The San Francisco call., 1910-02-05
WORK FOR LOWER
INSURANCE RATES
Real Estate and Business Men
Plan Concerted Action to
Secure Fair Premiums

The petition which the san Fran
cisco real estate board addressed TO the
INSURANCE brokers' exchange, in which
the fire insurance situation was set
forth from the realty point Of view, has
been followed up by similar communi-
cations from the various commercial
organizations OF the city. Thereby
practically the collective strength Of
san Franciscos money interest in all
lines Of investment has been arrayed
in behalf of the request that, with fall
ing rents. the insurance rates should
not be excessive.
This cooperation on the part of Sc
many organizations would seem TO in
dicate as strong an interest as was
manifested last year when the citizens
rallied before the state board of equal
ization in reference to the rate of as
sessment to be fixed for purposes OF
taxation on the real and personal prop
erty of san Francisco.
URGES CONCERTED ACTION
A circular letter which has been sd-
dressed by the Downtown association
10 ali its members follows:
After long and arduous efforts by
the fire protection committee of this
association. the mountaineering fire
alarm boxes have hnally been installed
They will very greatly assist the fire
department in obtaining the proper
alarm quickly and thus be able tc
reach fires without delay.
The insurance companies gave us 10
understand that when these alarm
boxes were installed and when the
streets were permanently repaired SO
that the fire apparatus could reach the
fires quickly there would be consid-
erable reduction in the rate.
we ere taking up this matter with
the board of fire underwriters and now
urge that YOU individually do the same
with the compa MES carrying your in
surance: that you make a vigorous
protest against the high rates now pre-
vailing. and thus by concerted action
we can hope for lower rates in this
district"
The presentation which the San
Francisco real estate board is prepar-
ing to Ike to the FIRE underwriters is
said TO be particularly strong. In the
present instance not only the general
consideration that Underlies the re-
quest for lower fire insurance rates is
discussed. but many facts derived from
personal knowledge of individual cases
are given.
RATES SHOW No DECREASE
The books Of the board Of fire under
writer's. showing the rate assigned to
each block in the city. do not disclose
"a tings any less than those of last year
/ These high rates have naturally in
duced sharp competition on the part ot
nonboard companies. Reductions o.
s. mitch as 20 per cent from the board
rates are made quietly by underwriters
! who ests blfshed an enviable reputation
after the fire of 1906 by paying 90 cent:
and upward on the dollar and by ignor-
( ing the earthquake hazards, although
there were earthquake clauses in pol
icies issued. These rates are not openly
made. Some of the companies involved
in this reduction are sanctioned by
banks which have large loans on build
ings. 1t is quite common TO hear in
duries in banks concerning the com
panies that are favored by the money
lenders The information that is thus
secured is considered To be valuable
and is acted upon. The banks have re-
duced the rates on interest TO fit exist
ing conditions.
There is some talk among member:
of the commercial organizations of {
( strong and earnest campaign to ge
/ lower rates of insurance If the under
I writer's shall decline to make such re
( dIctions as are considered to be rea
( sonable. 4 great deal of interest has
been manifested in the reasons -giveI
! by President Buckbee of the San Fran
! cisco real estate board for the actor
{ OF the board he represents.
The other members Of the COMMITTEES
I Of the real estate board, including
John T. Harmes and George ID. Toy
believe very earnestly that the timt
f, has come to ask for reduction. Th'
associate members OF the real estatt
board, who are large property owners
{ and who have allied themselves Will
( the board are exerting what pressure
! they can against the existing fire insur
! ance rates.
LOW RATES MADE QUIETLY
Meantime there is great deal o
shopping on the part of payers of fir'
! insurance premiums among the differ
! ent companies that are supposed to b'
! Offering rates lower than the boart
! rates These companies are supposed
TO have an advantage in securing
business by freedom from all forma
/ obligation to maintain rates, while a
the same time they are restrained from
making such deep cuts as might rende
the business less profitable If an opel
rate war should be provoked.
The general basis of estimating wha
, will be fair rates that is general.
adopted rests largely on the consider
alton Of the improved position in con
struction. in present and propose
measures for better protection agains
fire. and on the certainty that during
considerable period the city will not b
as badly congested as IL was either be
fore or Immediately after the fire. TIL
destruction of temporary buildings, I
/ he succeeded by new buildings of
better type. is also used as an argu
meut for lower rates in the bushes
! uarts of the city. The whole matte
/ viii probably reach formal presenta
tion and formal decision very soon.
SALES OF REAL ESTATE
/ CONFIRMED BY COUR7
Valuable Property Transferre,