El Paso herald. (El Paso, Tex.) 1901-1931, 1915-01-30
Kelly Asked To Be MORE CIVIL

fold, but they serve to show that the
lowering of the key rate from A cents
to is cents, by which mayor Kelly sets
so much store, has not a the effect
to lower the cost Of insurance in Ell
Paso.
Kelly Failed in His Duty.
However, had mayor Kelly been so
anxious to actually save the city and
property owners by way Of lowered in
surance rates. as he is now to secure
votes. he might have done something
in that direction.
Under the rules of the state insur-
ance board, hen a statement show
ing the loss ratio Of a city or town
for the three calendar years preceding
the date OF the statement is filed with the
state insurance board by the mayor
OF tharecity or town and such state
ment has been approved by the state
insurance board, a credit Of 8 percent
VIII be allowed for each . percent less
than a 55 percent loss ratio shown,
with a maximum credit of 10 percent.
Under the rulings of sthe state insur-
anee board this credit Will apply on
all insurance written in cities n
towns having a key rate of 40 cents
or under, but will apply only to risks
located within the corporate. limits Of
such city.
what He should Have Done.
As said above. had Mr.. Kelly been
so DESTROYS of seeing to It that the
ayers of insurance rates in FL Paso
were really benefited by compar-
atively low losses and our low key
rate. as he now is to get votes, he
would have filed with the state in
surance board the statement in ques-
ton.
Mr.. Kelly cannot plead ignorance in
this case. He was furnished with the
necessary blanks and all he had to do
was to fill them in, file them with the
state insurance board at Austin and
thousands of dollars would have been
saved to the fire insurance policy held
ers Of the city.
Where was the efficiency. economy
or application Of the principle of safe
ty first in this dereliction?
Takes Money Out of Town.
It is co-nservativeIy estimated that
the people of FL Paso pay annually
I'm the neighbOrhood of $500. 900 in in
surance premiums whlle losses Ihrouen
fire or other insurable causes have not
in the -four years since 1910, averaged
$4,000 per year. This would bring El
Paso's loss, ratio to about % percent
and would entitle Fl PasO under the
rules Of the state board Of insurance
to a full Is percent reduction In pre-
MUM for the years 1914 and 1915.
Had Mr.. Kelly done his duty in this
instance, the insurance rate payer OF
the city would have been saved $45,OOO
to $4,000 a yea in insurance pre-
miums which now are taken out OF
town to fill the Golfers Of foreign IN
surauce companies.
Doesn't Save n Dollar.
Mr.. Kelly spends $4,000 to $4,000 Of
the peoples money for a new fire en-
gine, of the latest auto pattern. and,
as a result of that expenditure, gets a
reduction Of one cent in the Key rate
which doesn't save a dollar In pre-
miums to any insurance payer IN the
city.
OF what advantage Is It to the man
who must carry insurance to have n
low key rate when his premiums are
not only not reduced, but in many
eases, ms shown above, are actually IN
creEseds
A low key rate is all right as far as
1t goes. but what the payers Of insur-
ance want is a lower rate OF insurance
which means a lower premium.
Not keIIy'a idea. anyway.
Mayor Kelly didn't bring about the
reduction Of the key rate, anyway.
When he went into office, four years
ago he found the groundwork laid for
the very reduction of the key rate for
which he now claims SO much credit
a splendid fire department built up
by his predecessor in office and 20
miles of paved streets. constructed by
his predecessor, enabling L firemen
to get to a fire quick, caused the low
ering Of the key rate. and mayor Kelly,
as a matter of fact. had nothing to do
but receive the notice from the state
beard Of insurance that the key rate
had been reduced.
Why be so fussy about it. in the mat
ter of trying to claim all the credit:
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