The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-01-03
INSURANCE MEMS STATEMENT.
Reason Why Companies Talk Of In
creasing the Rates.


Mr.. c. F. Sayles, on behalf Of the in
surance union, yesterday made the follow
ing statement:
''The January, 1900, reports Of all the
companies doing a general fire insurance
business in the United States showed their
losses and expenses in the fire branch
of their business to be about 81. II for every
dollar received. The companies directed
their managers to advance rates TO meet
losses. Indianapolis having contributed
more than her share to this waste, show
ing loss for thirteen years and profit
for only two years out of the last hfteen,
with debit of over 100000 against them
during that period, directed their atten-
ton to our city to ascertain If the causes
for this waste could not be removed. Ex-
pert Inspector Johnson was sent mere 10
examine the condition Of our fire depart
ment Before making his report to the
companies he met Mayor Taggart and a
number OF citizens and insurance men at
the Commercial Club and gave them the
result of his investigation, whereupon our
mayor assured all present that the serious
defects should be made good, and the de-
partment strengthened and made creditable
to the city, and pledged his efforts to that
end. Upon this assurance the managers de-
ferred the rate question for six months,
during which period we sustained losses
amounting to over $500 AT the end OK
six months the companies found that no
improvements had been made and instruct
ed their managers to advance the rates
In the city 20 per cent.
"a committee OF insurance men had an
interview with the managers and succeed
ed in having this order rescinded, pledgtng
their efforts to have the fire department.
made efficient with all possible haste. At
the same time we were advised that q
schedule would be prepared suitable to
the conditions existing in indianapolis,
which would be adopted after the neces-
sary surveys had been made. There was
no pledge at this meeting that the schedule
would or would not increase the gross
premium receipts. The object of the sched-
ule is to make low rates upon good, sale
and we'll protected risks, and higher rates
upon poorer ones, pointing out the de-
fects and making charges for same, which
may be removed by the assured by i'm
provements. Schedule rating has been
adopted in many Of the larger cities. and
is being adopted In others as fast as pos
sible. The schedule that was prepared for
Indianapolis was tried upon a few risks
that had been surveyed, but the result was
not satisfactory and the managers directed
that it be modified and tried again before
its adoption.
1.-THE executive committee of the In
| dianapolis Fire Insurance Association had
an opportunity to see the result Of the
application of this schedule, and at once
unanimously protested against its adop-
ton without further modification. Since
which date the committee has made every
effort to have the adoption postponed. pend
| ing the Improvement OF the fire depart
ment and q further trial under the new
conditions Our efforts in this direction
have not met with the approval Of the
managers, who claim that there Is no good
reason for not applying schedule here
as well as elsewhere, and express the hope
| that when it Is applied that the new con-
ditions will be such that there need be
| no increase in the volume of premiums
collected here.
Companies do not make the risk or con-
| troll the condition Of the fire protection;
they must accept the situation as they
| find it. If the risk is a good one, the sur
roundings favorable and the fire-fightine
| facilities first-class and reliable, the rate
will be correspondingly low. The question
| of the condition Of the fire department is
| one between the city and its officers, and
not between it's officers and the companies
"The joint committees representing tho
| indianapolis Board of Trade, the CONNER
cial Club, the Mercantile Association, the
| Manufacturers Association, the City Coun-
| ell and the Indianapolis Fire Insurance AS
| ISOLATION, examined the conditions of the
| fire department in August last and recon-
| mended certain Improvements, most OF
| which were outlined in Mr.. Johnson's re-
port. The delay in making these improve
| Inents is largely the cause of our present
| imaginary troubles, and in the interest OF
| the welfare Of our city should not be longer
| delayed"