Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-08-01
BROWN REPLIES TO
RATE-MAKING CHARGE
CONTINUED from First rase.3

making of fire insurance rates in the
State Of New Jersey, is, to say the
least, very misleading and very sur
prising to me. The State of New
Jersey, under Chapter 50 of the laws
of 1913, has passed in my opinion one
of the wisest insurance laws that |
have ever seen recorded Its object
is nti-discrimination and with pro-
per time to follow out. its intention
cannot help but be helpful to the in
surfing public.
Rates Individually Fixed.
The State works hand in hand
with insurance companies to produce
this condition This is a move in the
right direction, but the State is not
in combination with the insurance
companies as a class, only in combina-
ton with each individual company
to see to it that each individual COM
pany does not discriminate unfairly
between risks of essentially the same
hazard.
In detail, each company must pre-
pare certain basis rates, schedules
and charges which shall apply to
each risk of essentially the same
hazard, showing no discrimination.
To do this the company in its in
diVidual capacity must select someon .
ings in order that the schedules to
be prepared from which risks are 10
be rated. do not produce a condition
where the insured will he forced to
pay exorbitant rates to that COM
pany and on the other hand mist
also prepare such schedules that will
not force that company entirely out
of business by inadequate compila-
tons.
Not Employed by All.
THE designation of an expert by a
company must be filed with the COM
missioner of banking and insurance
1t may be that in looking around for
the proper man. individual companies
might decide upon the same man, but
ali companies do not decide upon the
same man. There Is no combination
to request the appointment of the
same man and certain companies are
doing business in the State today who
have not appointed and evidently do
not intend to appoint the under
signed.
I'VE feel satisfied that there is not
one company today which can tell
exactly just what companies have yet
appointed an expert and positively
who he is. If the law. however were
to state that each individual com
pd0y WOulu nave " dppOlHL Il man
who was not appointed by any other
it would Immediately cause
an increase in insurance rates in the
State of New Jersey of about so per
cent. It would mean that each COM
ponv would have to have all the rate
making facilities, such as expert
chemists for our chemical risks or
where chemicals or various combina-
items may be used in manufacturing
risks, expert automatic sprinkler in
s pectors expert hydraulic engineers.
expert electricians and numerous ey-
perts as to general physical hazards
of manufacturing.
"All this combination is necessary
in order to produce intelligent fire in
surance rates. These sreeial men
must spend much of their time with
the insured. ever ready to give their
expert knowledge free of cost. show
ing them how to construct their build
ings and the Introduction of various
equipments. For. If each company
Goes not have these facilities it would
be crushed to the wall by
the company that does.
"ATLEE BROWN"
AS to the Eastern Union combine of
companies for maintaining uniform
rates, Mr. Brown said he knew moth
ing. That was concerned purely with
the selling end of the business with
which he had nothing to do
Mr.. Brown will be called before the
Assembly committee when it convenes
in this city Wednesday. Assembly
man Thomas f. Martin. of Hudson, is
chairman of the committee.