New-York tribune., 1906-05-26
FIRE RATES RAISED.
ALL COJIP4NIES AGREE.
Increase from 10 to 10 Per Cent,
4ccOrding to District.

Peace without complete harmony, was restored
in the New York Fire Insurance Exchange yester-
day President Evans of the Continental ana Presl-
dent briggs of the Williamsburg Joined with the
other members in making unanimous the decision
10 raise rates in this city. Mr. briggs still held
out on a proposition to modify the rules or the
exchange defeating by his single vote plan to dc
ov,av with the urit rule but he agreed to reduc-
tion of brokerage fees
Tho increase in fire insurance rates will be
put into force by all the companies All new policies
and renewals will be affected. In the congested
districts Of the city where the danger of general
conhagration is greatest, such as the drygoods dis
trct the rates are increased about 25 per cent An
exception. however is to he made in cases where
Wholesale equipped with automatic
sprinkling devices. The advance in rates will not
be so great at such places because the fire un-
derwriters wish to encourage the installation of
sprinkng equipments, believing they greatly lessen
the danger of cOnfagrations.
In the districts where most Of the buildings
used for business purposes. but in which many
apartment and tenement houses the increase in
rates will be about 10 per In the best dwell
ing house sections of the city the increase will be
only 10 per cent
The reduction in brokerage fees, as agreed TO
Yesterday limited TO the district Of Manhattan
north of Chambers street and south Of 14th street
In that district where most OF the fire insurance
policies are in the hands of the large brokers' the
allowance made by the companies to the brokers
will be only 10 per cent of the premiums. In the
uISII4cl SOuln OF CnamDefS street the allowance
has been only 10 per cent in the past. and It
remains unchanged In other districts of the city
brokers will receive IN future. they have in the
past. allowances of 15 20 and 25 per cent of the
premiums. The largest allowance is on household
furniture and small policies generally There are
about seven thousand fire insurance brokers in the
city, and the great majority of them make living
by obtaining risks in the tenement house districts
! A severe reduction in the allowances would drive
! many Of them out of business and reduce the
/ fIlTri it1lra riSl o{cI
! TO retain
Mr.. Evans and Mr.. briggs consented 10 vote for
/ raising rates and reducing brokerage fees as
| stated. because they did want to disrupt the
| exchange Mir. Evans resigned as vice e-president
! OF the exchange, but reelected unanimously
President Shacross of the exchange said after the
! meeting that no further trouble was to be ex-
pccted. although many Of the members were Of the
| opinion that the rule forbidding any change in
| rates except by unanimous ,ote should be abol-
! ished
When the resolution to change the rule so as to
permit the exchange 10 modify rates on the vote
Cf 80 cent of the members present at any meet
! ing presented yesterday. Mr. briggs said he
opposed il bee ause he believed the strength Of the
| exchange consisted in part in the power given by
| the rule to every member 10 protect his own COM
! pany. He said he member of the exchange
not for the benefit of other companies but for the
| selfish reason that he wanted to protect the in
! terests Of the Williamsburg Fire Insurance Com
pany
! His attitude characterized by another mem
Der as in defiance of American traditions He was
told that he ought to consider the greatest good of
! the greatest number. He retorted that he was a
good American, but he was opposed to the rule Of
a majority in insurance matters. and he did not in
! tend 10 have his company Standard Oiled" lie
declared that so long the unit rule prevailed in
! the exchange he could prevent any CLIQUE from
! changing rates so as to njure his company
THAT is the key tho situation" he said .'and
l am going to keep the key in my pocket"
some day when YOU too sick TO attend a
| meeting, we'll get after you" said one of his as
! sociatos, the meeting broke up.
Then I'll pray for health said AR briggs