The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-01-20
Decrease Premiums ON Fire and
Tornado $2,OOO,OO0.
Representatives of Big Agencies
May EnjOin New Order.
AFFECTS 1870 KANSAS FIRMS
Mercantile Interests of State
Will Receive Greatest Benefit.
Auto Owners VIII Garry Burden
of Rate Advance.

Revenues amounting to s2,ooo.ooo a
year are to be cut from premiums
of fire and tornado insurance conn
'panies doing business in Kansas under
an order issued today by Frank L.
Travis, state superintendent Of insur-
ance. The order affects $50 COM
panies doing business in the state. 1t
is effective March 1. Representatives
of several big agencies indicated this
afternoon that action would be taken
to enjoin enforcement of the rate cut.
superintendent Travis order fol-
lowed almost similar action by the
Missouri department 1t is distinct
classification order based on evidence
taken during the rate inquiry here
last fall.
To Benefit Merchants
Mercantile interests will receive the
greatest benefit under the rate slash
-,rhe Travis decree calls for 20 per
cent cut in mercantile stockssof ptac-
tically all classes including motor cars
and agricultural implements. A SINH
lar reduction is ordered on all build
ings used for mercantile purposes,
banks. theaters, club houses and gar
ages.
Fifteen per cent will be cut from
existing rates for fire insurance on
miscellaneous manufacturing risks
The lower rate is effective both on
buildings ana equipment
Farm Risks Cut 10 Per Ceat.
Farm risks are trimmed 10 per cent.
This slash includes livestock insurance
rates.
Tornado rates are cut 10 per cent
under the decision of the state depart
ment.
Right there is where the good news
stops.
There will be no change in existing
rates on dwellings, outbuildtng gs. prf-
vate oardinE houses, frakeTalty
houses. sorority houses, rfatss apaft@~
ment houses and similar Structures.
Grain and ffoUf Yiififs elevators and
warehouses will also pay the present
fixed rate.
Some Rates Advanced.
While the general mercantile in
dustry and owners of business prop
critics benefit heavily under the rate
order. there is a decided uptura in
rates on several property classifica-
tions. Automobile owners will carry
the burden of the rate advance altho
some of responsibility is passed on to
the mining. oil and railway interests.
Crop producers. as well as lodges,
churches and hospitals come in for
a jump in rates.
The new order increases fire in
surance rates on mining properties
and equipment 10 per cent. OH risks
of al classes carry a similar advance.
per cent.
Churches hospitals, schools. COL
leges and grain elevator risks go up 5
per cent under the Travis order.
Then comes the sad news for the
motor car owner. While dealers re-
ceive benefits of the 20 per cent re-
duction on cars in stock, the man
who buys an automobile comes in for
a radical advance in rates for pro-
lection.
Auto Fire Rates Go Up.
Automobile fire insurance rates go
up so per cent under the order. Auto
theft insurance charges are increased
rs per cent, collision insurance IS
boosted so per cent and auto trans
portation insurance is lifted 2s per
cent.
Rates on crop risks-incIudsng
growing grain-are advanced 20 PEI
cent. There is also an increase of 20
per cent in sprinkler insurance
New rates fixed by the state de-
partment mean q reduction OF prar-
tically 10 per cent revenues of fire,
livestock and tornado insurance COM
panies. Last year premiums of these
companies totaled $lS,000,000 on
their Kansas business Establishment
of the new rates would lower the pre-
miums to little less than $4,000, ,0eO
on the same business.
Under new rates fixed on hail In
surance last fall, premiums on hail
risks were lowered about $500, ,o0e.
The hail order is not included in to.
days decree and affects principally
wheat growing cou-.ties in central aRd
western Kansas.
May Fight New Order.
Representatives Of several large
fire agencies stated this afternoon
that formal action had been agreed
upon as affecting the Travis rate rui-
ing. They asserted. tho. that there
had been a general agreement TO fight
n decided reduction. They contend
that on a showing for a period OF
years the Kansas business has not
| been profitable and on the figures
which they will produce expect to
| fight their battle in the courts
The new order will become effective
March I unless court action is talrer
TO block its operation. II is probable
that suit to enJOin the new rates wili
/ be filed in the next ten days.