The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-08-25
ONE CUT MADE IN
HIGH PRICES FOR
PEOPLES BENEFIT
Fire anu Tornado insurance
Rates Will Be Cut Almost
Ten Per Cent on Sept. |.
Saves Menphis 100000.

The first really damaging blow to
old b, G, l. that has SO far been an.
hounced--a staggering punch that on a
single Item OF cost to property owners
OF Memphis struck off approximately
sou Oao ,, per year and which viii mean
people Of Tennessee, fell late saturday
afternoon when word was received here
that l., X, Arrington state insurance
commissioner had abrogatcd the 10 per
cent surcharge on fire and tornado In
surance premiums which the commits
sioner had granted the insurance CONF
panies some time ago, The order wip-
ing out the surcharge and restoring
the old rates will SO into effect Sept /.
The increase In insurance rates was
mission ON the plea OF the companies
that the Increased cost Of repairing
and replacing fire losses had become
so great that the companies faced seri-
Gus financial embarrassment II relief
were not granted by an increase in
rates
Since the increase went into effect
the revenues Of the fire insurance CONE
panes IN Tennessee have been pling
w enormous surpluses,
Companies Fought Cut.
The insurance companies did not
Yield TO the commissioners demand for
n removal OF the surchRrge without
n bitter fight, but they could not dts
pute the figures OF their own books.
II vas not a theory they were facing,
hut cold facts from their own books
which showed huge profits accumulate
ing The companies stu contend that
the emergency exists and will az once
begin their efforts to have the sur
charge restored
They claim that the reduction Is not
warranted from any standpoint and
that their costs are steadily mounting
higher md higher,
That the restoration Of old insurance
rates ts substantial victory Of the
high cost Of living is shown by fig
ures as to the saving II will make to
the people Of Memphis, given out by
Allan Fisher, vice. president of y, A,
Fisher. InC Monday morning.
MIR Fisher said that last year the
premiums on fire and tornado insurance
paid out by the people OF Memphis
premiums over the preceding year was
over $IO0, ,000 A similar increase due
to Increased valuation and new busi-
ness would swell the premiums paid
out here next year 70 over S2,0OO,00N,
SO that the restoration of the prewsr
| mately S2O0,O00 In the city alone.
First State to Reduce.
| The reduction Of rates will not APP
DIV 10 pOllNltN Wlitltl pEtNlOuS w
| Sept. J. Policies written between now
and Sept I win pay the surcharge for
| the entire time the policies run, short
| term policies are written at higher
rate SO no saving to the policy holder
can be made by taking short term in
surance until the new order becomes
effective
Tennessee IL the first state In this
| section OF the United States TO win the
| reduction in fire insurance premiums
Mississippi and Arkansas have received
| no relief on fire insurance rates
This Is the second notable achieves
| ment MIR Arlington has won for the
| people Of Tennessee during his term
as insurance commissioner. The rates
| for workmen's compensation insurance
| In Tennessee ARE the lowest OF any
state in the United States, except
| Maryland where the law is such that
lower rate Is justifabIe, II is said
| that the favorable compensation rates
| In effect In this state are due almost
entirely to the efforts Cf Mr.. Arlington.
who produced such facts and figures
that the efforts OF the insurance COM
| panies to obtain higher rates such as
were In effect In other states were set
at naught,