Daily press. [volume] (Newport News, Va.) 1896-current, 1910-06-10

companies doing the same amount of
business here al his company, repre-
sented about seven percent. OF the In
come In this city The tax In Peters
burg. the witness said, is not as great
on his company as is the tax In this
city.
Examines Pink Slip.
Mr.. Leckey examined the famous
pink slip" putting the increase on
The fire insurance rates In this city.
He said his company received the
slip from the association. Replying
to questions. the witness said that
the policy of increasing the rates
when the taxes are increased has
been in force In the association for
many years.
Education and Protection,
Witness said that throughout the
history OF the fire insurance business
no legislative body, national, state or
municipal ever had enacted any meas
IRE providing for the establishing OF
a laboratory or doing anything else
toward educating the public along the
line of reducing FIRE hazard. He de-
scribed a laboratory maintained by
the association, and said that IL
would be impossible for any one com
pany to maintain the educational and
protective system kept up by the un
derwriters' association. The court
wanted TO know IL thescity council
OF Richmond, would not be likely to
adopt any regulations that might be
recommended by the board of fire
commissioners, of which the witness
was a member. The witness thought
1t would, unless too great an expendi-
lure were involved.
Questioned by the court the wit.
ness named a number OF counties In
the State which have independent
companies, and said that he did not
think the rates in these counties
were lower than those In adjoining
counties. Referring to standard insur-
ance publication handed him by Mr..
Lett, the witness said that in 1906,
the year OF San Francisco fire, the
total incomes of Insurance compan-
les reporting in New York was about
$500, 900, 600; that there were no net
Profits and that ss.305. 9el was paid In
was $500, 100000 and the total losses
S1S5,326.0o0. The witness was ques-
toned closely as to the business of the
own company. and stated that during
d long period of years his company
had paid 6 per cent. annually. ex-
cept for one year when no dividend
was paid, and one year, when a divi-
dend OF ~ per cent. was paid. Cues
toned as to the license taxes In this
city and Petersburg. the witness said
that, basing his calculation upon esti-
mates by Mr.. Lett. the taxes in Pet
crsburg would aggregate about $1I 900
as against $1,000 in Newport News.
Witness said that the recent in
crease in rates In Newport News was
made because of excessive taxation
Then Newport News was penalized
solely on account OF the rate of tax
ation?" asked Mr.. Lett The witness
replied In the affirmative. He said
that the Virginia committee had the
authority to pass upon the question of
what is an excessive tax, and to i'm.
pose the penalty. The ten per cent.
Increase imposed In Newport News
meant ten per cent upon premiums
collected.
"scsnt Courtesy" for Ncn-Boards.
Witness said that it Is a rule of the
association that there shall be no re-
insuring between companies that are
members and companies that are no.
members. Companies that are not
members are treated with "scsn5
courtesy" that is 10 say. they are no;
admitted 20 the councils OF the as
sociation OF permitted to take advant-
tge OF the surveys, inspections. etc.
OF the association. There is no con
nection between the New York boar
and the Southeastern Association
Witness was asked II his local agenf
shovid write Insurance for another
company AZ a rate lower than that
promulgated by the association. voald
the agent lose connection with his
company. he replied mot necessarily
So He did not know OF any agent
representing an association company
who writes insurance for any com
pany a. a lower rate than that pro
mulgs;ed by the association. Witness
did not know why the shipyard prop-
erty j. not subjected 70 The rules o:
The association he thought. how
ever. that u was because II was not
desirable 10 have interstate commerce
business subjected 10 these rules.
Questioned a. 10 the money spent nv
the underwriters IN fixing RATES. dissern
mating Information. etc. witness said
hat u vas not necessary for the,
siaie or municipalities 70 have oflcersI
70 give the people information ahosrt