The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-08-07
RATE INVESTIGATION
OF CITY WILL HAVE
AGENTS ASSISTANCE


The personnel of the committed
which is to investigate Richmond fire
insurance rates was announced Mon
day morning by Mayor Lawrence A.
Handley.
The committee will be composed OF
the following men: Thomas Nichol- |
son, Robert E. Heun, secretary of the
Rotary club; Howard Dill, president
of the Richmond Water Works COM
pany; A ]. Harwood, Atlas Underwear
company; Edward H. Cureton, head of
the local plant of the International
Harvester company; Fred Bartel, OF
Adam H. Hartel and company; A L.
jenkins, insurance agent; William D.
Scoble, insurance agent; Jesse A.
Bailey, insurance agent, and the local
board of public works, Walker D.
Land, Frank McFail and Bert Henley.
Approval of the move OF the mayor
to have insurance rates lowered have
been coming in TO the city offices ever
since the appointment of such a COM
mittee was suggested to the board OF
works last Thursday at its regular se5-
sion.
Individual citizens, when interview
ed stated that they thought the move
was especially desirable, because the
committee would be able to show what
the exact situation was.
That the investigation of fire insur-
ance rates to be made by the mayor
committee vii have the full co-opera-
ton of the local agents was indicated
by the statements or several when In
terviewed on the situation.
we have two good grounds for sup
~ \ - no
agents. AS citizens we have a duty
towards the city, and as good business
amen we realize that we will gain in
s11s6ae end from any just reduction of
rates to our clients.
IF the committee makes fair and
unbiased examination of rates, as
seems probable, we will do everything
that we can to get them the informa-
ton that they need"
But while the insurance agents
have given their support to the COM
mittee, they wished to have the city
understand part of the problems that
have not been always pointed out.
Primary Rate Low.
Richmond's primary rate, which I'M
der underwriting rules effects only the
business and manufacturing districts,
is low, within three cents of being the
lowest in the state. The final rate is
determined upon the separate build
ings, their construction, the nature of
the business carried on in the pre-
misses, and on the exposure of that
building from others.
Slight corrections and changes in the
buildings are often all that is needed
to lower the rates, they pointed out,
but the determination of that rate is
the business of the rating bureaus on
the state, whose engineers determine
the fire hazard of the place.
Richmond can reduce her rates
greatly one of the agents said, '1t
the committee can educate the bust
ness men to watch oft for those
changes that will lower the rate.
Naturally we hope that the mer-
chants will not jump to conclusions
until the committee is able to report
on the relative rates of Richmond and
other cities, on the basis of exact fig
ures. Such figures as are easily avail
able are not accurate, but the com
mittee can secure the exact statistics
Report New Situation
With Richmond underinsured as a
result of the increase of values since
10 the war, a new situation in the insur-
! ance business crops up, another agent
pointed out WHERE d man Originally
carried but $4,000 insurance on his
place, and was covered for so per cent
he is now carrying the same insurance
and is covered for but 40 per cent
Thus it is much easier for the insur
ance company to suffer a complete loss
of the value insured than originally
Under such a situation the proper
tional losses are greater, and mors
strict adherence to the rating rules
must be had. if the rates themselve;
are not raised.
"At the same time the insured finds
that his insurance is used up, and he
more quickly suffers a loss from hi;
own pocketbook."