New-York tribune., 1910-11-24
EXCHANGE FIXES RATES
Graft Hunters Also Hear 8O Per
Cent Fire Insurance Explained.
RETURN TO RACING AGAIN
Judge Bruce Expects to Have
JR. Keene and H. P whit
ney as Witnesses.

The legislative investigating coIn'f-iltee
continued its preliminary work IN hre III
sursnce matters yesterday. and then ao-
5ourned over Thanksgiving Seasoh 10 l"e'
dav morning, November y
On that dsy il Will return TO ITS sfaII
nrole and look further into the coHec-
- .,.a disbursement of the alleged
half, ,,,5Itior, collar lobby fund OF the racing
Interests in opposition 10 the AgneW-hart
snti-sazr1hling laws passed at the special
session of the Legislature IN 19oH
lanes R. keene and Harry Payne Whit
ney. the two most prominent who were
said to have been present at the Delmonl-
cos rneexing at which the fund was pre-
sunaablv raised. may be on the stand at
.he next session Of the committee SUD
,paeua servers for the investigators nave
sheen looking for them, so far without sue
,oess. but NJ. Linn Bruce, counsel 10 the
icornrr;tte.e. said yesterday that he had
thopes Of reaching them before next tues
day
Members Of the committee expressed the
fhelief yesterday that il was entirely within
t,be sc0pe Of that body to investigate the
irecentlv exposed conditions with respect 10
the theft of meat from the Manhattan
Estate Hosrrtal on Wards Island, but OIL
loisllv that matter has not Yet been con-
Sidered.
Edwi, W. Merritt jr-, chairman Of the
scommitree. said that, while he would ad-
tvise an investigation OF the Wards Island
graft If it seemed 10 be necessary, he
Thought that as long as the guilty parties
.seerned to be in a fair way to be attended
ITO by the District Attorneys office there
tSss no.need for the~oomnittee TO step in
Fire Insurance Rates.
Cieo-ge<HN- Babb, the general attorney for
xhe Northern Assurance Company, who
Twas on the stand at the hearing on Tues
day, was examined yesterday, and William
IN. Bament. general adjuster for the Home
tF'ire Insurance Company, followed him.
Through the examination OF Mr.. Babb
LJudce Bruce established the fact that rates
for fire insurance in New York were fixed
iby neither the National nor the New York
Board of Fire Underwriters. but by the
New York Fire Insurance Exchange After
ithe hearing Mr. Bruce commented or the
statement OF the witness with regard TO the
lrate fixing power of the exchange III such
g way as 10 give the inference that when
the committee next takes up the insurance
~-cd Of the investigation that VIII be one of
!tae chief points Of attack
William H. Hotchkiss, the State Superin-
his department should have at least some
sort Of power Of supervision over this rate
fixing. and il appears TO be the intention of
The present committee TO recommend some
Legislation looking toward that reform.
With the examination Of Mr.. Bament
Judge Bruce sought TO bring out the views
OF insurance men on what Is known as the
go per cent co-insurance clause
This clause which is a part Of every
standard form fire insurance policy writer
in New York State. provides that il
amounts above S2.5e0 the insured mus
carry insurance to the value of 50 per cen
of the property insured. or else stand him
self as a Co-iTEsurer to the extent Of what
ever reroentage under 50 per cent he in
sures for
A. M Baroent explained It. a policy
holder who carried a stock worth SlGo6G
was expected TO insure TO at least the ex.
tent Of SSo.v-.
\ The so Per Cent Clause
" Surprising that he insured for only S6a00(
and suffered a fire loss which affected Just
$4,000 worth Of his stock. he would not be
able TO collect S6o.G 600 insurance, because the
company. uLder the 50 per cent co-insur-
ance clause, would figure that 6-S, or 75
fper cent Of the loss was up TO il. while
l2-S or p per cent. Of it was up TO the in
sured. in that he did not insure his stock
10 the extent Of 50 per cent OF its value
In the case Of a total loss with the cir
loumstances proporuoned as above, said
Nr Bament the insured would get from
1.-THE insurance company the full face value
Of his policy
One ot the reasons why the companies
felt justified in enforcing this SO per cent
ico-fnsUrance clause. he said. was that in
1.-THE overwhelming majority OF fires there
Twas = certain percentage Of salvag ge. Fig
suring on this salvage, and also on the fact
l1hat even with buildings the great major
ltty Of fires inflicted damage Of only a
small percentage OF the total value, in
eurers would take out policies for some
thing ike 10 per cent Of the value of their
iYroper-v. and # il were not for the 50 pei
scent clause would be able TO collect the
ifuII value Of their policy or damage when
fthey had paid premiums on only a small
proportion OF the value of their entire
holdings.
u. Bament admitted that the so per cent
,eh-insurance clause was the subject of con
tinuous attacks. and also that it was not
in effect in a majority Of tho states of the
Union, but claimed that it was nothing
more than justice 10 the fire insurance
companies that they should legally be per
united 20 force insurers either TO pay
premiums on at least - per cent of THEN
total valuation or accept and share with
the company the risk up TO that per
oentaee
The clause he said. does not apply In
amounts smaller than s2.5eo nor on policies
which cover only personal property.
when the committee turns again to lis
fire insurance probe members and officials
Of the New York Fire Insurance Exchange
VIII be asked to explain their methods and
rights in fixing rates OF insurance, but be-
fore that il is the present intention pur-
sue the inquiry into the activities of the
lobby Of the racing interests.
For ship thirteenth page