Every evening, Wilmington daily commercial., 1921-07-09
FIRE INSURANCE ON
SOME BUILDINGS TO
GO HIGHER MONDAY
Result of Fire Hazards Found
by Inspectors for Under
writer's.
NEW REIMBURSEMENT PLAN

apparently on which the increases are
based. they seem to have been arbi-
trarily fixed Each property has in
tho past six months been visited by
inspectors of the Fire Underwriters
Association and personally and rigtdly
inspected. Each alleged violation of
fire prevention regulations has been
charged up against the owner and now
he Is being notified about il.
The increase in rate. coming, as il
does. upon the eve of the installation
az a paid :ire department, is a serious
blow and great Disappointment TO VIII
rnington business men, therefore a
meeting Of city officials and business
men has been called for Monday even
ing, in the rooms Of the Chamber of
Commerce. Chairman c. T. Bridg
ham of the Delaware Safety Council
and Alfred ID. Warner. president OF
the Chamber OF Commerce, with mem
bers of City Council, Mayor Harvey,
tha directors of the Department OF
Public Safety and interested husi-
ness men will attend.
Although the underwater inspectors
have been working about Wilmington
since early in the winter, it is said,
the fact was carefully guarded and
did not become public property until
this week, Then it became known
when the owners of properties began
receiving bills informing them
that, policies as they expired
after Monday. would be rein
surcd at certain increased charges.
There is a disposition on the p hrt of
some OF the business men who = re af-
fected TO criticize the insurance
brokers. feeling that the matter might
have been Strengthened out IL they had
heeu informed of what was back OF
the inspection.
The increases that have been learn
ed OF range from five TO twenty-five
cents per 500 and one instance is
known Of one-story building On Mar
ket street, that is considered pre-
ferred premium, where the increase VIII
be- about 125 per cent.
Insurance brokers who We're asked
about the increase today said that 1t
was a case OF fifty -fifty-meanin that
in the equalization of insurance rates,
there were as many properties where
tho rates We're reduced as where there
were increases. They claimed tna'
the increa ses were due 10 such nrr
hazards as rubbish in the cellar, paper
mache walls between Offices. windows
tnat may become menace 10 the
property adjoining, etc
Reduce Rates When Hazards Are
Removed.
These brokers claim that wheEsver
property possesses FIRE hazards ana
tbesa ARE corrected the rate will ,:
revised in the owners favor. Tnls TACT
however. is combatted by a leading
business man on Market street, who
saws he knows Of a broker who. after
being notified by a property owner
that he had made The corrections, and
a sLed for a rebate ia his insurance
rates. did not have hiT request granted
One Of the weightiest arguments IN
favor of a paic fire department rnisdt
before the legislature last winter tc
obtain the passage Of the bill was the
fact that the underwriters had assured
the business men that Unless such q
change was made insurance rates
,so,,ld he increased. There are some
business men who say they We're told
b,- agents Of the underwriters that
there would not he an increase of the
manner of fghting fires was changed
These statements may be more fully
explained at the meeting Monday even
ing.
In explaining this angle of the affair
the insurance brokers say that the
Maid fire department has nothing tc
do with their change in the rates
a. r.fTs 4f a
rates was started, three or four years
ago. but the war interfered ana as
consequence the association was nol
able to complete its investigation unti
this past winter.
The condition to which the brokers
refer-rubbish in cellars, unsafe WAN.
window hazards. no smoking signs
where such signs should be. and other
risks have existed here for years 2 10
If the property owners have failed te
live up to regulations, that is theii
misfortune If the city han not IN
stalled a paid departInent, the brokers
say. the underwriters would have IN
creased the rates much higher.
President Warmers Statement.
President Warner Of the Chamb"1
of Commerce. with Chairman 6f9uS'
ham of the Safety Council and others
discussed the situation informally
Yesterday afternoon and today issnee
III. following statement:
.sThe equalization of fire insurance
rates now going on in Wilmington
- = matter which came 10 my atten-
tion only recently. ] am not question
inc al this time the justification for
tbe revision now being made, but feel
that ii is most untimely in view OF
the pending installation Of the new
Maid fire department. ] regret that
tbe revision was not made effective
some two OF three years ago, when, ]
am informed, it was frs proposed,
but appreciate the fact that the rating
bureau was inadequately organized
for such purpose during the war
ueriod (as in fact were many other
organizations), and repeatedly defer
red inspection, until the strike OF
September, 1920 actually forced a be-
ginning.
II now understand that the inspec-
ton commenced carly in September
1920: that il has proceeded steadily III
/ 10 the present time, with anywhert
from two 70 five inspectors continu.
pusly at work; that all the FIRE in.
surance brokers of our city have has
knowledge Of this for eight or min
81. Ia 4.