The evening world., 1910-12-06
Counsel to Legislative lnvesti-
gators Plans to Control the
Fire COMPANIES.
PROBERS KEEP AT WORK.
Force Manager Of New York
Exchange u Admit That
Trust Is LBS

Former Judge NJ. Linn Bruce. couusc
to the Legislative investigating Com
mittee that is probing the fire Insurance
companies believes the State shout
have SUPERVISED over the fire Insurance
trust and have power t. nx Insurance
rates just as the Public Service COM
mission hx railway. gas, electric ami
telephone rates.
The committee to-day delved further
Into the methods by which the fire
Insurance trust maintains Its monopoly
In this city. Judge Bruce drew from
Willis o. Robb. manager ~ the New
York Fire Insurance Exchange, the adj
mission that the trust monopoly ls alb
solute.
ar. Robb declared that there would
never again be competition In fire In
surance rates and that monopoly was
necessary.
Although the monopoly became abso-
lutte In this city rates have been in
creasfng. Mr.. Robb admitted that be-
cause OF the Increased efficiency OF our
hre department and the development In
hrepoof construction the ratio or fire
loss was gradually decreasing.
Mr.. Robb testified that 10 PER cent. Of
the premiums collected were used 10
Q expenses.
The evidence so far presented. said
Judge Bruce. seems to Indicate that
the Exchange absolutely controls the
nre insurance In this city. IL that so?'
NO. said the witness. "A man can
ret Insurance from . not adj
united TO do business In this state"
That IL. he can disooey tho law and
6ss insurance." commented Judqe
Bruce.
What percentage Of insurance IL
written by other than members OF the
E~xchanse?" he asked.
Il don't know replied Robb.
=. b how mucn? A. don't
knew at all.
O. Do you think II ls ninety per cent.
A. Possibly.
Y. IL any licensed broker permitted 70
90 business for companies not licensed
10 90 business In this State? A. Yes.
II u stated that In order to write for
such companies the broker mus, get nm
amdavit from the assured that he can
not get insurance from a member OF the
euehange7
Asks About Monopoly.
q. II has been alleged that the ex-
change IL a combination which absolute.
~ controls and hxes the rates. Ia thar
trueT A. The Instant rates are too
profitable there will be n break in the
exchange unless the rates are amended.
Q. Lets get down to the facts.
70 IL not r that hro insurance
70 absolutely controlled by ths az
ehanss7 A. That 10 substantially
true. There win never again bo a
yevtval Of compststivs rates. Rates
VIII BE- nxed uniformly In some
way.
q. Don't you feel that such an organl.
sAtion as the Fire Insurance Exchange
should be undeer state SUPERVISION A
] have no reached a conclusion as &c
the answer TO that question. | am con.
vineed that for some time such a thinl
would be II calamity.
Q. Fire lEsurance II a necessity (,
the people. DO you thlnk any govern
ment should allow "A combination Of moi
TO control the price OF a necessity? a
II the State could do the work AS wei
as the underwriters now do. II would b.
different. The average rate OF insur
ance In New York II lower than In an,
other State In the Union.
q. In all fairness to the citizen VIII.
must 30 TO the monopoly for what n
needs, should he not have a right I
appeal. say 10 tie superintendent o
Insurance? A. In this city he has al