The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-04-09
RATES PARTIALLY PUT BACK.
TARIFF ASSOCIATION DECIDED TO
MODIFY 10 PER CENT. INCREASE.


The Increase VIII Not Be Applied
Either to Dwellings, SprinkIed
Risks Naval StOres-Business
Houses and Churches VIII Get the
Brunt of II, ms They Are Now Con-
sidered the More Undesirable Risks
in Snvannah-The Increase Was
Depriving Association Companies
of Profitable Business.
The insurance companies in the South
eastern Tariff Association received notice
yesterday through Mr.. F. D. Holland, the
associations local stamping agent
that the executive committee of the
decided to abrogate the recent insurance
raise of 10 per cent, on dwellings, sprink-
led risks and naval stores. The action is
understood to be the result of protest by
the agents.
Rates are now restored to the old figures
in the main, with the exception of cotton,
churches and business houses. 1t is con-
sidered that the losses which have been
sustained by the companies and which
have run the loss ratio very nigh, are
churches and business houses. Realizing
this it was at once seen that the sweeping
increase was inequtable because it made
no distinction between that class of prop
erty which held down the loss ratio. and
that which increased it. On this account
there was little surprise at the announce
ment, for the reason that the failure of
the association to make this distinction
was generally condemned by the agents.
President Samuel Y. Topper of the tariff
association visited Savannah two weeks
ago and held a conference with agents and
the fire commissioners, the only object of
which at the time was announced to be
an Investigation of the conditions, and
mostly the efficiency of the fire depart
ment. 1t is now frankly admitted that the
main object of Mr.. Tupper's visit was to
consider the ACCESSIBILITY of abrogating the
rate increase as to certain classes of prop
erty, though it is understood this question
was not brought up until he arrived. Mr..
Topper probably left with the determina-
ton to have the raise equalized and when
the matter was presented to the executive
board, Mr. Charles F. Prendergast and Mr..
William II. Daniel were on hand from Sa
vannah to advocate the action that was
taken.
Competing companies, among them the
Germania Of which Capt Henry Kolshorn
is agent, doubtless had more or less to do
with bringing about the change. good
deal of business was going to that com
pany, not a member of the tariff associa
ton, by reason of the increase on resi-
dence property. The increase by the as
ISOLATION was, therefore, considered faulty
because its main effect was to throw prop
erty which the companies most desired 20
insure, into the hands of competitors. Con-
corning the loss TO the companies from
the residence portion of the city, it is as
serted 1t will not amount, south of Brough-
ton street. to 10 cents on the 500 insured.
1t is asserted the same Is true of naval
stores, which are considered among the
best risks in the city.
The deleterious effect of the increase
was soon felt by the insurance companies
and the action to abrogate it is probably
not so much to lift burdens from property
owners as it is to protect the companies.
Sprinkled risks are included among the
redeemed property, but it happens there
are only two of those in the city, the
Savannah Brewing Company's plant and
the grocery house of S. Guckenheimer &
Sons. The sprinkled risks are those hav-
ing spray pipes located in different parts
of the building, which are opened at a
certain temperature and flood the locality
of the fire. This automatic method of
flooding a fire is considered one of the
best precautions by insurance men that
can be taken and the companies are al
ways willing to make liberal concessions
in rates to houses that have them.
This restoration of the old rate on GER
tain classes of property" said an agent
yesterday, lis what has been desired by
great many local agents for some time.
AT the beginning we were fearful of the
effects of the increase and thought IL
should be applied to that class of prop
erty on which there had been heavy losses
and which we did not care to continue.
AS the matter stands now we are in a
different position In the first place il Is
intended to apply the raise to all and if
we lose the business by it. we are in a
position to let it go. OF course we could
not do this before, because good prem
iums were collected from the residence
portion of the city and our increase was
shifting the business in other directions
Whlle we stood powerless and continued
enforcing the raise, which was doing the
damaging work. Now that it applies only
70 uhprohtable business, it Is not likely
there will be any further changes soon.''
Inc reforms in the fire department. that
the increase was calculated to bring about
may possibly be less expected The indu-
enee that would have been brought 10 bear
IN this direction, however. would doubtless
have proceeded from the business men
who are still under the ban.
on hearing of the action, fire department
circles expressed little surprise.
An attempt was made at one time to gel
the tariff association executive committee
to visit Savannah and see If conditions
could not be remedied in some way While
one of the objects desired is said to have
been the abrogation of the increase. stin
1t Is said the committee may yet come,
though when is not known
Gnnn IN In N1,S Sn,r,