Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-11-11
FIRE INSURANCE
INQUIRY BEGUN
State Control of Rates Is Ia
ken Up Before Commission
ers at New York.

NEW YORK, Nov. 1.-THE general
supervision of fire insurance rates
through the country came mp for con-
siderat'on today at meeting in the
Hotel Aston before an important COM
mittee of the insurance commission
ers of the various States. The ques-
ton of fire insurance rates, it is
planned by the committee, will be
dealt with from every possible view
point, consideration being given as to
their adequacy to assure the solvency
of the companies, their equity to the
methods for their formulation and
supervision.
The committee of the insurance com
missioners having the matter in
charge have arranged. for the broad
est possible scope of the inquiry into
this important problem, and will take
up all questions pertaining to the for
nation, supervision and restriction OF
rates. They have arranged to give
much consideration to the question of
the advantages of formally allowing
uniform rates to be established by
the companies under State supervi-
sion, or the restriction OF such
methods by the process OF antitrust
laws. The advantages and disadvan-
tages of open or forced competition
in rate making will also be discussed
in all It's bearings as to the public
and the solvency of the indemnity
which can be sold under such condI-
lions. Underlying the whole confer
ence will be the endeavor to bring
about more uniformity of action by
1.-THE various States either through the
supervising officials or by legislative
action.
Special Committee.
Hearings are being conducted by
the special committee of the national
convention of insurance commission
ers, which is composed as follows:
Insurance Commissioner Herman L.
Ekern, of Wisconsin, chairman; In
surance Commissioner Burton Mans
field, of Connecticut; Insurance Com
missioner Charles c., Revelle, of Mis-
souri,; Insurance Commissioner j. A.
o. Preus, of Minnesota; Insurance
Commissioner e, H. Moore, of ONO;
Insurance Comm ssiorer Charles
Johnson, of. Pennsylvania: Insurance
Commissioner w. NJ. Sheban. or
Maryland, and Insurance Commits
sioner e. f. valkenberg, Of Idaho.
The questions sent out to the ire
insurance company managers and
others were the result of a meeting
which fire insurance rate problems
were considered by tho committee,
but 1t was found that the divergence
of ideas was so great that the dis
cussion led nowhere. The answers to
these questions have been tabulated,
thus placing the views Of the various
fire underwriters in more concrete
form and enabling a more intelligent
discussion on the points OF difference.
Results shown in Answers.
Discussing, the results as shown by
the answers to the questions pro-
pounded. Chairman Ekern said:
There Is q remarkable similarity in
the trend of the answers from widely
different interests. The answers are
practically unanimous In favor OF
schedule rating, only one. a New York
broker, answering no. There IS
equal unanimity against rate-malSing
directly by the State, only three an
swering yes The same Is the case In
favor of permitting companies to CO.
operate in making rates and also in
favor of permitting agreements that
the rates so made shall be collected,
only two answering mo- to the former
and eight answering mo- to the latter.
There is a decided weight of opinion
In favor of the Dean analytical Sched-
ule for making rates, In favor of max
ing the schedule rates mandatory in
stead of advisory strong major
ity are also of the opinion that rates
should not be competitive. On the
question of legislation there is a de-
cided majority of the opinion that leg
islation granting exemption from
antitrust laws and from antitrust
prosecutions at common law is neces-
sary. A considerable majority also
favor State supervision of ratemaking
bureaus. prohibiting discrimination in
rates, requiring reserves to be MAIN
tanned upon the bureau rate, and re-
qniring rates to be made through a
common bureau. 4s
1.-THE weight of opinion is slightly
! in favor of prohibiting variations
from bureau rates by other than a
| uniform percentage of Increase or
decrease by the company upon all
rates charged, and is slightly against
| prohibiting all variations from the
| bureau rates. The answers are also
| slightly N the majority against a
| State review and fixing of proper
| rates. and it should be noted that
some of the answers In favor of this
proposition qualify their approval by
adding, under proper safeguards,
| upon complaint, or with court review
THE answers are almost equally