New-York tribune., 1910-12-01

insurance clause would call for an In
surance of 5000 These were:
IF the assured carried 5000. and the
loss was total. he would receive SS,UD
the full amount of his policy; IL the as
sured carried $500. and the loss
amounted to $4,000. he would receive
the full amount of his loss. $1,000: II the
assured carried $1,000 insurance. and the
loss was sc. 600 he would receive 6tsp-
5000 Of the loss, 81. 500. and would stand
ooOO-S0OO of the loss himself, S1,30o, ne
having elected to do so before the fire by
taking out too small an amount OF IN
surance.'
one other possible case based on the
same premises, Mr Bament did not put
frto the record. Professor Whitney the
actuarv of the committee, afterward eX-
plained it as follows: IF the assured
carried $1,000. and the loss was total.
o- s10Dan. he would receive the fuli
amount OF his policy, because 6Uco-ce'"
of the loss would be borne by the com
panv. under the co-insurance clause anu
in case of -otaI loss. that traction OIL
s1oOopp would amount to more than the
face of his policy.
NJ. o. Brown, vice-president OF lie
Westchester Fire Insurance Company
chairman of the committee on laws and
legislation of the National Board of FIRE
underwriters and a member of the same
committee Of the New York BOARD OF
Fire Underwriters, took the stand Tor
short period. He told the committee
that the boards of which he was a merl-
ber had nothing to do with the hxlng Oh
rates. and that for the New YORK III!
district that work was attended TO oy
The New York Fire Insurance Exchange
III Stoddart. of the insurance firm OF
A. & J. H. Stoddart, was the next Wit
ness He explained to the committee lhe
method of procedure under Whicn nre
insurance company opened UP business
in this state under the insurance laws
Mr.. Stoddart contended that 1t would De
serious mistake for the Legislature to
/ take any steps tending to reduce pre-
r7i1r rates. because that would tend to
| drive capital out of the fire insurance
| business.
The whole capital of the fire insur-
ance business" said Mr.. Stoddart, Is
| subject to loss by con1agration at any
/ time and even as the rates are now the
business does not attract new capital.
Questioned as to the rate fixing power
/ of the New York Fire Insurance Ex-
| change. the witness insisted that the
members of the exchange would not be
! bound by those rates if any one of their
| companies thought the agreed rate too
| high.
rs there contract which each COM
! pany signs on becoming a member of
the exchange?' asked Edwin w Mer-
ritt jr, the chairman of the committee
! NO contract, but you've heard Of
| .gentIemen's agreements? Mr.. Stoddart
replied. smilingly.
! He repeated that the members did not
act as unit, but admitted that he could
not recall any case where a member had
! broken the agreement by writing busi-
ness at a lower rate than the one pub
Iished by the exchange.
! Willis O. Robb, the manager Of the ex-
t change, will be one of the witnesses to-
! day, Judge Bruce announced at the close
of yesterdays session. With him on the
stand the committee plans to go thor
ough1y into the workings OF the rate fix
/ ing body on New York City's fire insur-
! anCe business.