Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-05-20

Ii DsfsWAs NsS tHausarcs HatSs.
Edttcr TSrnes< assp1xbgtca : hsp'
sesaG with considerable interest III
\ statement OF Mr.. A. Al. MoorS. wfts
X reference to Cost Of TnsarahG q w f1tlt
rsasfze that II is aa utter SfsfpossS-
\ 5ffssy 70 conSIace enc Sfsswrfnsg pfalie
that IRE Insurance rates. ON tFseir par
ttGtsaar property axe erYaitaFsfes or u
4 even SET theTa to a6lsnst THAT FIFE iflsaf-
i arscs coFnESa sies have AN equal night @
\ eharse certain rates based on a. st3led-
! Gie of classified baSfdsng construction
\ as the n9srrfsaBt OF manufacturer In
I fixing shs price on his goods or prod
Z tEcts, af sfeasHs bug fair that the general
public should hear tire argument OF
the naesch abused Insurance agent, and
incidentally che Insurance company,
have NOT read tsfs article referred
TO as corning frofn the insurance conf
missioner IN which he states the new
law had resulted Ia lowering the cost
Of Insurance The statement, how
ever. is treseS but Mf. Moore has dsawr
cefnpa rfsorF WITH the rates pTsvaIIsrs
IN MarsbaEftSwn previous to July 8.
1915, at which date the new law went
into effect, when as a matter Of fact
the commissioner referred 10 the ptfs~
ltshed rate "a ~
VI IS sad, bot .rse, that owing TO tire
cut rate tactics Of agents and che sf~
forr ut ths companies to retain their
business, the published rates on build
frpes and their contents have never
heen secured. in Nafshalit0ea.
II Is equally true tfaf MarshaFftoeen
Is NOT a fair average city fer cornpatf-
SON ~ rates. as while the fire expe-
rism"e Of this city. for me past ten
years, has beGn above the average tfgs
rate Situation has been far below that
~ other cities tf iowa. with the ex~
reption possibly of OttWnWa, which
cify has also had an exceedingly had
fire record. IN Dos Noines. TJJfFsaaae,
redar Rapids, Codncit fsJaffs. Barfing-
ION ara Davenport, SIX If the largest
cities In tbs state. the rates have been
materially reduced Ninety per cert
of the risks Wsrs written at published
rates, and under the new law tis cnrrs-
panles made an arbitrary reduction OF
81 per cent on brick mercantile build
ings. Is "a per cent ON 6entsnts. Is
per cent on special hazards. Sew
ratings on properly have shown re- .
fttt't IONS in most cases from che old
advisory rates
Il would ne foolish ~ contend that
the application nj the new IAN wtfui9
lower the prevailing rates. in those |
lilies where no Uniform rate had ever
been obtained. The rHfs situation irr !
NhrshIlltOWn has always been a !
source Of concern 20 the responsible !
fire insurance companies: and IN
admittedly, had The fire experience been |!
unsh sisfartnry. numerous companies !
would have Withdrawn as has been /
the ease 81 Sioux C9ty.
Insurance Is legitimate business a !
basis nj credit for the merchant and /
manufacturer and therefore entitled TO |
as much consideration as any other
legitimate business.
There must bs Some basts on which :
10 promulsate rates Therefore. the |
adopted the Dean Seized |
n]e" which e1uaiizes rates, according
!" the construction Of buildings and |
their class nj occupancy THE lazy Of |
average applies TO ali business 81 a
hazardous nature. Therefore, there !
should he no competition 81 far So rats |
Is CONCERNED in Hre insurance.
The intcnt Of the ntsU law In TO pre-
vent rate cutting. which always re- /
suits In unjust discrimination in favor
ri the large insurer az against the
small insurer. and to placs each risk !
on lts own merits. The company Is |
not anxious for the nigh rate, as the
hfgf rate, naturally applies to tho |,
hazardous risk. They would much |!
prefer covering a Wholesale grocery
equipped with an automatic sprinkIeri
at rate Of Is cents than an alcohol |
plant at n rate Of s. u
Mlstakes may occur In the appiica- |
ton OF the Dean Schedule" thru mia |
Judgment on the part OF the inspector /
making the rate, hut the assured has |
always recourse Of appealing to the !
insurance commissioner who, under |
the law has the power to revise rates
which are found to be discriminatory
Or niust.
Az 20 the cost or value Of an agency
plant OF an insurance company. the
stationery is but small item for con-
sideraIOn, II takes a long period Of
years to establish a profitable agency
organ izatlon, which Ia only accom-
plished at large expense and endless
work on the part ri special agents.
We are firmly convinced that after
the insuring public comes to under
stand the law, IT will result in the i'm |
proving Of the physical conditions SUI
rounding their own particular risk,
which viii lessen the immense fire
waste and ran not hut result in lower
ing the rate PercivaI Webster.