The Montgomery advertiser., 1906-04-29
NO RAISE IN RATES
MONTGOMERY NOT AFFECTED BY
 INCREASED RATES.
Members of Local Underwriters' Asso- ciation Discuss Proposition to Make Country Pay for Loss
 e in Frisco Fire.

The proposed action of the big fire insurance companies throughout the United States, of raising rates to recoup the losses sustained by them In the San Francesca fire, Is not expected to af- feet rates for insurance locally. This statement was given out in semi-of- ficial form yesterday by a prominent fire insurance underwater of Mont gomery who has ben carefully study ing the insurance situation in Mont .gomery, with the possibility of a raise in rates in view.
 owing to the high rates already existing here." 1t was stated. T doubt If Montgomery will be included in any list of cities where an increase in rates will be demanded. At least with all the talk of increasing the rates. there has been no intimation received from any of the big concerns which have ben the heaviest sufferers in the San Francisco catastrophe, by their agents In this city that such an increase Is to be asked for.
 If Montgomery does escape the in- crease which is reported to be. In the planning in New York. Chicago. ana all the principal towns and cities in
 the country, 1t will owe its immunity
 largely to the fact which has been a chief cause of complaint by Montgom- | erians during the past ten years. Cnly | once in the decade juet passed, has there been any improvement in rates. While the rates were lowered at this | occasion. however. the premiums l charged are larger than In most cities of the same size, and Montgomery agents think that no attempt will be
 made to add to the already high pre- miums asked.
 rx,.trh If han hA@U thought might affect fire insurance in Montgomery Is one that has orig mated with the big companies in New York During the last few days, the western Union. the biggest associa- tion of fire insurance underwriters in the West, met In Chicago, and decided that an Increase will be necessary to enable the companies represented there to regain their former firm footing. Thus far, however, there has been no echo of either of these movements in Montgomery and it is not thought there Is likely to be. The reason for this. as has just been stated. Is that the rates are~now as high as can be maintained conscientiously. Only once during the last ten years has there been a decrease allowed in this vicini- ty, and that. while beneficial to the policy holders and the underwriters followed a raise which almost offset the god derived from the later action. In 1903. an increase of 25 per cent on all classes of fire insurance was
 declared by the Southern agents. In January of the following year, howev- CT, the Southeastern Tariff Associa- | tion was persuaded to re-rate Mont gomery with the result that lower rate than that charged previous to the I 1903 increase. was obtained All the | towns in the South are now working 1 on the basis of the encouragement of 1904, but this rate is higher than that | charged cities of corresponding size 1 in the North.
 The cause of this rate. the local | agents claim is the poor water sup ply system for the fighting of fires | Few of the Southern cities. they assert are supplied with adequate water pro- | lection from confiagrations. Another cause of dissatisfaction to the agents | and one which they claim Is most largely responsible for the rates being | as high as they now are, is the license charged by the city for companies do. ing business here.
 l While the rates charged fos insur' ance In Montgomery are high. they are considerably less now than before l the decrease secured in 1904. Prior te that date. houses which were exposed l on one side. that is, within fifty feel | of another building, on one side. were rated at twenty-five cents additional to the regular rate for the exposure l Under the present regulation, Nifty | feet has been set as the exposure distance" and the rate charged Is twenty cents. Buildings with two ex- posures in 1903 were rated $1.45 high CT than the regular rate,' whereas they are now only $1.25. Other modified tions secured in the re-rating of 1904. affected the protection of sky-hghts. | nroyisions for parapets on tops of buildings, and other matters of like nature.
 Notwithstanding these decreases. however. in view of the fact that no word has reached Montgomery, mem- hers of the local fire underwriters as- sociation. do not believe there will be any raise in the rates in this sec- ton.
 Montgomery today" said one of the leading Insurance men ih the clty yes terday afternoon, with It's Sb,O0o pop,Nation is rated as high as cities l of 100000 inhabitants in other parts | of the country. I believe 1t would be extremely unwise for the big com panies to force a raise in insurance rates in this section at this time. It would probably resufr in larger prof it's for the agents, for the insurance commission would remain unchanged. But the effect upon Montgomery busi- ness. rated high as 1t Is at present I firmly believe would be bad"