Daily press. [volume] (Newport News, Va.) 1896-current, 1910-06-09

les not affiliated with the underwrit-
ers' association charged the rates
fixed by the association because II
was good business judgment to do
so. He could not say that he would
be allowed to handle any company In
his Office that is not affiliated with
the association, but that he had no
desire to do so. During the reign" of
the Wharton law, when the associa-
ton could not do business in the
State, all the companies In his Of
ce charged the old rates OF the tariff
association, plus rs per cent. on GER
tain risks. He thought this condition
prevailed throughout the State, but
was not prepared to testify to this.
Captain Berkeley questioned the wit
hess closely concerning the proceed
ings OF the Southeastern Underwrit-
crs' Association when that body met
at Old Point several years ago, when
Witness said his company sends its
dues to the underwriters associa-
ton to A. b. Andrews, manager OF the
association, at Atlanta. The stamping
office for Suffolk. the witness said, is
located in Richmond. under charge of
A. Ii. Harris, secretary of the Vir-
ginia committee of the association.
Witness said the Southeastern Under
writer's Association would not ap-
prove of his writing policy for any
company at a lower rate than that
prescribed by the association. There
are companies outside OF the asso-
citation, he went on to say, which are
AS great stickiers for the associations
'ates as those within the association.
II is considered good insurance ethics
70 abide by the associations rates, and
are considered second class, or cut
throat companies. Witness named
four companies in his Office that are
not members of the association-the
Globe, Continental Fidelity Fire and
North River. He had at different
times received rate slips from the
Virginia committee. and that these
rates had been observed in his office.
Questioned as to basic rates prevail
ed in Suffolk, the witness said he
thought the basic rates in Suffolk and
this city practically are the same.
Smaller Companies Couldn't Live"
Cross-questioned by Mr.. Read, the
witness said the reason that compan-
.es not affiliated with the underwrit-
ors' association do business according
10 the associations rates is that it
| Is good business policy. He stated
that insurance rates during the pass
few years have been reduced and that
this was due largely TO the work of
the underwriters association. A
great many people. he said, apprec-
ate the expert inspection and advice
given by the association. The small
companies hardly could live and COM
pete for business If they did not have
| the benefit of the associations ex-
perts' work, and were compelled to
fix their own rates. He went on to
say that there have been various at
tcmpts to re-enact the Wharton law, but
that they have been very unsuccess-
iul. He thought that the reason for
this was that the business people of
State appreciated the value of the
work done by the association. CUES
toned as to the pink Slip" the wit
! ress said that it was the rule of the
association to increase rates TO meet
excessive taxation. The business of
mis- company was not very profitable
last year. He thought the general
average of insurance rates could not
be fairer; that the rates already are
| too low. In his opinion. there Is not
more than one million dollars of vir-
ginia capital invested in the fire In
sarance business. Questioned by Mr..
8atchelor. the witness described in de-
tail the operation OF the underwrit-