Daily press. [volume] (Newport News, Va.) 1896-current, 1910-06-15

4
II the State insisted on the question:
He was given time TO comdnuhi-
cate with his company about the
matter.
MIR. Chap;n said that under the
terms OF the contracts he has WIN
some OF his companies the contfac's
are cancelled II he divulges the terms
regarding commissions contained III
such contracts. II he wroie NJ less
rates than the association rates, Wit
ness sad. he did not know whai
the other companies would do as ne
had never written at any rates otheF
than those made by the association.
He regarded this as a bad business
policy both for himself. his companies
aud the, city. Asked by the court II
he thought the board companies
would withdraw from his Office II ne
wrote at rates lower than the assocla-
ton rates, he said that he ala not
think any OF the companies in his oi-
tice would stand for" any cutting OF
rates.
JuotCC 6tOWl tuh~''HPN~'
eliminating his Office. the witness
said. he did not know positively that
any company In the city gives as
much as twenty-five per cent eommls-
sion on brick dwellings. Captain
Berkeley started to say that the COM
panies that pay the commission must
be In Mr.. Chapin's office. but justice
Brown said he would give the witness
time to confer with his companies be-
fore answering.
Captain Berkeley announced that he
was through with the witness ana
court adjourned until 2:30 o'clock.
Afternoon Session.
Captain Berkeley stated. when court
reconyened In the afternoon, that he
desired to secure the rate books in
effect in certain cities in Virginia on
May 1S, and asked whether or not
counsel for the defense would save
time by having these books produced.
Mr.. Bachelor said this case would
never end if the court attempted to
consider the rates Of all the cities in
line commonwealth. with the explain
ATOMS which would have to be made
n each case. Captain Berkeley did
not press his request. and the ex-
animation of Mr.. Chaplin proceeded.
The witness said he had never
been to Richmond to lobby for any sort
OF legislation. Captain Berkeley
questioned the witness at length as
to rates in Newport News. Mr..
Chaplin said that he understood that
something would be AIDED TO the rate
on house having electrical equip
ment not manufactured by concern
approved by the Southeastern Under
writer's Association. He thought il
The electrical equipment was equal
~ as good as that made by COM
pany approved by association. there
would be no advance in rate. 1t has
been the invariable rule of the local
agents, the witness said. never to
raise a rate II Ahey can help it.
"co-insurance."
Questioned as to the meaning OF
the "co-insurance" clause, the wit
ness gave this illustration: II n
house is insured for $4,000. its full
value. with a 100 per cent "co-insur-
Gnce" clause, and fire occurs, the
full amount of loss will be paid. II
the same building is insured for only
$4,000, and the building is totally de-
stroyed, the 5000 will be paid, but
II a partial loss. say of $4,000. occurs,
only 1880 will be paid. In other
words, the insured pays for $4,000.
but in the event OF a partial loss he
receives only half the amount of the
loss. Witness said very few policies
OF this kind are written in New
rort News.
Captain Berkeley asked If the wit
ness had communicated with his COM
I anies in regard TO the question asked
him in the morning. Witness said
he had not. After a conference be-
iween Justice Brown and the at
:orpeys. this question was passed
over for a time. The witness was
handed a pamphlet issued by the
chief engineer OF the underwriters
association. describing certain prop
critics in Newport News as having de-
fective wiring. He did not recall
having notified any of his policy
holders OF these defects. and he was
sure no rate had been raised on
policies written in his office on ac-
count OF the defects described. II an
increase had been made. a slip would
have come from the stamping Office
TO cover the case. Property owners
almost invariably correct defects
called 10 their attention.
At this point Mr.. Read asked
permission to ask c. ID. West. who
was In the court room, a question.
lie wanted to know what percentage
of losses was paid by the Prudential.
the company that failed. Mr.. West
said he thought the company had
paid about So per cent TO it's credi-
tors lie understood that the com
rany failed on account Of the San
Francisco fire.
Premiums Collected Outside.
Questioned by Mr.. Read. Mr.