Evening journal., 1921-08-10
FIRE RATE IN
CITY IS Low,
REPORT SAYS
(continued from frst page)


hams. Albert Bird. c. T. Brigham.
r. y Kemp. John s. Mullin. Ralph
ea,tznan and Charles H. Ten Wee
cos chairman. 1t today sent to Mr..
Warner a report on It's Investigation,
as follows:
1T was decided. as a first step.
TO obtain Information as to what was
4 the effect OF the new rating OF VIII
mington by the Underwriters Asso-
ciation Of the Middle Department.
insofar as the increases or decreases
OF the rates in force prior TO july
I1th. 1921. the date when the new
rates became effective. and how
such new rates compared with other
cities Of similar size in this terri
tory
with this thought in mind. the
committee arranged a meeting with
the officials Of the above mentioned
rate making bureau and on Tuesday,
July 27th. met the president, Capt.
H. NJ zweig. and the secretary,
Louis Wiederhold, Jr., at heir Office,
SIS Walnut street, Philadelphia,
where three-hour conference was
held and several salient points de-
,cioped. as follows:
THAT the general level OF rates
prior to July II, 1921. we're lower
in Wilmington than obtained in any
other city OF equal importance in
the territory under the jurisdiction
OF the Middle Department, which
comprises Pennsylvania (outside OF
Philadelphia and suburbs OF Pitts
burghl the State OF Delaware and
the Eastern Shore and a small sec
ton of the Western Shore OF Mary
land. due to the fact that the insur-
surance companies had deemed it
inadvisable to apply the schedule OF
ratings TO this city at the time same
were applied to the other sections,
1. G.. in July. 1905. and as a result
Wilmington has been enjoying this
lower general level OF rates since
that date.
The ratings in effect here prior TO
July II. 1921. were not the result
Of an application OF schedules, based
upon years OF experience OF the
rate-mal1ing bureau. but were arbi-
trary. judgment rates which have
proven TO be, they assert, entirely
inadequate and their continuance in
force. which they frankly admit
was for the purpose OF meeting
competition. has been a serious mis-
fake on the part OF the Underwriters.
"Owing to the discrepancies In the
rates, as compared with other cities
OF equal size. and the unfavorable
loss records. many complaints from
Insurance companies as to the made
quacy OF the prevailing rates in viii
mington were lodged with the de-
partment with the result that on
September / Q. 1916. It was instructed
to re-rRte, under schedules the city
Of Wilmington.
sowing to the depletion OF the staff
during the war they stated it was
unable to proceed with the work
until September. 1920.
"Your committee stated that Il
felt that the insurance companies
were not treating Wilmington fairl,
by Increasing the rates in the face
OF the installation. at very heavy ex-
pense on the part OF the city, OF a
paid fire department and that the
raising OF the penalties from six TO
thirteen cents for deficiencies on the
part OF the city at this time was both
unwise and unjust
1--WE were assured that the intro
duction or Observation-Disclosures OF a paid
fire department had no bearing upon
the re-rating OF the city under a uni
form schedule (as shown by refer
ence 10 the above date when same
WAS ordered). but was for the pur-
pose Of correcting existing discrep-
ancies and would have been done
much earlier had It not been for the
conditions arising out OF the war.
1T was admitted that II was un-
fortunate that the readjustment
should have come just at this time
but not admitted that II was unjust
1T was pointed out that the penal
ties resulting from city deficiencies
are as follows: Water Department
.o249' Fire Department (as operat
ing IN September. 1920, .0See. stree
Department. oo3o; Police Depart
ment. .oo05; overhead wiring. 0044
deficient building laws. .o025; den
cient inspection laws .o03o. defcien
other laws. regulating infammabl
liquids dry cleaning establishments
garages and motion-picture films
.oo25
"This makes total penalty r.
city deficiencies OF 15 cents upo
the 500 OF insurabie value. whic
will be removed, in whole or in par
Just as soon as the city can sho
that the existing evils have bee
corrected. The Insurance compa1
les. i was stated. will welcome sue
corrections.
1t was further stated that viii