The Birmingham age-herald., 1914-09-05
Insurance Adjuster Con- tends Raise of Rates by Tariff Association Un-
 warranted and Unjust
PEOPLE DO NOT SHARE IN PROFITS, BUT MUST SHOULDER THE LOSSES
Says Big Fire Losses in Other Towns Charged to Birmingham Because Policies Were
 Written Here

James H. Hard, who has been in the insurance business as agent and ad- iuster for 27 years. denies the charge of certain special agents that Birmins- hams fire losses are in great part nt- sributabIe to dishonesty.
 MT. Hard contends, furthermore. that fhe recent series of raises to which Blr- mingham has been subjected was with out justice He says that as the people do not share in the profits of tariff com panies, they should not be forced to bear the losses.
 In the course of his statement he de- clares that suburban merchants rates have been increased since 1900 43 per cent and that in the same time rates on house. hold goods have been increased 8 per cent
 MT. Hsrd's statement in part follows: i''We are all agreed that the prevention theory is the correct, one. so we will let it go sf that But the question of in- surance rates and raising insurance rates is an entirely different matter, and I am firmly of the opinion that the raises I3ir- n1ingham has had to stand for the past 1a years are unjust and unwarranted for the following, among other reasons
 The people are not partners of tho tariff compa and should not be called upon to pay an assessment to make np its losses caused in my opinion, moro by lack of good management than from any other cause If the matter was mu- tual and dividends were paid the insurers in proportion to the net earnings of the companies then they should cheerfully stand an assessment or increased tax in the lean years.
 Tt is just as reasonable to expect a raise in railroad rates because of wash outs, cave-ins, wrecks or collisions. caus- ing unusual losses, as it Is for the tariff companies to expect the people to stand with equaninnity the raises which have been made by them.
 "The people do not participate in the profits and therefore they should not be called upon to pay more than their share of the losses.
 What is the cause of so many fires in Birmingham? They are too many causes to mention all in one interview, but Bir- mingham is charged up with many she should not have to stand. have in mind heavy losses in Blocton. Banner, Bes- semer and many other points outside of Birmingham, which doubtless charged to Birmingham because the policies were written here.
 Some of my friends say that the losses are caused largely by dishonesty. l be- lieve very small proportion can be charged to- that. Tn my experience of ? years, r spent in actively adjusting claims, l found some crooked losses in- side as well as outside cf Birmingham, but the percentage was not large. l be- lieve the citizens of Birmingham are as honest as those of any other city.
 Rates should be equalized. When com panes write office buildings at 9 cents to 35 cents on the Hundred and are called ~upon to pay sS5,0oO losses 1t does not pJustify their trying tor make up losses by increasing rates on household furnitura dwellings and stocks
 Incidentally rates on office buildings have not been raised, but small merchants in the suburbs since 1900 have had thele rates increased 43 per cent. and in many cases household furniture in tenant dwell lings has gone up s4 per cent.
 I know of one frame dwelling which rent for s15 per month on which tho rat 2 of insurance was fixed n s6 on the hur- dred or equivalent to B l-3 per cent on the gross income"