The evening world., 1910-12-09
TRUST DOUBLED
INSURANCE RATE
Il on LONG ISLAND
Fire Policies on Freeport Bust
ness Houses Jumped From
IS Cents to $3.50.
RATE ON DWELLINGS UP
Il -
Legislative Investigating Com
mittee Told the Combine Is
Responsible for II.
RATE ON DWELLINGS UP

to-day before the legislative investi-
eating committee and testified that
sarrlns the last two years the Fire In.
eurance Trust has doubled the rates
for all the business property IN TINT
Village Of 5000 people. This increase
svas forced upon the village arbitrarily
BY the Suburban Fire Insurance Ex-
change. which is q part OF the rate
nnaklng machinery OF the Trust. II
operates on the same lines as the New
York Fire Insurance Exchange. The
Pate for dwellings was increased from
forty cents to mfg cents 4 hundred.
J. +. Kiefer OF the Board OF Trade
~ Freeport was the irst witness. lie
told Of the increase In ratep.
& "we have increased the efficiency Of
CUR fire department TO AZ high a
ytandard M possible" said Mr.. Kiefer.
1--WE have bought up-to-date APP
Saratus."
70. Have you done anything TO And out
fhe cause OF this increase? A. We have
asked the agents. and the only explana-
Nom Is that the combination has nxed
&he rates and that they have no other
recourse than to follow orders.
70. Are you rates fixed by the subur-
0an exchange? a. Yes.
10. In your own case, what was the
fhereasef A. Two years aso my In
eurance was % cents a hundred. and It
va jumped to $3.50.
Q. Was that n general increase. A..
Ties. on all business houses. No mat
let whether new buildings were put up
IN the vicinity or not.
Mr.. kiefer gave several instances Of
increases. He aid agents had Informed
hien that there had been a general In
ertase On Long Island. ,
b. Has there ever beer any great
mn loss In your community? A. No. sir.
IN the past two years we nave had no
NJ amounting to more than 500.
y. How long had the rates been in
existence before the raise Gamer A..
About twenty-five years.
Thomas w. Lucas. also of Freeport.
tStined that he IL an Insurance broker.
rtpresenting q New York brokerage
house.
f'whnt Is your experience in rates In
F~reeportr' was asked.
THE rates on residences have zone
~ from 70 cents 20 10 cents for the
three year period. On mercantile prop.
etky the rates have doubled. On Main
ptreet the rates are even higher"
Q. Prior TO this advance. how Ions
had the old rates been In existence?
a, Ever since ] knew anything about II.
Made by the Trust. 4,
2. Did YOU ever inquire Why the al.
0AnCRl mara vnuAA1 0vhz. -
the combination-the Suburban Ex.
change-and had to adhere to the rata
Dxed by the Exchange.
@. Have you q license from the sub-
urban Exchanged A. Yes. II / d,dn',
have . license ! couid not do business.
.. A. Heh. secretary and manager OF
ths Suburban Fire Insurance EXCHANGE.
Followed the Freeport citizens who made
these complaints to the committee. He
admitted that the exchange carried 90
Pc cent. of the ins,Aance ana that It
uxed the rates. Before Il was Organised
IN iso1 the Held was open TO competition.
ate said all brokers who obtained L.
censes had to sign a pledge to DO bust
psss with the exchange.
Ratss In Richmond Hill.
= setter was read from q commercial
organization at Richmond Han statina
that the rates had been increased from
% % 70 cents.
do you know whether that Il r Pc
~. Red was asked.
"Yss. Il Ii true" he said.
Q. Why was this rate advanced7 A.
TIL companies found the former rate un-
prontable.
Q. II II true tina this same advance
has taken place In the whole territory:
A. Yes.
.. Now. Mr.. Reid. II is shown here
that there has been an advance of rs Der
cent. on residences and nearly 100 pc,
cent. on mercantile houAes Can you pro-
duce figures TO show that the companies
were losing money at the old rates "a
that the committee can conclude WHISTLER
the increase is 1ustnabler a. That 4.
q pretty big Job.
Here's . Big Jump.
Another statement was that a. Rock
away Beach rates had been increased
500 per cent. The citizen who made Thu.
complaint said that he owned nineteel
BUNGALOWS At Rockaway Beach befor
the combination was formed. HIS insur
ance rate was l per cent. for thre,
years. but the exchange had boosted III,
rate 10 3 per cent, for one year.
Mr.. Reed frankly admitted that IN
former charge were the result of
rate war and that the present rate
were the TaRnlf NJ "a HpRAFaptIan n