New-York tribune., 1910-12-22
FIRE INSURANCE immunity
Best for Every One, So President
Evans Tells Investigators.
LEGISLATION WON'T HELP
Proper State Supervision Best
for Policyholders-Hyde Not
Yet Heard From.

| Henry ". Evans. president of the Con-
tinental Insurance Company came to the
| witness stand of the legislative invesh-
eating committee yesterday and gave the
committee a rapid fire. comprehensive and
non-technical explanation OF fire lnsur-
ance methods which furnished the mem
bers with more real grist for the legis-
lative mill than they had gathered from
most OF the previous witnesses on the
| subject.
II all ended. however. with Mr.. Evans's
frank advice that the least amount OF
legislation on the subject would be the
/ best thing for every one, including the
policvholder, which latter, s1r. Evans con-
tended was not the "goat" on the rate
matter that had been intimated before
| the committee
| Rates are based on the probability OF
fires being put out" he explained mine
| ty per cent of our losses are partial. lo
per cent total. and If per cent more
were total losses my company, the Cont-
mental with its fifteen millions OF assets,
would be wiped out, and naturally any
number Of companies not so strong Wouio
suffer in the same way
After the San Francisco fire, said MI
Evans. he organized the Fidelity 1nsur-
ance Company, figuring as an expert IN
surance man that the California disaster
| would wipe out about fifty companies
Instead of being wiped out though,
ne said. take, for instance. the PherlH'
whose entire assets and s1.5o0,0oo besides
were destroyed there in san Francisco
and they were allowed to go along doing
business in this state the same as ever
Later. when George P Sheldon died,
Mr. Evans took over the PheniX, of which
Sheldon had been president, reorganized 1t
and merged 1t with his Fidelity.
Carried Excessive City Risks.
As an instance of how some fire insur
mce business in this city is managed, he
continued whe he took over the PheniA
he found that in the confiagration dis
trict here the Phenix was carrying more
than 21.0o0.o00 risks, on which In the
event OF big fire it wouldn't have been
able to pay 90 cents on the dollar.
IT say if this committee conveys the
i,npression by its work that all fire in
surance companies are alike, you are do
ing wrong he said. THE assured thinks
that all companies are under the protect
ing arm of the state, and 1T isn't SO, as
witness the example of the Phen1X. L
say, Let the buyer beware let him choose
his company, but don't give him the I'M
preston that under present methods the
state is standing back of every company
as a guarantor OF fitness to do business
He wouldn't advise state supervision of
the rate making power, he said. but
thought it would be a good thing to have
the state supervise the methods of rate
making-that is. to correct defects in the
system by which rates arrived it The
only legislation which he thought could
possibly benefit the people of the state
would be state building code which
would enforce better building construc-
ton. and this. he thought, would be de-
cidediy unpopular because its benefits
" oud not he immediatel seen.
THE fire loss Of this country is one Of
the biggest economic questions We have"
said Mr. Evans. I'VE have s2s000O, 900
annual fire loss. and If anything can be
done 10 reduce that 30 something like
$50, ,000. 900 TO s65 900 900, as it should be,
we'd have the world by the tall
Rate Wars Help Big Companies.
The president of the Continental which
is one Of the strongest fire insurance COM
panies doing business, declared that
state of anti-compact, in which such a
rate making body rs the New York Fire
Insurance Exchange prohibited by
law. would be for his interest, viewed
from a selfish standpoint but that it would
bankrupt smaller companies. which would
not he able to stand the rate wars of
competition
As an example Of the value of unl-
form rate for the policyholder, Mr.. Evans
went on TO tell of a big mercantile house
,-I,in
cents 500 on it's stocks
That firm has 10 hunt the world over
for enough insurance to cover it, he said
Now, if there were no exchange rate and
that firm wanted insurance from the Cont
mental I'd charge it about 81 a hundred.
Supply and demand. that's all
Chairman Merritt of the committee sus-
gested that Mr.. Evans was speaking more
Of the large insurer rather than the small
business man or householder when dis
cussins the rate question
That's true in q measure said Mr..
Evans. but ths small policyhoIder hasn't
any kick, I guess. when he can get his
household goods in New York. for instance
insured for 20 cents a hundred. You don't
get many complaints, ! guess. from them
and the percentage Of complaints from all
classes is SO small as TO be almost neg
ligibIe."
Well, now" interposed Judge NJ Linn
Bruce, the counsel TO the committee 'it
isn't the purpose of this committee to
hamper the insurance companies In any
way. What would you suggest in the way
of legfslation?'
State Supervision Advised.
Mr. Evans thought that the nearer the
approach to the status of admitting all
companies, stock, nutuals and individual
underwriters, under proper state supervis-
ion the better it would be for the policy
holders.
But don't confuse us with life COM
panies" he warned. Were organized TO
make money: they're organized to take
care of the widows and orphans.''
He had q table of companies formed in
this country since 1871. which showed that
IS per cent OF them had either retired or
failed and only "a per cent survived. The
great risks of the business, he said, were
naturally in the great cities Of the country,
and outside OF the cities the business is a
sure gain.
Frederick c. Buswell. vfce-prestdent OF
the Home Fire Insurance Company. testi-
fed that in his experience through the anti
compact states Of the Middle West that
laws general effect had been to create dis
elimination between the small and the
largo ,csurers of the same class. Without