The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1928-07-26
CITIES ASK CUTS in
INSURANCE RATES
Towns Unite in Fighting In
crease at Hearing Before
Commissioner C. Wells
COMPANIES FIGHTING
Lumbermen Join in Opposing
Raise-Specific Instances
Cited by Towns

st. Paul, July 25-lWhile repre-
sentatives of insurance companies
insisted they are not seeking
general increase in rates, spokes-
men for Minnesota cities demanded
decreases in insurance rates in a
hearing today before George w.
Wells, Jr., state insurance COM
missioner.
Witnesses from various munich
palities were Joined by lumbermen
In opposing the increase in rates
ahnGunced a month ago by the in
su! once companies. Mr.. Wells call
ed tie hearing on the rate schei-
uieS, announcing he has authority
to suspend them is necessary.
Outspoken opposition to the in
creased rates on some types of
roofing was voiced by represen-
tatives of cities and towns. The
new rates, state, would make in
surance charges on frame holnes
virtually double the rates on brick
homes.
c. ]. Lund, assistant manager
of the General Rating Bureau,
speaking for the insurance COM
panies, said statistics gathered in
all parts of the country over
period of years show greater loss es
from fires on unapproved roofs
tnan on approved roofs. He de-
MED the companies seek n general
rate increase, but want mercy to
get adjustments to get proper
recognition for socalled approved
types of roofs.
Mr.. Lund explained unapprJ1ed
roofs are shingles, taxpayer and
board; approved roofs are asbestos,
composition shingles and tile.
A. c. Godwari, Minneapolis
planning engineer, appeared FIR the
city of Minneapolis and voiced rro-
test against the increased rates.
He discussed the city's attitude
toward various roofings.
Appearing for the Minneapolis
Civic and Commerce Association
were j. n. Boege, chairman of a
special committee on insurance
rates, and Perry S. Williams, ex-
ecut.ye secretary.
Ire committee feels that you
fully leslize the large number of
ciljZens these increases will effect,
out at the same time it has COM
plete confidence in your investiga-
ton and believes you will reach
conclusions that are just both to
the public and the insurance COM
panies," Mr.. Boerge told Mr.. Wells
in statement.
A. A. d. Rain, representing the
National Lumber Manufacturers
Association, proposed the legisla-
ture be asked to- change the law
which provides that per cent of
fire insurance premiums be set
aside for fremen's pensions. While
agreeing that pensions are desir-
able, he contended the plan of
putting pensions "under the infu-
ence" of underwriters has bear
ing on attitude toward approval
roofing.
Mr.. Rain declared that socalled
approved roofing is not as fire re-
sisting as wood shingles. He told
of test made in Minneapolis two
years ago when an ordinance was
proposed to forbid use of wood
shingles. He said only the wood
shingles stood up under fire.
E. F. Fisher, manager of the
Minneapolis office of the lumber
manufacturers association, said
there were 1,609 roof fires in 1927,
of which 900 were in homes with
wood shingles.
Fire losses to homes from UNI
known causes totaled 1866, 900,
Mr.. Fisher said, while losses in
roof fires totaled $4,000. He de-
clared that insurance agents agreed
that the increases are unjustifed.
He urged legislation to prevent
Overnight" increases.
Speaking for his home city of
Morris and for the League of Min
nesota municipalities, Harry Fin
ney said the rating bureau has
failed to give specific reasons for
the increase. He said Morris had
just three fires due to single roofs
in a year.
In a 31-year period up to 1928,
Mr.. Finney said losses paid in
Minneapolis were IS per cent of the
total premiums paid; in Morris, 46
per cent; in st. Paul, 70 per cent /;
in Duluth, 81 per cent and over
the state as a whole, 621a per cent.
He charged that small towns are
paying unnecessarily high rates be-
cause of fire hazards in the cities.