Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-08-06
ADMITS He FIXES |
INSURANCE RATES
FOR NEW JERSEY
Atlee Brown Tells Legislative
Committee Schedules Depend
on His Say-SO.
BLUSHES WITH MODESTY
AT HIS QUALIFICATIONS
Grows Peevish Under Fire of
Questions and Contests Pres.
Lawrence's Statement.

That he fixes the rate for nearly
every fire insurance company in the
State was the admission of Atiee
Brown, whose office is in the Essex
building. this city, before the legis-
lative investigating committed sit
ting at the City Hall here today. Mr..
] Brown, on the stand declared that
there were 1876 companies in the
State and admitted that the rates OF
165 of these were fixed by his mere
say-so
The investigating committees which
is made up of Assemblymen Martin,
of Hudson; Lyons of Morris: Brack-
en-, of Essex and Hates, of Camden.
was appointed to inquire into the
charges that there was a combine be-
tween the companies. The first three
named assemblymen were in attends
ance
Mr.. Brown was the second witness
called at today's inquiry. having been
preceded on the stand by John Cahill,
of Boonton.
Questioned by J. Emil walscheid, of
Union HILL counsel for the commits
teee Mr.. Brown declared that he
came to this city on July from
Philadelphia, where he had been in
the insurance business since 1886. He
gave his business as a fire Insurance.
expert" a position he admitted he
held in each of the individual compa-
MES
Gets Salary.
To a question whether he was paid
a salary or received a commission. he
! declared that he received salary.
| Asked the amount of his reeompense,
he refused to answer. on the ground
that 1t was his personal business and
entirely irrelevant.
Asked how he fixed the rate, Mr..
Brown declared that he had to go to
every individual company and get
their ideas, ETC. He admitted that he
had no report from any of the COM
panies on file in his office He claimed,
however. that under his rates there Is
considerable more competition among
! the agents.
he was asked.
by inquiring into the overhead
charge of every individual company"
he replied.
Praises New Law.
: Questioned with reference to the
present law, which took away from
the State the power of making rates,
Mr.. Brown declared that it was the
grandest law that any State had ever
passed.
This getting away from rate mak-
ing by the State" he continued,
everyone is the gamer 1t is abso-
lutely impossible for the State au-
thorities to make the rates as cheap
as | can make them, with by bureaus
distributed throughout the State"
do you know that a repeater to
this law was introduced in yester-
days session." he was asked.
He replied that he knew absolutely
nothing about it. He said. however.
that the present system is the best
that could be made up.
He Bushes at Question.
who do you think is best qualified
to fix rates2' he was asked
well" he shot back, II may be
blushing Just a trifie'
What would you do. Mr.. Brown. IL
100 of your 165 companions disagreed
with the rate as fixed by you--fix
another one?''
We'll I am very stubborn and l
don't think that l would change my
schedule"
mot even If you would lose your
place?"
well, I think that l would talk
them into accepting my rate"
what would the companies do il
you failed to convince them?"
"They would probably file their own
rates.
Before they could do that they
would have to withdraw your name
as expert. would you submit to that
and practically lose your position,
wouldn't you jump your rate to what
they wanted?'
Il Questions Peeye Him.
Mr.. Brown grew somewhat peeved
at this line of questioning and re-
fused to answer. He declared that
he did not intend to be picked to
pieces. and said that his interroga-
ter was assuming too much what ne
would do.
Getting back to the fees which Mr..
Brown receives. Mr. Walsched read
a portion of the testimony given by
William c. Lawrence, president of
the Standard Fire Insurance Com
pany, of Trenton. who testified sew
eral days ago. Mr. Lawrence at that
time declared that Mr. Brown is paid
one-tenth of one per cent. of the gross
receipts for his services. This the
witness denied and again refused to
sav anything except that he is on
salary He declared that even
though Mr.. Lawrence is president of
a company for which he admitted he
, fixed the rates, he (Mr. Lawrence)
| was mistaken