The Birmingham age-herald., 1904-09-29
MERCHANTS TALK
 ABOUT INSURANCE
Efforts to Have City Restored to
 FirSt-CIasS Basis
PRESENT INCREASE HEAVY
President klotz of Board of Trade Ex- pectng Letter From Tariff Asso- ciation--The Board Will
 Take Vigorous Steps.

Along with the numerous increases in fire insurance rates comes vigorous protest from local merchants and these men who, to large extent, direct the business affairs of the city of Birming- ham are making another appeal to the city administration 10 take some action that will again put Birmingham on a first-class insurance basis.
 Since the city was changed from first class to a second-class insurance basis the rates have increased at rapid rate and the merchants say they are suffering heavily from the change. 1t is estimated by these merchants that the amount of insurance paid in Birmingham has in creased at least $6000O in the total since the city was put back on a second-class basis
 | T.4e general opinion of business men concerning the situation can be summed up in the following questions which they almost invariably ask:
 Why was Birmingham changed from a flrst-class to a second-class basis?
 What steps are necessary to put the city back on a frst-class basis?
 As such steps are apparently necessary to save insurers thousands of dollars, why can't the city council succeed In reaching an agreement with the South eastern Tariff association?
 Did the city or the insurance companies fail to carry out the agreement that would have put the city on a frst-class basis?
 Expecting a Letter.
 Simon Klotz, president of the Board of Trade, said yesterday that he was in communication with the Southeastern Tariff association In regard to the matter and that he expected to receive a letter today setting forth what action Is nec- essary on the part of the city of Bir- mingham to put the city on first-class basis.
 Until I have received this letter." said MT. Klotz q would not care to make a statement concerning the trouble further than to say that it is very important thai something be done to relieve the mer. chants and other property owners of tho city. As soon as I hear from the South eastern Tariff association the Board o Trade will immediately take steps tt remedy the trouble."
 It appears that some time ago the mat ter came before the city council and [ resolution wac passed asking the presi dent of the board of trade to ascertain what the Southeastern Tariff association required to put the city on a first-clas basis and since that time MT. Klotz hal been at work on the matter.
 Building Inspector.
 It seems to be the general opinion thai the main point at Issue between the cit, of Birmingham anu the insurance com panies Is the appointment of a building inspector The tariff association claimi that the city agreed to appoint such al official and s this has not been don't the association put the city back on thu second-class basis. The mayor and alder men shortly after the agreement wa. reached added the title of building in spector to the office of City Enginee Julian Kendrick. According to cores pondence between the city and the asso cIation 1t aeems that the insurance com panies to not regard this as sufficient.
 In the meantime the rates have bee showed up on property owners and mer chants are the heaviest losers One mer chant said yesterday that his rate ha been increased from s135 to $245. an il crease of $1.1O on the $10c. This sam merchant produced figures to show ths the property owners of the city were no paying S6O,c00 a year more for insuranC than they did when Birmingham was c first-class basis.
 How Increases Are Made.
 To a person unacquainte1 with the il tricacies of insurance rating 1t is yer difficult to ascertain how these 1T creases are brought about Insuranc rates are not on fiat basis of so muc hundred, as many persons think bu are fixed according to the risk
 On the first class basis nothing is charg ed for window exposure to alleys whe the alley is not 25 feet wide but unde the second class basis 1t Is different A charge of five to fifteen cents is mad for this risk. Skyights cost the mer : chants something like ten cents more an elevator shafts and stairways are als . brought Into consideration.
 The first step taken in rating a mer chant is to tax him so much for tn building he occupies. The walls are re quired to be of certain thickness an the number of occupants is also consid cred After finishing up with the build