The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-25
May RAISE INSURANCE RATES.
COMPANIES REPRESENT tTIIES
TO CONFER TO-DAY.

Exceed SSS 900 ,OOO|F1EurinS FROM
Baitimore-Bank Loan Not Probable.
There was an informal meeting yesterday
in the National Board of Underwriters
offices in the Mutual Life Building of repre-
sentatives of fifteen fire insurance COM
panies hit by the San Francisco confagra-
ton. The meeting was called for the pur-
pose of considering the general situation
among the companies, and especially the
question whether the companies shall make
any increase in rates,
Nothing definite was decided upon, and
| there will be another meeting this morning.
After that It is expected that the conferees
will have something to say to the pubic
One of the officers who attended yesterdays
meeting said that there were no two opin-
ions alike in regard to the proposition as to
raising rates. Some think that there ough
to be an increase in the rates Of insurance
on property in congested districts only;
others that the increase, II it is made, ought
to apply to all classes of property on the
theory that there should be no discrimina-
ton in making up for the San Francisco
losses. Still others argue that no increase
whatever ought to be made, or at least
nothing ought to be done until the full facts
are at hand.
Those who attended Yesterdays meet
ing refused to give the names OF the COM
panies represented or to say what they
thought would be the outcome Of this morn
ing's conference. Fire insurance men
generally, however, do not believe that
any definite step will be taken toward
raising rates for at least two weeks, al
though they are not certain that SOM
a,,ol, oottop rnay NOT ha Italian in the end
notwithstanding the hopeful reports
that have been coming in from San Fran
cisco lately, the officers of some Of the
companies refuse to lower their original
estimates Of the loss sustained by the COM
panies. Officers of the Continental still
keep the figures at $50, 100000 and Vice
President Correa Of the Home Company
when told that some persons had placed
the San Francisco liabilities of the COM
panies as low as SIS 900, 600, said that he
would certainly like TO have for himself
the amount in excess Of those figures which
it will cost the companies.
j. j. Kenny, general manager Of the
British America and Western Fire lnsur-
ance Company in Canada, has sent on word
that the claims may foot up less than $780,
O0o, 900 and possibly not more than SIS ,oOo,-
900. Mr.. Kenny, it is said. has had mes
sages from his managers on the Pacihc
Coast assuring him that millions Of dollars
worth of property that was counted as a
dead loss at first has been found in good
condition, or at least in such condition that
il can be restored at comparatively small
cost.
The fire insurance experts who are hold
ing their estimates up to the original figures
are going largely on the facts established
in the Baltimore conf1agration. In that
fire the companies had to pay on an average
about 70 per cent. Of the insurance in
force on the affected district. There was
serious talk after the Baltimore fire of a
general increase in rates, but nothing came
from it.
The talk about raising rates directed
attention yesterday to the fact that some
of the fire companies have been paying
immense dividends on their capital stock,
in some cases more than 80 per cent. Atten-
ton also was called to State Superintendent
Hendricks's comment on the fire companies
in his report iesuei n few days before the
San Francisco calamity. He said. referring
to the fact hat the companies doing business
in this State have increased their net sur
rluses in the last year b" 500 ,2o5 900, ttat
this has been due chiefly to q very consider
bile advance in the martet value OF thier
investments. The superintendent said;
In previous reports ] have taken occasion
TO commend the wisdom OF that prudent and
conservative policy followed by the COM
panIes In recent years in accommodating
sufficient and ample surplus funds TO provide
for extraordinary losses when great con-
fla ~erations occur and the above showing
Indicates that that wise policy is being carried
ont by the COMPARES.
Officers Of the com panies doubted yester-
day whether there would be any necessity
of a bankers pool to supply the companies
with loans on their securities as collateral.
The officer of one company put 1t this way:
You can rest assured the companies
are not going to sacrifice anything in dis
posing Of their securities. Some Of them
nav have to get cash temporarily, but
they will do that without being forced
into any drastic action. If their securi-
ties cannot be sold at a reasonable price they
will refuse to part with them and borrow
the money"
Secretary y. S. Barlow of the Queen Fire
Insurance Company said:
Il don't think it will be necessary to
throw enough securities on the market to
unsettle things. There will be time to turn
around. 1t will take some time to settle thu
immediate problems of existence in San
Francisco. let alone building problems.
1t took six months to settle the Baltimore
claims"
Bankers discredited yesterday the idea
Of a pool to supply the companies with
money and keep their securities out Of the
market. 1t is true, they said. that two or
three companies have been asking advice
in regard to loans and bankers ave been
feeling around, but no definite movement
toward any combinati on Of interests has
been undertaken.
A Wall Street news agency sent out a
despatch yesterday to the effect that the
banks in Hartford, Conn, have formally
decided to do everything they can in the
way of making loans to the fire companies
on suitable collateral. 1t was said further
that the presidents OF the life companies
in Hartford have notified the fire com.
panies Of their willingness to lend up &c
IS, OoO, 900 on securities owned by the fire
Tho WILLIAMSBURG City Fir q Insurance