The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1915-06-25

| From saturdays DAILY.
A threatened increase in fire in
surance rates has been averted and
promises OF reductions which will have
owners of dwelling houses and bust
ness buildings thousands OF dollars
have been obtained by the state in
surance department according to an
nouncement made today by Insurance
Commissioner s. ID. Work The pro-
posed reductions will go into effect
July l.
These reductions are the first re-
suit of the fire insurance rating bill
passed by the last legislature, giving
the insurance commissioner power TO
supervise rate making within the state
| The negotiations which resulted in
the reductions have been I'm progress
nearly two weeks.
! Were Going to Increase Rates.
Early i'm June officers of the rate
making bureaus In Minnesota notified
Commissioner Works that the Ma
tional Board OF Fire Underwriters had
decided to raise insurance rates In
about dozen states I'm the middle
west. Mr.. Works ut once notified them
that under the authority Of Chapter
| 10l. Laws OF 1915. the so-called Ward
| bill, he proposed to resist the increase
| in Minnesota. Officers az the rating
| bureaus in Minnesota told him they
| were powerless. since the increase had
been determined upon by the national
board. Mr.. Works asked them tn ar
range a meeting for him with officers
of the national hoard. Before the
4 tspo ha lot 10
fore Governor Hammond and had his
| approval Of the plan To fight the pro-
posed increase.
| Held Meeting In Chicago.
! Commissioner Works met the Of
ficers of the national board nj Chi
cago last week. He notified them that
instead OF permitting any increase In
| fire rates I'm Minnesota. he would. un-
der authority Of the new rating law.
order substantial reductions I'm rates
in->Minnesofa.
This would have meant a long and
expensive fight I'm the courts. and the
| conn anies agreed 10 make some re-
ductions. The whole matter was then
| opened up and the changes tn be made
| "grced upon before Mr.. Works left
| Chicago.
Fireproof buildings all over the
state are to be reduced fifteen per
cent under the new schedules. All 9TH
er brick buildings are to be reduced
| fifteen per cent i'm the southern di-
Vision of counties and l2b per cent N
the northern division.
Public buildings. both brick and
frame. are TO be reduced fifteen per
cent In the southern division end 12h
per cent In the northern division.
Reduction Is Made.
| \ reduction OF 30 per cent IL TO be
made In the annual rate on dwellings
and contents I'm all municipalities hav-
ing fire protection. The term rule,
however, Is changed so that hereafter
| the rate for three years will be two
and half instead o! two times the
annual rate and the rate for five
years will be four instead of three
| times the annual rate. With the &c ner
cent reduction In the annual rate. the
three year rate will remain the same
and the Ave year rate will he Increased
about Ga per cent. The number OF
dwellings insured on the five year
plan. however, Is negligible.
Reduction IN Villages.
Unprotected dwellings. that Is. dwell
lings In villages having no fire protec.
, ton. will be reduced 10 per cent in
annual rates. With the new term rule.
| this Will mean an increase Of 12k I'm
the three year rate. The total value OF
dwellings in unprotected villages.
however. Ia very small. To further aid
| iugurarS In email yiIIooao rn,, mai.
siener Works is preparing a bulletin
showing how by installing inexpen-
sive apparatus they could obtain lower
rates. Unprotected villages at present
take the class six rate. but by INSTALL
ing apparatus costing about $500 they
| may be rated In class FIVE. He will al
so point out how those in class five
may by improving their apparatus be
placed in class four, which takes a
proportionately lower rate.