Daily press. [volume] (Newport News, Va.) 1896-current, 1910-06-11


ago. He had read OF such wars IN
other places. MIR. Leckey was stili
or the stand when court adjourned
Tor lunch at 1850 o'clock.
When he resumed the stand at 2;5O
o'clock. Mr.. Lecky questioned by Mr.
Bachelor. said the basis upon which
Capt. Berkeley had made the est'-
mate showing that insurance pr)nts
are larger In Virginia than In New
York. proportionately was misleading
and erroneous. because the average
rate Is of no value In estimating
profits. He said the increase in the
local rates OF ten percent was not
retaliatory act; that the rate was IN
creased TO meet the increased cost
OF doing business Witness Thought
the Virginia committee and the coun-
Gil OF Newport News had erred IN
this matter. the council. he said,
should have remembered that all OF
the money paid into the treasures
of the insurance companies comes
out OF the pockets of the people, lie
thought IL the council had conferred
with the Virginia committee before
increas the license tax, an agree
ment could have been reached by
which trouble could have been avoid
ed. Questioned by Mr.. Read. the VIII
ness said the Virginia committee
would have failed in its duty had II
not applied the additional ten per
cent when Newport News LEVIED an
excessive tax Answering Captain
Berkeley. the witness said that while
the captains method of estimating
insurance profits was erroneous. II
was fact that insurance profits IN
Virginia are greater than in New
York. Captain Berkeley asked II II
was a fact that, although the profits
are greater in Virginia than in New
York, the insurance companies
would impose increased rates be-
cause of Increased license taxes IN
order to maintain the profits at the
high level. The witness wanted 10
answer the question by an iiiustra-
ton. and when Captain Berkeley in
sisted upon a direct answer he said
he did not understand the question.
After some discussion, Captain Berke-
ley said il the witness did not wan,
to answer the question he would not
insist upon il.
At $3.50 O'Clock Mr.. Lecky was ex.
cused from the stand after an exam
inaticn lasting nearly two days.
Edward w. Butcher.
Edward w. Butcher. secretary oil
the Petersburg Savings and Insurance
Company. was the next witness. lie
testified that his company is not a
member of the Southeastern Under
writer's Association; that his Office
represents in Petersburg a number
of insurance companies which do be-
long to the association. His company
writes insurance at the rates promul-
gated by the Southeastern Under
writer's in Petersburg as well as in
Newport News. He thought some
policies had been written for his com
pany in Newport News since May II al
the old rates. He thought the action OF
his company in regard to this ten per
cent increase would be governed 70
considerable extent by the result
of this case. His company used the
underwriters rates because 1t would
lose its business II it charged higher
rates, and would lose its money If II
charged lower rates. He knew that
II his company wrote insurance AT
lower rates than those fixed by the
Southeastern Underwriters Associa-
ton 1t could not get reinsurance In
the associations companies. CUES
toned by Mr.. Bachelor. the witness
said his company used the associa-
TONS rates because it considered II
good business policy 20 do so.
L. c. Mears.
L. c. Mesrs. of Accomac county,
secretary of the Eastern Shore Insur-
ance Company, testified that his COM
pany. which does business only on
the Eastern Shore. is a member OF
the Southeastern Underwriters Asso'
ciat-on and writes at the association S
rates. His company joined the as
ISOLATION because its members knew
nothing about the insurance business
and needed a guide.
L. 7. Dolby.
l.. T. Dolby, resident secretary oil
the Seaboard Insurance Company al
Norfolk. testified that his company Is
a member Of the Southeastern Under
writer's Association and writes insur
snce at the associations rates. He
represents several companies in his
Office, one OF the companies not Icing
a member OF the association The bus
f,oss ~ an .ha ~onn,nfes intending