The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-09-22
Those Operating Under Dean
Schedule, Face Critical Sit
uation, So Far as Rich
mond Is Concerned.
PRESENT RATES ARE
DECRIED AS UNJUST.
Mutual Companies Will Be
Asked to Enter Local Field,
If Present Rates Are Not
Discontinued.

There is every reason to believe old
line fire insurance companies are to
be given the rebuff by Richmond bus
mess men and manufacturers, who
own large plants. The reason is OBJ
vious. The old line companies have
issued statement to the effect no re-
lief from the prevailing high rates
may be expected. The assertion is
made the conditions of local factories
and buildings is such that the present
rates are not excessive.
But the local owners of these large
plants claim the assertions of the old
line companies are erroneous. AS
there is no longer hope for a reduction
of the rates, the business men will in
vite a representative of the various
mutual companies to come to the city
and deliver an address depicting the
advantages that may be derived by in
suring with his companies.
This means but one thing-if the mu-
tual companies can place before local
as fair in which rates lower than those
Of the old line companies are offered.
the insurance now carried with the old
line companies will be withdrawn and
placed with the mutual.
When the mutual companies realize
the cost of insurance for AZ plants
in this city amounts to almost 1000
annually It is expected they will be
glad to send representative here to
explain their lines of insurance.
Claim Unfairness.
The business men. represented by
the Commercial club. hold this city
has been treated unfairly and discrim-
mated against. They have sought re-
lief from the old line companies. The
New York Journal of Commerce is au-
thority for the statement appearing as
a news dispatch that no relief will be
granted and agents are urged to stand
by the so-called Dean schedule of
rates.
Rather than pay the rates that are
regarded as exorbitant. the business
men will withdraw from these old line
companies and insure with mutual
companies, following upon an investi-
cation and assurance the latter COM
panies are first class. The rates Of
fered by the mutual companies in some
| instances will be less than one-half
of those now being charged by the old
line concerns.
The question of fire insurance has
been before the Commercial club for
some months. Circular letters were
the city, and AZ answers were receiv-
ed. These sowed the increased cost
Of insurance brought by the recent rat.
ing is $S273.51, or 36 per cent
Local agents were asked to meet
with the club and they took up the
matter with their respective compan
les, but found relief to be impossible
A committee of the Commercial club
issued the following statement today
The insurance committee of the
Commercial club held a meeting last
night for the purpose of considering
a statement published in the Weste RI
Underwater. the official organ of the
old line fire insurance companies, and
also statement published under q
Richmond date line in the New York
Journal of Commerce. This was pub
| lished in Richmond paper and was
| read and freely commented upon by
our citizens and not in any friendly
language toward the companies pro
mitigating the report. The committee
declares that the statement is unfair
reflects seriously against the city's
good name and that the exceedingly
| low per cent of fire losses as publish
| ed by the companies themselves, dc
| not bear it out.
The article states that, after goins
| into the case thoroughly and employ
the plants applying the schedule, il
was found that the schedules were
applied with the best of judgment ant
| that the increases resulting are entire
ly due to the condition of the plants
1t is reported these plants are, as
rule, in very bad condition and where
there has been any attempt to make
improvements they have been done ir
very shoddy manner" And ther
proceeds to instruct its agents to col
] lect new rates. advancing any lines
that may have been written at lower
| figures.
| IF this statement is true. why die
Mr.. Sellers who made the rates anc
applied the schedule, when he address
ed the club in June. tell US that Rich
mond was so near perfect in fire pro
lection. that she ranked probably
| third of the cities in the state in thi.
respect, and that with some improve
ments made by our water works sys