Daily press. [volume] (Newport News, Va.) 1896-current, 1910-06-10

L
the question which the court has to
decide. Captain Berkeley saved the
point and the cross-examination pro
Ceeded. Mr.. Leckey said the associa-
ton could not control rates In New
port News. Mr.. Bachelor question
ed the witness as to the business OF
1.-The rates here and Mr. Leckey said
he thought they were very just and
equitable. He thought that in some
Instances the rates should be increas-
cd. As rule he said, the Virginia
companies do not have very profita-
BILE business in Virginia. He said
that the Virginia Fire and Marine
and the Virginia State Company are
the only two companies that remain
of some thirty Virginia companies
that were organized some thirty or
more years ago. 1t developed thai
most OF these companies failed be-
cause OF poor management and
changes of business conditions.
Pay Toll To Association.
The witness said that the COM
panias pay nearly one and one-half
per cent toll TO the association each
year. A part of this money is ex
pended in employing experts to fla
} rates and another part is spent. the
witness said. in an educational cam
paign for the benefit Of the insured in
getting them to improve their risks.
Captain Berkeley announced that he
was saving an objection on this en-
tire line of inquiry on the ground
that it was irrelevent. He said the
defense was merely trying to show
that this Is good" Trust and that
such evidence is irrelevant.
Mr.. Leekey said that the companies
ieel morally certain that thirty pei
cent. of the losses sustained by the
companies could be prevented by the
assured-in other words that thirty
per cent. of the fires are started by
the insured for the insurance. The
companies feel certain, the witness
said, that the moral aptitude of the
American people to burn cost the COM
panies $90,000.000 a year. The wit
ness said that he would take the
risks OF boarding houses and saloons
in PREFERENCE to churches as the loss
III the former is less than in the lat
ter. Mr.. Bachelor said, amid laughter,
that generally fires were not as mum.
erous in profitable business as they
are in Improbable.
Combination Prohibited By Law.
The witness said that In some
states there are laws prohibiting the
companies from making rates togeth
er and prohibiting local agents from
determining rates or naming any rate
On property while in company with
another agent. The witness declared
that in many states the business in
terests had asked that these laws be
repealed as they are regarded as enc
mics of public policy.
Mr.. Leckey said that when the as
ISOLATION came into Virginia IL volun-
tarily reduced perhaps hundred
thousand risks all over the State.
This reduction came. as a surprise to
the policy holders In Virginia. He was
asked what hold the association has
upon the companies in the combina
tion- His reply was that there was
no claim on the companies and that
they could withdraw from the associa.
zion at will. Any companies that
wrote al a lower rate than that fix
ed by the association, the witness
said. were expelled from the as
societion and the other companies had
no further business relations with
them. The witness said he would. II
permitted. illustrate this point by say
ing that the lawyers of Newport
News organized a bar association and
agree on fixed charges for their ser
vice Any lawyer taking cases at re-
Suced charges Is expelled from the
association and the other lawyers
severe relations with him. The same
practice, he said, Is pursued by the
Underwriters association. Nr. Leckev
vas still on the stand when court ac-
.ourned for lunch at o'clock.
Afternoon Session.
Robert Leckey was r.caIIed TO the
stand and Mr.. Bachelor asked the
witness how the taxes In Virginia on
nre insurance business compare with
other states. Mr.. Leckey said that
Il was larger IN Virgins than IN many
other states and that this is unfair
to the smaller home companies be
cause the bigger companies from
cthe- states do most Of the business
al smaller tar than the small vir
giria companies. Mr.. Leckey said
That where a municipality raises the
tax on the companies the cost OF do
ing business IN such municipality i
increased and the rates must be in
creased 10 meet that increase. The
witness said that he thought the per
csniage tar was the most equitable
tax. He said that he did not think
the tax on the Insurance companies
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