Daily press. [volume] (Newport News, Va.) 1896-current, 1910-06-15


always handled the business OF the
Continental through the stamping Of
flee, the company having given him
the privilege of doing this II he so
desired.
Questioned as to whether the fif
teen "non-board" companies could
handle all of the local insurance.
the witness said he believed they
could. with the shipyard property ex-
cepted possibly.
"seem TO Think Agents Were Afraid"
Mr.. Bachelor asked il there was
any connection between the $500
policy written for Mr. Meyers on May
M and the warrant in this
case. Witness said that Mr..
Meyers had been doing a great
deal of talking about what he could
and could not do. seeming TO think
that the local agents were afraid to
write him policy at the advanced
rate, so he. the witness, wrote him
the $500 policy. d.
Questioned by Mr.. Lett the witness
said II Meyers Brothers carry SOS, 1000
insurance on their stock their annual
premiums amount to 1924, and the in
crease in rates would mean S92.40 ad
ditioDal cost to that firm. Referring
to one OF the publications in evil
tence. the witness said that the
average cost of doing business to the
fire insurance companies of the
country during several years past had
been about 80 per cent, while the cost
to the Virginia. companies he had
named had been AS; the average of
commissions paid agents in the cOun-
try had been more than 81 per cent,
while the board companies in Vir-
ginia pay commissions of Il per cent.
The agents commissions are in
! cmded in the cost of doing business.
The witness said a general agent
of the Continental company had told
him that the company would write
him a letter directing him to make
an increase of from IL to II per cent
in rates on account of the excessive
taxation here, but the letter had
not reached HIM. Another non
board" company had declined to con-
iinue doing business here unless he
agreed TO have his commissions re-
cuced TO 10 per cent.
Mr.. Lett wanted to know whether
the "non-board" companies doing
business here could handle all of the
local insurance without Reinsurance.
The witness thought they could not.
r. w. Reynolds.
r. w. Reynolds testified that his
firm represents twelve insurance
companies. and that all are board"
companies except the Fidelity-PhOeniX
and the Fidelity Underwriters. His
Office uses the underwriters associa-
tons rates for all companies, and
reports through the stamping Office
on the business of all except the
Fidelity Underwriters. He had, in a
few instances, used rates other than
those of the association, when he
did not think the associations rates
were equitable. Witness said that
when he first went into business he
signed an agreement not to receive
from any company commission of
more than Il per cent. Later some
law in Virginia went into effect
which made such an agreement il
legal, and they were all cancelled.
Theowitness said he got a pink
slip" and had obeyed it. He had
rot "obeyed" the slip as to policies
on property located outside of the
city.
Mr.. Reynolds sent to his office for
the associations rate book for 1903
He said the principal object in revis-
ing this book in 1908 was to correct
trrors as to numbers and bring the
book up to date. Some reductions in
rates had been made at the time of
the revision. although as he under
stood it reduction in rates was not
the object.
Questioned by MIR. Read, the witness
said he thought that at least S25, 900
of the 100000 collected in premiums
here last year come from the ship
yard and property located outside of
the city. He thought the loss'of bust
ness resulting from the increased rate
would be from Is TO 90 per cent. He
knew of a number OF property owners
who were not renewing their policies.
Court adjourne at a few minutes
otter O'Clock. Justice Brown saying
that he supposed mapy of those pres
ent desired TO go through the form
OF voting