The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-26
SOUND INSURANCE SCARE.
COMPANIES NEED FOSTERING,
NOT CLUBBING.
Exchange Defers Action Raising Rates
n Condemns Anti-COmpact B1l
Sealing Down San Francisco Losses
Within Surplus Of Man, Companies.

Sealing Down San Francisco Losses
Within Surplus Of MANI Companies
At a meeting OF the New York Fire In
surnnce Exchange In the Mutual Life build-
ing yesterday the companies entered into
a general agreement not to rewrite any oio
policies before their dates of expiration
or cancel any in the present crisis This
action was taken chiefly to head on the
applications which 1t is expected will CONF
In for extensions on existing policies be-
cause of the talk about raising rates For
instance, the man who has q policy on prop
erty for a three year period might, in view
of the agitation Of the rate question, seek
to have the policy cancelled and reinsure
for a longer period under the present
schedule.
The question Of increasing the rates was
taken up, but there was a wide difference
Of opinion, and it wasthe decision oil the
exchange that nothing radical ought to be
done until the full details OF the San iran
cisco fire loss are known to the companies.
A committee was appointed to examine
into the rate question M also into the gen.
eral conditions among the companies
This committee will report to the exchange
as soon as il is able TO get definite iniorma-
ton. There were seventy-three insurance
men at the meeting, and nearly all OF the
companies in this State were represented.
Several OF the fire insurance companies
hit by the San Francisco con1agration
think they nave worked out pretty reason
able estimates Of their losses. The German-
American Company announces that the total
amount which il has at risk in San Francisco
is less than So, 900, 600. The cash capital and
net surplus of the company exceed sS,OOO,0oo'
Officers of the Niagara company say that
they will lose net, about $l,0O0,0O 0 The
company's surplus is $1,000 600. The OIL
Gers of the company say that they nave
learned that the San Francisco offices were
completely destroyed, as were also all OF the
company's records in that city.
The Queen Fire Insurance Company
people say their losses will aggregate 81 $780,
600. The surplus Of this company is $780,
600. A despatch from the company's San
Francisco manager says that the records
of the company there have been destroyed.
Manager Hampton of the Hartford Fire
Insurance Company, which was one OF the
hardest hit, said yesterday that the company
had not received any detailed information
from San Francisco yet, but the officers OF
the company assure him that the aggregate
oss of the company will be less than. the
company 3 SUI pluS' u puS "'NN'
SO, 10000.
The estimates of the fire insurance ex-
merits on the total loss to the companies
continues to vary greatly. PRESIDENT Snei-
don of the Phoenix places it as low as $780,
600. 600, but the majority say 1t will be be-
tween Sl25 600, 600 and $3.50. 900, 900. Most
of the New York experts think the State
Insurance Commissioner of California Is
too high when he says the total loss VIII
be $175 900 600. "
action was taken against the Smith anti
compact bill now pending before the State
Senate. This bill prohibits fire insurance
companies from acting. together In raising
rates and on other similar propositions.
Henry Evans, president of the Continental
Insurance Company, said:
"The passage in the Assembly OF TIE
so-called Smith anti-compact bill, which
has for its avowed purpose the crushing
Of what does not exist-the fire insurance
trusts a greater menac to the mercantile
interests OF the State than it is to the fire
insurance companies.
Fire insurance rates are very largely,
and especially in this city, computed by the
annlioation OF a detailed scheduled which
charges for each structural defect and gives
credit for every unusual fire fighting de-
vice, the result being that each property
owner makes his own rate. Could any
thing be fairer than thi, method of arriving
at a proper charge? No company could
afford without greatly increasing its rates
to do this work, hence there is an organiza-
ton which does it for the companies, min
imizing the expense to each:
New York merchants had trouble to get
good insurance before the San Francisco
coniagration, and after the fire losses, in
that city are paid or charged as liability
TO he had. and il behooves the civic organ
i%zations, like the Chamber Of Commerce;
Trade and Transportation and Merchants
Association to oppose the passage of this
hill in the Senate.
"The fire insurance interests need foster
ing, not clubbing. Supply and demand
competition-control the making Of fire In
suranee rates, and the combinations are
necessary for the economical conduct OF
the business. If the rates charged are too
high, if they yield an undue profit, why not
start new fire insurance companies?
ANY one with 500 600 can start a fire IN
York State. but very few are started.
and 1t is harder for a new company to have
success than it is for a camel to so through
the eye of a needle or a rich man to lSee p out
of Hades.'