The Owosso times. (Owosso, Mich.) 1897-1926, 1915-08-27
Insurance Competition Stifled-Rates
Increase.

INCTcdSt.
Were you one of the wise ones who
Cancelled fire insurance policies previous
to the Gath and had the same re.wri tten
for term of three or five years before
the law passed by the last legislature
making rates in the state uniform went
into effect2 If you were not you can
look forward to paying an increased
rate when you get new policy. The
board rate is now the only rate at which
insurance can be written in Michigan
by state companies, the company and
their representatives being liable to
penalty IF lower rates are made to Sc
cure business. Three year policies on
business places have heretofore been
written at double the yearly rate,
hereafter 1t will cost twice and halt
the yearly rate: FIVE year policies cost
four instead of three times the single
year premium. The increase also ap-
plies to dwelling houses, churches, fac
teries, etc. In this connection the
Greenville Independent says:
Insurance rates on residential prop
erty in the city of Greenville are in for
small raise after August "a, when the
new regulations made possible by an
act of the last legislature, takes effect.
AS usual, when the government of the
state legislature takes crack at the
corporations the people generally get
the woist of it. Just like former Pres.
ident Roosevelt's settlement of the an.
thracite coal strike in Pennsylvania
some years ago He settled it to the
entire satisfaction Of the miners and
coal operators, but it has cost the con-
sumner 90 cents ton extra ever since
this compromise between tho miners
and the operators was effected.
So it is regarding the railway rates
and the other acts of congress affecting
railroads. The tendency along the line
has been to increase the cost to the
public. Before combinations in max.
ing freight rates were permitted there
was an open competition between the
two roads in Greenville, but the rail-
way act obliged them to fix rate that
would be exactly alike and where did
they put it? At the lowest rate they
had previously NADER Oh, no. far from
il. They agreed to fix 1t at the highest
point ever made and so the freight rate
to New York today on potatoes is the
highest rate ever made, and who pays
itf The farmer who raises the potatoes.
So it is going to be on insurance rates.
Under the new act of the last legisla.
ture, rate cutting is prohibited and the
rates of all companies that belong to
the rate making bosrI, must all be
alike. Where do you suppose these
rates will be fixed; at the lowest price
made in competitions Not much. They
are to be fixed at even higher prices
than ever before made on residence
property. The rate heretofore has been
fixed on wooden houses at SO so per
thousand but after August "a the new
rate will be 1926 per thousand. Not
very much, you may say, but seventy
FIVE cents handed to the insurance COM
panies on every thousand dollars writ
ten on residence property in the state
of Michigan will hand to those COM
panies, according to former Insurance
Commissioner Milo ID. Campbell s2,.
600. 900 annually.
1t is reported the insurance compsn-
les are contemplating taking off two
and one.half. cents. If they do, then
the state residents won't get stuug by
the last legislature for but 81 500, OOO.