The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-05-13
RERATING LOCAL
INSURANCE RISKS
Representatives of Southeastern
Tariff Association Arrive
TIME WILL BE REQUIRED
No Special Meeting of City Council
Until After Mayor Gets All the
Facts-Mayor Writes
Letter.
TIME WILL BE REQUIRED

George w. Mills and Joseph s. Raine,
representatives of the Southeastern Tar
If association, arrived in Birmingham
Yesterday to readjust the insurance rates
and they have already commenced their
work.
They are here in compliance with the
resolution passed by the executive com
mittee of the association Monday which
ordered Birmingham rerated on second
class basis, and that an advance of 25
cents be made on the current rate until
the rerating is completed.
It will require some time for Mr.. Mills
and Joseph S. Raine to rerate the risks
of the entire city. and it will be some
time before the new rates are announced.
In the meantime Mayor Drennen is TAX
ing active steps to stop this increase in
the rates, and yesterday he addressed
a very pointed letter to Capt. John G.
Smith, president of the local Underwri-
ters Agency, in which he states that the
action of the tariff association is arbitra-
ry and unwarranted, and he insists that
the association give the city of Birming-
ham a full and free hearing before the
new rates are put into effect.
Mayor Drennen says that there will be
no special session of the council until
after he gets all the facts with which to
answer the arguments of the tariff asso-
citation. He expects to get all the facts
by the regular meeting of the council
next Wednesday night, and at that time
some action will pobably be taken.
The letter of Mayor Drennen is as
follows;
Birmingham. May r. 1904.
Mr.. John G. Smith, President Underwrit-
ers Agencies of Birmingham, Ala.
Dear Sir--I enclose herewith copies
of letters addressed to the commissioners
of insurance of the states of Alabama,
Arkansas Florida, Georgia, Tennessee,
Mississippi and Virginia, also copy of
letter to C. C. Fleming, secretary Of the
Southeastern Tariff association, Atlanta,
Ca, which explain themselves.
II understand that the Southeastern
Tariff association now has representa-
tives in the city of Birmingham rerat-
ing it and placing 1t on a second class
basis instead of the first class.
about four years ago after repeated
conferences between representatives of
the Southeastern Tariff association and
the board Of mayor and aldermen of this
city an agreement was reached placing
Birmingham on first class basis instead
of second class as had been the case
before that time, provided the city
would install additional fire apparatus
and increase the number of firemen. This
was done and Birmingham was given
first class rating by your association.
THE city of Birmingham not only COM
piled with the contract made with the
Southeastern Tariff association at that
time, but has exceeded same in every re-
spect.
I'm view of the foregoing facts the ac-
ton of the Southeastern Tariff assoca-
ton is contemplating placing Birmingham
on a second class basis cannot be consd-
cred by any fair minded man as other
wise than arbitrary and unwarranted,
and | insist that the Southeastern Tariff
association give the city of Birmingham
and its business interest a free and full
hearing before the insurance rates now in
effect are inceased. Very truly,
wv M. DRENNEN, Mayor"
Yesterday Captain ]. G. Smith and w.
N. Malone, representing the local under
writer's agency, called on Mayor Dren-
men and requested that he address a
letter to the agency asking that the in
creased rates be removed. and suggesting
a consultation. They stated that in their
opinion the rates might be again lowered
If the city would promise some improve
ments in the fire department.