New-York tribune., 1906-05-11
DEFY FIRE EXCHANGE.
REFUSE TO RlISE RATES.
Continental and williamsburg CITY
Com panies Take Independent Stand.

Both the Continental and the Williamsburg CITY
hre insurance companies are writing insurance az
the old rates. IN spite OF te fact that tie increase
was sustained by refusal OF the New YORK Ete
Exchange az the meeting on wednesday 20 enser-
tain a motion 60 rescind the action TN raisinS tne
rates. Marshall s Driszs president Of the WIZ
iamsbure Is still considering the hn&l attituoe ne
will take.
II coreidar ,saf tho rates vere raised in an
Illegal manner he said yesterday. "If this were
done IN the way and manner that the agreement
requires and 50 per cent of the members az resu-
lar meeting voted in favor OF It. I would De IN
honor bound 60 support the raise so long as re-
manned in the situation.
It would seem that Mr. Drsss has hopes that
the exchange will reconsider its first action and
raise the rates in what he believes TO be legal
way.
Henry Evans president Of the Continental. is in
a different position. He rot only objects 20 the
action because he considers il illegal. but also be-
cause he does believe the increase is justified
by the conditions. He does not purpose 90 abide
by The decision Of the board. and will continue to
write insurance at the old rates. The agreement
provides fines for a member who does not abide by
the rates fixed by the exchange. If the fines
not paid member be expelled One OF the
members said yesterday that he did not think any
such action would be taken against Mr.. Evans. but
suggested that possibly the exchange would be
dissolved and new one formed without the Con-
tlnentaI
There WIS a conference yesterday between half
a dozen brokers and the managers OF about the
same number OF companies. The brokers argued
that the reduction in brokerage fees was too sweep
Ing Speaking OF the conference. &. 2. ShaIlcross.
president OF the exchange. said:
1.-THE managers Informed the brokers that they
dhe managers) were there individually and as
courtesy to the brokers' and pointed out that II the
brokers had any grievance they should submit il
as a. body 20 the Fire Insurance Exchange.
Il is than possible that the decrease in
commissions will not be put into effect. or not at
once. Not only was the action illegal. Il is said
because the vote was not unanimous but also IN.
exchange has contracts with a number OF brokers
TO pay certain rate of brokerage. In return, the
brokers bind themselves to write no insurance in
companies outside Of the exchange II th,, ex-
change insists decreasing the brokerags and
breaking these contracts the companies will prob
ably lose considerable business TO companies outside
of the city.
The fortieth annual meeting Of the National
Board OF Fire Underwriters was held in the offices
at No. 30 Nassau street yesterday. The following
officers were elected: George w. BurcheIl OF the
Queen company. president: J. Montgomery Hare
OF the Norwich Union Fire Society," vice-president:
Charles G. Smith, Of the German-American, secre-
tary Marshall s. briggs, OF the Williamsburg City
treasurer and w. H. Stevens. OF WatertOwn N Y:
E. L. Ellison, of Philadelphia: ]. B. Branch OF
Providence; G. B. Edwards. of New York; r O.
Affeld. Of New York: r. M. BisseIl OF Hartford.
A w. Damon. of Springfield. Mass: A. N VIII
iams, OF Hartford; U. c. Crosby of New York:
+.
Roger. OF Philadelphia. executive committee.
John H. Washburn. the retiring president, in his
report said that while the board had taken stems
70 guard against large ConfagTations. the examna-
tion by the surveyors and engineers showed that
there was a more threatening condition Of things
In most Of the cOngested portions Of Importance
than had been anticipated.
In regard to San Francisco. the report said:
In the face OF this the greatest calamity that has
ever befallen us, the insurance companies are
much better prepared TO meet their losses than they
have ever been before and the sufferers by fire
will experience less loss by tie failure Of their
underwriters than in any Of the great conflagTa-
tions which have heretofore visited this country.
The calamity is so recent that the amount OF the
losses In the aggregate to the individual COM
Panies Is not yet known. but we have reason be-
ueVe that most OF the companies will weather the
Storm and that polcyhOlders will recover their
losses with few or no exceptions.
The aggregate property loss from fire In 1875 was
S65Z165O. against S229 1SSO5O IN 1904 and Sl45-
5o2155 in 1908. The largest loss from single con-
migration was on February g. 1905. In railroad
property. etc., in New Orleans where the loss
tOtalled S.2o9.O00