The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-03-10
Less commission
taxes and eX-


Loss ratio ...................77.412 per cent.
Insurance companies consider that when
the loss ratio is above 50 per cent, the in
surance of policies is no longer an invest
ment. AS will be seen from the table the
loss ratio from April 3d. 1895, to March ],
1898, the ten months preceding March be-
ing merely estimated, is TAP per cent.
which is considered far in excess of what
it should be. The companies assert thai
the conditions are exactly the same as
when the price of an article of merchan-
disc goes up and the retailer is compelled
to raise his price in order to make a sus-
tanning profit. 1t is the inevitable answer
to the syllogism.
1t is the opinion of several insurance men
spoken to on the subject yesterday by a
Morning News representative, that apply
ing the universal schedule for rating,
which now obtains with majority of the
companies throughout the North would
be a solution of the present trouble in Sa-
vannah. The system, in brief is to place
the rate of every piece of property insur-
ed on its own basis and to assign cause
10 the policy holder when the rate is rais-
ed. The schedule was adopted at the
meeting of a national committee for that
purpose, and among the cooperating COM
mittees was one from the Southeastern
Tariff Association, composed Of FIVE of the
most prominent representatives of COM
panies in the association. Tariff associa-
lions have applied the schedule In many
parts of the country, but for some reason
1t has not been introduced in the South,
except at Raleigh, N. C.
If applied in Savannah, ii would necessi-
tate an entire re-rating of property, but is
thought by many to be a solution of the
present situation. Its effect would be to
bring every policy to the point of influence
ing a change in whatever cause was as
signed for a raise. To each policy state
ment Of the cause of raising a rate is af-
fixed by the company and the property
owner understands that to remove the
cause mentioned will assure a reduction
of the rate. as soon as the removal is re-
ported to the local secretary. The cause
for raise may be faulty construction in
buildings, such as open windows stairs
or elevator shafts, and then il may be on
inefficient fire service, in which case Ii
would, of course, have a general applica-
ton. Among the advantages claimed is
that relating to fire DEPARTMENTS, which
says 1T will prevent excessive deductions
for fire departments At present the pur-
chase of Q new steam fire engine is re-
garded by property owners and by some
insurance agents as a reason for at once
cutting rates in two. With proper sched-
ule in the hands of local underwriters no
such mistake need be made. The schedule.
it is claimed, will also assist in securing
reforms in fire departments by making
proper charges for faults, dlsbanding of
force, failure of water works, ETC., which
when now made in specific cases,
are regarded as threats antagonis-
tic to property owners With
standard schedule to which
their attention can be.called, showing that
the demand is no new thing or individual
exaction, but an obvious and necessary
adherence to the basis on which the rates
of the town have been made such antag-
onism and hard feeling will be avoided.
Those advocating the universal system
Of rating claim it will insure a more thor
ough inspection and a consequent tcorrec-
ton of faults and prevention of fires. They
say that all fires can be quenched with a
cup of water if reached in time and the
placing of buckets and barrels Of water
throughout a building frequently insures a
lower rate. If buildings have Questioning
partitions or iron shutters that is ground
for reduction, while piling rubbish
around and leaving the premises in other
wise dangerous condition, means an in
crease. The idea of the system seems to
be that that its application would be a
signal for more care on the part of the
property owners. While raise in rates
a red slip attached to every policy stating
that to he the cause, might have its eff
feet in bringing about a reform, vet The
schedule wns not conceived alone for max
ing such fights Many believe the pres
cnt raise is in the nature of a political
fight on Chief Mcguire, because of the
sweeping raise and "a demand for his dis
missal, whereas il is claimed under the
universal schedule of rating the people
would be more likely to view such action
as in keeping with the basis on which
rates for the city ere mace
The Southeastern Tariff Association
could introduce the schedule here without
trouble, IT is said. and many believe il
would be to the interest Of the companies
Bringing about the removal of any Off.
cial or revolutionizing the fire department.
all at once, is not claimed to be the obiec.
What is desired Is methods which will nre-
vent fires, they claim, by using care ana
precaution..
Just how the tariff association considers
the schedule is not known. The expensA
of reratng the city would be considerab la
and for this reason the scheme might no,
be acceptable. For some reason. II has
not been extensively applied in The Soufn
probably on account of expense. occasion,
ed by employing expert inspectors. Those
advocating 1t. however, claim II will re.