The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-04-26
INSURANCE RATES
WILL Be ADV ] |. ANC |.
uALIFoRNIA CALAMITY FORCES
COMPANIES TO ACTION.
Local Underwriters Are Advised by
western Union Governing Board to
Refuse Pro Rata ellations Min
nesota and Dakotas win Be Affected
B by Advance. 4. ss2s 4 .i8| TIA s.ss +

70 - P g T. =. ! -
Fire insurance rates are TO be adj
vanced as result Of the losses sus-
tanned by the companies IN San Fran
cisco. 500 .5.s..#s5 : = Ess. 80 !. l5
Minneapolis will feel this increase
with the rest of the country. Already
the superintendent Of the local boards
of underwriters in Minneapolis and St.
Paul have received orders from the
Western Union governing board In Chi
cago not to accept pro rata cancella-
tions Of policies. AS a result Of this,
will be unable advantageously to cancel
their existing policies and insure for
long terms at rates existing prior to the
time of the coming increase. s: . /. s
INSURANCE. company officials have
asked for general meeting of company
representative to be held ins'the near
future in New York. The Western
Union will send a committee Of five to
attend this A similar committee will
attend from the south. These, with
the eastern men, will compose the con-
vention which will decide how much Of
fat raise in rates must be made and
when it shall 60 into effect. -
Nothing Is Definite.
| 1T have heard in the last few days
| that there would probably be an adj
vance in rates." said j.. A. Brant, sec.
rotary and superintendent for the Min
| neapolis board of fire underwriters, TO-
day, "but 7 have no idea that there will
be any definite decision as to that in
crease until the companies hear more
in detail from San Francisco as to just
what their losses are. My information
erning committee Of the Western Unio1
to the effect that the companies might
be obliged to increase rates because Of
the San Francisco. disaster. That is all
I, have had no positive information. II
fact, I do not see how the companies
can do anything until they know bette!
how they stand It may take some time
to fix definitely what the loss is. x:
have heard that in San Francisco Their
was q form of fire policy written which
contained an exemption for the com
pany in event Of an earthquake, but :
imagine the courts will be called upol
to rule on that. In any event, the los
will be large.'
Northwest Is Involved. - -
There will be a meeting in Mime
apolis within a few days Of the Mime
sofa and Dakota board Of fire under
> writer's to consider the San Francise
, , disaster. So says Walter I. Fisher, it
; secretary and, superintendent. Thi
board is not directly under the Wes1
ern Union, as are the local boards 0
the twin cities, but in that Representa-
tlves of union companies have ms
jority vote at the board meetings, tn
action Of this organization will doub
less be in accord with what the Yves
ern Union. thinks necessary. TIL
\ means an increase in rates in the D,
J kotas and Minnesota outside Of IL
twin cities, over which this board hs
control. The Minnesota and ,Dakot
/ board is in harmonious touch with mo-
= of the leading mutuals, and these mi
j. tuals will doubtless follow any actic
s which the board thinks best to take.
j. "That portion of the insuring publ
d which has always objected to the ere
d ton of a large surplus by the insurant
J, companies, ~ said Mr.. Fisher toda
O "can now see the necessity of lit. Wit
y out a large surplus to draw on, mar
o OF the companies would be unable
d meet the demands of the SAM Francis
II policyholders. Such increase in rat
Q as may be made will only be such
the management of the various co,
t. panies believe necessary under the rul
10 of good insurance BUSINESS 'r'