The Caucasian. (Shreveport, La.) 1900-192?, 1912-04-30
FIRE INSURANCE LAWS.
Remedial Legislation Will Be De
manded from General Assembly.

1t is State Senator Charles LOuque
who voiced the startling declaration
that the people of New Orleans had
been fleeced to the extent of $6O0,OOO
in extra premiums to which the IN
surance interests had no right.
AS reported in the New Orleans
States meeting was called for Fri
day to hear the result of the COM
mittee's investigation. There was a
large and representative attendance.
Not one, but three, reports were
presented. The majority report, in
which Mr.. Tom Cunningham, who
was largely responsible for rating
board legislation, joined. recon-
mended amendments which they
held would give the people relief.
The minority report of Mr.. Peter
Lawton embraced a sweeping de-
mand not only for the repeal OF the
fire rating board legislation, but the
abolition as we'll of the Fire Proven
ton Bureau.
The majority report was over
WheImingly defeated. The minority
report was overwhelmingly carried,
and thus this property-holders meet
ing goes on record in favor OF the
wiping out of both bodies.
The action taken is radical. In the
interest both of the public and the
companies a fairer solution is per-
haps to be looked for between the
two extremes represented in the
controversy; but that large and
representative body of citizens
should go the lengths represented
by the action of the Real Estate EX-
change must be accepted as an in
dication of deep-rooted conviction
in the public mind that the Rating
Board, as it has been operated, is a
distinct failure.
The Fire Prevention Bureau was
created number of years ago. Ii
was the squel of the drastic legisla-
ton which wiped out the Southeast
ern Tariff Association, trust with
headquarters at Atlanta, that die
tated local insurance rates. The bu-
reau was not vested with rate-mak-
ing power. 1t was intended to be a
clearing house of information con-
eerning insurance risks for the ben
eft of all companies doing business
in the State.
1t has been a disputed question
whether the bureau aided the letter
and spirit of the law. The weight OF
public opinion was that it did not
or that at least some check was
needed upon its activities, and so II
came to pass that the General AS,
sembly two years ago passed the
bill creating the Rating Board, over
the protest of the insurance com
panies and with the clear under.
standing that the board was to have
the same control over insurance
rates as the Railroad Commission
has over transportation rates.
The board may or may not nave
the rate-making power which tn
people felt they were vestlng IN 1t
But it is absolutely certain it ha'
never exercised the power, or W.
should not have almost universe
complaint against the excessive COS
| of insurance, regardless OF the vas
sums publicly and privately expend
ed to reduce the fire risk.
The board has been absolutely In
different to public opinion. 1t ha
ignored every appeal for relief; ant
the result is widespread demant
from all parts of the State for legls
lation that will either wipe tn
board from the map or make
what it was intended to bean In
strument to compel reasonable rate
of insurance.
The demand can not be ignored D.
i the Legislature. On the attitude 0
the insurance interests is likely t
/ depend .the question whether tn
remedial legislation will be radlca
or conservative.