The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1906-01-27
San Francisco Board Says What
the People Shall Pay.
COMPACT RATE.MAKING ORGANIZATION
Chief Surveyor Mckenzie Was Forced
to DivuIge Secrets to Attorney
General Stratton.

In the insurance investigation at
Olympia yesterday, during the exami-
nation lasting all morning, Attorney
w. B. Stratton attempted with partial
| success, to drag from Chief Surveyor
Lee Mckenzie, of the Washington In
| surance association, the admission that
state had been fixed by the Washing
ton advisory committee and the board
| of fire underwriters of the Pacific,
which board, it is acknowledged, is a
compact and rate-making organization
Mr. Mckenzie was a reluctant wit
| ness, and when numerous quotations
from the minutes were read and he
| was asked to explain them in detail
| his memory proved at fault. The Sc
lection Of the excerpts from the min
| utes by the attorneys for the COM
plainants were made in an apparent
| attempt to show that a binding rela-
| ton exists between the Washington
| association and the San Francisco
! board of underwriters
Relate to Rate Matters.
These excerpts relate to rate mat
| the Washington to the San Francisco
| board; to suggestions made by officers
| OF that association and adopted by the
| Washington association; to visits of
the officers during the meetings of the
executive committee of the Washing
| tor association and the payment of
| their expenses, and to other matters
| along the same line. Mr. Mckenzie
was unable to explain any of these
| matters in detail.
1t was brought out in his testimony,
| however, and from the Introduction of
| the minutes of the association that in
| 1901 Mr.. Mckenzie took to San Fran
cisco 1000 tags from mis- Office show
ing divergence from the schedules
| fixed by the association and which had
| not been corrected by the companies;
| that he had submitted them to tne
Washington advisory board in San
Francisco, and that they succeeded in
getting all but $50 of the tagged poll
| Cies corrected.
The more recently promulgated rate
schedules on wood working plants was
| taken up in detail in the effort to prove
| that the San Francisco underwriters
controlled the rates in this state
| through the Washington association.
| This schedule grants a credit for the
| p'acing of certain sprinkling appli-
ances in the mills and also provides
! that if sucn a credit reduces the rate
below the heretofore accepted mini
mum that such minimum may be re-
duced accordingly After a lengthy
! examination the direct question was
| put to Mr.. Mckenzie, as follows:
Made in San Francisco.
Wasn't the rate made by the COM
| panies or board of fire underwriters
in San Francisco promulgated by your
Officer"
We'll. yes" as the reluctant reply.
An effort was also made to induce
| Mr. Mckenzie to admit that he was
worlin for the insurance companies.
He Insisted tnat he was not working
for the companies but for the Wash
,neton association He was asked if
he didn't get his pay from the COM
| NAMES. He insisted; that he did not,
| although ne admitted that all the in
| ,c.ne CT the association came from as
easements uron the companies.
| Then, as I understand you,' said
Mr.. Stratton, "the companies make
present to the asstcia ton Of the money
required to meet it's expenses each
wear ana that you receive your pay
from the association"
| "Wcll. yes, if you want to put it
that way"
| The crcss-exvmination was con-
tiuued by Attorney Fl. T. Granger, of
Seartie. who went irto detail as to the
manner of fixing rates.