Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-10-07

L uACA was SOJOuTIllng at MS summer
home at Rye Beach, N. H. A news
paper man went there and got an inter
view in which the governor said some
scorching things about insurance rates,
public officials who do not know their
Job, ETC.. that was direct attack
upon Commissioner Monk. Gov Fuller
was not talking for political effect, be-
cause he goes out of Office next January.
But he was not pleased with the re-
suits OF his efforts to have an investi-
cation of insurance rates this year by
the Legislature. He referred to it later
In a speech at AmeSbury. coupling it
with the insurance row, when he said
We have been having some contro-
versy with the insurance companies re-
Gently, and want to say to you gen.
tlemen that believe that the insurance
companies are overcharging the people
of this Commonwealth in exorbitant
rates of one kind or another.
Score Monk.
81 tried to get a resolution through
1.-The Legislature to investigate insurance
rates, but the insurance lobby was too
strong. They told the boys in the Leg
iSlature what to do, and practically
every mothers son of them made a
low bow and took off his hat. These
insurance companies do not need any
one to look out for them at the state
house except to see that they don't
carry it off,"
With Gov. Fuller blasting the way
the others were like flock of dogs in
the pack chasing the fox-in this case
Commissioner Monk The rates were
given prominence in the papers So
the readers saw that there was some
increase, especially in the Boston zone.
They learned also that zone / had been
subdivided in territories and B. And
the former comprised Boston and five
suburban cities with one town.
The motorists read the rates and
blew up. For this was the story in
Boston and nearby:
Old rate. New rate.
Medium cars -. 81 SO
Large cars $500. As 10
Handing out an increase on Fords,
ChevroletS, Whippets, ETC., comprising
some so per cent of the registrations,
of nearly 100 per cent, was Immediately
SenSed by some of the leaders of the
Republican party, frightened by the re-
port of the big registrations of new
voters, that it would give the Demo-
Gratis whale of a campaign issue.
They believed that Senator Walsh,
Democrat, would again probably be
reelected and that the campaign he
would make might sweep in Smith
above him and Gen. Charles H. Cole,
American lineage and World War vet
eran, into the governors chair. So
after, Gov. Fuller had a conference with
Commissioner Monk at the state
house, and found that the insurance
executive for the State was not chang
ing things around, Lieut.. Gov. Allen
sent note to Mr.. Monk in which he
made some forceful statements. Com
missioner Monk read them over and
then he proceeded to shoot back at the
lieutenant governor some hot shot. |
These miSSiveS, of course, were handed |
out to the press. They made first-page |
headlines in all the Boston papers. Edi-
torials began to appear saying the rates
were too high.
Fuller Calls for Cut.
Into the fray jumped State Treasurer |
Youngman. candidate for the lieuten- |
ant governors job He not only said |
things, but filed bill for the incoming |
Legislature to have complete reports of |
all insurance claims sent to the state |
house. The commissioners allowance |
of more than $5,OOO,O0O for unpaid !
claims seemed to be the big bone of
contention.
Gov Fuller again jumped into the
fray with sharp letter to Commits
sioner Monk, urging him to scale down
the rates, stating that his figures were
too high and not based on business
facts. The governor criticized the al
lowing of more than $5,000,0 900 for un-
settled claims as part basis for the
raise, saying it was too high. Commits
Sioner Monk came back stating that
he was acting under the law and he
had to allow the insurance companies
to make a fair return on their invest |
ment. He said if the rates were SEEM /!
ingly too high they could be taken to
the courts for settlement. Gov. Fuller
then retained, at his own expense, for |
mer Representative Elijah Adlow to
fight the case in court.
Right here Attorney General Warner
entered the fray. He wrote Mr.. Monk
that, as the representative of the peo-
pie, he did not want to go into court
to fight against them in favor of the
insurance companies, and that Is what
it would mean If the rates went into
effect, the attorney general, by law,
being the one to back up any other
State official Representatives Of cities
and towns in the Boston zone shouted |
loudly against the proposed rates. Some
of these men threatened court action
and new bills in the Legislature to
change the law. It was brought out
that in many cases two men living in
adjoining homes and owning motor
cars paid different rates. The Boston
man paid a high rate, while right over
the line in Brookline or Newton the
neighbor, maybe with larger car, paid
a lower rate.
Commissioner Monk said the high
rates were due to so many accidents
in Boston, Chelsea and the other places.
To this Boston legislators came back
with the statement that majority
of accidents were caused by people from
the low-rate suburbs. Then there was
injected the red herring across the
trail-fraudulent claims. Mr.. Monk,
Motor Registrar Parker and insurance
+, men told of many people figuring IN
! accidents where no property damage
| was carried. These people would go
home, play sick and injured, send in
claim for compulsory compensation,
! and, rather than fight the case in court,
| $50, $75 or 500 would be paid out by
! insurance companies. After the attor
ney and doctor got theirs there would
! be enough to pay the ordinary dam
! ages for the car.
Bar Association Takes Hand.
There was a big hullabaloo about
! these doingS. The bar association re-
quested data to have the attorneys dis
barred. The attorney general demanded
| data upon which to start prosecutions
! The State Medical Board started in
J quiries about physicians alleged to be
| in collision on frauds. All three de-
partment heads said they knew this
| had been going on for months. No
one suggested asking what the alibi was
for not starting an investigation or
! prosecution until Increased rates were
proposed. Figures showed that, while
the insurance companies had more than
10000 claims for personal injuries, the
Motor Vehicle Registrar, to whom, I'M
der the law, all accidents involving any
one hurt must be reported, had only
about 10000. This seemed to tie up to
the fraudulent claims.