The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1913-05-20
WILSON WANTS
DEEP PROBE OF
FIRE INSURANCE
Claims Rates Are Fixed
bV Combination in
Violation of Law
BridgeporIer, in Minority Report,
Submits Many Strong
Arguments

Hartford, May 20-Representative L.
W. Wilson, of Bridgeport, in the
House, today, filed the minority re-
port for an investigation of fire insur-
anee companies in the State and Civ
ing his reasons therefore. The joint
committee on insurance had previous
1y sent in an unfavorable report on
the bill proposing such investigation.
In support of his contention that
there will be such an Investigation,
Mr. Wilson said in his report:
There was referred to your COM
mittee several bills proposing an In
vestigatfon of fire insurance rates, and
into the business of fire insurance IN
~Connecticut.
The minority of your committee be-
lieves that. there should be such an
investigation. for the following rea-
sons:
Fire insurance rates in this state
are made by a combination in which
most of the companies participate.
Such combinations are illegal and
| against public policy. as a general
principal of American law, and the
combination among the fire insurance
companies in this state appears to
be especially reprehensible and injur-
ious in it's effects upon fire losses and
the cost of insurance against such
losses.
Rates in Connecticut are very high
when compared with the losses for
long term OF years
During the past ten years the cities
! and towns of Conneetieut have spent
| hundreds of thousands of dollars IN.
improving fire departm ents, IRE pres
ventior and water supplies. without
corresponding benefit in reduced
| rates.
/ Two principal bills were before your
committee. H. B. $50 was especially
favored by a large delegation of citi-
zens from winsted, who furnished
proof of excessive rates, of discrimina-
| ton in rates. and evidence showing
that large Improvement in fire fight
ing means had not resulted in rate
| reductions.
The fire companies admitted that
the rates In Winsted were non-com-
petitive, and requested the Winsted
citizens to meet them to discuss rates.
Your committee is informed that such
a meeting took place and that rates
in Winsted were in fact somewhat re-
duced.
Members of the General Assent bly,
testified to excessive and diserimina-
tory rates in other communities, not
ably in Waterbury and South Nor
walk.
| During the progress of the hearing
upon H. B. $50. the arguments in IA
vor of the bill being directed to show
| the presence of a rate making monop-
| oily in restraint of trade, Mr.. r. NJ.
BisselI, vice president of the Hart
ford Fire Insurance Company, admit
ted the existence Of the combination
and it's functions. He said:
| tI think I may as well begin by
stating. that the great majority of our
companies, at any rate in New Eng
land, do unite for the purpose of max
ing rates. They do that because it
is necessary that they should do so for
their own sake and it is largely neces-
sary that they should do that for ths
public at large
Mr.. John S. .AIIing. president of the
Haven, opposing the bill. not only ad-
mftted the existence of a com bina ton
to make rates, but described in part
the method of rate making His tes-
tin1ony to this point was as follows:
I'm our jurisdiction we have two
boards. One is the board called the
local board, representing the agents
and the other is the district commit
tee representing the New England Fire
Exchange who act together in the
question of rate making
/ The effect of this system of rate
making in Connecticut has resulted in
high rates, relative to losses, in ex-
cessive profits over a long term of
years to the fire insurance compan-
les. and in injustice to the citizens OF
Connecticut
Out of every dollar which our ~peo-
PIE have paid to fire insurance com
panies doing business in Connecticut
, during the five years from 1908 t.
) 1912 inclusive approximately So cents
| has been consumed in profits and ex-
penses of the business and but Al
cents has been returned to the buyer
in the form of payments for fire loss
es.
The relation of premiums paid and
? disbursements for fire losses was quite
I, as unfavorable to the consumer in the
CContinued on Page Two)