Daily press. [volume] (Newport News, Va.) 1896-current, 1910-08-21
THE FIRE INSURANCE GoUGE."

The Fire Insurance Gouge" is the
striking title OF an article by Allan
l.. Benson appearing in the August
number of PeaTson's Magazine. The
title Is calculated TO catch the eye OF
ahe local public on account OF the ex-
perience we are having with the In
surance Trust just at present. and the
article is Of particular interest 10 us
for the same reason. although IL does
not deal in detail with the phase OF he
"gouge" against which Newport News
is fighting.
An editorial note accompanying the
article says:
Fire insurance has come 10 be look
ed upon as one of the necessities OF
life. ... Many indignant words have
been uttered in criticism of the system
by which rates are made and maintain
ed and BY which the rules governing
commissions TO agents are operated.
Some people say that these practices
are In Gross infringement of the anti
trust and anti-conspiracy laws. Per
haps they are. We do not know, ana
In this article We are not concerning
ourselves about those features of the
fire insurance business. In this ar
ticle We are concerning ourselves
with the most vital feature of fire in
surance practices-that feature which
makes il possible for the companleS
To accept payment for insurance with
out insuring.
Mr.. Benson declares that ii'e in
surance policy shows on its bigpr'n'
face thst il was made To sell" and that
IL shows In it's lne-print heart that
IL was net made to cover losses The
company that sells the policy. he says.
does not intend. IN the event Of fire, 10
nay the insured what the policy mas
led him TO expect. Then he goes on
to. cite numerous instances Illus rating
the methods adopted by the companies
TO cheat the policy-holders who suffer
FIRE losses. No legitimate claim ever Is
paid in full he asserts. unless com
pany is forced TO pay what Is due by
suit or threats to sue. The co-insur-
ance clause and other 6evices for fool
ing he insured. the failure OF arbitra-
ton from the insured's standpoint and
the -ssmethine OF for immediate set
Element" scheme are all discussed and
illustrated
In conclusion the writer says:
In no circumstances should busi-
ness man forget the potency Of a
threat TO sue. And. Il the threat does
not bring Justice. he should sue
ssreng arm methods are the only ones
that can be successfully used In
strong arm game.
Losses by ere in Newport News
h.ve been so insignificant that the
local public has not had its attention
directed particularly 20 the adjusting
feature individual policy-holders prob
ably have had reason to compiain OF
the -gouging~ described by Mr. Ben
son. but the losses here have been
so few. far between and small n
amount that The protests Of the
~gouged~ have no, reached the general
public.
However. this city has had is share
Of the ~gouging- in another direction
IN the matter q rates. Excessive rates
have been imposed here Tor years. and
just now We are paying a penalty Of
ten per cent on premiums because the
city council refuses to allow the Trus'
20 distate to the municipality in ihs
matter Of license tax charges. We are
nov waiting sor the courts to decide
whether or MOI the methods Of tn
Trus. are criminal. and In the mean
time the property owners are psyiu,
for inst as little insurance ~ pract.
cable