The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-05-11
Board Of Trade Asks City
Council to Act
QUESTION OF INSURANCE
Resolution Calls on Council to Have
Special Meeting TO Take Up Ae-
ton of Southeastern Tariff
Association.


held yesterday afternoon in its temper
airy quarters 4S4 First National Bank
building, a resolution was adopted re-
Su.tting the mayor and board of alder
men to call a special session to investi-
gate the reason why the Southeastern
Tariff association has raised the rates in
Birmingham The resolution was unani-
meusly adopted, and is as follows
"Whereas. the Southeastern Tariff as
ISOLATION has given notice to the local
agents OF an increase in insurance rates
o. % cents on the hundred, and
Whereas. there is no sufficient reason
for making said increase, and
Whereas, Alabama already pays
higher rate of insurance than is paid In
other states, and
whereas, the report of Deputy Conn
missioner of Insurance N. r. McDavid.
shows that the ratio of losses to premium
receipts in Alabama for the past six
years has been only 50 CLIO per cent Of
the receipts.
..Be It Resolved, That the mayor and
aldermen be and they are hereby request
ed to call Immediately a special meet
ing of the board to take this matter up
in order that the citizens OF this city
may not be imposed upon by the insur-
ance combine"
There was much discussion of the reso-
luton before 1t was passed and statistics
were introduced showing that the rates
in Alabama are higher than in other
states, and also that the premiums col
lected in Alabama are far in excess of the
losses. An editorial from The Age-Herald
of last year was quoted. The editorial
was as follows:
Fire Insurance Rates.
1.-The Insurance Press shows that the
tendency of insurance rates is down.
ward. In thirty-nine states rates were
lower in 1902 than at other times In ten
years, and sixteen of these states rates
in twenty-five years.
but this tendency did not extend TO
Alabama In 1893 the rate in this state
was $1.32 per $1O0 of insurance; in 1902
the rate had been increased to 81 rs. Why
the rate should be SITS in Alabama and
so in Georgia it is difficult TO say. 1t
is equally difficult to say why New
Jersey should have a 81 cents rate and
Alabama a rate of SITS. In other words
it costs about twice as much to insure
property against fire in Alabama as 1t
does in New Jersey. The lowest rate In
the country was in New York state,
where a rate of rs cents was established
in 1902.
Alabama belongs In the list of high
rate states, her rate being higher even
than New Mexicos, or Vrginia's, or
Texas. Kansas enjoys a rate of 81 10 per
500 of insurance. VIII any one say that
Alabama should pay more than a half
more than Kansas pays?
1.-The tables printed by the Insurance
Press show many unexplaintble differ
ences, but certainly the gap between
Alabama and Georgia should not exist,
and either Kasas's rate is too low, or
Alabama's too high. In Indiana the rate
is but $1.19. In South Carolina 1t is but
$126.
pany was also discussed, and a resolu-
ton, offered by ]. D. Collins thanking
the mayor and board of aldermen for its
efforts to take the franchise away from
the Water Works company was passed.
Automobile Prizes.
Another resolution offered by Mr. Collins
was also passed. 1t requests the city at
torney to investigate the present license
schedule and see If contracts signed by
several merchants to offer an automobile
as a prize were not illegal. and If they
are not Illegal to amend the ordinance so
as to cover this particular kind of prize
offering.
The proposition made to the firms Is
that they pay a certain amount to the
promoters of this scheme, and that they
give the merchants so many tickets Of
certain value to be given with every cash
purchase; at the end of a certain time
the auto be drawn for. This several mer-
chants have agreed to, while others think
1t is similar to the trading stamps evil,
and that these merchants violated their
contract when they signed the agreement
with the promoters. There Is an agree
ment between the merchants of the city
not to sign any contracts which intro
duce trading stamps or anything similar.