New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-12-14
INSURANCE MEN TESTIFY.
Local Agents of Fire Companies
Give Views on Legislation.
OPPOSE ANTI-COMPACT LAW
Charles H. Hyde to Appear at
Final Racetrack Hearing OF
the Inquiry To- morrow.

The Legislative Investigating committee
turned its attention to fire insurance yes
terday and thriftily awaited itself of the
opportunity to summon representative local
agents OF ST. Louis. Milwaukee. Freeport,
Ill., and Glens Falls. " Y. by reason OF
their presence I'm New York on account OF
the convention of the National Association
Of Local Agents, which is i'll session at the
Hotel Manhattan.
George q. Markham, the st. Louis man,
who is also the head of a Missouri
'Iloyds" was able TO tell the committee
something Of the workings Of the anti
compact Law, which is on the statute books
of Missouri, and has the ultimate effect,
said MIR. Markham. of slightly increasing
the price of insurance rather than reduc-
ing it.
The anti-compact law is one prohibiting
the combination of insurance companies for
the purpose of fixing rates which each
company agrees to abide by. In this state,
where no such law IL on the hooks. the
companies unite in such boards as the New
York Fire insurance Exchange for the pur-
pose of fixing a uniform rate, which all
companies agents and Insurance. men are
bound to hold to- Mr. Markham had moth
ing but harsh words for the antt-compact
law.
in his own state insurance companies
substituted for the old rate making bodies
which had prevailed before its passage,
eleven years ago. the system of subscribing
to a rate sheet published by a man for
meriy an officer of the exchange; and
though he declared there was no gentle
mans agreement" to dodge the effect of
the law. he admitted that there was not
any such fighting competition and rate cut
ting as some people thought would surely
follow the abolition of the exchange The
present system was more cumbersome, ne
said and therefore more expensive. and in
the last analysis the buyers of insurance
naturally footed the bill In the form of
higher premiums
Missouri also has the valued policy" law.
which is in effect that a policyholder
swears to the total value of his property
when the policy is written, and that value
must be taken rs the basis of judgment in
case of loss.
The field of IRE insurance was free said
Mr. Markham, and if rates We're inord1-
nately nigh, new companies with lower
rates would enter the field quickly.
Charles W. Cool. former mayor of Glens
Falls, and a local insurance agent there,
followed Mr. Markham on the stand He
pany as she and thought the public
generally had a vastly exaggerated idea OF
the profits of fire insurance.
She ought to divide her assets said
Mr. Cool and show what she made on
the fire insurance end of the business, and
what she made on the banking end OF the
business.
Senator Robert +. Wagner. Of the COM
mittee, looked up the last annual report OF
the Glens Falls company and found that on
an original investment of 100000 the COM
pany had paid last year dividend of over
100 per cent on its fire insurance business
alone Also. he learned that 1t had accu-
rnuiated surplus of close to s5,e0pp, and
he had Mr.. Cool recalled TO explain
Mr. Cool said he had meant to speak or
tire insurance companies generally in say
ing that they should separate their earn
fngs on fire insurance, and on Investments,
in their reports. and not particularly of
the Glens Falls company. which. he said.
had been building up that surplus since
1S49, and had. of course, made 1t origin
allv In the fire insurance business
Fire insurance will be the subject of the
ccmmittee'S deliberations again this morn
ing. and tomorrow viii come the final
hearing in the racetrack inquiry. with
Charles H. Hyde, the City Chamberlain.
as the chief witness. Mr.. Hyde will not
be subpnnaed but will he sent for when
the committee is ready to hear him.