcr-
day sweeping cuts Of nll rates on rated risks In
the metropolitan district. were decided upon.
The proposition OF the New York Board Of In
surahoe Brokers, which has. been pending since
Oct IL, was peremptorily rejected. According
TO several prominent insurance mon there 10
nothing left for the brokers but retirement from
business unless they come together on some
agreement which will preclude the increasing
Of rebates to tho assured by relinquishing com.
missions paid tho brokers by insurance COM
panies.
The meeting yesterday was marked by q large
attendance, interest being centred in the report
Of the joint conference committee OF the Board
Of Insurance Brokers and the Tariff Association
and the Executive OF the nssoci"tion.
which had In hand the matter Of reducing rates
on rated risks. The Executive Committees first
made It's report, and after explaining at length
tho increase OF competition In the metropolitan
district during the last year, 1t recommended
Q cut OF 93i3 per cent on all rates where tho
hazard was reduced to a minimum. This In
cluded public buildings, large office buildings.
botuAb eh'i oh oth NOV "a ~
the companies as practically 6reproof. It was
also recommended that rites on "non.fbre"
etorehouses, including buildings where tea,
coffee. sugar. grain, and the like are stored, DO
reduced from SO per cent. to 40 per cent. Rates
on "fbre' storehouses. where hemp. jute, and
the like are stored, were In the
report to DO reduced from LIS per cent. to 1.25
Der cont, and on cotton warehouses from 1.5O
Per cent. to l Pc cent.
The brokers received q blow when no recon-
mendat,on was made that the risks now CLASH.
ned a. unrated, including dwellings, small
stores, fat and apartment houses. stables, COM
bination stores and dwellings. and their con-
tents. should be rated and risks not taken by
companies at rates independently decided upon.
Tho submission Of the report opened u lively
discussion. 1t was generally admitted that re-
d1ctions must DO mado IL the members or the
association desired to. retain their business.
in the opinions Of members, but, as the report
represented a compromise OF the varied ideas,
That the action of the Tariff Association is the
beginning of a bitter rate.cutting war bet "
its members and independent companies is not
denied, and tho cause of tho Influx Of capital in
ire insurance ventures is readily explained by
the old companies who are members of tho
Of fres in New York has been about equal to
that Of former years, but the losses have been
genization of any number OF new companies,
who have devoted themselves to taking metro.
politan risks, generally securing their business
through brokers who arc not members Of the
Now York Board Of Insurance Brokers.
The competition until six or seven months
ego rested with the brokers. According to the
agreement of tho members of the Tariff Assoc
citation, q commission Of 10 per cent. was paid
brokers on rated business, but no specified COM
mission was made on unrated business. Many
OF the new companies, while holding their rates
brokers' commissions from 10 to 25 per cent,
and in some instances 80 per cent. on rated
risks. Brokers. therefore. offered their commits.
of the New York. Board of Insurance Brokers
who were doing business for tho companies Of
fhe; Tarlm Association were unable to offer a re-
assured out of their own pockets to secure bust.
moss for the companie .
On Oct. ~ the Board Of Fire Insurance Bro
assistance in It's predicament. declaring that
unless some arrangement was made to prevent
commissions, being paid to the assured as re-
committee was appointed by both organizations.
The brokers submitted a'proposition. It re-
d1eed the commission on rated risks from Is to
accept a higher commission on that class OF
insurance. It proposed that the unrated risks
1hould ,be classified as preferred risks. on.
paid, and allowed brokers to license solicitors
ut o moderate fec to secure this class of business.
The rebatin; Of Commissions. directly or ind.
the brokers demanded that q reduction Of 10 per
cent, be made in al rated risks and that the
sions exclusively to members of the New York
Board of Insurance Brokers.
On Oct. % the proposition came before the
Tariff Association at o special meeting and was
referred back to the committee. which reported
yesterday that the dissenting compan ,es had
not altered their position. and the matter was
tabled. The merry war Of the brokers will con-