Evening star., 1928-11-25
INCREASED AUTO INSURANCE
RATES STIR MASSACHUSETTS
Motorists Dissent When Cost of Com
pu1sory Policies Is Raised by Commis-
sioner and Take Matter to Court.

a petition In the Supreme Court for
review Of the finding of Insurance Com
missioner Linnell. This makes the
second time that court action has
entered the case. the insurance COM
panies having got a decision from that
court to the effect that the commits
sioner must put rates Of some kind into
effect.
Everett is one of the cities In the
territory one group where the small cars
pay S18 more, and the others $40 ans
SIT respectively. Representative Spear
stated that litigation was expensive and
that he would appreciate assistance to
hire the best legal talent. Right ava"
came one contribution Of $3.50.
Spears Petition.
Representative Spears petition states
that in fixing certain arbitrary terri
torial limits or zones for the classif1-
cation of premium charges, the cornInts-
sioner exceeded his powers and au-
thority under the provisions of the Law
and that it was not the intent of the
Legislature that the Commonwealth or
any district thereof should be sub
divided into zones or territories, and
that if the commissioner is not acting
beyond his power, the zones fixed by
and discriminatory 1t states also that
the commissioner fixed the rates on
the basis of computation which will pro-
vide the companies isSueing policies
an income more than adequate to meet
the settlement of claims, plus overhead
operating and other reasonable expense.
The petition asks that the court re-
view the findings of the commissioner
and that a decree issue that the terri
- L.. ~L~1s AL
and that the commissioner be ordered
to modify the rates so that they shall
be adequate, just. reasonable and nom
discriminatory. He states that as an
owner of motor vehicle he feels ag-
grieyed.
On top of that came the announce
ment that the Boston Automobile Club
had wired the American Automobile
Association tc enter the matter legally
on behalf Of its members in Massachu-
sets. Also the club plans asking Gov.
Fuller to appoint a fact-f1nding COM
mittee, so per cent of which shall be
car owners with no afiliation with in
surance interests to delve into the rates.
nagf of Cambridge announced he is
having a bill written to arrange for
State insurance on a pro-rata basis.
Again some Of the mayors Of the
communities where the large rates are
imposed are talking of having the
Mayors Clubs meet and appoint COM
mittee from among the city solicitors t.
fight for their motor owners. So the
battle is starting up again In earnest.
Meanwhile. the question Of what to do
about registering cars will come up once
more. Because the rates were before
the Supreme Court on behalf Of the
insurance companies 1t was not possible
for Registrar George A. Parker to get
out the blanks Once Commissioner
Linnell announced his rates blanks
we're being filled out. Now II the rates
are changed sgain there will have to be
rebates.
1t may be possible for Massachusetts
to do as New Hampshire did while the
fight was going on there, by placing the
increased premiums In escrow until a
decision was reached. In New Hanp-
shire there was $4,000 held up that
had to be returned to policyholders
when the Supreme Court there decided
that Insurance Commissioner John z.
Sullivan had right to refuse to re-
new licenses to companies that placed
increased rates In effect over his pro-
test.