New-York tribune., 1920-03-28

Charged Fire
Sprinkler Suit
New York Fire Insurance
Exchange Accused of
Exercising Undue Power
in Establishing Rates
Governor Takes Up Case
Corporation m C curt
Fight Over the Alleged
Sighting of Invention

inc reIuSAl OF the NeW AOIA FIRE III
surance Exchange to give recognition
to a sprinkler system invented by
William F. Conron has been the subject |
Of complaint to Governor Smith and
Mayor Hylan, and has resulted in court |
proceedings between Jesse S. Phillips, |
State Superintendent of Insurance, and !
the Fire Insurance Exchange.
The New York Fire Insurance Ex-
change, a private corporation main
tanned by the fire insurance company,
and also fixes insurance rates. obtained
from Justice Newburger, in the Su-
preme Court, a writ of certiorari to re-
view a proceeding which resulted in
ruling BY Superintendent Phillips with
regard to certain alleged 'discrimina-
tory insurance rates.
Mr.. Phillips yesterday obtained from
Justice Newburger stay against tho
carrying out of this writ, at the same
time making a motion that the writ be
quashed, which will be argued prob
ably tomorrow. 1t is alleged by Mr..
Phillips that the Fire Insurance Ex
change has acted in the matter against
the best interests of the public, and in
its own private interests.
Complaint by Governor
The investigation of Superintendent
Phillips was the result of the complaint
to Governor Smith, while the complaint
to Mayor Hylan, which dealt with al
legged efforts on the part OF the So
called Sprinkler trust" to do business
with Mr.: Conron, against whose inven-
tion, it is charged, there was discrim-
instion, caused the Mayor to submit the
matter to the Bureau of Standards and
Appeals. This bureau reported that the
Conron sprinkler met the requirements
established by the New YORK Fire IN
surance Exchange for reduced pre-
MUM rate on property equipped with
certain standard of sprinkler.
The ruling of Superintendent Phil
lips, issued on January 20, was that the
Fire Insurance Exchange cease its un-
fair discrimination in insurance rates.
This ruling the exchange refuses to
recognize. Although, according to the
Insurance Superintendent, the ex-
change had every opportunity to be
represented in the hearing he had on
the subject, the exchange at this late
day comes into court with a large num-
bcr of affidavits for the purpose of inn
pressing the court and asks a review of
the official investigation. Mr.. Phillips
referred to one affidavit Of forty type
written pages made by Willis 0. Robb,
manager of the New York Fire Insur-
ance Exchange, which is largely opin
ion, says Mr.. Phillips, and asks that it
be stricken from the papers.
Insurance Rate Affected
The reduction allowed on insurance
premiums by the New York Fire Insur-
ance Exchange on building fully
equipped with sprinklers is from S to
10 per cent, while structures partially
equipped receive reduction of per
cent. Buildings equipped with the Con
ron sprinkler do not enjoy any reduc-
tion from the regular premium rates.
Mr.. Phillips contends this action is
against the interests Of the taxpayers,
while also it is an injustice tp Mr..
Conron, whose sprinkler, he says, can
be installed at a much lower cost than
those recognized by the insurance ex-
charge.
Fire Chief John F. Kenlon, one Of
the witnesses at the hearing before
Superintendent Phillips, gave it as his
opinion that the Conron sprinkler met
every requirement and it's use reduces
fire hazards. Attorney General A.
Mitchell Palmer also investigated the
sprinkler prescribed by the insurance
exchange and authorized it's installa-
tion in government buildings. 1t was
also used on embarkation piers.
at is preposterous," said Superin-
tendent Phillips, "for the New York
Fire Insurance Exchange to now say
that it was not given full and fair
hearing. The court has no jurisdiction
to grant the stay.
GAS opposed to the public interests
we have private rate-making corpora
ton or association which is hired by
their rates. To enjoin the Superih-
tendent of Insurance is to redraft the
statutes in favor Of those private in.
tereStS."