The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-06-15
FIRE INSURANCE
J AGENTS DIFFER ON
RUL|NG'S EFFECT
Predict Increase of Rates Will
Follow Adjustment of the
Newark Exchange.
OTHERS THINK DECISION
MAY BENEFIT BUSINESS
Malcolm MacLear Suggests Ice
Trust and Coal Pool May
Suffer Next.

Fire Insurance men who were inter-
viewed today on the decision handed
down by Justice Garrison, of the Court
Of Errors and Appeals. yesterday de-
c)r shat the Newark Fire Insurance
4ange was an unlawful combina
tioa, differed widely in their opinion as
to the effect on the insurance field in
this State. Most of them painted the
future of fire insurance in the blacklist
colors, while minority thought that
the decision would bring about con-
dition beneficial to the insurfng pub
lie and to the companies themselves.
1T means the end Of insurance in
New Jersey" said Robert O'Gorman.
IT the exchange is put out of busi-
fess underwriting in the entire country
will be revo1utionized. Every city, town
and hamlet practica1lyhas its exchange
where rates are made. The abolition
OF the exchange means lot of cut
throat business, and the ultimate with
drawal Of most of the efcompanies from
the State They could not do business
It would be horrible thing for every
one. Banks would not be ready to
take mortgages because they want to
be pretty certain that man is well
protected by fire insurance before they
are willing to advance him money"
A Damaging Outlook.
The idea that the exchange is estab-
l!shed to make big rates is a mistake.
II does not believe in big rates, and
does not try to make money that way.
The object is to get more money by
making better risks, and making it an
object for the insured to make i'm
provements.
Max Blasberg. of the firm of Blasberg
= zeigler, could see no advantage to
anyone.
Rates will be no lower" he declared.
Each company will have to make its
own inspections, and for each company
to have copies of the record now kept
by the exchange means enormous ex-
pense.'
If the exchange goes out of busi-
mass and no arrangements can be made
for 3 rating bureau. 1t will mean that
tWn-thirds of the fire insurance COM
panies will withdraw from New Jer-
sey,'s said S. S. H. Williams, Of Guerin,I
steAdnan e Williams. II am afraid
if it catnA to rate war we would have
difficulty in finding enough companies
to cover our insurance.
Not Much I'm Underwriting.
'There is not barrel Of money in
underwriting at the present rate. That
is not where the companies figure on
making money, but on their invest
Iaerts.'
siegfried Leschziner was one of the
optimists.
II think 1t is very good decision"
he said I'm some cases the rates fixed
by the exchange were entirely too high.
Injury was done to the property-owner
and to the company. If we can have
open competition we may upset some Of
the rates established BY the exchange
without consulting anyone.
"The exchange would be all right If 1t
would fix just rates, but in many cases
there was a tremendous increase with
out reason, and there was no redress.
THE city would be able to save great
deal Of money on its insurance, for in
< stance, If 1t were secured in open COM
peIition. I believe in corporations. but
think they should be run right"
At the exchange, headquarters. in
Clinton street, there was no informa-
ton to be gained. j. M. Hughes. the
unanager, declared that there had NOT
been time to go over Justice Garrisons
decision, and that officially he did not
know anything about it.
Il can say nothing at all about 1t
now" he declared. Our counsel, Rich
ard v. Lndahury, has not yet been
consulted. and until we talk 1t over
with him we can say or do nothing"
At Mr.. Lindabury's Office it was said
that he had gone to Trenton.
Coal and Ice probe.
Judge Malcolm MacLear, who ,waged
day that he intended, as soon as possi-
BILE, to take up similar cases against
the "Ice Trust and the New Jersey
Coal Dealers Association. The suits
would be brought in the name of the
Encouragement, as had been done in
that against the fire insurance men.
ty4do not expect nearly as much
trouble as, / had against the Insurance
exchange. Judge MacLear said. ''It
was charged against me that insurance
was not necessity That cannot be
said about coal, anyway.
"This is the first reported case in the
United States where it was decided
that the attorney-general has the
mower to step in and bring suit where
there was no offense against statute"
For the past three or four years bills
have been introduced in the Legisla-
ture providing for this very thing. They |
all failed. Now we know that they are
not necessary and the attorney general
can go ahead as he has done in this
case.
Case Against Coal Dealers.
"The case against the coal dealers is
clearer. With them the number Of
members Of the xchange is limited and
q certificate has to be purchased before
one can join. AS there are only cer-
tain number of certificates it means
.that a dealer who wants to join must
purchase one Of these certificates from
the person who holds it sometimes at
an almost prohibitive price.
'aWfth the ice dealers it is little
(Contfnued ON Second Pasc.)
73on't forget the Eagles excursion nexti
"A "