The Hawaiian gazette., 1910-05-03
INSURANCE RATES
MAY Be RAISED
Underwriters Are Dissatisfied
With Present Conditions
in Chinatown.

Instead of any reduction being made
in the price of Chinatown insurance,
there is every prospect that an advance
in rates will be announced unless some
radical improvements are made in the
condition of the buildings. The under
writers are mighty doubtful about the
advisability of continuing the insur-
ance in certain districts at present
rates and there is even chance that
insurance ON some buildings may be
Cancelled
For some time the underwriters havel
been greatly dissatisfied with condi-
tions in Chinatown and it has only
been with the hope that people would
be induced to better the state of affairs
that insurance has been continued. But
instead of getting better, affairs have
gotten rather worse and one of two
things is pretty sure to happen-the
price of insurance will go up or the
underwriters will absolutely decline to
continue carrying the risks any longer.
| The destruction of the Orpheum has
called attention to the pressing need
for reforms and when Secretary Gurrey
of the underwriters returns from Ha-
wall he will probably take the matter
up. Then the property in the
district affected will have their choice
between lettering their conditions,
without insurance.
| At the present time insurance rates
| in Chinatown range from six to eight
L, ba ht,ci n nsS
district the rate is from 1.25 of l per
cent to lie of l per cent. This is not
very different from the rates in force
on buildings of similar class in most
mainland cities, and is considered
pretty satisfactory by property-owners.
| The Yokohama Specie Bank, which
is the only Office building of the high
est class in Honolulu, is insured at
rate of IA of per cent. In New York
city buildings of the same class are in
sured at the rate of Is of 1 per cent.
This discrepancy is due to the fact that
the Specie Bank building is the first
structure Of the type to be erected in
Hawaii and no provision for such
methods of construction has been
made by the underwriters. AS the
general type of buildings here improves
it is generally believed that better
rates will be granted by the insurance
companies.
The erection of the Yokohama Specie
Bank building has had salutary effect
upon building operations here, and al
ready other propertyholders are talking
of putting up structures of ike ma.
ture. The initial outlay required is of
course much higher than that necessary
to erect an ordinary brick structure,
but on the other hand the subsequent
cost of upkeep, including insurance and
repairs, is so much less that in the end
the highclass building is much the
cheaper. The proportion Of the cost of
the building that must be written off
every year for depreciation is much
less in a modern, strictly freproof
building than in a structure of the
older type.
It is confidently believed by those
who are conversant with the insurance
business in this Territory that the pass
age of the building ordinance which the
supervisors are now considering will
have a salutary effect on insurance
rates. If the provisions of the ordi-
nance are enforced the danger from
fires win be greatly reduced and, IN
consequence, the underwriters will be
justified in granting rates which at the
present time are out of the question.
The proposed ordinance, as it now
stands, is far less drastic than those
in force in the large cities of the main
land, but it is believed that it will an
swer the purpose here pretty well.
building ordinance is of necessity
bulky and that which has been drawn
up is no exception to the rule. On the
other hand it contains only about one
sixth as much as the Los Angeles build
ing ordinance and about one-fourth as
much as that in force in San Diego. =
The Los Angeles building ordinance
is considered by architects to be a
model piece of legislation and the
draft which the supervisors will short
ly act upon is modelel to a considerable
extent upon that law.
! The finishing touches have now beer
given the ordinance and the document
!, will probably receive its first reading
! at the next regular meeting of the
] board of supervisors.
That there will be strong opposition
TO the ordinance in certain quarters II
evident, but the reputable business
community will stand behind it and the
civic bodies will probably take officia
action commenting it. The merchants
association will probably pass resolu
tions endorsing the proposed legisla
|, ton lust as soon as the ordinance is in
trodueed into the board on first read
ing.
; Architect Kerr, who is the rea
: father of the building ordinance, ha
given great deal of his time to draw
ing ii mp, and Secretary Gurrey of tn
board OF underwriters has placed hi
services al the disposal Of the commit
. tee which has the ordinance under con
sideration.
One OF the departments of the pro
posed ordinance deals very fully Will
1 iheaters, The plumber Of exits il hpeei
. fled, the style and construction of th