Newark evening star and Newark advertiser., 1916-01-17
INSURANCE OF
SCHOOLS TO Be
THRESHED OUT
Controversy Over Rates Now
Waging Will Be Determined
Today by Committee.

There Is considerable controversy
between local fire underwriters in re-
gard TO the public school insurance
proposition, which in all probability
will be settled at a special meeting OF
the finance committee of the Board OF
Education, TO be held this afternoon
ut o'clock.
Two local fire insurance firms today
took exceptions To a statement made
by James r. Byrne. secretary of the
Municipal Fire Insurance Commits
sion, that the Arm of Huegel &
Clark had no authority to submit
bid of 1856 per 800 valuation ON the
school structures.
I'VE are ready to carry out our
bid" said Alfred S. Clark, a member
of the firm, today I'VE are able TO
save the city more than $4,000 in
premiums. What we would like to
know is, who authorized Mr.. Byrne
to go to William S. Naulty, vice-presi-
dent of the Joseph NJ. Byrne & Com
pany, in regard to our bids. According
to Secretary Byrne we have not been
authorized by the companies to sub
nit such a low bid.
In our letter forwarded to the
Board of Education anc not seat to
secretary Byrne as he so states, We
informed the board that we had writ
ten agreements with the Globe &
Rutgers. the Home Insurance Com,
pany, of New York, the New Hamp-
shire Fire Insurance Company and
the Niagara Fire Insurance Company.
Our letter read: Some OF the com
panies that have agreed in writing to
accept the line from us are the fol-
lowing. The companies that we men
toned We're only some of the COM
panies that we intend to place the
line. These also have agreed to ac-
eept the Insurance.
How can the Globe &, Rutgers and
the other companies you mention sub
nit rate that is lower inan the ones
they have filed with the commissioner
Of banking and insurance." Mr.. Clark
was asked.
"These companies will not write the
line less than the rate compiled by the
State rating bureau replied Mr..
, Clark.
IF these companies are not to ac-
cept the line at a lower rate how were
YOU able to quote rates in your bid
that are Is per cent. lower than the
rates submitted by other companies?"
Mr.. Clark was then asked
you will remember that our letter
states that the companies We named
were only some OF the companies
that agreed to accept the line.
"If the insurance rs awarded to
Huegel Il Clark we intend to place
a certain amount at the 1853 rate
with the four companies we mem
toned, and the balance with other
companies.
"The latter companies Rave agreed to
accept the line at a lower rate. By
this plan we are able to submit our
rate of .1436 if the school board insures
al it's buildings through our firm re-
piled Mr.. Clark.
what schedules are these COM
panies now operating UNDER" Mr..
Clark was asked.
"Under the rates of the bureau, but
the officials of these companies have
new schedules ready to file with the
commissioner of banking and insur-
ance," replied Mr.. Clark.
Thinks 1t No Violation.
as not that a violation of chapter
Sb of the laws of 1892" Mr.. Clark was
asked
1--WE do not consider it So" replied
Mr.. Clark.
Twill you explain how a company
fire insurance on a set of schedules
that have not been filed?" Mr.. Clark
was asked.
"A fire insurance company can file
new schedule of rates any time 1t so
DESIRES" replied Mr.. Clark.
The writer then asked several local
insurance firms regarding the point
raised by Mr.. Clark. 1t was learned
from good authority that to submit a
bid on any other rates than those on
file at Trenton is a direct violation of
chapter So of the laws of 1913.
Thomas K. Johnston, assistant COM
missioner of banking and insurance
at Trenton, today stated that fire
Insurance company must conform
with chapter SIS, laws of 1913. He said
I'm submitting a bid a fire insurance
company must make it in accordance
with the schedule of rates now ON file.
He said a company could not first
submit a bid and then file its. set of
schedules.
What the Law Says.
The law covering this particular
point reads as follows:
NO corporation. firm, association,
individual or aggregation of indi-
viduals, hereinafter called insurer
doing the business of insurance within
this State, shall fix or make any rate
or schedule of rates, or charge. de-
mand, collect or receive, directly or
indirectly, or through any special rate,
tariff, drawback, rebate, concession,
device or subterfuge, a rate for in
surance, which discriminates unfairly
between risks within this State Of
essentially the same hazard, nor shall
any insurer against the hazards OF
fire or legal liability of employers
make any such insurance within this
4 state except in accordance with gen.
eral basis schedules, embodying basis
rates, charges, credits. terms, con-
ditlons, permits, standards and other
data necessary to the computation of
equitable rates and rules of practice
FOR such insurance. which general
basis schedules, embodying basis
rates, charges, credits, terms con-
= aitions, permits. standards and other
data used for the determination of
rates shall be filed by such insurer or
it's agent or expert duly authorized,
with tho commissioner of banking and
insurance within three months after
this act goes into effect, or with the
amendments to such general basis
schedules which may be filed with the
commissioner of banking and insur-
ance from time to time thereafter"