The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-12-20
INDIANAPOLIS TO BE HEREAFTER
RATED BY SCHEDULE.
The Council Blamed for Delaying Ac-
tion Other Municipal
Affairs.

city officials, and a copy of the schedule
of fire insurance rates for Indianapolis
accompany the ordinance when II is re-
turned TO Council. Mayor Taggart said
the only thing he can do will be to ask
the insurance bureau for a cop of the
rates and send them 10 the Council. He
said he would be unable to do anything
further in the matter.
The question resulting in the commit
tees action came up over the rumor that
the governing committee of the Western
Insurance Union will increase the fire in
surance rates in Indianapolis notwithstand-
ing the fact that the Council is about to
pass an ordinance providing for the sale
Of bonds to improve the fire department.
A number of Indianapolis insurance men
are now In Chicago comforting with the
governing committee. They hope to secure
a promise that the Indianapolis rates will
not be increased providing the fire depart
ment is improved. The insurance men
will assure the committee that the inn
provements will be made as soon as the
Council is satisfied that rates will not be
increased If the improvements are made.
FROM ROUGH NOTES.
Rough Notes, a journal devoted to insur-
ance and published in Indianapolis, devoted
nearly two columns to the fire insurance
rate question in Indianapolis in its issue
dated Dec. 20. The article says that In
dianapolis will be rated so that all persons
holding insurance will be taxed by the in
have been met by the insurance companies
in indianapolis. The article is headed
Schedule Rating for Indianapolis-Bull-
doing Methods of the City Council and
says:
About rates for fire insurance in In
d~ianapolis there is considerable talk, es-
p~ecially since the City Council, under the
advice Of Chairman Harold g. Megrew
and Mr.. Robert Martindale. has refused
10 pass the bond ordinance required To
secure needed improvements for the frs
department.. The Importance of Mr.. Me-
crews action In postponing the ~appropria-
ton that was to lave been made for the
purchase OF a new fire alarm system and
other much-needed Improvements lies in
the fact that the appropriation Is not TO be
made until the insurance companies agree
not To raise the rates or else to submit
their schedules TO the city. AS no such
agreement is likely To be entered into and
as the companies are not constrained To
take further notice of the city's refusal
10 cooperate with them for the purpose
or reducing fire losses and rates for fire
Insurance, it may be safely inferred that
the peanut politicians will force COM
panieS to make a deficiency charge of 10
cents, or more. on each 500 insurance on
account OF insufficient fire protection. This
has sometimes been done i'm other cities
a charge OF % cents per 500 in some in
stances being made where fire protection
was fully as good as now, in indianapolis.
1T should be understood that the next
rating of indianapolis will be by schedule
and that the schedule rates will be upon
"a I'VE basis than the basis rating Of Chi
cago-also that so urgent was the neces-
SltV for obtaining more rpVQnIlp from In
~dianapolis that months ago a fiat advance
was ordered by the companies. acting
through the governing committee at Chit
cago. Acting later upon the advice of the
local agents of this city, and because Of the
expectation that money would soon be
voted for the Improvement of the fire de-
partment, 1T was voted to annul the order
for a fiat advance and to rate the city by
schedule. SO that rates on buildings Of
proper construction need not be advanced
and a proper charge be laid upon build
ings of dangerous construction-the sched-
ule. though the same in form. to provide
lower charges than those applied to Chi
cago buildings of like construction.
BUILDINGS INSPECTED.
"Since schedule rating was agreed upon
conditions have remained in statu quo ex-
cept that the business portion of the city
has been inspected; tandard buildings
upon which no increase under the sched-
ule can be made have been noted and all
buildings chargeable for deficiencies nave
been made ready for the application of
the schedule. 1t is proper that great care
should be exercised in correctly applying
the schedule. in order that exact Justice
may be done to all. 1t is. indeed, the
proper apportioning of the fire tax TO the
city, and. If apportioned upon the basis of
his years losses it would mean an i'm
mense sum of money-an apparently ex-
orbitant increase of rates. There is an i'm
mense amount of labor required TO make
the apportionment so thoroughly that
every property owner may he given an
itemized statement OF the deficiencies for
which he is charged, and be shown how
he may improve his risk and OBJ
tain a permanent reduction in his
system of rating and its citizens
should know that without il the
city will be severely taxed for fire insur-
ance. Indianapolis people seem TO believe
that Meridian street affords a margin OF
profit for companies accepting business on
that street. But the reverse is true. Merid-
ian-street business has never been profit
able to the companies, some of whom will
not accept a dollar of risk on any bolck on
that street, the same companies discarding
business on Main street, Louisville. KY,
for like reason-because ii is Improbable
other companies, we are informed by their
managers, that have been doing business
on that street for twenty-five years and
more have lost from $4,000 TO $4,000 and
upward III excess Oh all premiums Merlu-
ian street has paid them. and 1t is a fact
easily proved, as il has been many times.
that the companies. as a whole. have lost
a large amount of money In indianapolis
during the past fifteen years.
Under these conditions Indianapolis will
be rated, and fairly rated, and the COM
panies. If governed by correct business
principles, will assess rates that will pro-
vide a revenue sufficient TO pay all losses
and expenses incurred within the city-a
return they have been able TO secure only
two years during the entire period of the
last past fifteen years, during which and
ur TO April 30, 1900. their aggregate loss
amounted to upward of S595,00.
COPING WITH FIRES.
1T is only fair that each property owner
should pay a fair proportion Of the loss
incurred by reason of the inability of the
fire department to cope with fires. This
Is a deficiency chargeable TO the city as a
whole. which will be added TO the basis
rate upon which the schedule is made. In
other cities where such a charge has been
made property owners have compelled their
derelict governments to make the improve
rnents, when the general deficiency charge
has been promptly abated. II Is the physi-
cal hazard of a single risk that determines
the rate on that risk, and IL Is the aggre-
gate physical hazard the city contains that
determines the amount OF money the city
must raise to pay the losses and expenses
incurred by the companies In assuming
the fire risks OF its citizens. II Indian
apolis, instead OF making . continuous