The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-27
INSURANCE RATES RAISED.
SMALLER COMPANIES ACT FOR
MANHATTAN AND BROOKLYN.

Advance Runs From 8 10 so Per Cent. In the
ConEested Observation-Disclosures Com.
mlttee Observation-Disclosures Making
Good the 'Impalrments OF Surplus
Some of the fire. insurance underwriters
have increased rates without waiting for
concerted action by the New York Fra
Insurance Exchange. Hall & Henshaw
underwriters at 35 Pine street, who repre-
sent seven companies, said yesterday
that they had increased rates from 8 to 80
per cent. on property in congested DIS
tricts of New York and Brooklyn. The
wide range of the increase is due, they
said to the fact that they leave the fixing
OF the rate largely to the discretion of the
brokers, and opinions differ. Hall d Hen
shaw represent three London companies
and four Of the smaller American com
panies.
A. H. Wray, manager Of the Commerce ]
Union Fire Insurance Company n chair
man Of the New York Exchanges, COM
mittee which was appointed to consider
the conditions among the companies, gave
it as his opinion yesterday that there would
ultimately have to be a general raising OF
rates. This question of rates is the most
important that will come before the COM
mittee.
1t will be some time said Manager
Wray, before we can announce any efini
results. We are going to study this rate
question. The rate will probably have to
be raised sooner or later"
Mr.. Wray gave it ais his opinion also
that many of the smaller companies would
have to go out of business. AS the repre-
sentative of the Commercial Union, he has
been approached, he said. by four com
panies which wanted the Commercial
Union to take over their risks.
MANY small companies must go under
said Mr.. wray. Some of these will not
be heard from at all. They are the ones
which do most of their business by reinsur-
ing their risks; that is. they act with some
larger The losses are divided,
but their share will be enough to swamp
some of them"
The American Fire Insurance Company
of Philadelphia is said to have reinsured
its outstanding risks in the Commercial
Union The company, it is said, will oon-
tinue operative.
York Fire Insurance Company was quoted
as saying:
The New York Fire Insurance Company
which was chartered in 1882 and has paid
100 cents on the dollar for every just claim
during the last seventy-four years, although
it has met with a serious loss in California
which may probably reach $500 600, will
continue in business, and its principal d.
reotors and stockholders have already
arranged for all the new capital which may
be found necessary"
The surplus of this company on Deem
Der 81, 1905, was SO. ,8S9. Several other
companies which were hit hard enough
pra ctically to wipe out their surplus funds
have taken steps TO make good any impair
mant.
The Continental Insurance Company has
received from its Chicago manager, who
is head of the Western department, what
il ne a rds as an accurate estimate OF its
losses in the destroyed district. The gross
liabilities of the company are put at ST.
600 900. From this STAB 600 is deducted
for reinsurance. making the net loss
81, 926, 900. The total amount of insurance
carried by the Continental in San Fran
cisco was 81 500, 600, which indicates that
abou half Of the total insured value. One
of the Continentals executive officers was
in Portland at the time of the earthquake
and he went on as soon as possible TO San
Francisco. ,
The members of the committee which
the New York Fire Insurance Exchange
has appointed to consider conditions among
the companies was announced yesterday
as follows
A. H. Wray, chairman; G. f. Sheldon,
president of the PheniX company, Brooklyn;
Manager Eaton OF the Liverpool and n
don and Globe company: President Kremer
of the Genman-American company, and
vice-President +. A. Correa of the Home